Ekurhuleni West TVET College Annual Report 2017

Ekurhuleni West TVET College Annual Report 2017 of 194 HMN/TM

Ekurhuleni West TVET College

2017 Annual Report

Ekurhuleni West TVET College Annual Report 2017 of 194 HMN/tm

TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS -------------------------------------------------------------------------------------- 8

PART A: GENERAL OVERVIEW ------------------------------------------------------------------------------------------ 10

1. MESSAGE FROM THE COUNCIL CHAIRPERSON ----------------------------------------------------------- 19

2. OVERVIEW BY THE ACCOUNTING OFFICER ----------------------------------------------------------------- 21

3. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY ------------------------- 23

4. STRATEGIC OVERVIEW --------------------------------------------------------------------------------------------- 24

4.1 VISION, MISSION AND VALUE STATEMENTS --------------------------------------------------------------------- 24 4.2 STRATEGIC OBJECTIVES ------------------------------------------------------------------------------------------- 25

5. LEGISLATIVE AND OTHER MANDATES ------------------------------------------------------------------------ 28

5.1 LEGISLATIVE FRAMEWORK ----------------------------------------------------------------------------------------- 28 5.2 ANNUAL CYCLE OF REPORTING ----------------------------------------------------------------------------------- 28

6. HIGH-LEVEL ORGANISATIONAL STRUCTURE -------------------------------------------------------------- 29

PART B: PERFORMANCE INFORMATION ---------------------------------------------------------------------------- 31

1. COLLEGE PERFORMANCE AND ORGANISATIONAL ENVIRONMENT ------------------------------- 32

2. PERFORMANCE REPORTING -------------------------------------------------------------------------------------- 31

2.1 SIGNIFICANT ACHIEVEMENTS DURING THE 2017 ACADEMIC YEAR ------------------------------------------ 31 2.2 ANNUAL PERFORMANCE ACHIEVEMENTS ----------------------------------------------------------------------- 63 2.3 COLLEGE ACHIEVEMENT IN TERMS OF EXPECTED OUTCOMES ---------------------------------------------- 65

PART C: GOVERNANCE --------------------------------------------------------------------------------------------------- 67

1. CONSTITUTION OF THE COLLEGE COUNCIL AND GOVERNANCE STRUCTURES ------------- 68

2. COLLEGE PERFORMANCE IN TERMS OF STRATEGIC OBJECTIVES………………………… 70

3. RISK MANAGEMENT -------------------------------------------------------------------------------------------------- 74

4. REPORTS BY COMMITTEES OF COUNCIL -------------------------------------------------------------------- 82

5. ACADEMIC BOARD REPORT -------------------------------------------------------------------------------------- 104

6. STUDENT REPRESENTATIVE COUNCIL REPORT --------------------------------------------------------- 108

PART D: FINANCIAL INFORMATION ------------------------------------------------------------------------------- 110

1. COUNCIL RESPONSIBILITY AND APPROVAL --------------------------------------------------------------- 111

2. REPORT OF THE ACCOUNTING OFFICER-------------------------------------------------------------------- 112

3. REPORT OF THE AUDIT AND RISK COMMITTEE ----------------------------------------------------------- 133


4.1 REPORT OF THE AUDITOR-GENERAL OR EXTERNAL AUDITORS -------------------------------------------- 136 4.2 STATEMENT OF FINANCIAL POSITION --------------------------------------------------------------------------- 141 4.3 STATEMENT OF FINANCIAL PERFORMANCE -------------------------------------------------------------------- 142 4.4 STATEMENT OF CHANGES IN NET ASSETS --------------------------------------------------------------------- 143 4.5 CASH FLOW STATEMENT ------------------------------------------------------------------------------------------ 144 4.6 ACCOUNTING POLICIES -------------------------------------------------------------------------------------------- 145 4.7 NOTES TO THE ANNUAL FINANCIAL STATEMENTS ------------------------------------------------------------- 170


Alberton Campus

Boksburg Campus


Germiston Campus

Kathorus Campus


Kempton Campus

Tembisa Campus


ABBREVIATIONS AND ACRONYMS

APP Annual Performance Plan

COS Centre of Specialisation

DHET Department of Higher Education and Training

HRDS-SA Human Resource Development Strategy for South Africa

M&E Monitoring and Evaluation

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

NDP National Development Plan

NEET Not in employment nor in education and training (youth)

NSDS National Skills Development Strategy

NSF National Skills Fund

OPS Plan Operational Plan

PQM Programme Qualification Mix

PSET Post-School Education and Training

SETA Sector Education and Training Authority

SNE Special Needs Education

SSP Sector Skills Plan

SWOT Strengths, weaknesses, opportunities, threats

TVET Technical and Vocational Education and Training

WIL Work Integrated Learning

WPBL Workplace-based Learning

CET Act Continuing Education and Training Act

E&A Examination and Assessment NSFAS National Student Financial Aid Scheme SETA Sector Education and Training Authority MOA Memorandum of agreement MOU Memorandum of understanding NC(V) National Certificate (Vocational) qualification at NQF levels 2-4. SO Strategic objective MIS Management Information System NSFAS National Student Financial Aid Scheme HE Higher education

NATED National Technical Education curriculum, which includes the Report 191 programmes (N1-N6).

SP Strategic plan SSS Student support services at TVET colleges T&L Teaching and learning with all its supporting activities at colleges.


TVETMIS TVET Management Information System - national unit record data system

Baseline The status quo, usually statistically stated, that provides a point of comparison for future performance.

Data Facts or figures - information consists of data presented in a context so that it can be applied or used.

Data Source Records or source for the information to be sourced in order to be reported.

Elements Categories of data or information

Evaluation

Time-bound and periodic exercise that seeks to provide credible and useful information to answer specific questions in order to guide decision making by policy makers, managers. Evaluation may assess relevance, efficiency, effectiveness, impact and sustainability.

Evidence for Verification

Evidence against which the reported information can be verified and validated.

Indicator

Quantitative or qualitative variable that is used to assess the achievement of results in relation to the stated goals/objectives. The objectives of indicators are to measure progress and achievements; clarify consistency between activities, outputs, outcomes and goals; ensure legitimacy and accountability to all stakeholders by demonstrating progress; and assess project / programme and staff performance.

Method of Calculation

Explanation of how the figures or numbers for reporting are calculated.

Monitoring

Involves collecting, analysing and reporting data on inputs, activities, outputs, outcomes, impacts and external factors to support effective management and achievement of aims. Monitoring provides managers, decision makers and other stakeholders with regular feedback on progress attained, implementation and results as well as early indicators of problem detection and correction.

Monitoring and Evaluation System

Organisational structure with management processes, standards, strategies, plans, indicators, information system, reporting lines, timelines and accountability specifications.


PART A: GENERAL OVERVIEW


1.1. Key strengths:

1.1.1. EWC as a Technical and Vocational Education Learning Hub

As a business, EWC has a student clientele of 7660 headcount of NCV students and 12 730 Report 191 enrolled students. Teaching and training which delivery of the core business occur in all six (6) campuses that spread across the Western part of the City of Ekurhuleni, with the OR Tambo International Airport being the focus point. The campuses collectively covers an geographical area of about ± 2000 km2 with a population of ± 2.8 million, that constitutes ± 5.6% of the national population and makes up 28% of the Gauteng population.

According to the STATS SA approximately three quarters of the people in EMM fall within the potentially economically active age group (between 15 and 64 years), making the local communities our major catchment areas for students. The College has developed as a brand of choice attracting students from the rural communities in Provinces like Limpopo and Eastern Cape who constitute a significant proportion (about 20%) of our registered student population.

A key component to our core business is our partnerships with industries to ensure responsiveness. As a College, EWC has signed cooperative agreements with a number of local industries and businesses who are offering the College a range of services from work-place based placement for both lecturers and students to donation of equipment and professional services. Some of the businesses and industries include South African Airways Technical; Barloworld Equipment (Pty) Ltd; Transnet Engineering; HellermannTyton Group; LG Electronics SA; Transnet Engineering; Ford Motor Company of Southern Africa; Emperors Palace; Actom; Fiat Chrysler; Volkswagen SA; ABSA; Nedbank Foundation; Makro; Foschini Group; Eskom Foundation; Carnival City; MAN Truck and Bus (SA); Pty Ltd; Innovation Hub; Siemens (Pty) Ltd and Scaw Metal. In addition, the College has an international foot print through partnerships with other TVET colleges and industries overseas. The international relationships expose staff and students to international trends through training; exchange programmes; conferences etc.

1.1.2 EWC as an Employer

EWC accomplishes its success by drawing wealth of expertise from the collective, dynamic and experienced lecturing and administrative staff. See college personnel analysis below:

CS EDUCATORS CS EDUCATORS

Total Total AM AF IM IF CM CF WM WF M F

PL1 147 111 0 3 3 2 14 40 164 156 320 PL2 17 14 0 0 2 0 5 9 24 23 47 PL3 7 7 0 0 0 0 2 3 9 11 20 PL5 1 3 0 0 0 0 3 0 4 3 7 Total 172 134 0 3 5 2 24 53 201 192 393

PS EDUCATORS

PUBLIC SERVANTS Salary Level Total

Total Salary Level AM AF IM IF CM CF WM WF M F

SL1-3 11 28 0 0 0 0 0 0 11 28 39

SL4-6 28 49 0 0 0 1 0 4 28 54 82

SL7-8 5 21 0 0 0 0 0 0 5 21 26

SL9-10 4 1 0 0 0 0 0 0 4 1 5

SL11-12 0 1 0 0 0 0 0 0 0 1 1

13+ 0 1 0 0 0 0 0 0 0 1 1

Total 48 101 0 0 0 1 0 4 48 106 154


1.1.3 Programmes Offered: NC (V) Engineering Studies

• Civil Engineering and Building Construction • Electrical Infrastructure Construction • Engineering and Related Design • Information Technology and Computer Science • Mechatronics

NC (V) Business Studies

• Finance, Economics and Accounting • Management • Marketing • Office Administration • Transport and Logistics

NC (V) Utility Studies

• Hospitality • Education and Development • Tourism

Report 191 Engineering Studies

• Mechanical Engineering • Electrical Engineering • Electronics Engineering • Avionics • Aircraft Maintenance/ Aircraft Metalwork

Report 191 Business Studies

• Financial Management • Business Management • Marketing Management • Human Resource Management • Management Assistant

Occupational Programmes

• International Computer Driving License (ICDL) • Computer Literacy (E-learner) • Hospitality • Hair Care • Beauty Therapy • Artisan Development (Automotive, Electrician and Fitting and Turning) • Dual System Pilot Project (Electrician) • Learnership (Wholesale and Retail and Business Management (NARYSEC))

1.1.4. Economics and Social Patterns

Ekurhuleni Metropolitan Municipality (EMM) is the fourth-largest metropolitan municipality in the country. The municipality was given a Tsonga name, “Ekurhuleni” by the people in the region meaning a ‘place of peace’. The metro contributes 25% to the Gauteng’s province’s economy and 6% to the national economy. EMM has a traditional history of being the commercial and manufacturing hub of South Africa and the region. The South African Local Government Association (SALGA) refers to the municipality as the ‘Africa’s Workshop’ (SALGA, 2012) as it has the largest concentration of industrial activity in South Africa and Sub-


Saharan Africa (Gauteng Government, 2014). The city is also the transportation hub of Southern Africa due to its wide and modern network of roads, airports, rail lines, telephones, electricity grids and telecommunications. More specifically, the city is home to OR Tambo International Airport (sub-Saharan Africa’s busiest airport); South Africa's largest railway hub, and a number of country's most significant highways for passengers and freight traffic. EMM’s economy is driven primarily by five economic sectors: finance and business services (21.9%); manufacturing (21.2%); community services (19.7%); trade (15.4%); and transport (10.9%). These five economic sectors collectively account for 89% of economic activity within EMM and account for most of the formal and informal employment (Ibid). It is however important to note that the municipality’s dynamic economy is not able to absorb the potential workforce. Indeed, unemployment in the city currently stands at 28.8% (higher than the 25.4% national rate). EMM attributes this high unemployment rate to internal migration and the recent decline of the manufacturing sectors’ contribution to the economy. High unemployment levels result in poverty (in 2013, the city had the highest number of Africans living in poverty (39,9%) among Gauteng Province’s three metros6 ) and increases in dependence ratio with 38% of households currently receiving a social grant or listed on the municipal indigent register (IDP2015/16).

To address high levels of unemployment and poverty rates, EMM has introduced a number of economic development initiatives. These include creating an Aerotropolis, revitalizing the manufacturing sector and township economies (including SMMEs and informal trading) through the Township Enterprise Development Programme. The Local Economic Development (LED) has a strategic role in fostering economic growth, encouraging economic empowerment and bringing about economic transformation. The unfolding of the national growth and development strategy as well as the provincial iteration of the growth and development strategy is about LED being realized and aligned at a local level. Based on the Spatial Development Framework, EMM identified a set of catalytic projects1 to bring about economic stimulation in the district. These interventions are about improving the quality of life in the course of facilitating an environment for participation in the economy and society. A selection of these projects includes:

Aerotropolis

New strategic approach to airport planning and commercial land use simultaneously benefitting airport, region and nation. Offers businesses located on and near the airport with speedy connectivity to their suppliers, customers, and enterprise partners nationally and worldwide. • Contains the full set of commercial facilities that support airlines and aviation-linked businesses as well as millions of air travellers who pass though the airport annually. An “inside the fence” Airport City is the commercial core of the Aerotropolis operating as its multimodal central business district heavily leveraged by the passenger and cargo terminals of the airport. It spines clusters of airport-linked business and residential complexes that form along airport transportation corridors up to 20 kilometres from some airports with significant economic impact measured up to 60 kilometres.

Manufacturing The City of Ekurhuleni’s economy and strength lies in the comparative advantage of the manufacturing sector that is higher than in other areas. A skilled workforce accommodated close to the manufacturing base, supports this. The availability of raw material and good transport linkages are the added advantage. Viable approaches to industrial development must see the multiple levels on which it occurs. Industrial protection with respect to import parity pricing and other regulatory mechanisms are national programmes with implications at a local level. Facilitating improvements linked to these programmes is one role that the municipality can play. Further industrialisation would require a greater diversification of the economy into value added manufacturing and beneficiation – sustainable manufacturing, inroads into the new quadrant of the economy – ICT industries and Manufacturing: both advanced technology processes as well as labour intensity. Transport and logistics industries will be aligned to support the manufacturing base. The presence of the JIA, Rand Airport, the N12 and N3 freeways and the City Deep container terminal provide opportunities for the continued development of this industry to support exports. The overall development of manufacturing will be led by competitiveness within the Industry. 1 Geographical Overview of Ekurhuleni ( SoER 2003) and South Africa: Manufacturing, Tourism Sectors Incentivised July 2007


The College’s response - Coordination and linkages with other stakeholders.

The College has responded to the potential at promise by the developments outlined above, through expansion of partnership networks with both business and SETAs. Through our Partnership and Business Unit strategic areas, we have first concluded a formal partnership with Ekurhuleni Municipality Metro for financial support of our students to be exposed to work placement. We have placed activities that will streamline the process of placement of our students in top 100 businesses in the local area. New partnerships with companies such as BOSCH, LG and Samsung have been concluded to enable implementation of a new learnerships in the domestic appliance field. Our plans further reflect the development of scarce skills through training of artisans. A programme in this regard has been introduced at our Tembisa Campus. Most of the CBDs around Ekurhuleni experience problems of urban decay but there are still big Malls that the college derives key strength from, such as:

• Eastgate Mall • Bedfordview Centre • Lakeside Mall • Mall of the south • East Rand Mall not withstanding Malls in the historically disadvantaged townships.

The College has identified the following five areas for development of niche programmes:

Engineering (in response to manufacturing as a major sector – Mechatronics, civil, automotive and electrical);

ICT (Provincial objective); Transport and Logistics; Services (Tourism and Hospitality) and Finance – Local objective Community Services in collaboration with Gauteng Department of Education, Department of

Environmental Affairs; Department of Trade and Industry (Dti); Department of Small Business Development and SETAs.

1.2 Areas of Excellence:

1.2.1. Academic Approach

The result-oriented approach of EWC ensures academic integrity and the ability to reach competitive results. The NC (V) pass rate for 2017 was 85.49%. The College is consistently working to improve the certification rate, which by definition remains a subset of the entire student population, which is currently at an average of 67.69% together with a throughput rate of 92.70%.

1.2.2. Upgrading of and extension of facilities:

Upgrading of and extension of facilities:

The college is consciously developing and refurbishing teaching and training facilities to match industrial state of the art levels as well as the accreditation requirements by the regulatory bodies. To date, the College boasts of a number of well-equipped workshops lined up with current and conceptual equipment and process some donated by industry for ensuring responsive learning. In the previous financial year, the College made great strides to complete a number of capital based projects, briefly expanded below:

A Estate Projects

The following projects were successfully completed in 2017:

• Installations of curtaining at new Corporate Centre, Kathorus, Boksburg and Tembisa • Upgrade of Germiston Hall and Walkway Entrances • Furniture at Boksburg and Kathorus Campus • CCTV Cameras at Boksburg Campus • Garden services for 24 months at Alberton Campus • Cleaning Services at Tembisa Campus and Corporate Centre for 24 months • 36 Computer Monitors for Boksburg Campus • Power and Network upgrade in Computer venue (B16) at Boksburg Campus


• Repairs of CCTV Cameras at Kathorus Campus administration • New Corporate Centre Alarm system and VOIP telephones • New Auditorium lift voice annunciator • Paving between B-block and Workshops at Boksburg Campus • Large shredders for all Campuses • Air conditioners for all skills areas and SSS office at Germiston Campus • Enterprise hub building complete • Germiston Hall areas blinds, window tinting and saloon doors

B Title Deeds

Number Site Address Erf No Comments

1 Corporate Centre

and Germiston

Workshops

17 Rose Innes

Street, Driehoek,

Germiston, 1400

Remainder Extent of

ERF 1633, Germiston

Extension 4

Title deed in

College’s name

2 Alberton Campus 25 Lake Arthur

Street,

Brackendowns,

Alberton 1448

Erf 2840 and 2841

Brackendowns,

Alberton

Title deed in

College’s name

3 Boksburg Campus 49 North Street,

Plantation, Boksburg

(Consolidation of all

stands on the

Campus)

Erf 1775 Boksburg

Township

(Erf 970, Erf 1607,Erf

1745 and 1746)

Title deed in

College’s name

4 Germiston

Campus

Cnr Driehoek and Sol

Roads, Driehoek,

Germiston, 1400

(Consolidation of all

stands on the

Campus)

Erf 960, 973. 1110,

1120, 963, 961

Germiston Extension

4

Title deed in

College’s name

5 Kathorus Campus Cnr. Poole & Thutong

Streets, Katlehong

Property still

needs to be

rezoned by the

Ekurhuleni

Municipality. The

college has

appointed the

land town

planners to fast

track the process.

5 Kempton Campus Cnr Partridge

Avenue and Pretoria

Road, Allen Grove,

Kempton Park

Portion 170

Zuurfontein

Title deed in

College’s name


6 Tembisa Campus 9 Majika Street,

Esiqongweni

Section, Tembisa

Erf 1, Esinqongweni Title deed in

College’s name

C TEACHING AND LEARNING EQUIPMENT

- Electrical Equipment at Kempton Campus - Electronic PLC equipment for all Campuses except Alberton

- Insurance of all assets for 36 Months

- New Services Contracts for Security, Cleaning and Gardening for 2017/2018.

D General

The Lottery has also donated money for taking care of the grounds for students’ recreation and combi-courts have been constructed at Alberton and Tembisa Campuses. The soccer field at Kempton Campus has also been upgraded with automated irrigation, new lawn and equipment. The paved walkways at Alberton Campus has been upgraded and new kerbing has been fitted at all paved walkways.

1.2.3. Integrated Administrative Systems

The College has a top class Business Management System known as ITS (Integrated Tertiary Software) which ensures a fully integrated administrative systems including Student Management, Financial Management, Human Resources (Personnel), Payroll, Library and Management Information. These systems see to the smooth collection of students’ data that is produced in the most effective and efficient way and that is responsive to the needs of the Department of Higher Education and Training (DHET). The highlights of the system are the interrelated specialized modules for management of functions such as tracked procurement; statistical student performance reports; integrated database for student support service – workplace based placement and Human Resource processes.

1.2.4. Quality Manual and OHS

The Quality Management System was externally audited by SABS in 2017 in the following areas: Quality: SABS Audits for 9001 of 2008 (Quality) took place at Tembisa Campus, Germiston campus and Corporate Centre 24, 25 and 26 April 2017. It went well as the college passed the audits with only three minor findings that were raised. These findings were cleared within a month and EWC was recertified for 9001. The auditors also expressed their satisfaction with the college QMS and made it clear that there is an improvement in this area. OHSAS: SABS Audits for 18001 of 2008 (OHSAS) took place at Kathorus Campus, Germiston campus and Corporate Centre 13, 14 and 15 July 2017 respectively. During the three days of audits not one finding (Non-Conformance) was raised. 2017 was always targeted as the year to apply for certification for the 14001 (Environmental) and the 27001 (ISMS) Stage one audits took place 4 December 2017 (14001) and 5 December 2017 (27001) respectively and EWC was granted the green light to progress to Stage 2 Audits for certification for both standards. In terms of Environmental Management 2017 was the year we introduced documented evidence of EWC waste streams and also visits to our Waste Recyclers. The Annual Management Review took place 1, 2 and 3 November 2017 and all systems were reviewed in terms of functionality, strengths and also areas earmarked for improvement. STATEMENT OF COMPLIANCE of the Quality Management System was signed by the principal.


The QMS department also did QMS training in Brighton during July 2017 and several new projects on the Quality Manual were launched, probably the most exiting one being the on-line learning system (e- learning) from where we can even do on-line assessments.

1.2.5 Centre for Entrepreneurship (CfE)

The construction of the Enterprise Hub is completed. The recruitment of the 1st Cohort of the incubatees was concluded end of 2017and to start early 2018.

1.3 Accreditation

The following programmes have been accredited.

• Automotive Repair Maintenance: Level 2 Workshops Kathorus and Germiston Campuses. Level 2-4 Workshops at Kempton and Tembisa campuses (MERSETA).

• Hairdressing: Level 2, 3 and 4 Germiston and Kempton Campuses (Services SETA). • National Certificate in Professional Cookery: Level 4 Germiston Campus (CATHSSETA). • Cosmetology (Beauty Therapy) and Hair Care– City and Guilds Accreditation – Germiston

registered as Centre and Kempton as sub centre. • City and Guilds Certificates and Diploma in Hospitality and Food Services – Germiston campus. • e-Learner and Webstarter by ICDL Foundation – Germiston campus. • Comptia Membership on Computer Engineering courses (Computer Technician – A+ and

Networking Technician – N+) – Germiston campus. • Building and Civil Construction level 3 Tembisa Campus (CETA) • Environmental Practice level 2 - 4 Kathorus Campus (LG SETA)

1.4. Achievements 1.4.1 International Visits

The College had an opportunity of sending a delegation and receiving a delegation to and from Germany every year from Ludwig Erhard-Schule in Fürth, Germany.

1.5. Partnerships and Linkages.

1.5.1. Ludwig Erhard-Schule Fürth in Germany.

EWC has been involved in a social and cultural exchange scheme with the Ludwig Erhard-Schule in Furth located in the Bavarian region of Germany, for over ten (10) years. Students and Lecturers of the Ludwig Erhard Schule visit EWC yearly to experience first-hand the vocational education, different cultures, and Eco tourism in South Africa. A delegation from EWC also visits Germany to obtain first-hand experience regarding the dual vocational system and different cultures in Germany.

1.5.2. Sisonke Partnership Pty Ltd

EWC has signed an MoU with Sisonke Partnership after having been involved with the Network for Black Professionals (UK) in the mentor – mentee training funded by the British Council. Through Sisonke Partnership middle managers received training on Monitoring and Evaluation. The training on Employability Skills has started for both lecturers and students.

1.5.3. GIZ

Work Based Exposure of Tembisa students and Dual System Pilot Project in Electrical Engineering.

1.5.4. South African Airways Technical

The college signed a MoU with SAAT in 2011 and two ministers – Dr Blade Nzimande and Mr Malusi Gigaba co-signed with the two parties. The relationship is supported by the South African Airways and its


subsidiaries. Among other things it does workplace placement of both lecturers and students; dealing with curriculum assessment of Avionics and Aircraft Maintenance.

1.5.5. Barloworld Equipment (Pty) Ltd

EWC signed a MoU with Barloworld in 2010. The two parties are doing learnerships together of NC (V) students to fast track them for apprenticeship; workplace placement of lecturers and students and sharing of expertise. EWC lecturers are also placed at Barloworld Equipment to experience training on Basic Hydraulics and Power Train Fundamentals.

1.5.6. Emperors Palace

The college has a working relationship with Emperors Palace of doing training together of using facilities, student’s work-based-exposure, and internship and lecturers workplace placement.

1.5.7. Wholesale and Retailers Companies

The college is doing work-based-exposure of students during holidays and weekends at Foschini Group Sports shops; Mr Price and Pick ‘n Pay shops around Ekurhuleni. The Wholesale and Retail SETA fund the students on TFG project. Makro partnered with W&RSETA donated stock and refurbished the simulation centre at Boksburg campus.

1.5.8. Ekurhuleni Metropolitan Municipality

EWC; EMM and EEC have signed an MoU during Youth month, in 2012. The group has undertaken to do training together, placement of both lecturers and students mostly in their electrical department, RPL of EMM employees.

1.5.9. Otis SA

A partnership was initiated in 2009 by Otis Management to assist the company with placement of students for a learnership in lifts repair. The learnership will be based at Otis. College lecturers can be used to facilitate fundamental subjects. The college was able to place students on a learnership with possibilities of employment.

Otis also pledges their support towards workshop equipment in the form of a donation and wants to assist disadvantaged students by giving a bursary.

1.5.10. Renault SA

As part of their social responsibilities, Renault SA donated two ‘prototype’ vehicles that are utilised for training of students at Kathorus and Tembisa Campuses the first car for Kathorus had been received presented by the Renault SA, MD – Mr Xavier Gobille and the 2nd one by Ms Jenni Stephen - HR President. 1.5.11. Transnet Engineering The college signed an MoU with Transnet Engineering at a prestigious function at Tembisa Campus. The campus received a donation of Welding equipment from Transnet Engineering handed by the Group Executive. Lecturers and students have been placed at Transnet Engineering in their different departments. EWC trains staff of Transnet Engineering too. 1.5.12 LG Electronics SA The college signed an MoU in 2013 and a pledge at LG Electronics SA in Gosforth. The Deputy Minister of Higher Education and Training, Mr Mduduzi Manana, co-signed the pledge. Students are placed at LG for internship and some already received promotional posts and others are technicians.


1.5.13 Samsung Engineering Academy EWC is among the four (4) colleges that have NC (V) students at Samsung for a learnership. Students attend once a week for 12 months to prepare them for a World of work even up to South Korea.

1.5.14. Scaw Metals

Placement of engineering students for WBE and WIL.

1.5.15 Ford Motor Company of Southern Africa

Ford Motor Company donated three Ford Rangers for Kathorus, Kempton and Tembisa Campuses to be used solely for training in the workshop.

1.6. Goals

EWC is experiencing another year of hard-work having released funds from the National Skills Fund for expansion of colleges and capacity building and we are more geared for great partnerships towards skills development and are expanding on the ventures of partnerships with the adoption of the National Skills Development Strategy lll (NSDS III) by the Minister of Higher Education and Training, Dr Blade Nzimande and the signing of the Skills Accord. This will give the college leverage in forming partnerships with industry and SETAs. It also assist the college on Artisan Development.

The college is also working its fingers to the bone to increase its throughput rate on both Report 191 and NC (V).

1.7. Our Strategic Key Priorities

• Provide affordable programme delivery. • Ensure accessibility to deliver systems. • Ensure excellence in programme presentation. • Ensure adherence to quality assurance standards.

Satisfy Industry and Community needs. Develop and maintain an effective and efficient employee complement which equates to the goals of Employment Equity legislation.


1. MESSAGE FROM THE COUNCIL CHAIRPERSON

Ekurhuleni West TVET College (EWC) presents herein the 2017 Annual Report as required by legislation. For us the report is a tool communicating our financial matters as audited by external independent auditors, as well as the performance review against predetermined objectives outlined in the strategic plan document and the associated Operational Plan. EWC proudly participates within the TVET College sector that is governed by a set of inextricably intertwined within a distinctive set of major policies issued by the post-apartheid government, since the advent of democracy in 1994. These include the foundational policies such as the: Reconstruction and Development

Plan (1994), Growth and the Employment and Redistribution (1996), the FET Act 98 of1998. Added to these are the refined policies speaking to economic growth such as the: New Growth National Development Plan Path (2011), Industrial Policy Action Plan 2 (2011), Human Resource Development Strategy for South Africa 2010-2030 (2009), Skills Accord (2010) and National Skills Development Strategy lll (2010). The common thread running through these major policy outlines revolves centrally around the notion of seeing South Africa as being a ‘developmental state’. From an education perspective, the idea of a developmental state strategically locates us as TVET Colleges at the centre of the developmental matrix for the provisioning of intermediate, priority scarce skills as pointed out by the Minister of Higher Education Naledi Pandor (April, 2018). In our previous Annual Report (2016), we highlighted the need to strengthen and reposition ourselves as the TVET sector for increased efficiency in the present and future world of the 4th Generation Industrial Revolution. It is therefore with pleasure that in this report I could reflect on the continued state of good health of the College’s governance providing a conducive environment to growth. Our extent of performance is evident through selected realities that speaks directly to our mandate. These are: (i) our unqualified financial report; (ii) increased intake and access to programmes by the disadvantaged communities; (iii) measurable contribution towards poverty reduction reflective in our pass and certification rates, and our (iv) retention of the SABS seal of Quality on our Management systems. As Council of EWC, we remain committed to the National Mandate given to TVET Colleges to function as a high quality, transformed and responsive system that promotes skilling and re-skilling, learner mobility and ultimately re-dressing the ills of the past regime. EWC’s mission remains conscious of the objective to provide our youth with intermediate to high-level skills that would lay a foundation for higher education and facilitate the transition from school to work. The driving theme behind our achievement in the 2017 academic year was “If you cannot imagine it, you cannot do it”. Through this theme we instilled an organizational culture that promoted accountability and the ethos of ownership! We are proud to report on our institutional gains through this Annual Report. While we vaunt on our gains we however remain cognisant of the adverse experiences of high unemployment particularly by our youth who are not in school nor in employment. Our mandate requires us to implement innovative solutions that offers them a second chance in the spirit of lifelong learning. Funding remains a crucial element in realizing our developmental and social goals while the experienced growing shortfall in fiscal funding remain a major concern. Nonetheless, as EWC Council we remain vigilant to accountability. It is in this spirit that we reflect on the gains made with the public resources assigned to us in 2017 and, our plans for continued growth henceforth.


At this point, I would like to express my appreciation of the excellent performance by the college staff, students and management. As Council we are indebted to our business and community partners for upholding their commitment and responsibilities. In so doing, they have made us proud to be ‘EWCies’

I am grateful for what we achieved in 2017 and a special word of thanks goes to my fellow Council members. ____________________ Dr M. Mohlala Chairperson of College Council


2. OVERVIEW BY THE ACCOUNTING OFFICER

South Africa as a ‘developmental state’ is correctly found focused in re-dressing the complex consequences of the past injustices. However, there is a looming danger associated with being locked in this position as the world moves towards the 4th Industrial Revolution that brings - in unusual digital demands upon us. Unlike the past industrial revolution, where the manufacturing industry was at the head of the value chain, hence our strategic focus on related skills, with the upcoming revolution manufacturing industries will be subordinate of digital firms. In order to prepare and turn our fears into opportunity, we will have to reshape education for the new generation to focus on priority scarce skills where priority includes access to high-end digital command. It is also important to note that about 50% or more of the current workforce will need re-skilling in order to continue to be active participants in the upcoming economic market. There is urgent need for rethinking and repositioning our focus lest our experience of the upcoming revolution indeed be peril, not opportunity.

As I present and provide the highlights of our excellent 2017 performance it is important that I register the urgency needed for EWC to refine focus and build more momentum in align to priority scarce skills including the digital technologies. It is with this understanding that in the previous year, 2016 I reported on our major overhaul of our Information Technology network increasing our bandwidth from 10 Mbs ten times to 100Mbs. I am proud to report completion of this process and the benefits we have derived from this move. The increased network capacity has enabled our core business, the academic programmes to increase use of online modules to support teaching and to automate administration tasks such as attendance and class test marks. These are now all linked to our management information system making the College’s collective key performance outputs accessible at an instant. The ultimate benefit of our improved digitized system is particularly reflective in our academic target outputs, which serve as a barometer reflecting the state of health of the business. I am proud to highlight our achievement of a subject pass-rate of 80% and 87% in our NC (V) programmes and Nated programmes respectively. This success indicates a significant number of our young citizens who have learned a new skill subject by subject. We remain cognisant of our higher goal to reach similar rates with certification. It is important to note the critical role that has been played by our strategic business partners who continued to bring into our academic mix new technologies and exposure of our students and staff to the world of work. EWC continues to harness the technological input brought by partners such as Ford Motor Company of Southern Africa, Volkswagen SA and Fiat Chrysler Group who brought-in their latest motor engines for upgrading our motor mechanic courses. Partners such as OTIS who has over the years continue to expose our students to new digital technologies for the equipment assembling and repair. The long-term contribution by electronics companies such as Samsung Engineering, LG Electronics SA, Bosch and many others towards our electronics courses remain irreplaceable particularly now as we grow in conscious towards the digital economy. They continue to assure our firm and positive steps towards priority scarce skills.

EWC has remained mindful of implementing best practices that reflect our business values and culture to our stakeholders such as our Quality Management System based on a myriad of worldwide


recognized standards: ISO: 9001 of 2008; ISO 14001; OHSAS 18001 and ISMS 27001. It is with pride to note that the College has done it again, and retained these standards in 2017. These standards especially OHS and HIRA have been extended to guard our newly launched futuristic Head Office called KGORONG Auditorium, a place of gathering and the Corporate Centre known as Legae House, a real home. This state of the art Hub is geared to create a welcoming but inspiring working environment challenging both staff and management to gear up for the future better EWC. Alongside the completion of Kgorong Auditorium and Legae House, are a number of capital investment projects a mix of refurbishment of our workshops for accreditation and building of new infrastructural facilities in line with our mission for high quality teaching and learning were completed. Among a few to mention is the completion workshops for Panel beating, Spray painting, Plumbing and Fabrication areas at Tembisa Campus, the renovations of the Germiston Hall, and completion of the Incubation Hub at Kathorus campus. The achievement hinted above, could not have been realized without the incredible effort of EWC’s academic staff, support staff, management and most important students who trusted us with their future. I am forever grateful to the commitment displayed unreservedly by the College Council. I also trust that this Annual Report will encourage all of us to urgently take up the challenge ahead of us and gear-up accordingly.

It is with great appreciation that I, the principal of EWC TVET College, endorse this Annual Report and the collective commitment by all strategic partners and role-players. I remain highly positive and anticipative of what we can do together. Let us continue to dream, strive and remember that “If you cannot Imagine it, you cannot do it”, Aa!.

________________ Hellen M. Ntlatleng Principal


3. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY To the best of my knowledge and belief, I confirm the following:

• All information and amounts disclosed throughout the Annual Report are consistent. • The Annual Report has been prepared in accordance with the guidelines issued by the

Department of higher Education and Training. • The Annual Financial Statements have been prepared in accordance with the relevant

standards, frameworks and guidelines issued by National Treasury. • The Accounting Officer, i.e. the principal, is responsible for the preparation of the Annual

Financial Statements and for the judgements made in this document. • The Accounting Officer, i.e. the principal, is responsible for establishing and implementing

a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

• The Auditor-General expresses an independent opinion on the Annual Financial Statements.

In my opinion, the Annual Report fairly reflects the operations, the performance information, the human resources information and the financial affairs of Ekurhuleni West TVET College for the financial year ended 31 December 2017. Ms. H.M. Ntlatleng


4. STRATEGIC OVERVIEW 4.1 Vision, Mission and Value Statements

EWC will be the

leading TVET

institution in South

Africa.

VISION Where we want to be

EWC aspires to equip learners with knowledge and skills by offering appropriate, quality, education and training programmes in order to empower students to readily obtain employment or become self-employed. In providing training EWC strives to: • Provide affordable programme

delivery • Ensure accessibility to delivery

systems • Ensure excellence in programme

presentation • Ensure adherence to quality

assurance standards

MISSION Why we

exist

The following key concepts were identified as core values of EWC. • Freedom of inquiry and the

advancement of knowledge • Respect and appreciation for different

ideas, opinions, values beliefs, ethics and cultures;

• Intellectual honesty in the pursuit of knowledge

• Diversity in all areas of campus life; • Freedom of expression; • Responsiveness to community needs; • Freedom from all forms of harassment

VALUES How we behave

STRATEGIC GOALS AND INITIATIVES

What we are going to do

- Provide affordable programme delivery - Ensure accessibility to delivery systems - Ensure excellence in Programme presentation - Ensure adherence to quality assurance standards - Satisfy Industry and Community needs - Develop and Maintain an effective and efficient employee complement which equates to the goals of the Employment Equity legislation

INDIVIDUAL PERFORMANCE

How we manage our individual performance Through the following Structures: - Executive Management Team (EMT) - Broad Management Team (BMT) - Campus Managers and EMT. - Divisional meetings. - HoD Forums. - Staff meetings. - EMT and SRC meetings. - Parents meetings. - External Stakeholders meetings. - PMDS and IQMS

ORGANISATIONAL PERFORMANCE

How we manage our collective performance

Through the following structures: - College Council Statute and Code of Conduct. - Academic Board (Terms of Reference) - Risk and Audit Committee (Charter) - Committees of Council - SABS external audits on ISO: 9001 of 2008 OHS: 18001 of 2012 - Internal Audits Environmental: 14001 ISMS: 27001 - Audited Financial Statement (unqualified reports). - Internal Financial Audit - DHET examinations results on NC (V) and Report 191 - Enrolments targets. - Other Accreditation bodies City and Guilds SETAs Accreditation


4.2 Strategic Objectives Description

TVET COLLEGE STRATEGIC OBJECTIVES

Strategic Objective 1

To ensure continuous business excellence in terms of good corporate

governance and effectual management of all college resources as well as

information and data reporting. (Governance and steering)

Objective Statement

To govern and steer the college to function optimally and take appropriate

action where deficiencies are detected.

Justification To ensure the college is efficiently governed and managed within the

applicable acts, policy and regulatory frameworks and standards relevant

thereto so that it functions optimally.

Links Linked to NDP, MTSF and White Paper on PSET

Performance Indicator/s linked to this Objective

Assessment of College Council by DHET. Training of college council on

Corporate Governance. Action Plan of college council to be put in place.


To provide quality technical and vocational education and training services

and increase academic achievement and success of students.

Objective Statement

To improve quality of technical and vocational education and training

provision through the development of teaching and learning support plans,

inclusive of appropriate student support.

Justification

To ensure that lecturers and students receive the support necessary for

lecturers to function optimally and students to perform optimally in technical

and vocational programmes.

To ensure improvement in student success in programmes offered at the

college as well as student progression (measured in terms of pass rates).

Links Linked to NDP, MTSF and White Paper on PSET, EWC Teaching & Learning

Plans, EWC SSS Plans



Performance outcome indicators:

2. Certification rates in TVET qualifications 67.69%

3. Compliance with national policy of college examination centres conducting

national examination and assessments - 100%

4. Throughput rates 92.70%

7. Funded NC(V) L4 students obtaining qualification within stipulated time

10. TVET students placed in workplaces/industry for specified periods for

work exposure or experiential learning (n)

11. Students enrolled into artisan-related programmes (n)

Pass Rates Programme 2015 2016 2017 NC (V) 81,91 % 80 % 49 %

Report 191 Engineering

79,34 % 75 % 74.31 %

Report 191 Business

63,16 % 65 % 87.21 %


To have adequate infrastructure and systems in place to increase access and

provide effective services to students.

Objective Statement

To ensure institutional capacity and efficiency in terms of the provision of

access and support services to students.

Justification To increase the number of skilled youth by expanding access to education

and training opportunities while ensuring provision of effective services to

students.

Links Linked to NDP, MTSF and White Paper on PSET


Performance outcome indicator 1 – Head count enrolments


To develop partnerships and maintain good stakeholder relations to increase

the number of students who are adequately prepared to enter the labour

market or further and higher learning opportunities, and improve the skills of

lecturers to the latest technology by exposing them to the industry

Objective Statement

To increase the number of students who are able to access formal or self-

employment and/or further and higher education and training opportunities.


To provide work placement opportunities for lecturing staff in order to improve

quality of teaching and learning.

To lead and produce quality skill full workforce to the industry and maintain

mutual relationship

Justification To ensure students are adequately prepared and supported to access formal

or self-employment and/or further and higher learning opportunities.

Links Linked to NDP, MTSF, White Paper on PSET and EWC Partnership policy


TVET lecturers placed in workplaces for specified periods (n) 2019/20 target

is 100. In 2016-68% was achieved from target of 100. In 2017 target 110

(10% increase), 74 lecturers were placed with 67% target achieved.

10.TVET students placed in workplaces/industry for specified periods for work

exposure or experiential learning (n)

NC (V)

- Work based Experience NC (V) L4 – 719 (WBE)

- Work Integrated Learning NC (V) L4 – 69 (WIL)

Report 191

- Work Integrated Learning – 271 (WIL)

- Report 191 Employment – 42

- Artisan Development Apprenticeship - 31


To ensure continuous effective excellence in terms of good Corporate

administration and management (college system efficiency) as well as

accurate and reliable information and data reporting.

Objective Statement

To implement business continuity management system that works closely

with the corporate governance process in ensuring that the disaster recovery

plans are able to identify, assess and respond to potential disruptions.

Justification To ensure the college’s management system is not disrupted and that the

data produced is effective, accurate, reliable and authentic.

Links

Linked to NDP, MTSF and White Paper on PSET

Monitoring and Evaluation report

Monitoring of IT service providers

ISMS 27001


Performance outcome indicators:

1 - Headcount enrolments (n)

2 - Certification rates in TVET qualifications 67.69%

4 - Throughput rate 92.70%

7 - Funded NC(V) L4 students obtaining qualification within stipulated

time 70%

11 - Students enrolled into artisan-related programmes (n) 31


5. LEGISLATIVE AND OTHER MANDATES 5.1 Legislative Framework In terms of Sections 25(3) and 25(4) of the Continuing Education and Training (CET) Colleges Act, No 16 of 2006 (as amended), public technical and vocational education and training (TVET) colleges are required to produce annual financial reports and to comply with any reasonable additional reporting requirement established by the Minister. Moreover, Section 44 of the Act requires colleges to annually report to the Minister in respect of its performance and its use of available resources. In addition, these pieces of legislation govern and steer the college in terms of achievement of its strategic and performance objectives. The Constitution of the Republic of South Africa (Section 29(1)-(4)) provides for the right of basic and further education to everyone in the official language of their choice provided equity, redress and practicability are taken into account. In addition, the Continuing Education and Training (CET) Colleges Act (No 16 of 2006) provides for the regulation of continuing and further education and training through the establishment, governance and funding of public technical and vocational education and training (TVET) colleges and the promotion of quality in continuing and further education and training. Further sets of legislation that impact on the TVET colleges sector and its strategic and national imperatives are listed below: o National Qualifications Framework (NQF) Act (No 67 of 2008); o Higher Education (HE) Act (No 101 of 1997); o Skills Development Act (No 97 of 1998); o Skills Development Levies Act (No 9 of 1999); and o General and Further Education and Training Quality Assurance Act (No 58 of 2001). o Public Service Act, 1994 o Labour Relations Act (No 66 of 1995) o Employment Equity Act 55 (No 55 of 1998) o Basic Conditions of Employment Act (No 11 of 2002) o Preferential Procurement Policy Framework Act (No 5 of 2000) as amended o Public Finance Management Act (No 29 of 1999) as amended In addition, the White Paper for Post-School Education and Training mandates delivery and strategic priorities in the TVET colleges sector. Other policy mandates include: o National Trade Testing Regulations; o SETA Grant Regulations; o National Skills Development Strategy NSDS III; o Public TVET College Attendance and Punctuality Policy; and o Policy on the Conduct of National Examinations and Assessment. o Treasury Regulations 2002 (Gazette No 23463 of 25 May 2002) o National Development Strategy 2030 O New Growth Path: Accord 1 - National Skills Accord 5.2 Annual Cycle of Reporting The final annual reports of the TVET colleges must be submitted to the Department on 30 September of every year. These reports, referred to in Sections 25 and 44 of the CET Colleges Act, must include: o a report on the overall management and governance of the college; o a report on its overall performance and use of available resources; o duly audited annual financial statements; and o any additional information required by the Minister in terms of the Act.


6. HIGH-LEVEL ORGANISATIONAL STRUCTURE College Staff Establishment below:

No STAFF ESTABLISHMENT

(Funded Posts) Number of staff Fixed term

1 Total number of staff 547 91

2 Total number of lecturer 363 78

3 Support staff 184 13

4 Total vacant 54 0

(Non-funded posts)

6 Total number of staff 0 13

7 Total number of lecturer 0 0

8 Support staff 0 13

9 Total vacant 0 0

Please refer to the attached College Organisational Structure


lnhhhh5ffyhgghhg66

Financial Management

EWC ORGANOGRAM

EWC College Council

IT & BMS

Deputy Principal (Chief Financial Officer)

Campus

Managers

Deputy Principal Academic Affairs

Principal

Deputy Principal

Corporate Services

Centre for

Entrepreneur

Supply

Chain Curriculum -

Programme

Student Affairs Student

Support

Management

Accounting

Partnerships &

Linkages Estate

Management

HRM, Admin,

HRD & LR Marketing

Educational

Psychology

Business Unit

(Placement & learnerships)

Debtors Payroll

Financial

Management

Internal

Auditing

Quality

Management

Council Scribe

Ekurhuleni West TVET College of 194 HMN/tm

PART B: PERFORMANCE INFORMATION


COLLEGE PERFORMANCE AND ORGANISATIONAL ENVIRONMENT Significant Achievements during the 2017 Academic year Enrolments Statistics NC (V) Enrolment Figures = 7136

Report 191 Enrolment Figures

• Engineering Studies Programs = 8324 • Business Studies Programs = 4874 • TOTAL Report 191 = 13 198

EWC enrolments in 2017 = 20 334.

PROGRAM FULL-TIME EQUIVALENTS (FTE)

HEAD COUNTS TARGETS DEVIATION (positive)

NC (V)

6446.583 7136 6922 214

Report 191 –Engineering

1811.23 8324 8135 189

Report 191 – Business

1925 4874 4284 590

Other Programs

342

Grand Total Ministerial

20334

19341

993

CAMPUS NC(V)

TARGETS

ACTUAL

DEVIATION

ALBERTON

1080

1094

14

BOKSBURG

821

751

70 Neg

GERMISTON

1373

1429

56

KATHORUS

1085

1182

97

KEMPTON

1208

1314

106

TEMBISA

1355

1366

11

EWC TOTAL

6922

7136

214


CAMPUS REPORT 191 ENGINEERING

TARGETS

ACTUAL

DEVIATION

GERMISTON

3460

3503

43

KATHORUS

1833

1915

82

KEMPTON

2842

2906

64

EWC TOTAL

8135

8324

189

CAMPUS REPORT 191 BUSINESS STUDIES

TARGETS

ACTUAL

DEVIATION

GERMISTON

1812

2170

358

KATHORUS

695

1010

315

KEMPTON

1777

1471

306 Neg

EWC TOTAL

4284

4651

367

Examination Results Results: National Certificate (Vocational) November 2017 The percentage pass written average: 85.49% The percent pass enrolled average: 63.85% Results: Business Studies Report 191 S/2017 The percentage pass written average (full time): 87.21% Results: Engineering Studies Report 191 T/2017 The percentage pass written average (full time): 74.31% NC (V)

1006 681 67,69% Certification 2204 2043 92,70% Throughput

Report 191 N3 Engineering Studies




Report 191 Business N4 – N6

450 280 62,22% Cert 840 1132 74,20% Through

Average Attendance: NC (V) = 63% Report 191 Engineering = 81.33% Report 191 Business = 85.5%


RESULTS ANALYSIS OF NC (V) 2017

Level 3 EWC Level 2 Level 4

89,60%

85,49%84,04% 83,54%

NC (V) November 2017 combined subject results All programmes per level hi to low

Tembisa Alberton Boksburg Germiston EWC Kathorus Kempton

89,48%

86,68%

84,17% 84,08% 84,04%82,66%

77,23%

LEVEL 2NC (V) November 2017 combined subject results

All programmes per campus hi to low


Boksburg Alberton Tembisa EWC Germiston Kempton Kathorus

92,23% 92,17%

90,59%89,60%

88,81%

87,48%

85,79%



Tembisa Alberton Germiston EWC Boksburg Kempton Kathorus

87,89%

85,00% 84,39% 83,54%82,10%

81,21%

76,40%




RESULTS ANALYSIS FOR REPORT 191 – ENGINEERING

T1/16 T2/16 T3/16 T1/17 T2/17 T3/17

58,90% 64,65%74,15% 78,65%

69,39%74,90%

EWC % Pass for a period of six trimesters

EWC

T1/16 T2/16 T3/16 T1/17 T2/17 T3/17

61,92%72,27% 76,32% 81,19%

74,16%80,48%

% Pass at Germiston Campus for a period of six trimesters

Germiston

T1/16 T2/16 T3/16 T1/17 T2/17 T3/17

47,65% 51,43%

66,16%74,54%

64,35% 68,79%

% Pass at Kathorus Campus for a period of Six Trimesters

Kathorus


RESULTS ANALYSIS FOR REPORT 191 – BUSINESS STUDIES

T1/16 T2/16 T3/16 T1/17 T2/17 T3/17

70,20% 71,56%

80,13% 80,45%

70,44%

75,57%

% Pass at Kempton Campus for a period of six trimesters

Kempton


2017 Academic Interventions

• Intervention Meetings (one on one) • Sharing of Good Practices • Internal Subject Content Training • Learning Area Committee Meetings • Monitoring and Support Campus Visits • Moderator Training & Centralised Marking – NC (V)

. NC (V) L2 & L3 Centralised Marking – November 2017

Level Expected number of scripts to be marked

Actual number of scripts marked

Deviation % written

L2 6 928 4 485 -2 443 64.74% L3 3 188 2 584 -604 81.05%

Total 10 116 7 069 -3 047 69.88% National Examinations were conducted without any challenges and according to examination instructions of 2017. STUDENT SUPPORT SERVICES The Strategic Area’s main objective is “to implement a functional student support system as per relevant Acts and Policies”. The 2017 academic year was preceded by a year riddled with student unrests and court interdicts against some challenging individuals; hence the SSS team was determined to ensure that the year 2017 would be a productive and peaceful one.


Key Objectives 1. Facilitate the appointment and training of Student Support staff 1.1 Job descriptions for full-time Student Support Services Officers were proposed, developed and

forwarded to HR. 1.2. A request for the appointment of two officers was made. 1.3. The training for the SSSO’s on customer care services was successfully conducted 2. Provide SSS services applicable at entry level by distributing workload between SSSO and

Remedial Lecturers and having collaborations between SSSO’s, Management and staff before registration

2.1 Information desks were visible at every registration period. 2.2 Information desks to provide guidance and registration procedure and venues for various services

were available. 2.3 Bursary desks were made part of the registration process facilitating the completion applications for

DHET Bursary Scheme and other funding schemes. 2.4 Journals were processed and student accounts credited in accordance to the available funds as per

the 2017 NSFAS deposits. 1. 2016 DHET Bursaries (2016 Students whose funded status was still non-funded in 2017) • In 2017 there were still cases of non-funded students for 2016, therefore it was necessary for an

enquiry to be made into the 2016 non-funded students in order for their funded statutes to be clarified. The below table summarises the submissions and outcomes:

NSFAS 2016 REPORT: 05.02.2018 TOTAL 2016 OUTSTANDING 961 16,855,750.00 SOP GENERATED 654 5,748,252.00 SIGNED SOP 549 4,725,678.00 UNSIGNED SOP 104 1,022,578.00 NOT FUNDED IN 2016 293 2,585,246.00 SOPS SIGNED AND PROCESSED 1307 11,496,508.00 TOTAL 2016 CLAIM 11,496,508.00

• There were 961 students to the amount of R16, 855,750.00 submitted, it was discovered that, 654

already had SOP’s generated and 549 had already signed their SOP’s. Only 104 SOP’s were generated for students to the amount of R1, 022,578.00, which brings our total claim for 2016 to R11, 496,508.00.

• There were 293 students from the total of 961 students submitted that were declared non-funded for

the academic 2016.


2016 NON-FUNDED SUMMARY 2. 2017 DHET Bursaries • In the academic year 2017, 25 444 students registered, however, only 6 352 students were funded with

an allocation totaling R47,030,491.00. A total amount of R45,217,938.00 was received in 2017 and R44,208,693.00 credited to student accounts, the outstanding journals are those of students who either have not signed their SOP’s or are not on the remittance list.

• There were 6441 students submitted in accordance to the disbursement improvement plan put into effect on15 January 2018 by NSFAS. The total claim submitted was R39,376,916.00

• The following amounts were received towards the 2017 claim submitted in January 2018: • 1,203,244.00 on 20 February 2018 • 22,352,810.00 on 22 February 2018 • 7,556,663,00 on 06 March 2018

• A total amount of 31,112,717.00 was received for the 2017 non-funded claim.

3. 2017 SETA Bursaries • W&RSETA A total of 306 students were funded, with an allocation of R13, 770,000.00. Off the 306 students on the funded list only 193 could be processed as the remainder of the students were already allocated and processed on NSFAS. A total amount of R2,164,169.00 was processed to students’ accounts. An amount of R11, 605,831.00 could not be utilised from the 2017 allocation. • EWSETA A total of 30 students are on the EWSETA funded list, however, no funds have been received, a query is being submitted. • GCRA A total of 271 students were funded by GCRA in 2017 and an amount of R2, 236,332.00 received and processed. • DMV

22%

19%

4%

45%

10%

2016 NON-FUNDED SUMMARY

SOP Generated

Signed SOP

Unsigned SOP

SOPs SIGNED ANDPROCESSEDNot Funded in 2016


A total of 3 students were funded by DMV and an amount of 137,686.00 received.

2017 BURSARY SUMMARY 4. SPORTS ARTS AND CULTURE • The Institue of Sport coaching coarse training was attended by all mentors from all campuses

respectively on the following components” • College Sport Smart Phase 2 and Club Smart Phase 2; 26 – 29 June 2017, • Manage Business Components of a Sport Organisation 03 – 07 July 2017, • Develop and Organise Sports Programmes10 – 12 July 2017.

• EWC National Recreation Day

o Sport and Recreation Department donated 600 skipping ropes and 600 T-shirts, they were distributed among the campuses. The National Recreation Day took place at Campuses respectively on the following dates:

o Alberton Campus: Thursday 19 October 2017 and more than 80 students participated in the event.

o Boksburg Campus: Thursday 19 October 2017 with over 60 participants both students and staff members participated.

o Germiston Campus: Friday 27 October 2017 and more than 50 students participated. o Kathorus Campus: Friday 27 October 2017 and more than 60 students participated. o Kempton Campus: Thursday 12 October 2017 and over 60 students participated in the event. o Tembisa Campus: 12 October 2017 and about more than 80 students participated in the event

2017 FUNDED STUDENTS; 6 352; 39%

2017 W&RSETA RECIPIENTS; 193; 1%

2017 EWSETA RECIPIENTS; 30; 0%

2017 GCRA RECIPIENTS; 271; 2%

2017 DMV RECIPIENTS; 3; 0%

2017 NON-FUNDED STUDENTS; 6201; 38%

REPORT 191 NON-QUALIFYING ; 2804; 17%

NCV NON-QUALIFYING ; 482; 3%

2017 BURSARY SUMMARY

2017 FUNDED STUDENTS 2017 W&RSETA RECIPIENTS 2017 EWSETA RECIPIENTS

2017 GCRA RECIPIENTS 2017 DMV RECIPIENTS 2017 NON-FUNDED STUDENTS

REPORT 191 NON-QUALIFYING NCV NON-QUALIFYING


Boksburg staff and students taking part in National Recreation Day.

Kempton students and staff play off 5. SRC MATTERS • On 01 – 02 December 2017 the SRC together with SSSO’s and Deputy Principal Academic attended

a document review in Benoni, Kopanong Hotel. • Exit Farewell Functions were hosted in October 2017 at Campuses and the functions were a

success. • The SRC attended a Year End function in October at Havard Café, Germiston on 29 November 2017.


• The following is the list of all 2017 SRC members and their respective portfolios:

No. Name and Surname Portfolios

Campus

1. Ms Zanele Mdaweni President

Tembisa

2. Mr Lucky Mongwai Deputy President

Alberton

3. Mr Tsie Ratlhagane Secretary

Boksburg

4. MrThemba Tshabalala Treasurer

Kathorus

5. Mr Thabile Masasanya Sports Arts & Culture Alberton

6. MS Sihle Ngobeni Sports Art & Culture

Alberton

7. Mr Luyanda Mahlangu Events & Communications

Alberton

8. Mr Mochabi Hlongwane

Sports, Arts & Culture Boksburg

9. Ms Nikita Fourie Events & communications

Boksburg

10. Ms Eva Kgobisa Sports, Arts & Culture

Boksburg

11. Mr Sibusiso Mnisi Sports Arts & Culture

Germiston

12. Ms Rofhiwa Simali Sports Arts & Culture

Germiston

13. Mr Sibusiso Mpanza Events & Communications

Germiston

14. Mr Thuso Mathebula Events & Communications

Germiston

15. Ms Kgomotso Matso Events & Communications

Kathorus

16. Mr Max Maselesele Sports Arts & Culture

Kathorus

17. Ms Phindile Godlo Sports Arts & Culture

Kathorus

18. Ms Nonkungo Khoadi Sports Arts & Culture

Kempton

19. Mr Neo Sehlabane Sports Arts &Culture

Kempton

20. Mr David Mahlangu Events & Communication

Kempton

21. Ms Precious Rasakanya

Events & Communications Kempton

22. Ms Zinhle Nhlapo Events & Communication

Tembisa

23. Mr Lwazi Tongo Sports, Arts & Culture

Tembisa

24. Mr Gaddafi Machadi Sports Arts & Culture

Tembisa


2017 SRC MEMBERS

2017 SRC EXECUTIVE 6. Conclusion • Overall the objectives set out for the academic year of 2017 were successfully met.

Centre for Entrepreneurship Get Ahead Workshop The total number of exit level students who completed the Get Ahead Programme in 2017 is 891. The table below provides figures of exit level students trained per campus:

Campus Number of Level 4 trained

Alberton 160

Boksburg 71

Germiston 87

Kathorus 74

Kempton 153

Tembisa 180

TOTAL 725

NCV 2017: TOTAL NUMBER OF STUDENTS TRAINED


Campus Number of N6 trained

Germiston 64

Kathorus 102

TOTAL 166

REPORT 191 2017: TOTAL NUMBER OF STUDENTS TRAINED CEO Business Plan Competition The 2017 edition of the annual CEO Business Plan Competition came to a closure on Friday, 10 November 2017 with

the award ceremony. The total awards given on the day are eight and the total prize money won is R150 000. The

money won is to be used as seed capital, i.e. help students to start their business by buying equipment and machinery.

The award ceremony was well attended. The Centre has received a positive feedback from external guests, and some

have expressed keen interest to partner with the Centre. All in all, the ceremony was profitable! It is expected that at

least R1 500 000 will come to the Centre as a result of this event and the competition itself.

Nedbank has expressed their satisfaction of what was achieved and on the award ceremony. The company has invited

the Centre to submit a proposal on how the competition could be scaled up.

The following are the key aspects of this year’s competition that are worth mentioning:

• For the first time all campuses are represented in the 20 top • None of the finalists dropped out • All campuses have at least a winner (representation in the top 8).

Herewith is a list of the winners

Full Name Course Campus Award

Nthabiseng Ngoepe Marketing Level2 Boksburg Overall Winner

Nompumelelo Manyoni

Katleho Phiri

Financial Management N5


Germiston First Runner Up

Thamsanqa Tabetlaa Civil Engineering L4 Tembisa Second Runner Up

Lebohang Mphela Financial Management N5 Kathorus Third Runner Up

Christabell Mukonowatsauka Financial Management L4 Boksburg Fourth Runner Up

Thabang Koki Marketing Level4 Alberton Best Oral

Teboho Tsotetsi HRM N4 Kathorus Best Written Business Plan

Mpho Kekana ERD Level4 Kempton Campus Best Innovative Concept

The Establishment of an Enterprise Hub (Incubation Centre) The Enterprise Hub has been completed and the first cohort of the incubatees will be placed in 2018. BUSINESS UNIT Learnerships National Certificate – Wholesale and Retail Operations. Level 2 ID: 58206 Credits: 120 funded by W&RSETA was conducted for 17 leaners at Boksburg Campus for duration of 12 months. The learners were placed at Smollan and Diplomat Distributors for practicals.


Apprenticeship An MoU was signed with Merseta to train 31 students as follows:

Fitting & Turning – 10 Germiston Campus Electrician – 10 Kathorus Campus Motor Mechanics – 11 Tembisa Campus

The following companies hosted all the 31 students for practical for the duration of 18 months:

Company Number of

Student Placed

Qualification Level Duration Campus

1. Grandfos 05 Fitting & turning Trade 18 Months Germiston 2. Thyssenkrup 05 Fitting & turning Trade 18 Months Germiston 3. Satchtec 02 Electrician Trade 18 Months Kathorus 4. ERB Technologies 05 Electrician Trade 18 Months Kathorus 5. Diesel Innovation 03 Electrician Trade 18 Months Kathorus 6. Arnold Chatz Cars Roodepoort 02 Motor Mechanic Trade 18 Months Tembisa 7. Cargo Motors Bedfordview 02 Motor Mechanic Trade 18 Months Tembisa 8. Fiat Chrysler Fourways 01 Motor Mechanic Trade 18 Months Tembisa 9. Grand Central Motors 04 Motor Mechanic Trade 18 Months Tembisa 10. Fiat Jeep Montana 02 Motor Mechanic Trade 18 Months Tembisa

Total Number 31

TRAINING PERFORM BASIC LIFE SUPPORT & FIRST AID PROCEDURES Artisan Development 14 students were trained on Perform Basic Life Support & First Aid Procedures Level 1,Credits 5, SAQA ID: 119567 conducted by Sustainable SHEQ Solutions. The training covered the following areas:

Demonstrate an understanding of emergency scene management. Demonstrate an understanding of elementary anatomy and physiology. Assess an emergency situation. Apply First Aid procedure to the life-threatening situation. Treat common injuries.

All the learners were competent and received certificates.


Placement WBE NC (V) LEVEL 4 DURING QUALIFICATION

No Company Number of Student Placed


1. Actom 20 Electrical Infrastructure & Construction

NCVL4 5 days Boksurg Campus & Germiston Campus

2. ABSA 121 Finance Economics Accounting, Management, Marketing & Office Administration,

NCVL4 5 days Alberton Campus, Germiston Campus & Kathorus Campus

3. Ekurhuleni Metropolitan Municipality

221 Office Administration and Management, Electrical Infrastructure & Construction

NCVL4 5 days Alberton, Kathorus& Germiston Campus Boksburg Campus, Germiston Campus, Kathorus Campus & Tembisa Campus

4. Makro 86 Office Administration, Marketing & Finance Economics & Accounting

NCVL4 5 days Alberton Campus, Boksburg Campus & Kempton Campus

5. ABB South Africa (Pty) Limited

5 Electrical Infrastructure & Construction

NCVL4 5 days Boksburg Campus

6. Department of Public Works

139 Office Administration, Management & Marketing &

NCVL4 5 days Tembisa Campus


WBE NC (V) LEVEL 4 HOSPITALITY STUDENTS PLACEMENT AT BERTHA GXOWA HOSPITAL

Finance Economics & Accounting

7. Macmillan Education South Africa

4 Transport and Logistics

NCVL4 5 days Kempton Campus

8. Carnival City 13 Hospitality NCVL4 10 days Alberton Campus 9. Joburg City

Theatre 18 Hospitality NCVL4 10 days Alberton Campus

10. Gauteng Department of Education South District

28 Office Administration

NCVL4 5 days Alberton Campus

11. Bertha Gxowa Hospital

32 Hospitality NCVL4 10 days Germiston Campus

12. Deutsche Gesellschaft Internationale Zusammenarbeit (GIZ)

10 Office Administration

NCVL4 5 days Tembisa Campus

13. Fly Inn 13 Hospitality NCVL4 10 days Kempton Campus 14. Mozee Tours &

Transport 8 Tourism NCVL4 5 days Kempton Campus

15. FESTO 2 Mechatronics NCVL3 5 days Germiston Campus TOTAL NUMBER

719


WIL NC (V) LEVEL 4

Company SETA Number of

Student Placed Qualification Level Duration Campus

1. Lawyers Voice

INSETA 10

Office Administration Management

NCVL4 18 Months

Germiston Kempton Kathorus Tembisa

2. Sakilo Corporate Strategies

INSETA 40 Office Administration Management Marketing

NCVL4 18 Months


3. Sanlam INSETA 8 Office Administration Management

NCVL4 18 Months


4. Stanley Maseko Brokers

INSETA 11 Office Administration Management Marketing

NCVL4 18 Months


TOTAL NUMBER

69

WIL REPORT 191 2017 BUSINESS STUDIES

Company SETA Number of

Student Placed


1. Fedics BANKSETA 20 Business Management Financial Management

N6 18 Months

Germiston Kempton Kathorus

2. Public Works

BANKSETA 30 Business Management Human Resource Management Financial Management

N6 18 Months

Germiston Kempton Kathorus 3. Gauteng

Department Of Education

4. Absa Towers North

INSETA 10 Business Management Financial Management

N6 18 Months


5. Absa Service Centre

INSETA 05 Financial Management

N6 18 Months


6. Marsh Africa INSETA 04 Financial Management Human Resource Management

N6 18 Months


7. MVG Brokers INSETA 01 Marketing Management

N6 18 Months


8. Sakilo Corporate Strategies

INSETA 10 Financial Management Management Assistant

N6 18 Months



Human Resource Management


INSETA 01 Financial Management

N6 18 Months


10. Ekurhuleni West

11. TVET College

31 Financial Management Management Assistant Human Resource Management

N6 18 Months


12. Alt Financial Consultants

INSETA 01 Financial Management N6

18 Months Germiston

13. Department of Economic Development, Environment and Tourism BANSETA 01

Human Resource Management N6

18 Months Germiston

14. Gauteng Department of Education

BANKSETA 16

Business Management Financial Management Human Resource Management Management Assistant N6

18 Months


FP&MSETA 12

Management Assistant, Human Resource Management N6

18 Months


15. Ekurhuleni West TVET College

28

Management Assistant Financial Management Human Resource Management N6

18 Months


16. Emperors Palace FP&MSETA 12

Business Management Financial Management Human Resource Management N6

18 Months


17. Genric Insurance

INSETA 03 Business Management N6

18 Months


18. Interwaste Service SETA 02


18 Months Germiston

19. Lakeni Technologies

INSETA 02

Management Assistant Business Management N6

18 Months


20. Marsh Africa INSETA 03

Human Resource Management Financial Management N6

18 Months


21. Metropolitan Life

INSETA 02 Management Assistant N6

18 Months Germiston

22. Molobeng Mining Labour INSETA 02


18 Months Germiston


Hire And Projects SA

23. National Department of Public Works FP&MSETA 11

Financial Management Business Management N6

18 Months


24. Ramaph Health Care

BANKSETA 01

Management Assistant N6

18 Months


INSETA 01 Management Assistant N6

18 Months Germiston

25. SANLAM FP&MSETA 01

Management Assistant N6 Germiston

26. Sobethu Pty Ltd

INSETA 01 Human Resource Management N6

18 Months Germiston

27. South African Institute Of Accounts BANKSETA 20


18 Months


28. Spar FP&MSETA 01 Financial Management N6

18 Months Germiston


INSETA 05

Management Assistant Human Resource Management N6

18 Months


FP&MSETA 01 Business Management N6

18 Months Kempton

30. Thelle Mogoerane Regional Hospital FP&MSETA 02


18 Months Germiston

31. Two Mountains INSETA 01

Business Management N6

18 Months Kathorus

32. Workerslife Direct Pty(Ltd)

BANKSETA 01 Financial Management N6

18 Months Germiston

INSETA 03

Human Resource Management Business Management N6

18 Months


Total Number placed 245


WIL STUDENT PLACEMENT

WIL FOR ENGINEERING STUDIES

Samsung Electronics Engineering Academy EWC has placed forty level three students at Samsung Academy for a period of two (2) years. The students attend theory and practical training one day in a week.

Company Number of Student Placed


1. Uniliver 03 Electrical Engineering

N6 12 Months Germiston

2. Calgan(FP&MSETA) 02 Mechanical Engineering

N6 18 Months Germiston

3. GCRA 10 Electrical Engineering Mechanical Engineering

N6 1 week Germiston Kathorus

DNA( Duma Nathi Africa) (Pty) Ltd 4.

11 Electrical Engineering

N6 12 months Germiston

Total Number 26


Partnership with SETAS


Ministerial award EWC received the ministerial award for the most progressive college in the artisan development field.


Student Health and Wellness and Educational Psychologist On- Course Academic support and Career Guidance activities achieved

• Placement test was done with all entry level prospectus students. • A computerized version of Placement test was used at Campuses for evaluation and placement

of students in relevant or suitable programmes. • Report on analysis of Placement test done by Wellness Officers. • Meeting with parents of students who absent themselves were achieved Wellness Officers. • Comparison of test was done to check students who were developing and expanding by

Wellness Officers. • Meeting between Wellness Officers HoD’s and Campus Managers took place after students who

were struggling with their studies identified. • Study Skills Workshops were conducted with students who were struggling with Mathematics

and English by Wellness Officers. • Study Skills was done with students who were struggling to read before and during examinations

by the Educational Psychologist. • Career Guidance was conducted in the form of slides shows at Campuses during registration • The results of Placement test were discussed with students so that students can make informed

decisions about career choice. • Career Guidance and counseling was done with individual students who wanted to change career

path in the middle of their career PACE Test Evidence


1. Care and Support activities achieved

Individual therapy sessions • Consultation with students who were suffering from Substance related disorder was done. • Students with Academic challenge/Learning disorders were assisted and supported by Wellness

Officers and Educational Psychologist. • Counselling with students who presented with Clinical depression and Bipolar Mood disorder was

done. • Counselling sessions with students with Psychiatric conditions/Spiritual problem/Suicidal

thoughts was offered by Educational Psychologist. • Students who were experiencing General Medical condition were supported and referred to

different Hospitals for treatment. • Trauma debriefing sessions were conducted with students who were involved in an accident also

experienced robbery, kidnapped and rape was done. • Bereavement counselling was done with students who lost family members and other fellow

students. • Family therapy with students who were experiencing family problems were conducted by

Educational Psychologist. • Anger management was done with students who presented with Aggression or Conduct

behaviour. • Counselling sessions were done with students with Social problem and referrals were made to

the Department of Social Development.


Group Intervention Sessions

• Disability Awareness sessions were done by Wellness Officers and the Educational Psychologist during registration through Disability Desk.

• Employability Skills sessions were offered to the Level 4 students by the Wellness Officers. • Home and Hospital visit were conducted by the Educational Psychologist following students who

were sick. • Campus visits were done by the Educational Psychologist during registration. • Team development was done with students who participated into National Skills competition by

Educational Psychologist. • Trauma debriefing sessions were conducted with traumatised students who were involved in an

accident, mugged, raped, kidnapped, • Stress Management sessions were done during activations by the Educational Psychologist.

Health and Wellness activities achieved

Name of Health screening

Number of students tested negative

Number of students tested positive

Number of students referred

HIV screening 1690 30 29

TB screening 1690 6 6 L

STI Screening 1627 11 11

Total number of Health screenings - 5

Total number of students tested negative to HIV screening – 1690

Total number of students tested positive to HIV screening - 47

Total number of students referred - 46

05

1015

8 4 7 84 4 2

13 11

THER

APEU

TIC

INTE

RVE

NTI

ON

CLASSIFICATION OF PSYCHOLOGICAL CONDITIONS

EWC INDIVIDUAL THERAPY SESSION


Students Dialogue

• Students completed after care programme with SANCA successfully • Students were re-integrated with class by Wellness Officers • Only one student was not complying with SANCA programme • SAPS and Metro polices conducted random search at Campuses. • Social Development provides Ekurhuleni West TVET College (EWC) with promotional materials

written “SAY NO TO DRUGS!” which were distributed to students during the awareness at campuses.

0

50

100

150

200

250

300

ALC BKC GEC KAC KEC TEC EWCHIV/AIDS DIALOGUE 33 25 54 63 84 29 288STI STUDENT DIALOGUE 33 25 54 63 84 29 288TB 33 25 54 63 84 29 288

STUDENTS DIALOGUE SESSIONS

HIV/AIDS DIALOGUE STI STUDENT DIALOGUE TB

0

5

10

15

20

25

ALB BOK GER KATH KEMP TEM EWC

3

9

2

5

13

23

2 2 2 2 2 2

12

ANTI SUBSTANCE ABUSE PROGRAMME

SANCA After Care Programmes Anti Substance Abuse Awareness


2. Disability Management programme achieved • Students were trained on how to use assistive devices for partial or low vision and hard of

hearing by the Wellness Officers at Campuses. • Students with different Disabilities received support from Wellness Officers and Educational

Psychologist. • Disable People South Africa (DPSA) conducted information sharing session on different disability

matters at Kathorus Campus and newspapers on disability matters were distributed

ALB BOK GER KATH KEMP TEM EWCAttention Deficit Disorder 1 0 0 0 0 0 1Hard of Hearing 1 2 4 0 1 1 9Interllectual Disability 3 0 0 0 0 0 3Partial/ Low vision 3 4 5 6 0 3 21Physical Disability 0 2 0 2 3 1 8Total 8 8 9 8 4 5 42

0

5

10

15

20

25

30

35

40

45

STUDENTS WITH DISABILITIES PER CAMPUS


Referrals to different stakeholders

Partnerships and Linkages in 2017

College Plan-WIL for Lecturers

College Plan for Industry-based WIL for Lecturers

PART 1: MANAGEMENT STRATEGY FOR WIL FOR LECTURERS

1. Lecturers’ WIL objectives for current implementation period

2017

Objectives

1.To expose lecturers to the latest practices in the workplace

2. To create a correlation between the exposure of lecturers and students

3. To enhance curriculum through lecturer placement

4. For lecturers to be better equipped with the latest industry innovations which will subsequently increase the students employability

5. To improve students throughput rate.

2. College targets for lecturers’ WIL

By programme By campus College target total Name of programme Target Achieved

IT 15 5

110

Marketing 15 4

Engineering and Related Design

25 15

Mechatronics 5 6

Electrical Infrastructure and Construction

20 12

Human Resource 25 9

Finance, Economic and Accounting

15 20

Hospitality 10 3

TOTAL 110 74

4; 21%

2; 11%

1; 5%12; 63%

REFERRALS TO EXTERNAL SERVICE PROVIDERS FOR FURTHER ASSISTANCE SUCH AS DRUG TREATMENT/

MEDICAL TREATMENT/ SOCIAL SUPPORT/ GRANT SUPPORT

Department of Health Department of Social Development SASSA SANCA


2.2. Annual Performance Achievements

Use the table below to report on achievement of annual performance targets.

STRATEGIC OBJECTIVES PERFORMANCE INDICATORS

TVET COLLEGE 2017 PLANNED

TARGET

TVET COLLEGE 2017

ACHIEVEMENT EXPLANATORY

REMARKS SO 1 To provide quality technical and vocational education and training services and increase academic achievement and success of students

Appropriate teaching and learning support plan developed and implemented (n)

13 13

Appropriate student support plan developed and implemented (n)

12 12

Improved certification rates in: NC(V) L4 N3 & N6 (%)

70% 60% 60%

80% 67% 79%

Throughput rate (%)

60% 92.70% Figures adjusted after targets revised based on actuals for 2016

Funded NC (V) L4 students obtaining qualification within stipulated time (%)

70% 77%

TVET students enrolled in foundation or bridging programmes (n)

N/A N/A

Students completing artisan-related programmes (n)

55 54 Students will complete the program in 2018.

Established centre/s of specialisation (COS) (n)

3 3 EWC has been shortlisted for consideration and desk-top evaluation has been conducted by DHET

SO2 To have adequate infrastructure and systems in place to increase access and provide effective services to students

Headcount enrolment (n)

19 835

20 390

Students accommodated in college accommodation (n)

N/A N/A The college does not offer accommodation to students.

Qualifying students obtaining financial assistance (n) Other bursaries: W&R Seta Department of Military Veterans (DMV)

8250

13713 306 3 271

Students in other bursaries were not planned for, students applied on their own. Payments outstanding for 6441 students.




TARGET

TVET COLLEGE 2017


REMARKS

Gauteng City Region Academy (GCRA) CHIETA EWSETA

10 60

SO3 To develop partnerships and maintain good stakeholder relations to increase the number of students who are adequately prepared to enter the labour market or further and higher learning opportunities

Beneficial and functional college partnerships (n)

95 17 The College has 95 functional partners. The college target for 2017 was 15 and we achieved 17.

TVET lecturers placed in workplaces for specified

periods (n)

110 74 Most placement (WIL) were prioritised to exiting students

TVET students placed in workplaces/industry for

specified periods for work exposure, experiential

learning and/or certification purposes (n)

1200 1059

Fewer companies responded positively for the planned placement. Students who could not be placed were indeed planned for in 2018

SO4 To ensure continuous business excellence in terms of good corporate governance and effectual management of all college resources as well as information

Compliance to governance standards (%) 100% 100%

Compliance to policies and regulations applicable to the

TVET College sector (%) 100% 100%




TARGET

TVET COLLEGE 2017


REMARKS

and data reporting

Obtaining unqualified audits or assessments (n) 4 4

Compliance with national policy of college

examination centres conducting examinations

and assessments (%)

100% 100%

SO5 To monitor and evaluate all college processes in terms of the framework for TVET college performance and report quarterly in this regard

Accurate M&E quarterly reports submitted (n) 4 4

2.3. College Achievement in terms of Expected Outcomes

Use the table below to report on achievement of sub-outcomes 2 and 4 targets.

No Outcome Indicator

2017/18 Planned National Target

TVET College 2017 Planned

Target

TVET College 2017

Achievement Explanatory

Remarks

1. Headcount enrolments (n) 829 000

NC(V) = 7193 Repo 191 = 12640

Total = 19835

NC (V) = 7660 Repo 191 = 12730

Total = 20390

2. Certification rates in TVET qualifications (%)

NC(V) L4: 40% N3: 65% N6: 45%

NC(V) L4: 70% N3: 60% N6:60%

NC (V) = 80% N3 = 67% N6 = 79%

3.

Compliance with national policy of college examination centre/s conducting national examinations and assessments (%)

100% 100% 100%

4. Throughput rate (%) 60% 92.70%

5.

Students accommodated in public TVET college accommodation (n)

N/A N/A


No Outcome Indicator

2017/18 Planned National Target

TVET College 2017 Planned

Target

TVET College 2017

Achievement Explanatory

Remarks

6.

Qualifying TVET students obtaining financial assistance (n)

200 000 8250 6352

7.

Funded NC (V) L4 students obtaining qualification within stipulated time (%)

45% 70% 77%

8. Compliance to governance standards (%)

100% 100% 100%

9.

TVET lecturers placed in workplaces for specified periods (n)

110 74

Most placement (WIL) were prioritised to

exiting students

10.

TVET students placed in workplaces/industry for specified periods for work exposure, experiential learning and/or certification purposes (n)

1200 1059

Fewer companies responded positively for the planned placement.

Students who could not be placed were

indeed planned for in 2018

11. Students completing artisan-related programmes (n)

31 31

12. DSSP Project 25 23 2 students dropped out


PART C: GOVERNANCE


1. Constitution of the College Council and Governance Structures 1.1 Names of council chairperson and members as well as their designated functions;

Province TVET College Title Name or Initial

Surname Appointment Designation Specialisation Member Status

End of Term

of Office

Date of Appoint

ment

GP Ekurhuleni West TVETC

Dr Mpho Mohlala Ministerial Appointee Council Member (External) - Section 10(4)(b)

Chairperson Active 4/15/2019 4/15/2014


Mr Christopher Setlhako Ministerial Appointee Council Member (External) - Section 10(4)(b)

Deputy Chairperson

Chair: Financial Committee

Active 4/15/2019 4/15/2014


Prof Wellington Thwala Ministerial Appointee Council Member (External) - Section 10(4)(b)

External Council Member

Academic Board Member

Active 4/15/2019 4/15/2014


Ms Mpolai Liau Ministerial Appointee Council Member (External) - Section 10(4)(b)


Audit & Risk Comm. Member

Active 4/15/2019 4/15/2014


Ms Alison Visagie Ministerial Appointee External - Section 10(4)(b)


HR Advisory Comm. Member

Active

4/15/2019 7/7/2017


Mr Samuel Manamela Minister Concurrence (External) - Section 10(6)


Chair: Audit & Risk Active 4/15/2019 8/14/2014


Ms Nandipa Gila Minister Concurrence External - Section 10(6)


Chair: Planning & Resource

HR Advisory Comm. Member

Active 4/15/2019 8/14/2014


Mr MaLlele PeTje Minister Concurrence External - Section 10(6)


Financial Comm. Member

Active 4/15/2019 9/1/2015


Ms Khauhelo Moloko Minister Concurrence External - Section 10(6)


Chair: HR Advisory Active 4/15/2019 8/14/2014

GP Ekurhuleni West Mr Terrence Naidoo Minister Concurrence External Council Donor Active 4/15/2019 8/14/2014


TVETC External – Donor -Section 10(4)(d)

Member Academic Board Member


Ms Hellen Ntlatleng Minister Concurrence – Section 10(6)

Principal Active Ex-Official


Mr Mawethu Mpayepheli Minister Concurrence – Section 10(4)(d)

Internal staff member

Lecturer Representative Active 4/15/2019 7/1/2014


Mr Peter Kgorutle Minister Concurrence – Section 10(4)(d)


Support Staff Representative

Active 4/15/2019 7/1/2014


Ms Priscilla Lehoko Minister Concurrence – Section 10(4)(d)


Academic Board Representative

Active 4/15/2019 7/1/2014


Ms Zanele Mndaweni Minister Concurrence – Section 10(4)(d)

SRC Council Member

Student Representative (1)

Active 4/1/2017 4/1/2016


Mr Tsie Ratlhagane Minister Concurrence – Section 10(4)(d)

SRC Council Member

Student Representative (2)

Active 4/1/2017 4/1/2016

Total: 16


2. College Performance in terms of Strategic Objectives

o Number of meetings held and for what reason;

2017 *Asterisk will indicate, which members only started, on the Council, or on a Council Committee, in the middle of the year, or later in the year, as well as members, who had left, during the course of the year. (i) MEMBERS OF THE COLLEGE COUNCIL AND MEETINGS HELD

A total of seven meetings were held in 2017:

- 4 Ordinary meetings - 3 Special meetings

24 February 2017 (SRC Constitution) 30 March 2017 (Rectification of AFS) 29 May 2017 (Approval of AFS)

- Reasons for meeting: To give the College Council a brief report on the following:

- Management report - Academic Board report - Financial Committee report - Audit and Risk Committee report - Human Resource Advisory report - Planning and Resource Committee report

MEMBER POSITION ORDINARY

MEETING MEETINGS ATTENDED

SPECIAL MEETING

MEETING ATTENDED

Dr. Mpho Mohlala Chairperson 4 4 3 3 Mr. Chris Setlhako Vice-Chairperson 4 4 3 2

Mr. Sam Manamela Member 4 4 3 3

Mr. Terrence Naidoo Member 4 3 3 3

Prof. Wellington Thwala Member 4 4 3 3

Ms Khau Moloko Member 4 3 3 3

Ms Nandipa Gila Member 4 3 3 2

Ms Mpolai Liau Member 4 3 3 2

Mr. MaLlele PeTje Member 4 2 3 2

Ms Hellen Ntlatleng Principal 4 4 3 3

Ms Priscilla Lehoko Member 4 4 3 2

Mr Mawethu Mpayipheli CS – Educator Staff Representative

4 3 3 0

Mr Peter Kgorutle PS – Educator Staff Representative

4 4 3 3

Ms Ntombizodwa Dangazele

Deputy Principal and Secretary

4 3 3 3

Mr Killian Nyakusendwa Act Deputy Director 4 4 3 3

Mr Peter Mudau *Appointed November 2017

Deputy Principal 4 1 3 0

Ms Zanele Mndaweni SRC Representative

4 4 3 -

Mr Tsie Ratlhangane SRC Representative

4 2 3 -


Ms Nthabiseng Sekhobane

Scribe 4 3 3 3

(ii) MEMBERS OF THE ACADEMIC BOARD AND MEETINGS HELD

- Reasons for meetings:

To give the Academic Board a report on the following: - Academic Affairs - Business Unit report - Student Support Services report - Readiness of Facilities report - Finance report - Centre of Entrepreneurship report - Educational Psychologist report

MEMBER POSITION MEETINGS

HELD MEETINGS ATTENDED

Ms Hellen Ntlatleng Principal and Chairperson 4 4 Prof. Wellington Thwala College Council

Representative 4 4

Mr. Terrence Naidoo College Council Representative

4 4

Mr Killian Nyakusendwa Act Deputy Director 4 4

Ms Ntombizodwa Dangazele Deputy Principal: Corporate Services

4 4

Ms Priscilla Lehoko Academic Board Representative, on the College Council

4 3

Mr. Raymond Dladla Partnerships and Linkages 4 3

Mr. Frank Duarté Estate Manager 4 4

Mr. Robert Ehlers Quality Manager 4 4

Mr. Peter Kgorutle CS – Educator Staff Representative

4 3

Mr. Mawethu Mpayipheli PS – Educator Staff Representative

4 3

Mr. David Muleele Marketing Manager 4 2

Mr. Pule Ntise HoS: Business Studies 4 3

Ms Elsabe Smit HoS: Engineering Studies 4 3

Ms Nomazwe Nzima Academic Affairs Manager 4 4

Ms Gugu Matthews Business Unit Manager 4 3

Mr. Solomon Radebe NSF Co-ordinator 4 4

Mr. Khutso Ramontja CfE Director 4 3

Mr. Kobus Steenkamp BMS Administrator 4 3

Ms Rosa Nöffke Alberton Campus Manager 4 3

Ms Bennita Sisi Boksburg Campus Manager 4 4

Mr. Peter Mudau Act Germiston Campus Manager

4 4

Ms Sandra Mavhungu Kathorus Campus Manager 4 3

Mr. Wellington Mudau Act Kempton Campus Manager

4 3

Ms Amanda Ehlers HoD: Alberton 4 4


Mr. Madimetja Chukudu HoD: Boksburg 4 4

Ms Phenicia Qithi HoD: Kempton 4 4

Ms Connie Maleka

Act Tembisa Campus Manager

4 4

Ms Zanele Mndaweni SRC Representative 4 3

Mr. Tsie Ratlhangane SRC Representative 4 3

Ms Nthabiseng Sekhobane Scribe 4 3

(iii) MEMBERS OF THE FINANCE COMMITTEE AND MEETINGS HELD

Reasons for meetings:

To give the Financial Committee a report on the following: • Student debt collection • Report on outstanding debtors • Income and Expenditure report • Subsidies • Cash flow • Investments

MEMBER

POSITION MEETINGS HELD

MEETINGS ATTENDED

Mr. Chris Setlhako Chairperson (College Council)

4 4

Ms Hellen Ntlatleng Principal 4 3 Mr. Killian Nyakusendwa Act Deputy Director 4 4 Mr. MaLlele PeTje College Council 4 4

Ms Priscilla Lehoko *Up to November 2017

Act Deputy Principal 4 3

Mr. Peter Mudau *Appointed November 2017

Deputy Principal 4 1

Ms Ntombizodwa Dangazele Deputy Principal and Secretary

4 4

Mr. Peter Kgorutle Assistant Director: SCM

4 4

Mr. Patrick Mamorobela Management Accounting 4 3


MEMBERS OF THE HR ADVISORY COMMITTEE AND MEETINGS HELD

Reasons for meetings: To give the committee a report on the following:

• Labour cases and progress • Staff training and development • Staff establishment and resignations/retirements

MEMBER POSITION MEETINGS HELD MEETINGS

ATTENDED Ms Khau Moloko Chairperson

(College Council) 4 3

Ms Nandipa Gila College Council 4 2 Ms Hellen Ntlatleng Principal 4 4 Mr. Killian Nyakusendwa Act Deputy Director 4 4


Ms Ntombizodwa Dangazele Act Deputy Principal and Secretary

4 4



Mr Peter Mudau *Appointed November 2017

Human Resource Manager

4 1

Ms Nthabiseng Sekhobane Scribe 4 3 (iv) MEMBERS OF THE AUDIT COMMITTEE AND MEETINGS HELD

A total of five meetings were held in 2017:

• 4 Ordinary meetings • 1 Special meeting (28 March 2017 rectification of AFS)

• Reasons for meetings: o To give the committee a report on the following:

• Internal audit governance status • Strategic risk register • Internal audit plan • Inventory • External audits

MEMBER POSITION MEETINGS HELD MEETINGS ATTENDED

Mr. Samuel Manamela Chairperson (College Council)

5 5

Ms Mpolai Liau College Council 5 5 Ms Hellen Ntlatleng Principal 5 5 Mr. Killian Nyakusendwa Act Deputy Director 5 5 Ms Ntombizodwa Dangazele Act Deputy Principal

and Secretary 5 5

Ms Coby van Antwerpen External Auditor 5 5 Ms Nthabiseng Sekhobane Scribe 5 4

(v) MEMBERS OF THE PLANNING AND RESOURCE COMMITTEE AND MEETINGS HELD

- Reasons for meetings:

To give the committee a report on the following: - Building and constructions - Occupational Health and Safety report - Strategic and Operational Plan report

MEMBER

POSITION MEETINGS HELD MEETINGS ATTENDED

Ms Nandipa Gila Chairperson (College Council)

4 4

Dr. Mpho Mohlala College Council 4 3

Ms Hellen Ntlatleng Principal 4 4

Mr. Killian Nyakusendwa Act Deputy Director 4 2

Ms Ntombizodwa Dangazele Act Deputy Principal and Secretary

4 4




Mr. Frank Duarté Estate Manager 4 3

Mr. Robert Ehlers Quality Manager 4 4

Mr. Peter Mudau *From November 2017

Deputy Principal 4 1


3. RISK MANAGEMENT Legislative Provisions In terms of Section 13 of the Continuing Education and Training Act 16 of 2016, the Principal of a public college is responsible for the management and administration of the college. Section 25(1) of CET Act, states that the council of a public college must, in the manner determined by the Minister of Higher Education implement internal audit and risk management systems which are not inferior to the standards contained in the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA Act). Risk Management is about managing a potential inability by the college to fulfil the requirements of the Constitution. It is for this reason that the Constitution of the Republic of South Africa is the fundamental foundation for risk management. BACKGROUND Organisations operate in environments where factors such as technology, regulations, restructuring, changing service delivery requirements and political influence create uncertainty. Uncertainty arises from an inability to precisely determine the likelihood that potential events will occur and the associated impact. Risk management forms a critical part of an organisation’s strategic management. It is the process by which an organisation addresses the risks intertwined in the activities with an objective of achieving sustained benefit within each activity and across the range of its activities. The college’s council has established an Audit and Risk Committee which is responsible for risk management, monitoring and reporting. The Audit and Risk Management Committee is Governed by an Audit and Risk Management Committee Charter. Risk register is in place and is reviewed on a quarterly basis. The Chief Financial Officer is responsible for day to day management of risk and reports to the Audit and Risk Committee that meets quarterly. Risk Management is a standing agenda item in all the Audit Committee meetings and is reported to council on a quarterly basis. All reports on risk management are also presented to executive management committee and all other management committees. The college utilises a National Fraud Hotline and DHET Fraud Hotline communicate any fraud related issues. The numbers are available of the college website and internal Quality Manual. The following are the top 9 significant risks that are facing the college derived from the Department of Higher Education and Training strategic plan. The college is fully aware of the root causes and has been able to put in place mitigating strategies within the operational plans for 2017 financial year.


No

Strategic

Objective

Risk Causal Factor II IL IR Mitigating Controls RI RL RR Action Plan Responsible

person Status of

Implementation Due date

1 2,3,5 Poor retention and attraction of key personnel

• Organisational structure not based on operational needs

• Slow filing of posts (Department is in control)

• Job evaluation not being performed/exist

• Retirement • Union take over • Temporary

positions vs permanent positions

5 4 20

• Appointment beyond constraints (outside the Educators Act)

• Key post filled by acting personnel

• Posts created that would not necessarily exist to ensure business continuity.

• Succession Planning

• Regulate union’s involvement

• Empowerment and development of middle management

3 3 9

• Skills audits to be performed during the year

Accounting Officer

• A service provider was appointed in October 2016 to perform detailed skills audit for the college.

• A first draft report was received in August 2017 benchmarking the staff skills in terms of gender, age, experience, span of control, career development plan and training needs.

• The final draft report was received on 15 October 2017 pending final presentation.

31-Dec-17

2 2,3,4,5 Disruption of teaching and learning

• Student unrest • Lack of textbooks • Limited funding/

bursaries • Union disruptions • Exam results not

being released on time (if ever they are released)

• Lecturer turnover (delays in filing in positions)

5 5 25 • Student representatives (SRC)

• Text book purchase cycle (Prior to the beginning of the year)

• Purchase on projections

• Funded 56% by DHET

3 3 9 • Appropriate consultative processes between management and SRC

• Appropriate safety measure to be put in place

• Filling of vacancies with appropriate suitably qualified lecturers

Accounting Officer

• Regular meetings were conducted with SRC and Management during 2017 and SRC constitution was updated and approved by the in a special college council held in January 2017.

• The college has an established

Immediate


• Duration to appointment personnel

• Student Absenteeism

• Fiscal constraints

• Regulate union involvement

• Policy in place (Management Plan)

• Protocol of monitoring student absenteeism

• Regulate union involvement - through appropriate consultative processes

• Implementation of policy

relationship with SAPS and access private security and intelligence where and when necessary

• An interactive meeting was held with the SRC and SSS on the 2nd of August 2017 discussing the 2017 projects and aligning the SRC activities with the college calendar.

3 2,3,5 Limited/shortage in Funding from external parties.

• Drop in student number

• Fiscal constraints resulting in reduced budget allocation

• Change in processes by DHET

• Poor revenue collection

• Over enrolment • Failure to get

business from outside (Seta)

• Completion of NSFAS forms and supporting document to submit to NSFAS

• Government takes funding to

5 5 25

• NSFAS • Enrolment targets • Applications to

Seta • Funded project

management • Other sources of

revenue • Collection of

revenue (debtor’s control)

• Budgetary control • Reserves • Reduce in

infrastructure projects

• Reducing fleet • Application to

National Skills Fund

4 3 12

• Establish an appropriate marketing strategy for EWC to make it the TVET of choice

• Write off long outstanding debtors and implement a vigorous debtor collection process

• Consultations and discussions with SETA's

• Development of a sponsorship programme where private sector sponsor certain products or processes in return for advertisement opportunities or partnerships.

Accounting Officer

• The college is in the process of appointing a panel of debt collectors to ease the debt burden, the first company was appointed in December 2017.

• The project plan is in place and updated based on the projects commissioned and available budget.

Sponsorship programs • A group of

companies assisted. a) MAN b) Chrysler

Discretionary grants

Dec-17


fund other projects

• Student retention rate

• Develop an appropriate infrastructure development plan in line with the budget and operational needs of the TVET

Infrastructure development plan is in place and monitored by the Estate Manager.

4 2,5 Insufficient IT support and lack of IT infrastructure

• poor IT governance

• Lack of qualified IT staff (system engineers)

• Lack of disaster recovery plan

• Dependent on 3rd party

• Number of IT programmes

• Lack of monitoring and accountability for the IT department

5 5 25

• Implementation of 27001 ISMS

• IT steering committee

• Re-working on IT infrastructure

• Outsource independent IT advisory on infrastructure

• Recruitment of qualified staff

• Training for current staff

• Disaster recovery plan

• ITC Strategy • IT policies and

procedures • Leverage on

government wide technology

• Embedding communication through social media

5 3 15

• Replacement of IT Infrastructure - Long term planning

• Integrated planning • Participate IT

forums (capacity building and continuous development of IT personnel)

• Integration between IT and communication

Accounting Officer

• All the Admin staff pc’s have been upgraded to Windows 8 and Office 2013 in preparation of Office 365 migration.

• The replacement plan of new Computers and Servers for Campuses is in progress with draft specifications in place for approval.

• The 40 Gate firewall will be implemented and new group policies will be configured for filtering and access control of internet access of users and computer labs. • Movement of ITS (test and production servers) to offsite/cloud solution is completed. All our ITS Servers are

Dec-17


operating from cloud.

5 1,2,3 High failure rate

• Disruption in teaching and learning

• Appointment of unqualified and underqualified lecturers

• Poor attendance by students

• Uncommitted lecturers

• Lecturer absents • Student unrest • High turnover • Turn around time

to fill posts • Late release of

exam results • Student retention

rate • Poor quality of

exam paper assessment

• Lack of monitoring of teaching and learning.

5 5 25

• Monitoring of teaching and learning

• Evaluation of lecturer's performance

• Strict recruitment processes to appoint qualified lecturers

• Protocol in place for following and monitoring of student absenteeism

• Campus Management procedures to monitor lecturer's absenteeism

• Career guidance, interventions and follow up students that dropped out

• Internal papers that are monitored

• Moderating internal exam papers

2 2 4

• Training Moderators

• Implement and management change management processes

Accounting Officer

• Selection criteria for students who enrol for NC (V) level 2 scrutiny earmarked for January 2018.

• Monitoring of students attendance contributing to high failure rate.

• The college has received a Skills Development Fund of R1.1miilion from DHET earmarked for Lecturer development.

Dec-17


6 2.4 Poor attraction and retention of students

Poor branding ‒ Poor marketing ‒ Affordability (parents are unemployed) ‒ Quality of teaching and learning ‒ Poor Location of campus ‒ Quality of infrastructure ‒ Poor relationship with communities

5 5 25

• Career guidance • Student

Placements • Annual surveys

show that word of mouth attracts students

• Strong brand/reputation

• On-going infrastructure projects

• Advertising campaigns

• Community relationships 2 2 4

‒ Establish an appropriate marketing strategy for EWC to make it the TVET of choice ‒ Write off long outstanding debtors and implement a vigorous debtor collection process ‒ Consultations and discussions with SETA's ‒ Development of a sponsorship programme where private sector sponsor certain products or processes in return for advertisement opportunities or partnerships ‒ Develop an appropriate infrastructure development plan in line with the budget and operational needs of the TVET

Accounting Officer

• The college admissions policy reviewed in November 2017.

• The college planning to introduce Bridging courses and negotiations with AAT is in progress.

• Awareness at schools around the college of the existence the college.

• Visits to schools, churches and communities. The Apply now launch conducted on the 9th of September 2017 in Tembisa live on Ukhozi FM.

• Career expositions

Sept 2016

7 1,4 Non-compliance with laws and regulations

• Changes in laws and regulations

• Political interference

• Changes in directives given

4 4 16

• Change management processes.

• Operational policies

• Communication • Quality

management systems in place

2 2 4

• Update and implement the SCM policy and SOP's

• Year-end review of tenders approved during the year

• Implement demand planning

Chief Financial Officer

• SCM Policy was reviewed in February 2017 * BAC and BEC training regarding new PPPFA framework took place during the first quarter of 2017.

• A draft procurement

31-Dec-17


• Adherence to local legislation

• Assurance providers

• Establishment of specification committee, evaluation committee

• Implement a training program - specialised for SCM and general for line management

• Quarterly SCM reporting and review

• Implementation of disciplinary processes in terms

of accountability (PFMA Section 82 & Education Act)

plan is in place and will be corroborated with the projections and cash forecasts to aid planning and budgeting.

• '- Analysis of month on month expenditure

• Procured the case ware management accounts module to aid managing accounting.

• Inventory

management module and Finance iEnabler implementation in progress.

8 2,5 Fraud and corruption

• Lack of adequate or effective SCM processes

• Loss of petty cash

• Unethical behaviour

• Poor control environment

• Fraudulent appointment

5 4 20

• Fraud prevention plan

• Supply chain management policies and procedure

• Code of conduct in place

• Whistle blowers hotline

5 2 10

• Continuous monitoring of the hotline reports

• Implementation of the Fraud

• Prevention Plan Continuous training

on the code of conduct and on ethics.

Accounting Officer

• National Fraud hotline number has been adopted by the college and a circular will be communicated by end of October 2017.

• The fraud prevention plan has been updated and is in place and fixed points in all management meetings.

31-Dec-17


9 4 Non functional government structures

• Insufficient capacity within DHET to appropriately assist TVET colleges

• Insufficient consultation between DHET and TVET College to manage relationships and deliverables appropriately

• Inappropriate / ill informed instructions from DHET to colleges and changes of instructions shortly after implementation commenced

5 5 25

5 4 20

• Appropriate stakeholder engagements to be implemented and maintained

• Appropriate communication regarding capacity matters between DHET and EWC TVET

Council • Various engagement held with DHET and other stake holders such as NSFAS.

31-Dec- 17


4. REPORTS BY COMMITTEES OF COUNCIL 4.1 FINANCIAL COMMITTEE Key Activities and Objectives of the Finance Department The objective of the finance department is to improve debt management and the overall financial efficiency of the college. The finance department is responsible for budgeting and financial planning, reporting, internal controls and accountability policies and administering audits and investments. Internal Controls and Accountability Policies The finance department is responsible for continuously developing and implementing accountability policies for the college as follows;

• Create, approve, and update (as necessary) policies that help ensure the assets of the organization are protected.

• Ensure policies and procedures for financial transactions are documented in a manual, and the manual is reviewed annually, and updated as necessary.

• Ensure approved financial policies and procedures are being followed and implemented. To achieve the above the following new policies were developed and approved by council in 2017 financial year;

- Asset Management Policy - Bank Reconciliation Policy - Creditors Management Policy - Payroll Policy - Accounting Records Policy - Garage Card Policy

The following policies were also reviewed during the financial period under review to be in line with prevailing circumstances;

- Supply Chain Management Policy Debt Collection The college recovered R 83 019 from collections from the debt collector (Vericred) on student debtors handed over. Assets Written Off During the 2017, finance committee recommended for council to write off assets that are no longer in use. The assets to be written off are identified after an extensive exercise of physical verification and conditional assessment performed during the period under review, results of which will subsequently be approved by the college council for write off as at the end of 2017 financial year. Bad Debts Written Off The college council approved a total of R238 342.00 for long outstanding debtors that were irrecoverable during the year under review. Outstanding Debtors – 2017 As at 31 December 2017, a total of R69 063 852 was outstanding by students of which R 23 714 338 related to 2017 student debtors. Total tuition fees of R 99 083 516 was generated as income for the year ended 31 December 2017 of which 24% was still outstanding and owed by students at the reporting date.


An amount of R21 659 042 was received from students relating to tuition fees for the 2017 financial year. A total of R45 997 863 was received from National Skills Funding Scheme (NSFAS) for 2017 in respect of bursaries. The initial allocated funding for the period amounts to R56 053 200. Subsequent to year end, the college received a total of R 5 165 567 and R 33 606 201 bursaries relating to 2016 and 2017 respectively. The remittance advice is awaited from NSFAS at the reporting date. Income and Expenditure for year ended to 31 December 2017 including capital expenditure report 2017 2016 Income Programme Funding R 53 106 000 R 44 628 000 PERSAL income R 182 230 020 R 174 654 284 Total State Tranches R 235 336 020 R 219 282 284 College Fees R 99 083 516 R 96 341 330 Public contributions and donations R 2 020 673 R 1 883 933 Other Income R 45 996 180 R 37 955 044 Total income generated R 382 436 389 R 355 462 591 Expenditure Compensation R 187 418 116 R 173 908 602 Goods and Services R 105 474 008 R 101 539 267 Capital expenditure R 71 391 641 R 50 198 755 Total expenditure R 364 283 765 R 325 646 624 Net movement R 18 152 623 R 29 815 967 Non – cash items Bad debts and impairment R 845 520 R 28 026 295 Depreciation and amortization R 24 659 066 R 18 403 019 Other gains and losses R 1 293 462 R 231 788 Balances Bank R 7 724 711 R 3 368 330 Investments R 244 713 482 R 247 748 099 Debtors students R 69 063 852 R 43 038 676 Other receivables R 5 812 607 R 9 055 225 Creditors R 28 097 312 R 36 343 784 Cash Flow 31 December 2017 A favorable cash flow movement of R 1 321 765 was recorded for the year ended 31 December 2017. Investments Total Reserves R 244 713 482 R 234 663 833 Operation funds R 7 724 711 R 16 452 595 Total cash and cash equivalents R 252 438 193 R 251 116 428 CET College funds amounted to R 4 038 328 R 4 077 632


Key Objectives of the Financial Committee The role of the finance committee is primarily to provide financial oversight for the college. Typical task areas include budgeting and financial planning, financial reporting, and the creation and monitoring of internal controls and accountability policies. An outline of responsibilities appears below.

• Take overall responsibility for developing financial policies and obtaining approval. • Oversee and approve college budgetary submissions, ensuring that the outputs to be delivered are

specified and consistent with the desired outcomes. • Ensure that the necessary steps are taken to instigate any financial related investigations into

financial misconduct or maladministration. • Ensure that an appropriate management information system is established to provide prompt and

accurate financial information. • Consider the reports generated by the Deputy Principal: Chief Financial Officer. These reports

must indicate any under collection or shortfall in budgeted income (as this may impact on the college’s ability to spend and therefore deliver services), as well as any overspending (this would eventually become unauthorised expenditure). The report must also project expenditure and revenue for the remainder of the year, and show any remedial action proposed by the accounting officer.

• Ensure that there is compliance with policies, no deficit spending and long-term commitments don’t exceed projected revenues.

The Finance Committee is in place and functions effectively as required in terms of the Treasury

Regulations and the CET. The Finance Committee held four meetings during the reporting period.

Attendee profile of Financial Committee meetings

NAME QUALIFICATIONS INTERNAL/EXTENRAL

DATE APPOINTED

NO OF MEETINGS ATTENDED

Mr C Setlhako

(Chairperson) - LLB

External 15/04/2014 4

Mr M Petje -Master of Philosophy External 01/09/2015 3

Ms HM Ntlatleng

(Ex-Officio)

-Bachelor of Arts

Internal Ex-Officio 3

Ms P Lehoko -Bachelor of Science Internal 01/07/2014 3


4.2 AUDIT AND RISK COMMITTEE The Audit and Risk Committee reports on the following: Key activities and objectives of Internal Audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the college operations. It assists the college accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. The Internal Audit Unit operates with skilled personnel and functions as required by the Treasury Regulations and the Continuing Education and Training Act (CET). An audit plan was developed independent from the risk assessment conducted in the College and approved by the Audit Committee and college council. The Internal Audit function was outsourced to a Service Provider on a three year contract ending 31 July 2018. The 3 year rotational internal audit plan is closely monitored and amended according to prevailing control risk. During the year under review, internal audit engagements were performed in accordance with the audit plan. The main activities of Internal Audit are to:

• Compile three year rolling strategic and annual audit plans • Performing internal audits on the following systems

– Risk management system – Control systems – Governance systems

• Report to management and the Audit Committee Audit work The implementation of the internal audit plan commenced in 2015 financial year with the following activities reported up to 31 December 2016;

• Financial and asset management review • Supply chain management • Human resources review. • Review of ERM framework, operational risk register and general risk management • Facilitation of strategic risk assessment • Campus operational audits • Review of audit action plan 2017 • Governance review audit • Asset management review

The following activities per audit plan were completed in 2017:

- Campus operational audits (remaining campuses) - Revenue, NSFAS and Registration review - Human resources management review

Appointment of external auditors The Auditor General of South Africa is mandated as outlined in Chapter 9 (sections 181 & 188) of the Constitution of the Republic of South Africa and to audit of all Technical and Vocational Colleges and commenced audit of the college from the 2016 financial year.

https://en.wikipedia.org/wiki/Assurance_services

https://en.wikipedia.org/wiki/Consultant

https://en.wikipedia.org/wiki/Effectiveness

https://en.wikipedia.org/wiki/Enterprise_risk_management

https://en.wikipedia.org/wiki/Enterprise_risk_management

https://en.wikipedia.org/wiki/Internal_control

https://en.wikipedia.org/wiki/Corporate_governance


Key activities and objectives of the Audit Committee The objective of the Audit Committee is to assist the Accounting Officer in fulfilling oversight responsibilities regarding the financial reporting process, the system of internal control and management of risks, the audit process and the monitoring of compliance with laws and regulations, as well as the College’s own Code of Conduct. The main activities are;

• To advise the council on the effectiveness of the college’s whole system of internal control, including controls for securing economy, efficiency and effectiveness (value for money).

• To advise the council on the appointment, reappointment, dismissal and remuneration of the external auditor and the internal audit service.

• To advise the council on the scope and objectives of the work of the external auditor and internal audit service.

• To ensure co-ordination between the internal audit service and external auditor. • To consider and advise the council on the audit needs and assessment and strategic and annual

internal audit plans for the internal audit service. • To advise the council on internal audit assignment reports and annual reports and on control

issues included in the external auditor’s reports and management’s response to these. • To consider and advise the council on relevant reports and management’s response to these. • To monitor, within an agreed time scale, the implementation of agreed recommendations relating

to internal audit reports and external auditors’ reports. • To establish, in conjunction with college management, relevant performance measures and

indicators and to monitor the effectiveness of the internal audit service and external auditor through these measures and indicators.

• To provide an annual report for the council which includes the committee’s advice on the effectiveness of the college’s system of internal control incorporating any significant matters arising from the work of the internal audit service and external auditor.

The Audit Committee is in place and function effectively as required in terms of the Treasury Regulations and the CET. The Audit Committee held four meetings during the reporting period. Attendee profile of Audit Committee meetings:

NAME QUALIFICATIONS INTERNAL/EXTENRAL

DATE APPOINTED

NO OF MEETINGS ATTENDED

Mr S Manamela

(Chairperson) - BCOM (Hons) in Business

Management

-Bachelor of Business Administration

(BBA) in Business Management

External 14/08/2014 4

Ms M Liau

BCOM Accounting Honours

External 15/04/2014 3

Ms HM Ntlatleng

(Ex-Officio)

-Bachelor of Arts

External Ex-Officio 4

4.3 HUMAN RESOURCE ADVISORY COMMITTEE The Human Resource Advisory Committee reports on the following:

CS EDUCATORS


CS EDUCATORS Total Total

AM AF IM IF CM CF WM WF M F PL1 147 111 0 3 3 2 14 40 164 156 320 PL2 17 14 0 0 2 0 5 9 24 23 47 PL3 7 7 0 0 0 0 2 3 9 11 20 PL5 1 3 0 0 0 0 3 0 4 3 7 Total 172 134 0 3 5 2 24 53 201 192 393

PUBLIC SERVANTS STAFF

PUBLIC SERVANTS Salary Level Total

Total Salary Level AM AF IM IF CM CF WM WF M F

SL1-3 11 28 0 0 0 0 0 0 11 28 39

SL4-6 28 49 0 0 0 1 0 4 28 54 82

SL7-8 5 21 0 0 0 0 0 0 5 21 26

SL9-10 4 1 0 0 0 0 0 0 4 1 5 SL11-

12 0 1 0 0 0 0 0 0 0 1 1

13+ 0 1 0 0 0 0 0 0 0 1 1

Total 48 101 0 0 0 1 0 4 48 106 154

0

50

100

150

200

250

AM AF IM IF CM CF WM WF M

PL1

PL2

PL3

PL5

Total

0

20

40

60

AM AF IM IF CM CF WM WF

PUBLIC SERVANTSSL1-3

SL4-6

SL7-8

SL9-10

SL11-12


Total number of employees

SUMMARY PER SALARY LEVELS FOR PERSAL Salary level 01 Salary level 01 Salary level 02 Salary level 02 Salary level 03 Salary level 03 Salary level 04 Salary level 04 Salary level 05 Salary level 05 Salary level 06 Salary level 06 Salary level 07 Salary level 07 Salary level 08 Salary level 08 Salary level 09 Salary level 09 Salary level 10 Salary level 10 Salary level 11 Salary level 11 Salary level 12 Salary level 12 Salary level 13 Salary level 13 TOTAL PERSAL PAID OFFICIALS TOTAL PERSAL PAID

OFFICIALS New appointments

Position Total Number

Lecturers 28 Admin Clerks 6 Student Trainees 21

PHYSICALVERICATION

NO DESCRIPTION NUMBER OF STAFF COMMENTS 1 Staff verified 290 Fully verified 2 Staff

partially verified

227 Staff that are partially verified are those whose fingers, id pictures are not clear on the verification system.

3 Staff not verified 30 New staff members LEAVE COST FROM 01 JANUARY 2017 – 31 DECEMBER 2017

Row Labels Sum of NO OF DAYS

Sum of LEAVE COST

FEMALE 1660 R 2 156 860,88 SICK-FULL PAY 1660 R 2 156 860,88

AFRICAN 1342 R 1 671 137,23 COLOURED 16 R 23 672,57


Labour Relations Cases

Cases received - 9 Cases in progress - 4 Cases closed – 5

Employee wellness

Activities held:

No Dates Programme

1 09 February 2017 World Cancer Day

2 23 - 30 May 2017 Flu Vaccination Week

3 04 August 2017 College Aids Day

4 16 September 2017 College Fun Run

College Cancer Day

FUN RUN

INDIAN 11 R 16 162,60 WHITE 291 R 445 888,48

MALE 886 R 1 064 398,35 SICK-FULL PAY 886 R 1 064 398,35

AFRICAN 816 R 955 769,23 COLOURED 16 R 28 195,42 WHITE 54 R 80 433,70

Grand Total 2546 R 3 221 259,23


In September, Ekurhuleni West TVET College hosted a 5km Fun Run/Walk that took place at EWC's Kempton Campus. The theme for the event was, “Uniting to Break Violence Against Women and Children”. The Fun Run served as a charitable event aimed at raising awareness about the violence against women and children abuse. EWC staff, Community members, learners from schools, as well as EWC students, participated in the 5km Fun Run. The event was sponsored by the following companies: Nyalu Communication, Mahlakommoni Security Services, Hope and Dreams trading 21; and Murangi Productions. The 2017 Fun Run/Walk was a success because of their contributions and support.

EWC Fun Run – September 2017

Human Resource Development

Summary of Trainings Held in 2017:

TRAINING NEED PROVIDER COST CONTENT

Life Orientation L4 DHET FREE - Personal well-being - Citizenship - Recreation and physical well-being - Career and career choices

Programmable

Logic Controller

(PLC)

Internal Member FREE - PLC ladder diagram design - PLC design on the software - External wiring of PLC - Upload programmer to PLC - Lecture practicing of ladder diagram design

Assessor Networx FREE - Demonstrate understanding of outcomes – based assessment

- Prepare for Assessments - Conduct Assessments - Provide feedback on Assessments - Review assessments

Lift Training Africa tool FREE - How to identify the correct type of slings and components to be used.

- The users legal responsibility in terms of lifting tackle and hoists.


- How to evaluate the different types of loads considering load types, mass, sling angles, centre of gravity, shock loads, clamping forces and sling capabilities.

- How to correctly attached slings to lifting machines.

Mathematics

Level 2

ATA Consultant R18 750.00 - Hexagon - Circle - Square - Triangle - Trapezium

Mathematics

Level 3

ATA Consultant R18 750.00 - Calculate the surface area and volume of two and three dimensional shapes

- Right cones O spheres - Calculate the surface area and volume of a

combination of the above mentioned geometrical objects

Mathematics

Level 4

Ata Consultant R18 750.00 - If a line is drawn from the center of a circle to the midpoint of a chord, then that lines is perpendicular to the chord.

- If a line is drawn from the center of the circle perpendicular to the chord, then it bisects the chord

- Angles in the same segment of a circle are equal

- The opposite angles of a cyclic quadrilateral are supplementary

Geogebra Ata Consultant R26 000.00 - Drawing the following: - Lines - Laminas - Labelling - Sliders - Copy and Paste function

Microsoft 2013 Esoh R260 000.00 - MS Word basics (screen, menu) - Shortcut menus, Toolbar & ToolTips - Customizing Objects - Entering & Editing Text - Adding tables - Inserting ClipArt - Creating Word Art

Office 365 Microsoft FREE - How to login to the Microsoft Educator Community.

- How to check and send email using Outlook and portal.

- How to upload a file and browse via Office. - How to share a file with a co-worker.

Pastel, Payroll

and Accounting

Sage pastel R67 779.52 - Create a purchase order, goods received noted, supplier invoice, returns and debits and supplier journal

- change and utility menus - Use customer and supplier advanced funders

Computer Aided

Design(CAD)

Internal FREE - New drawing set up - Graphical user interface - Pallets, toolbars and menu - Sketch tools - Graphics editor information


Enel Photovoltaic

Skills

MSC Artisan

Academy

FREE - Introduction to Photovoltaic Installer(PV) system

- Electronic characteristics of Photovoltaic Installer (PV) system

- Photovoltaic Installer (PV) system - Customer Care

First Aid level 1 BLS Medical R12 096.10 - Action to be taken in case of emergency - How to treat wounds, shock, head and spinal injury - Burns wounds - How to move a patient

First Aid Level 2 BLS Medical R9 900.00 - Principles of First Aid, Safety and Emergency.

- Scene management - Wounds, bleeding and soft tissue injuries. - Fractures, Dislocations and sprains. - Multiple Injury management.

Safety and First

Aid

BLS Medical R8 447.90 - Orientation and History of the Fire Service - Fire fighter safety - Personal Protective Equipment (PPE) and

self-contained Breathing Apparatus (SCBA) communications

- Incident management System - Fire Behaviour

Moderator Internal FREE - Demonstrate understanding of moderation within the context of an outcomes-based assessment system

- Plan and prepare for moderation - Conduct moderation - Advise and support assessors - Report, record and administer moderation - Review moderation systems and processes

Programmes To deliver responsive FET programmes with opportunities for workplace exposure. Administration To provide system administration support. Finance To minimize financial risk by establishing effective and efficient systems in line with PFMA and GRAP. Human Resources To ensure and sustain a motivated, competent and adequately skilled workforce. Infrastructure To develop and maintain infrastructure aligned to responsive programme and technological demands. Germiston Hall Renovations and Covered walkways

The renovation of Germiston Hall comprises of the following:

- Upgrade of Stage Area. - Upgrade of the internal area of the Hall, namely ceilings, windows, doors, lighting and wall cladding.


- Foyer upgrade with wall cladding, ceilings, shop-fronts and lighting. - Extension of bathrooms with the inclusion of a disabled bathroom. - Upgrade of the projector room, with sound and lighting for main hall. - Upgrade of entrance covered walkways. - Upgrade of the electrical infrastructure of the Hall and Foyer.

The upgrade is complete and in use.

Kempton Campus Tar road Upgrade

The upgrade of the entire tar road at Kempton Campus comprises of the following:

- Removal of the old tar road with the base. - Relay of new base with materials that will compensate for the clay soil movement.

- Relaying of a new asphalt (tar) road of 1,2 km.

The tar road is complete with the speed humps in place.

Alberton Campus Restaurant Furniture

The equipping of the upgraded Alberton Campus restaurant design furniture includes:

- Tables - Chairs - Couches - Coffee and side tables


- Reception counter - Beverage counter - Side boards

The furniture has been delivered and fitted in the restaurant area.

The construction of a new Enterprise Hub at Kathorus Campus comprises of the following:

• Workshop Area • Creative Space • 4 Offices • 2 Boardrooms • Large Storeroom • Dining Areas • Kitchen

Kathorus Campus SSS Offices with SNE Unit

The construction of a Student Support Services Offices with an SNE Unit at Kathorus Campus will

comprises of the following:

• 3 Offices • Ablutions


• Special Needs area • Occupational Health Area

Tembisa Campus Boundary Wall

The construction of a new Boundary wall and stormwater drainage infrastructure at Tembisa Campus

comprises of the following:

• 240 m Brick boundary wall of 2,4 to 3 m high. • Stormwater drainage system • Lawn on the embankments of the soccer field • Paving at the inside of the wall of 1,5 m wide. • Concrete apron on the outside of the boundary wall. • Electrical fence on the wall


Partnerships To establish strategic partnerships and linkages with key/relevant stakeholders. Ekurhuleni West TVET College 2017 Partnerships

No NAME OF PARTNER DELIVARABLES LOGO

1 Grundfos (PTY) (LTD)

Placement of Apprentice

Students

2 Jungheinrich South

Africa

Donation of R50 000

3 ERB Technologies Students Work Based

Exposure

Apprentice Training

4 Cargo Motors Students Work Based

Exposure

Apprentice Training

5 Grand Central Motors Students Work Based

Exposure

Apprentice Training

6 Fiat Jeep Students Work Based

Exposure

Apprentice Training

http://www.jungheinrich.co.za/landingpages/efg-special

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjGhr3OwovWAhXLlxoKHQ2NC6EQjRwIBw&url=http://erbtechnologies.co.za/&psig=AFQjCNGqLJaWupZLAnWYOtDOv-oJDC5GxA&ust=1504614142757224

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjz7qjd6vjSAhWLDcAKHXVNCmUQjRwIBw&url=http://www.cargomotors.com/&psig=AFQjCNGDxnUzgrkqUEsw7bR__gOiGWtYxw&ust=1490777934717728

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&ved=0ahUKEwjg6vW66_jSAhWIL8AKHUOLABQQjRwIBw&url=http://www.grandcentralmotors.co.za/&psig=AFQjCNGiOwxI4NQ-wL5n9Ie-5nDX0PR8WA&ust=1490778125988293

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&ved=0ahUKEwjg6vW66_jSAhWIL8AKHUOLABQQjRwIBw&url=http://www.grandcentralmotors.co.za/&psig=AFQjCNGiOwxI4NQ-wL5n9Ie-5nDX0PR8WA&ust=1490778125988293


7 Smollan Students Work Based

Exposure

Apprentice Training

8

Fiat Chrysler Students Work Based

Exposure

Apprentice Training

9 Arnold Chatz - Hyda Students Work Based

Exposure

Apprentice Training

10 Arnold Chatz Cars Students Work Based

Exposure

Apprentice Training

11 Thyssenkrupp Industrial

Solution

Students Work Based

Exposure

Apprentice Training

12 Diplomat Distributors Students Work Based

Exposure

Apprentice Training

13 Chieta Student bursary

14 Diesel Innovation Students Work Based

Exposure

Apprentice Training

https://www.pnet.co.za/cmp/en/Smollan-13132/work.html

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjn-pb44PjSAhWDyRoKHb-pAQYQjRwIBw&url=http://likegrass.com/fiat-chrysler-logo/&bvm=bv.150729734,d.ZGg&psig=AFQjCNENK-roWpFlPEyWSFFf_ZKxLNJ4CA&ust=1490775286893764

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwjUx5zM4PjSAhWdF8AKHbqsA4QQjRwIBw&url=http://www.sandtonspca.org.za/get-involved/corporate-sponsorship/corporate-sponsors/&psig=AFQjCNF8B1f9lLLKENGuUhSe0xJYHpS3rA&ust=1490775214909740

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwjUx5zM4PjSAhWdF8AKHbqsA4QQjRwIBw&url=http://www.sandtonspca.org.za/get-involved/corporate-sponsorship/corporate-sponsors/&psig=AFQjCNF8B1f9lLLKENGuUhSe0xJYHpS3rA&ust=1490775214909740

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjN-bPlu4vWAhVG1RoKHQ0ZCbIQjRwIBw&url=http://www.underconsideration.com/brandnew/archives/new_logo_and_identity_for_thyssenkrupp_done_in_house.php&psig=AFQjCNEvq2HbX4iiYcq0tnWr2yWfJYStjg&ust=1504612310555052

https://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjuoc3JwJrXAhWMXhQKHdYJBkgQjRwIBw&url=https://itaware.co.za/itaware/index.php/portfolio/161-client-cheita&psig=AOvVaw1c6fho6tIdmuPE9aEzhjWC&ust=1509527039415232


Honoring Women in Artisanship Ekurhuleni West TVET College hosted an inaugural ‘Women in Artisanship’ event to close off Women’s month celebrations in August. The inaugural event was aimed at honouring and recognising the role played by women in choosing careers in previously male dominated sectors. Minister of Higher Education and Training (HET), Dr Blade Nzimande, honored qualified women artisans currently employed in State Owned Enterprises (SOEs), together with female apprentices enrolled at public TVET colleges.

15 Youth Managers

Foundation

Capacity building for students

leaders.


Information Technology To expand information management capacity supporting multi-site connectivity for the purpose of Integrating academic and administration support. The Division of Information Technology is committed in delivering a strategic advantage to Ekurhuleni EWC by raising creative and innovative use of technology to achieve the college’s objectives. The division promotes effective stewardship of information assets and provides a secure, reliable technology infrastructure along with customer‐oriented service and support, to meet the ever‐changing needs of students and staff. Division Highlights

- Installed Fibre Optic WAN connecting the EWC campuses with a breakthrough of hundred (100mbps) local and twenty (20mbps) international.

- Upgraded data capacity from ten (10mbps) to hundred (100mbps) across the campuses - Enhanced network monitoring with the installation of IRIS tool (SABEN) - Replaced two hundred and sixteen (216) desktop computers and six (6) servers for computer

labs - Developed and implemented ICT service support system (e- ticketing) - Implemented change management processes (ISMS) on IT upgrade/changes - Deployed the end point protection for all the campuses - Installed Wi‐Fi and physical networking in the new Corporate Centre - Upgraded 3 domain servers for campuses - Upgraded to windows 10 and Microsoft office 2013/2016 - Implemented Office 365 - Moved the BMS servers offsite (cloud solution) - Completed the annual IT audit with the Auditor General

Marketing To implement an effective internal and external marking and communication strategy. Introduction EWC Marketing and Communications Division is tasked with implementation of efficient internal and external marketing and communication strategy. The division continues to effectively and robustly create awareness of the college programmes to the public through intensified marketing and communication campaigns to ensure growth in terms of students’ intake and ensuring that the college’s existence is promoted and known to the public. The division focused on the following areas when executing marketing and communication related activities:

• Student Recruitment • Branding • Events • Corporate Social Investment • Advertisement • Donation Solicitation • Media Campaigns.

• Student Recruitment

• We have visited eighty nine (89) schools in Gauteng, Limpopo, and North West. • We participated in forty eight (48) exhibitions in Gauteng, Limpopo, North West and

Mpumalanga. • We visited six (6) churches.


• We attended five (5) parents meetings. • We embarked on an aggressive recruitment drive for Alberton and Boksburg campuses. • We hosted Open Days at all six (6) EWC campuses.

A group of students at the exhibition

Open Days The College hosted open Days at all its six (6) campuses. All campuses opened their doors to the public to welcome prospective students. Visitors were briefed about the college offerings and were afforded an opportunity to tour the campus workshops and simulation facilities. The aims of hosting open days were:

- To entice learners about different career paths available at TVET colleges - To encourage learners to make TVET colleges as their first choice in furthering their studies. - To bring different options for community members with regard to their future


A photo collage of learners during the open days at different campuses Diploma Ceremony Seven hundred and ninety four (794) graduates were conferred at the 13th Ekurhuleni West TVET College's Graduation Ceremony, held on 26 May 2017 at the Transnet School of Excellence Hall in Kempton Park. The Ceremony was blessed by Senior Pastor Siphiwe Mathebula. Amongst the invited guests was Hon. Mbuyiseni Ndlozi who was a guest speaker. The ceremony was further honored by the presence of the Afro Tenors, who entertained the audience with their wonderful musical repertoire. The creams of the crop were rewarded with special awards presented by various sponsors at the ceremony. Awards ranged from technological gadgets to monetary prizes from sponsors such as ABSA, Future Managers, Technobridge, Excel Group, Sangari (SA), Tsheare Kitchens and Dippenaar & Reinecke.


Corporate Social Investment (CSI) Corporate Social Investment has become an important and powerful marketing tool all over the world, that is, “the grass root Marketing” Ekurhuleni West TVET College commemorated Mandela Day by embarking on its 2nd annual Mandela Day "Build or Renovate a House" Programme. We have renovated a house for a destitute youth headed family in Kaalfontein as part of Mandela Day Project with the assistance of Tembisa Campus staff, students and donors. The project was launched on 18 July 2017 and the handover of the renovated house took place on 03 August 2017, a month known as the “TVET month”. We are driving EWC brand with a purpose


A photo collage of build or renovate a house Application Activation with Ukhozi FM EWC launched its Apply Now campaign at Cambridge Shopping Complex. The launch was broadcasted live by Ukhozi FM. People from as far as Pretoria and Vaal areas attended the launch. The Application launch was aimed at recruiting new students for the 2018 registration. Murangi productions sponsored the launch with their PA system and stage.


A photo collage of Application Launch Student Support To implement a functional student support system as per relevant Acts and Policies.

Business Unit To secure and deliver Learnerships, Apprenticeship and Skills Programmes effectively. Quality Management To sustain and implement internal and external quality assurance systems. Governance To uphold and practice principles of a good governance system

5. ACADEMIC BOARD REPORT

The Academic Board has held quarterly meetings as per the CET Act 16 of 2006 and guided by A.B Terms

of reference.

This board reports on:

• Academic performance of students

• Student Support Services

• Finances that directly impacts curriculum

• Human Resources – training for lecturers to perform at peak

• Placement of students in industry for exposure especially exit-level students and lectures for exposure

to latest technology

Dates for Academic Board in 2017:

Quarter 1:

• 21 February 2017

Quarter 2:

• 30 May 2017

Quarter 3:

• 05 September 2017

Quarter 4:

• 28 November 2017


EWC enrolments 2017 = 20 334.

PROGRAM FULL-TIME EQUIVALENTS (FTE)

HEAD COUNTS TARGETS DEVIATION (positive)

NC (V)

6446.583 7136 6922 214

Report 191 –Engineering

1811.23 8324 8135 189

Report 191 – Business

1925 4874 4284 590

Other Programs

342

Grand Total Ministerial

20334

19341

993

CAMPUS NC(V)

TARGETS

ACTUAL

DEVIATION

ALBERTON

1080

1094

14

BOKSBURG

821

751

70 Negative

GERMISTON

1373

1429

56

KATHORUS

1085

1182

97

KEMPTON

1208

1314

106

TEMBISA

1355

1366

11

EWC TOTAL

6922

7136

214

CAMPUS REPORT 191 ENGINEERING

TARGETS

ACTUAL

DEVIATION

GERMISTON

3460

3503

43

KATHORUS

1833

1915

82

KEMPTON

2842

2906

64

EWC TOTAL

8135

8324

189

CAMPUS REPORT 191 BUSINESS STUDIES

TARGETS

ACTUAL

DEVIATION

GERMISTON

1812

2170

358

KATHORUS

695

1010

315

KEMPTON

1777

1471

306 Negative

EWC TOTAL

4284

4651

367


NC (V) L2 & L3 Centralised Marking – November 2017

Level Expected number of scripts to be marked

Actual number of scripts marked

Deviation % written

L2 6 928 4 485 -2 443 64.74% L3 3 188 2 584 -604 81.05%

Total 10 116 7 069 -3 047 69.88% National Examinations were conducted without any challenges and according to examination instructions of 2017.

2017 Examination Results Results Analysis of NC (V) 2017

Level 3 EWC Level 2 Level 4

89,60%

85,49%84,04% 83,54%

NC (V) November 2017 combined subject results All programmes per level hi to low

64,00%

66,00%

68,00%

70,00%

72,00%

74,00%

76,00%

78,00%

80,00%

T1/17T2/17

T3/17EWC

78,65%

69,39%

74,90%

EWC % Pass for a Period of Three Trimesters


Average Attendance: NC (V) = 63% Report 191 Engineering = 81.33% Report 191 Business = 85.5% 2017 Academic Interventions

• Intervention Meetings (one on one) • Sharing of Good Practices • Internal Subject Content Training • Learning Area Committee Meetings • Monitoring and Support Campus Visits

NC (V) Certification Rate






Report 191 Business N4 – N6

450 280 62,22% Cert 840 1132 74,20% Through

79,00%

80,00%

81,00%

82,00%

83,00%

84,00%

85,00%

86,00%

87,00%

88,00%

89,00%

90,00%

GERMISTON KATHORUS KEMPTON EWC

89,54%

87,38%

83,13%

87,21%

83,05%

85,03%84,34%

83,39%

PASS

RAT

E

CAMPUSES

Pass Rate Trends - 2 Semesters


6. STUDENT REPRESENTATIVE COUNCIL REPORT

2017 SRC MATTERS

• On 01 – 02 December 2017 the SRC together with SSSO’s and Deputy Principal Academic attended a document review in Benoni, Kopanong Hotel.

• Exit Farewell Functions were hosted in October 2017 at Campuses and the functions were a success.

• The SRC attended a Year End function in October at Havard Café, Germiston on 29 November 2017.

The following is the list of all 2017 SRC members and their respective portfolios: No. Name and Surname Portfolios

Campus

1. Ms Zanele Mdaweni President

Tembisa

2. Mr Lucky Mongwai Deputy President

Alberton

3. Mr Tsie Ratlhagane Secretary

Boksburg

4. MrThemba Tshabalala Treasurer

Kathorus

5. Mr Thabile Masasanya Sports Arts & Culture Alberton

6. MS Sihle Ngobeni Sports Art & Culture

Alberton

7. Mr Luyanda Mahlangu Events & Communications

Alberton

8. Mr Mochabi Hlongwane Sports, Arts & Culture Boksburg 9. Ms Nikita Fourie Events & communications

Boksburg

10. Ms Eva Kgobisa Sports, Arts & Culture

Boksburg

11. Mr Sibusiso Mnisi Sports Arts & Culture

Germiston

12. Ms Rofhiwa Simali Sports Arts & Culture

Germiston

13. Mr Sibusiso Mpanza Events & Communications

Germiston

14. Mr Thuso Mathebula Events & Communications

Germiston

15. Ms Kgomotso Matso Events & Communications

Kathorus

16. Mr Max Maselesele Sports Arts & Culture

Kathorus

17. Ms Phindile Godlo Sports Arts & Culture

Kathorus

18. Ms Nonkungo Khoadi Sports Arts & Culture

Kempton

19. Mr Neo Sehlabane Sports Arts &Culture

Kempton

20. Mr David Mahlangu Events & Communication

Kempton

21. Ms Precious Rasakanya Events & Communications Kempton 22. Ms Zinhle Nhlapo Events & Communication

Tembisa

23. Mr Lwazi Tongo Sports, Arts & Culture

Tembisa

24. Mr Gaddafi Machadi Sports Arts & Culture Tembisa


2017 SRC MEMBERS

2017 SRC EXECUTIVE


PART D: FINANCIAL INFORMATION


1. COUNCIL RESPONSIBILITY AND APPROVAL

The council is required by the Continuing Education and Training Act No. 16 of 2006, as amended, to maintain adequate accounting records and is responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of council to ensure that the financial statements fairly present the state of affairs of the College as at the end of the financial year and the results of its operations and cash flows for the year then ended, in conformity with GRAP. The Auditor-General was engaged to express an independent opinion on the financial statements and was given unrestricted access to all financial records, related data and relevant parties.

The financial statements have been prepared in accordance with the Standards of GRAP including any interpretations, guidelines and directives issued by the ASB and in the manner required by the Minister of Higher Education and Training.

The financial statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

Council acknowledges that it is ultimately responsible for the system of internal financial control established by the College and places considerable importance on maintaining a strong control environment, which includes the safeguarding of assets and compliance with relevant legislation. To enable the council to meet these responsibilities, the council sets standards for internal control aimed at reducing risk in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting and other procedures, and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the College and employees and management are required to maintain the highest ethical standards in ensuring the college's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the college is on identifying, assessing, managing and monitoring all known forms of risk across the college. While operating risk cannot be fully eliminated, the College endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The council accepts its responsibility to ensure that the College is managed in a responsible manner, considering the interest of all stakeholders, including the DHET, unions, employees, students, local communities and creditors. Responsible management entails, inter alia, compliance with applicable statutory and regulatory requirements, including risk management.

The council is of the opinion, based on the information and explanations given by management that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements and that the financial statements are free from material misstatement, whether due to fraud or error. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.

The council has reviewed the College’s cash flow forecast for the year to 31 December 2018 and, in the light of this review and the current financial position, it is satisfied that the College has, or has access to, adequate resources to continue in operational existence for the foreseeable future.

The College is dependent on the DHET for continued funding of operations in line with the annual DHET programme funding allocation. The financial statements are prepared on the basis that the College is a going concern and that the DHET has neither the intention nor the need to liquidate or curtail materially the scale of the College's operations.

The Auditor-General is responsible for independently auditing and reporting on the College's financial statements and his report is presented with these financial statements.

The financial statements set out on page 141 to194 were approved by the council on 31 March 2018 and were signed on its behalf by:

_______________________ M Mohlala Chairperson of the Council 31 May 2018


2. REPORT OF THE ACCOUNTING OFFICER 2.1 General review of the state of financial affairs

The college recorded a total income of R382, 436million for 2017 financial year from R355, 462million in

2016. Total government grants and subsidies allocation (including NSFAS) amounted to R318,073 million for

2017 from the 2016 allocation of R227,886 million. The total amount received from NSFAS for the 2017

financial year amounted to R76,722 million of which R31,504 million was only received in 2018. A cumulative

total remittance list of R51,467 million was received from NSFAS with R25,255million relating to 2017 student

debtors still outstanding as at 31 May 2018. This results in a gross government funding of R390, 795million

for the 2017 financial year from R272,904 million in 2016. This represents approximately 43% increase in

total funding with National Student Financial Aid Scheme (NSFAS) funding contributing 77% of total tuition

fees for 2017.

Total expenditure including employee related costs administered by the Department of Higher Education and

Training increased by 6% for the 2017 financial year from R 275,448 million in 2016 financial year to R292,892

million in 2017. The expenditure was made up as follows;

2017 2016 Increase / (Decrease)

Employee related costs and DHET management fee 187 418 116 173 908 602 13 509 514 Books and learning materials 17 212 112 18 275 211 - 1 063 100 Learnership project stipend 5 662 088 6 658 432 - 996 344 Repairs and maintenance 7 416 796 4 208 589 3 208 206 Professional services 5 903 930 6 031 640 - 127 710 Municipal services 6 279 632 3 848 524 2 431 108 Marketing 5 533 308 4 232 017 1 301 292 Telephone, postage, internet, network and communication costs 7 749 498 6 273 163 1 476 334 Printing and stationery 2 544 802 2 283 943 260 858 Finance costs 395 296 267 430 127 866 General expenses 46 776 549 49 460 319 - 2 683 769 Total expenses 292 892 125 275 447 869 17 444 256

Other losses recorded during the 2017 financial year amounted to R25,505 million broken down follows;

Impairment of debtors 607 178 17 356 857 - 16 749 679 Depreciation and amortisation 24 659 066 18 403 019 6 256 047 Bad debts written off 238 342 10 669 438 - 10 431 096 Loss on sale of assets 178 082 231 788 - 53 706 Write-down of inventories 1 115 380 - 1 115 380

26 798 047 46 661 102 - 19 863 055


The college recognised an increase in income from projects of approximately 48% from R16,322million in 2016

to R24,301million in the reporting period. Investment income decrease by a 3% margin to R19, 399 attributable

to erratic disbursements from NSFAS resulting in the college utilising other college reserves to fund operations.

In 2017.

A summary of other income received by the college as follows;

2017 2016 Increase / (Decrease) Revenue from exchange transactions Sale of goods and rendering of services 132 446,97 79 796,73 52 650,24 Rental of facilities and equipment 1 202 229,41 1 194 505,32 7 724,09 Investment income 19 399 126,13 19 917 986,11 - 518 859,98 Other income 6 401 353,40 6 154 785,42 246 567,98

Revenue from non-exchange transactions Public contributions and donations 2 020 672,64 1 883 933,14 136 739,50 Other income 17 899 865,32 10 167 533,15 7 732 332,17

2.2 Important Policy decisions and Strategic issues Title Deeds The college successfully transferred five (5) of the six (6) campuses into the name of Ekurhuleni West TVET

College. The college is in the process of transferring Kathorus campus in Katlehong and has appointed the

Quantity surveyors to assist sub-divide the Farmland still under Ekurhuleni Municipality.

Policies The following policies and documents were adopted after discussions at Document Review, Executive

management and Committees of Council:

Statement of Acceptance of Information Security Management System Documents

Non-disclosure agreement confidentiality statement

Access Control Policy

Password Policy

Supplier and Partner Security Policy

Information Transfer Policy

Information Classification Policy

Clear Screen and clear desk Policy

Acceptable Use Policy

Bring your own Device Policy


Mobile Device and Teleworking Policy

Information Disposal and Destruction Policy

Asset Management Policy

Bank Reconciliation Policy

Creditors Management Policy

Creditors Management Policy

Payroll Policy

Accounting Records Policy

Garage card Policy

Supply Chain Management Policy

2.3 Significant Events and Major Projects undertaken for 2017 Annual Hosting of German Delegation The ten (10) member delegation of staff and students from Ludwig Erhard-Schule in Germany visited EWC on an

exchange programme 3-17 March 2017.

The delegation was hosted with EWC families to be able to be incorporated into the South African lifestyle and

culture.


A delegation of three (3) staff members and two (2) NC (V) best students formed an EWC delegation to Ludwig-

Erhard Schule in Fürth, Germany 02-11 July 2017. The team was also hosted by the Ludwig-Erhard-Schule staff.

Among other places they visited the Mayor of Fürth, the Audi plant and companies that had a partnership with the

college. The college still uses chalk-boards for writing in classrooms and Ludwig-Erhard-Schule has introduced

a programme offered to refuges.

IVETA Conference A delegation of three (3) staff members attended IVETA Conference in at Queenstown, New Zealand on 11-15

September 2017.

The theme of the conference was: ‘Building successful skills and life outcomes'

Dual System Pilot Project (DSPP) The Tembisa campus is still piloting the Dual System in Electrician. The project is supported by a German

organisation (GIZ) and funded by DHET through NSF. Two (2) students had since been dropped from the project

and the number remaining is twenty-three (23). The group to complete in 2018.

Ms Conny Maleka the Acting Campus Manager, the acting HoD and two (2) staff members attended Capacity

training in Germany on 14-28 January 2017 and the second round of training was attended by the two (2) lecturers

on 17 April - 12 May 2017.

merSETA Artisan Development Training

This is a three (3) year Artisan Development funded by merSETA for a period of three (3) years. The training

started 1 March 2016 with 31 students on three (3) trades – Electrical Engineering offered at Kathorus Campus;

Fitting and Turning offered at Germiston Campus and Automotive offered at Tembisa Campus.

The training to be completed in 2018 and students are placed at workplace during training on a block release.

The students are placed at Siemens SA; Presto and Ekurhuleni Metropolitan Municipality.


World Skills Competition ZA EWC represented Gauteng Province at the World Skills Competition is South Africa at the Albert Luthuli

International Conventional Centre in Durban on 13-16 February 2017 with nine (9) students at the following fields:

• Electrical Installations (1)

• Mechatronics (2)

• Cooking (2)

• Restaurant Services (3)

• Hair-dressing (1)

EWC received Silver medals on Electrical Installation and Mechatronics.


Three (3) staff members attended the 44th World Skills Competition and Conference at Abu Dhabi 2017 on 15-18

October 2017.

Participating countries were seventy-six (76) and the competition was on fifty-one (51) skills and 1300 participants

took part in the competition.

China Scholarship Mr Raymond Dladla represented EWC in the seventeen (17) DHET delegation to China on 15-28 July 2017.

The main aim of the visit was to investigate China’s Vocational Institution which has distinct characteristics in

Chengdu and Shanghai and also to understand the China’s economic development which has a deeper

understanding of the close connection between economy and vocational education.

United Kingdom QMS Training Four (4) staff members attended the Quality Manual training at UK at Claromentis company on 15-18 July 2017.

Mauritanian Minister’s Visit The college hosted the Minister of Higher Education and Training; Prof. Hlengiwe Mkhize and the Mauritanian

Minister of Higher Education on their biletaral cooperation between the two (2) countries and in attendance there

were Dr Sidi Ould Salem and the Ambassodor – on 13 November 2017.

Learnerships


• The college ran the Business Administration level 4 Learnership at Boksburg campus for students and it

is funded by NARYSEC. It started on 1 March 2016 with fifty (50) students in attendance. The students

completed the practical exposure on 28 February 2017

• The college had a Wholesale and Retail learnership on Operations level 2. Sixty-one (61) students were

placed in five (5) companies identified by W&RSeta.

Samsung Training The new group of forty (40) level 3 students started Samsung Electronics Engineering Academy project in

February 2017. Students to complete in 2018.

The graduation of the 2015/16 took place at Boksburg campus on 17 March 2017.

DHET TVET Bursary (NSFAS) NSFAS has introduced the Student-Centred Model and EWC was part of the pilot project.

The 25 444 students registered for the academic year 2017, only 6 352 students were funded with an allocation

totaling R47,030,491.00. A total amount of R45,217,938.00 was received in 2017 and R44,208,693.00 credited

to student accounts, the outstanding journals are those of students who either have not signed their SOP’s or are

not on the remittance list.

• The 6441 students were submitted in accordance to the disbursement improvement plan put into effect 15 on January 2018 by NSFAS. The total claim submitted was R39,376,916.00

• The following amounts were received towards the 2017 claim submitted in January 2018: • R1,203,244.00 on 20 February 2018 • R22,352,810.00 on 22 February 2018 • R7,556,663,00 on 06 March 2018

• A total amount of R31,112,717.00 was received for the 2017 non-funded claim.

Diploma Ceremony

The EWC Diploma Ceremony was held at Transnet Hall School of Excellence in Esselen Park on 26 May 2017.

Mr Mbuyiseni Ndlozi was the guest speaker and the Afro Tenors blessed the ceremony with musical rendition.


Eight hundred and ninety seven (846) students received NC (V) certificates and one hundred and fifty five (120)

received National N. Diploma.

2.4 Significant Events and Major Project undertaken or completed Work Intergrated Learning (WIL) The college was able to place six (6) staff members at Kees Bayers in Isando from 28 February 2017 for three

(3) weeks – in the following departments: Human Resource

Finance

Marketing

The project was supported and funded by Foodbev Seta. In return three (3) staff-members from Foodbev became

guest lecturers.

CEO Business Plan Awards The college Centre for Entrepreneurship (CfE) CEO Business Plan competition, was launched in 24 July 2018.

Nedbank Foundation donated an amount of R311 000.00. The Awards were held on 10 November 2017 at

Kgorong Auditorium at the college Corporate Centre.


Below is the list of winners:

Full Name Campus Award Course Cash

Nthabiseng Mzanzi Boksburg Overall winner Marketing level

2

R50 000.00

Nompumelelo

Manyoni

Katleho Phiri

Germiston 1st runner Financial

Management N5

R30 000.00

Thamsanqa Tabeha Tembisa 2nd runner Civil

Engineering

level 4

R20 000.00

Lebogang Mphela Kathorus 3rd runner Financial

Management N5

R10 000.00

Christabell

Mukonowatsauka

Boksburg 4th runner Economics &

Financial

Management L4

R10 000.00

Teboho Tsoteshi Kathorus Written Business

Plan

HRM N4 R10 000.00

Mpho Kekana Kempton Innovative Concept ERD L4 R10 000.00


Establishment of Enterprise Hub The construction of the Enterprise Hub is completed. The recruitment of the 1st Cohort of the incubatees was

concluded end of 2017and to start early 2018.

The Innovation Hub committed R2 million for the 1st thirty-five (35) businesses to be housed.

Strategic Plan Review 2018 – 2022 The Strategic Plan Review session was held on 27 – 29 September 2017 with all College stakeholders and

governance structure participating. It started with the presentations of Campus Managers and Estate Manager

at the Corporate Centre Auditorium after viewing of campuses stalls.

The session ended by adopting the following business motto:

“Be Accountable, Regardless”


Delegates presented the 2016 Operational Plans and achievement which were followed by the 2017 Operational

Plan.

Minister’s IMBIZO

The Minister of Higher Education and Training, Dr Blade Nzimande, held an IMBIZO on Post School Education

and Training (PSET) sector on 2-4 October 2017 at Benoni Lake Hotel.

EWC received the following awards:

• The best Financially managed college

• The most progressive college in the Artisan development field.

Partnerships and Donations

Fiat Chrysler Automobile (FCA), the 7th largest automaker in the world, donated new parts of their brands

amounting to four (4) vehicles, on 10 February 2017.


The donation was given to Boksburg Campus.

ABSA Group The college signed an MoU with ABSA Group to collaborate on a number of activities including Readytowear and Readytowork programme which was launched at Boksburg Campus.


Volkswagen SA EWC Automotive lecturers visited VW Group SA Academy for training and Work-Based-Exposure (WBE) and VW

donated eight (8) engines and gearboxes for Tembisa campus and part of Mandela month legacy

Youth IMBIZO Kathorus Campus hosted the Department of Correctional Services Youth IMBIZO on 22 June 2017. It was in

partnership with the Boksburg Correctional Services and Gauteng Department of Community Safety. In

attendance there was the Deputy Minister of Correctional Services, Thabang Makwetla, MEC of Gauteng

Community Safety, Ms Sizakele Nkosi and the DG of Correctional Services and other High ranking officials.

Fun Run/Walk EWC Annual Fun Run/Walk was held on September 2017 as a community inter-action project.


Employees Awareness Programme (EAP) World Cancer Day was observed on 16 February 2017.

EWC Year End-Function The college celebrated its Year End Function on 20 October 2017 at Saint George’s Hotel. Awards given to staff

were the following:

• Best Performing division

• Best performing campuses (NC (V) and Report 191)

• Long service awards

Management Review EWC Management Review was held on 1-3 November 2017 as prescribed by the South African Bureau of

Standards (SABS) on the following standards:

• ISO 9001 of 2015

• OHAS 18001

• ISMS 27001

• ISO 14001


Women’s Month EWC hosted the Minister’s project of “Women Artisan” on at the Germiston Campus in partnership with INDLELA.

This was brain-child of Dr Blade Nzimande. The Germiston Campus students displays their skills at the foyer

before the function started.


Pre-Enrolment Campaign EWC launched its pre-enrolment campaign on 09 September 2017 with Ukhozi FM at Cambridge Mall, Thobela

FM and Ukhozi FM advertised the event in the week.

2.5 Other Governance Structures Supply Chain Management (SCM) The SCM is governed by a policy that was ratified by the College Council.

Bid Specification Committee (BSC) It is composed by five (5) people and three (3) of the permanent members constitute a quorum.

The BSC is governed by the Terms of References or charter. The non-permanent are appointed by the

principal per project as identified in the procurement plan.

Their functions include the Bidding process, planning for a bid process, preparing for the bid documentation,

communicating with prospective bidder and receiving bids. The SCM is responsible for the management

of supplier database and supplier policy principles.

Bid Evaluation Committee (BEC) The BEC is a standing committee appointed by the Accounting Officer (principal). The principal time and

again appoints a specialist for a specific bid should it be required. The committee is demographically

representative to reflect race, gender and expertise. Training and development of skills and knowledge is

encouraged.


The BEC composes of six (6) members and three (3) of the permanent members constitute a quorum

The BEC is governed by the Terms of Reference or Charter. Its function is to evaluate each bid in

accordance with the evaluation criteria published in the request documentation.

Bid Adjudication Committee (BAC) The Bid Adjudication Committee is established in terms of Regulation 16A to the PFMA and its purpose is

to provide control function to assess the recommendations from the Bid Evaluation Committee. The BAC’s

function is to ensure that the process of soliciting and evaluating bids is fair, equitable, transparent,

competitive and cost effective.

The BAC is composed of five (5) members and three (3) of the permanent members constitute a quorum.

The committee is appointed by the Accounting Officer (principal). It is imperative that the BAC criteria,

including the manner in which points are to be awarded, are clearly stated in the bid documents.

Information Technology The Information Security Management Systems (ISMS) has been established which meets on a quarterly

basis to review plans, policies and standards. There is continuous training on ISMS 27001 and the 1st

round of SABS (SANAS) audit in preparation of the accreditation was in 5 December 2017.

Creative and innovative use of technology is used to achieve the college’s objectives. A secure, reliable

technology infrastructure along with customer – oriented service and support are provided to meet the ever-

changing needs of students and staff.

Network monitoring was enhanced with the installation of IRSI tool (SABEN)

Active directory at end of 2017:

• Mailboxes – 1145

• Class Users – 1146

• External Contact mail – 20

• Staff members domain – 512

• SRC users – 6

Kaspersky antivirus was deployed and technicians received an advanced training.

Information Security Management Systems Policy Statement Ekurhuleni West TVET College operates in an advanced information society where developments are

making systems more networked and global than ever before. It’s against this backdrop that our information

assets are playing an increasingly vital role at Ekurhuleni West TVET College. Protection and secure use

of information assets are urgent priorities for Ekurhuleni West TVET College.

The purpose of this policy is to protect, preserve and manage the confidentiality, integrity and availability of information and all supporting business processes, systems and applications.


This policy sets out the principles required to protect Ekurhuleni West TVET College information assets from threats, whether internal or external, deliberate or accidental. This policy applies to, and is mandatory for, all Ekurhuleni West TVET College personnel. All references

made to personnel in this policy include Ekurhuleni West TVET College employees, full or part-time,

contractors and third-party personnel.

The ISMS Policy of Ekurhuleni West TVET College towards Information Security is:

• Protect Ekurhuleni West TVET College Intellectual property and proprietary information and documents.

• Establish, maintain and improve an Information Security Management Systems conforming to ISO/IEC 27001:2013

• All personnel, regardless of their role, are responsible for conducting their work in a manner that protects the security of Ekurhuleni West TVET College information. This includes adhering to all the information security principles.

• Set direction in achieving a safe and secure environment and availability of information to users.

• To maintain the Confidentiality, Integrity and Availability of all information.

• To manage our Information security using a Risk Assessment process with

• Criteria for evaluating the risk taking into account confidentiality, integrity and availability of information.

• To maintain high awareness levels of security protocol, policies and best practices as applicable to various roles, role players and systems through training and awareness campaigns.

• Comply with legislative, regulatory and contractual requirements from national level through to departmental level.

• Information Security incident management, record keeping and prevention.

• Continuous improvements in information security management through implementation of ISO/IEC 27001 integrated into the Ekurhuleni West TVET College Quality Management System.

• All Employees and external people accessing and using any network, equipment and/or premises must comply with the Information Security Management Systems Policy, controls and other related policies, rules and regulations. Anybody who violates any of these regulations shall be penalised in accordance with the Ekurhuleni West TVET College policies, procedures, guidelines and best practices.

Connectivity – fibre optic (WAN) was installed connecting the EWC six (6) Campuses with a breakthrough

of hundred (100mbps) from ten (10 mbps) local and twenty (20 mbps) international.

Upgraded data capacity from 10mbs to 100mbs across campuses.

Network Infrastructure

- Configured WI-FI and physical network infrastructure for New Corporate Centre - Upgraded 4 domain servers - Replaced X216 Computer Classroom Workstations and X6 Servers

Moved ITS (BMS) Servers offsite (Cloud Solution) - to reduce the cost of maintaining and managing the ITS system, business continuity, scalability, backup, verification assurance and access to automatic updates. Implemented Student and Lecturer I enabler for new registrations and viewing of Students records.


Moved physical exchange to cloud solution. Deployed Office 365 for exchange online solution for security

and reliability. The exchange online helps protect information with advanced capabilities. Users are able to

access their data anytime, anywhere.

Developed e-ticketing system that enable users to report queries and track status of their calls. Used Info

capture module on the Quality Manual System to deploy the automated workflows for ICT support system.

Quality Management System

The Quality Management System was externally audited by SABS in 2017 in the following areas:

ISO: 9001of 2008 (Quality) Germiston Campus, Tembisa campus and Corporate Centre, on 24; 25 and 26

April 2017.

It went well as the College passed the audits with only three (3) minor findings that were raised. EWC was

recertified for ISO: 9001 of 2008 after the findings were cleared.

Quality Policy Statement The Ekurhuleni West TVET College Training Quality Management System (QMS) has been developed in

accordance with the fundamentals, requirements, and guidelines provided in ISO 9001: 2008, and in

complete alignment with both our Continuous Improvement and Effectiveness philosophy and our Quality

Management System.

Our identified areas of focal attention to ensure continuous performance improvement, effectiveness and

the pursuit of excellence are: Academic Affairs, Administration, Business Unit, Governance, Informational

Resources, Information Security, Estate Management, Occupational Health and Safety, Finance, Human

Resources, Student Support Services, Marketing and Communication and Strategic Management.

The QMS is that part of the overall management system which implements our Quality Policy, establishes

procedures by which we meet or exceed client expectations, and satisfies international system

requirements for ISO registration.

Ekurhuleni West TVET College shall establish, monitor and review Quality Objectives on a continuous

basis.

Ekurhuleni West TVET College is committed to the training and continuous development of all staff to

ensure that all employees are adequately equipped and well trained to perform their duties in a professional

manner.

To achieve the above Quality objectives our Quality Management System is driven by the Quality

Management Principles identified in ISO 9001: 2008 to lead our College towards improved performance:

• Customer Focus • Leadership


• Involvement in People • Process Approach • System Approach to Management • Continual Improvement • Factual approach to decision making • Mutually beneficial supplier relationship

Safety, health and environmental issues facing EWC. EWC is accredited on Occupation, health and safety standards (OHSAS 18001) by SABS.

SABS external audits took place at Kathorus campus; Germiston campus and Corporate Centre on 13, 14

and 15 July 2017 respectively. Not a single non-conformance (NCR) was raised.

The college follows strict standards and has external parties doing internal auditing on its facilities –

grounds, workshops and staff. Medical checks are done on staff in the workshops and drivers including

cleaners. Evacuation drills are performed per policy. HIRA is being recorded on the Quality Manual. The

college has appointed three (3) OHS Officers and each site has OHS Committees in the six (6) campuses

including Corporate Centre. OHS Representatives are appointed through a letter as per section 17 of the

Occupational Health and Safety Act.

Health and Safety Policy Statement Ekurhuleni West TVET College is committed to a Health and Safety System that protects its employees,

property and other workers on its premises, the general public and the environment. Occupational Health

and Safety is one of our identified areas of focal attention of our Quality Management System through

which we are committed to ensure continuous performance improvement. Ekurhuleni West TVET College

Training’s goal is to provide and sustain a healthy, injury free work place as we are committed to prevent

injury and ill health. By working together in all aspects of the Health and Safety System, we expect to

achieve zero incidents, losses and injuries.

Management sets an example and provides leadership in terms of the Health and Safety System.

Management ensures that safe work practices are developed through hazard analysis and that these

practices are followed. Management provides proper equipment and training and ensures that all

employees are familiar with the applicable requirements of the Occupational Health and Safety Act, the

General Safety Regulations and the Collective Agreements. The Joint Health, Safety and Environment

Committee is recognized as a key component of the Health and Safety System.

Employees at every level are accountable and recognised for Health and Safety performance. Active

participation is expected from everyone, every day, in, every job. Employees are accountable for safe

behaviour including reporting all injuries and safety issues and participating in improving Health and Safety.

Ekurhuleni West TVET College intends to comply with all Health and Safety Legislation and to any other

requirements to which the organization subscribes that relates to its OH&S hazards. Ekurhuleni West

TVET College will, so far as it is reasonably practicable, safeguard the health, safety and welfare of its

employees, temporary staff, students, visitors, or others affected by its activities and operations.


Ekurhuleni West TVET College will provide:

• A safe place of work; • Safe equipment; • Safe systems of work; • Effective procedures use in case of emergencies and evacuation of the premises; • Ensure that students and staff receive Health and Safety training; • Employee consultation and participation in Ekurhuleni West TVET College Policies and Practices; • The promotion of employee and student recognition of their individual responsibility to exercise self-

discipline and accept responsibility, to do everything they can to prevent injury to themselves or others.

As part of its responsibility, Ekurhuleni West TVET College makes safety expertise and services available

to all its programmes through professional safety consultancies.

The above statements are intended to highlight selected minimum Safety Principles. All departments, staff,

and learners students are expected to know and comply with these precepts.

Environmental Policy Statement or become self-employed. Environmental protection and compliance, the management of waste and hazardous waste, to manage

pollution and to implement stable environmental practices as well as to recycle and going green is the

responsibility of all Ekurhuleni West TVET College departments and personnel.

Stage one (1) audit by SABS took place on 04 December 2017 and the college received the green light to

process to stage 2 Audit for certification. EWC introduced documented evidence of waste streams and

also visits to Waste Recyclers.

Ekurhuleni West TVET College will:

• Conduct all of Ekurhuleni West TVET College operations in an environmentally responsible and sensitive manner.

• Commits to comply with applicable legal requirements and with other requirements local and overseas, federal, state and local regulatory requirements governing hazardous materials and wastes, pollution prevention and environmental protection which relates to its environmental aspects, as well as By-laws applicable to disposal of hazardous waste.

• Commit to continuously improve Ekurhuleni West TVET College systems and procedures related to environmental protection and pollution prevention activities by setting and reviewing objectives and targets.

• Store, use, and dispose of chemicals and potentially hazardous materials and waste in a manner that protects the environment as well as the health and safety of the work force and the public.

• Minimize and prevent the generation of hazardous and non-hazardous wastes and emissions at the source to recycle, reuse and reduce, to the extent that it is economically and technically practical.

• Actively pursue reductions of the generation of waste and the discharge of contaminants into the environment.

• Identify and implement waste reduction opportunities through encouragement and involvement of all personnel.

• Establish and implement operational control procedures to maintain compliance. • Undertake scheduled periodic/ongoing environmental quality assessments to determine

compliance by establishing management programs to achieve objectives and targets.


• Establish and implement procedure to carry out corrective and preventive actions. • Entrust each Manager/Supervisor with responsibility for the environmental compliance of his/her

area. • Encourage feedback from all personnel regarding hazardous materials minimization and

environmental compliance. • Train personnel and communicate relevant Environmental Management System (EMS)

requirements to them. • Communicate this policy to all personnel and to the public upon request, as warranted.

Asset Management All assets, including those newly purchased, are currently reflecting on the college consolidated Asset Register. All assets are bar-coded after purchase and then recorded on the Asset Register. The Asset Register complies with the minimum requirements and reconciliation performed between the Asset Register and the basic accounting system. Financial Statements The Audit Financial Statement were audited by the Auditor General during 2017 Financial year. Approval The Annual Financial Statements -------------------------------------------------- H.M. Ntlatleng Principal and Accounting Officer


3. REPORT OF THE AUDIT AND RISK COMMITTEE The Audit and Risk Committee is pleased to present the report for the financial year ended 31 December 2017.

Audit and Risk Committee Responsibility The Audit and Risk Committee reports that it has complied with its responsibilities arising from Section 25 (1) (c) of the Continuing Education and Training of South Africa and Treasury Regulation 3.1. The Audit Committee also reports that it has adopted appropriate formal terms of references and has discharged all its responsibilities as contained herein. The effectiveness of internal control The system of internal control is designed to provide cost-effective assurance that assets are safeguarded and that liabilities and working capital are effectively managed. In line with the CET and PFMA requirements where applicable, Internal Audit and External Audit provided the Audit and Risk Committee and management with assurance that the internal controls are adequate and effective. This is achieved by means of evaluating the effectiveness of the management of identified risks, as well as the identification of corrective actions and suggested enhancements to the controls and processes. Through the reports from different assurance providers, it was identified that the system of internal control was not entirely effective during the year as some instances of non-compliance with internal controls were reported by both Internal and External Audit. The Audit Committee will continue to monitor progress against the corrective action plan implemented by management in addressing the root causes of the audit findings. In-year management and monthly/quarterly reports submitted in terms of the CET The Audit and Risk Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer of the College during the year under review. Financial statements We report that as part of our mandate to provide oversight to the Council we have performed the following activities; -Reviewed and discussed the annual financial statements to be included in the annual report, with the auditors and the Accounting Officer. -Reviewed the external auditor’s management report and management responses thereto. -Reviewed the Council’s compliance with legal and regulatory provisions. -Reviewed significant adjustment resulting from audit The Audit Committee concurs with and accepts the auditor’s conclusions on the financial statements and is of the opinion that the audited financial statements be accepted and read together with the report of the external auditors. Internal audit The Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the Colleges in its audits. The Internal Audit function was outsourced to Grant Thornton on a three year agreement ending 31 July 2018. The committee has continually reviewed and monitor progress on issues raised during internal audits. Risk management Risk management strategy is in place and a risk assessment was conducted during the year under review. The Risk Management Committee meets on a quarterly basis. There has been significant progress with the implementation of risk management in the college.


Conclusion The Audit Committee congratulates the College for achieving an unqualified audit report for the year under review. The Audit Committee will monitor the improvements made by management in addressing control deficiencies identified by external and internal audit. ----------------------- Mr. S Manamela Chairperson of Risk and Audit Committee


4. AUDITED ANNUAL FINANCIAL STATEMENTS

Report of the auditor-general to the minister of Higher Education and Training and the council of Ekurhuleni West Technical and Vocational Education and Training College

Report on the audit of the financial statements

Opinion 1. I have audited the financial statements of the Ekurhuleni West Technical and Vocational

Education and Training College set out on pages 141 to 194, which comprise the statement of financial position as at 31 December 2017, the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Ekurhuleni West Technical and Vocational Education and Training College as at 31 December 2017, and its financial performance and cash flows for the year then ended in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Continuing Education and Training Act of South Africa, 2006 (Act no. 16 of 2006) (CET Act).

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

4. I am independent of the college in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of matters 6. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Material Impairment – student debtors

7. As disclosed in note 4 to the financial statements, material impairment of student debtors amounting to R35 479 012 was disclosed as a result of doubtful debts.

Restatement of corresponding figures

8. As disclosed in notes 34 and 36 to the financial statements, the corresponding figures for 31 December 2016 were restated as a result of errors in the financial statements of the college at, and for the year ended 31 December 2017.


Responsibilities of council for the financial statements 9. The council is responsible for the preparation and fair presentation of the financial statements

in accordance with the SA Standards of GRAP and the requirements of the CETA Act, and for such internal control as the council determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

10. In preparing the financial statements, the council is responsible for assessing the Ekurhuleni West Technical and Vocational Education and Training College’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the council either intends to liquidate the college or to cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements 11. My objectives are to obtain reasonable assurance about whether the financial statements as

a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

12. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

Performance information reporting

13. The college is not required to prepare a report on its performance against predetermined objectives, as it does not fall within the ambit of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and such reporting is also not required in terms of the CET Act.

Report on the audit of compliance with legislation

Introduction and scope 14. In accordance with the Public Audit Act, 2004 (Act No.25 of 2004) (PAA) and the general

notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the college with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

15. The material finding on compliance with specific matters in key legislations is as follows:

Annual Financial Statements

16. The financial statements submitted for auditing were not prepared in accordance with the generally recognised accounting practice, as required by section 25(3) of the CET Act.

17. Material misstatements of commitments, unspent conditional grants and receipts, going concern disclosure note, cash flow statement and risk management and other financial


instruments identified by the auditors in the submitted financial statements were corrected, resulting in the financial statements receiving an unqualified audit opinion.

Other information

18. The council is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements and the auditor’s report.

19. My opinion on the financial statements and findings on compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

20. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

21. I did not receive the other information prior to the date of this auditor’s report. After I receive and read this information, and if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.

Internal control deficiencies

22. I considered internal control relevant to my audit of the financial statements and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the significant internal control deficiencies that resulted in the finding on compliance with legislation included in this report.

Leadership 23. Management did not develop adequate year-end processes and procedures to ensure that

the financial statements submitted for auditing are free from material misstatements and are fully supported by accurate and complete information.

24. Management did not adequately review the financial statements resulting in various material misstatements in the financial statements submitted for auditing.


Financial management 25. The processing and reconciling controls implemented by management during the financial

year were not adequate, as accounting records and schedules presented for auditing were not always accurate and complete.

Pretoria 31 May 2018


ANNEXURE – Auditor-general’s responsibility for the audit

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on the college’s compliance with respect to the selected subject matters.

Financial statements 2. In addition to my responsibility for the audit of the financial statements as described in this

auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the college’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council

• conclude on the appropriateness of the council’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ekurhuleni West Technical and Vocational Education and Training College ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a college to cease continuing as a going concern

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance 3. I communicate with the council regarding, among other matters, the planned scope and timing

of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the council that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.


Ekurhuleni West TVET COLLEGE

4.1. Statement of Financial Position for the year ended 31 December 2017

2017 2016

Restated

Note R R

ASSETS Current assets 323 648 267 299 859 821 Cash and cash equivalents 3 252 438 193 251 116 428 Trade and other receivables from exchange transactions 4 38 630 126 16 454 746 Other receivables from non-exchange transactions, including transfers 5 21 013 049 22 228 000 Inventories 6 11 566 900 10 060 647

Non-current assets 474 638 503 428 084 010 Property, plant and equipment 7 469 917 816 424 165 551 Intangible assets 8 1 553 996 661 734 Investment property 9 3 166 690 3 256 724 Total assets 798 286 770 727 943 831

LIABILITIES Current liabilities 61 805 201 53 067 403 Trade and other payables from exchange transactions 10 28 097 312 36 343 784 Provisions 11 428 000 430 000 Unspent conditional grants and receipts 12 23 692 331 7 921 922 Finance lease liability 13 1 529 738 1 323 122 Other financial liabilities 14 8 057 820 7 048 575

Non-current liabilities 2 428 089 3 569 165 Provisions 11 1 796 000 1 665 000 Finance lease liability 13 632 089 1 904 165

Total liabilities 64 233 290 56 636 568

Net assets 734 053 480 671 307 263 Accumulated surplus/(deficit) 734 053 480 671 307 263

Total net assets and liabilities 798 286 770 727 943 831


Ekurhuleni West TVET COLLEGE 4.2. Statement of Financial Performance for the year ended 31 December 2017

2017 2016

Restated

Note R R Revenue Revenue from exchange transactions 126 218 672 123 688 403 Tuition and related fees 15 99 083 516 96 341 330 Sale of goods and rendering of services 16 132 447 79 797 Rental of facilities and equipment 17 1 202 229 1 194 505 Investment income 18 19 399 126 19 917 986 Other income 19 6 401 353 6 154 785

Revenue from non-exchange transactions 256 217 718 231 774 187 Government grants and subsidies 20 236 297 180 219 722 721 Public contributions and donations 21 2 020 673 1 883 933 Other income 19 17 899 865 10 167 533 Total revenue 382 436 389 355 462 591

Expenses Employee related costs and DHET management fee 22 (187 418 116) (173 908 602) Impairment of debtors 23 (607 178) (17 356 857) Depreciation, amortisation and impairment 24 (24 659 066) (18 403 019) Books and learning materials 25 (17 212 112) (18 275 211) Learnership project stipend 26 (5 662 088) (6 658 432) Repairs and maintenance 27 (7 416 796) (4 208 589) Bad debts written off (238 342) (10 669 438) Professional services 28 (5 903 930) (6 031 640) Municipal services (6 279 632) (3 848 524) Marketing (5 533 308) (4 232 017) Telephone, postage, internet, network and communication costs (7 749 498) (6 273 163) Printing and stationery (2 544 802) (2 283 943) Finance costs 29 (395 296) (267 430) General expenses 30 (46 776 549) (49 460 319) Total expenses (318 396 710) (321 877 183)

Other gains / losses (1 293 462) (231 788) Gain/(Loss) on sale of assets 31 (178 082) (231 788) Write-down of inventories 6 (1 115 380) -

Surplus/(Deficit) for the year 62 746 217 33 353 619


Ekurhuleni West TVET COLLEGE 4.3. Statement of Changes in Net Assets for the year ended 31 December 2017

Note 42

Accumulated Funds

Accumulated

Surplus/(Deficit) Total: Net Assets

R R Balance at 01 January 2016 as restated 638 993 032 638 993 032 Correction of errors (Note 34) (1 039 389) (1 039 389) Surplus/(deficit) for the year 33 353 619 33 353 619 Balance at 01 January 2017 as restated 671 307 263 671 307 263 Surplus / (deficit) for the year 62 746 217 62 746 217 Balance at 31 December 2017 734 053 480 734 053 480



4.4. Cash Flow Statement for the year ended 31 December 2017

2017 2016

Restated Note R R

Cash flows from operating activities Receipts 175 472 459 187 463 471 Tuition and related fees 77 993 535 103 454 964 Sale of goods and rendering of services 132 447 79 797 Rental of facilities and equipment 1 202 229 1 194 505 Interest 19 399 126 19 917 986 Government grants and subsidies 53 106 000 44 628 000 Public contributions and donations 330 272 1 883 933 Other Receipts 23 308 850 16 304 286

Payments (103 363 978) (117 592 840) Employee costs (9 115 132) (9 674 849) Suppliers (93 853 550) (107 650 561) Finance costs (395 296) (267 430) Other payments - Net cash flows from operating activities 32 72 108 481 69 870 631 Cash flows from investing activities Purchase of property, plant and equipment (68 403 692) (72 089 327) Purchase of intangible assets (1 317 564) (377 898) Net cash flows from investing activities (69 721 256) (72 467 225) Cash flows from financing activities Finance lease repayments (1 065 460) (942 107) Net cash flows from financing activities (1 065 460) (942 107) Net increase/(decrease) in cash and cash equivalents 1 321 765 (3 538 701) Cash and cash equivalents at the beginning of the year 3 251 116 428 254 655 129 Cash and cash equivalents at the end of the year 252 438 193 251 116 428



Notes to the Annual Financial statements for the year ended 31 December 2017

4.5. Accounting Policies

1,01 Presentation of Financial Statements and Basis of preparation

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and in the manner prescribed by the Minister of Higher Education and Training in terms of the Continuing Education and Training Act No. 16 of 2006, as amended.

These financial statements have been prepared using the accrual basis of accounting and are in accordance with the historical cost convention as the basis of measurement, unless specified otherwise.

In the absence of an approved and effective Standard of GRAP, accounting policies for material transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

Assets, liabilities, revenue and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP.

A summary of the significant accounting policies are disclosed below.

The presentation and classification and these accounting policies are consistent with the previous year, except for the changes set out in note 33.

1,02 Presentation currency These financial statements are presented in South African Rand, which is the functional currency of the College.

All amounts disclosed in the Financial Statements have been rounded to the nearest R1 unless indicated otherwise

1,03 Going concern assumption

These financial statements have been prepared based on the expectation that the college will continue to operate as a going concern for at least the next 12 months.

1,04 Comparison of budget and actual amounts

The College does not fall within the scope of GRAP 24 Presentation of Budget Information in Financial Statements, as its budgets are not made publically available as per GRAP 24. Therefore the College does not have to comply with GRAP 24.

1,05 Significant judgements and sources of estimation uncertainty

The use of judgement, estimates and assumptions is inherent to the process of preparing financial statements. These judgements, estimates and assumptions affect the amounts presented in the financial statements. Uncertainties about these estimates and assumptions could result in outcomes that require a material adjustment to the carrying amount of the relevant asset or liability in future periods.

Judgements

In the process of applying these accounting policies, management has made the following judgements that may have a significant effect on the amounts recognised in the financial statements:

Programme funding

Programme funding is allocated to the college by DHET in terms of the CET Act and the National Norms and Standards for Funding of TVET Colleges and is determined by the estimated Full Time Equivalent Students (FTEs) of the college. The allocation is done based on the projected FTEs for the year and if the college fails to register the projected FTEs, a portion of the programme funding can be clawed back in the following year.

The programme funding is allocated by DHET during their financial year which is from April to March, but for the college the funds pertain to the college academic and financial year which is from January to December. Once the college has registered the projected number of FTEs, the condition of the programme funding grant has been met and the grant is recognised in full.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 The programme funding is paid out partly in cash tranches, paid to the college, and partly through the Persal system of the Provincial Education Department, directly to the employees of the college. If management personnel are paid from the programme funding, they should be included in the description. The method and timing of payment of grant does, however, not influence the recognition of revenue.

The transactions and amounts are disclosed in Note 20. Employee related and DHET management fee

In terms of the CET Act and DHET Circular 1 of 2015, with effect from 01 April 2015, all non-management personnel of the college, appointed and remunerated through the Department of Education in the Province (PERSAL) and the provincial allocation or programme funding, have migrated to DHET and are DHET employees. Non-management personnel not remunerated from provincial allocations or programme funding remain employees of the college as they are appointed by the college. For the period 1 January to 31 March 2015, non-management personnel still remained employees of the college.

For the period 1 January to 31 March 2017.

Management and other personnel are either remunerated directly by the college or by the provincial Departement of Education, via Persal, on behalf of DHET. As management personnel are not college employees, their remuneration cannot be classified as an employee expense of the college and is therefore classified as "DHET management fee".

For the period 1 April to 31 December 2017

Management and other personnel (excluding college employees) are remunerated by DHET via Persal. The remuneration of these personnel cannot be classified as an employee expense of the college and is therefore classified as "DHET management fee".

Estimates

Estimates are informed by historical experience, information currently available to management, assumptions, and other factors that are believed to be reasonable under the circumstances. These estimates are reviewed on a regular basis. Changes in estimates that are not due to errors are processed in the period of the review and applied prospectively.

In the process of applying the College’s accounting policies the following estimates, were made: Trade receivables

The College assesses its trade recevable for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the College makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.

The impairment for trade receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and industry-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio.

Allowance for slow moving, damaged and obsolete inventory

In making an allowance to write inventory down to the lower of cost or net realisable value, management has made estimates of the selling price and direct cost to sell on certain inventory items. The write down is included in the surplus or deficit. For inventory consumed in the supply of services for no or nominal charge, management has made an estimate of the current replacement cost of such inventory and as appropriate have reduced the carrying amount accordingly.

Refer to Note 6 for the carrying amounts of inventories affected.

Non-financial asset Impairment

In testing for, and determining the value-in-use of non-financial assets, management is required to rely on the use of estimates about the asset’s ability to continue to generate cash flows (in the case of cash-generating assets). For non-cash-generating assets, estimates are made regarding the depreciated replacement cost, restoration cost, or service units of the asset, depending on the nature of the impairment and the availability of information.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Useful lives and residual values of assets; depreciation and amortisation

The College's management determines the estimated useful lives and related depreciation charges for these assets. These estimates are based on industry norms and then adjusted to be college specific. Management will increase the depreciation charge where useful lives are less than previously estimated useful lives and vice versa. Depreciation and amortisation recognised on property, plant and equipment, investment property and intangible assets respectively are determined with reference to the useful lives and residual values of the underlying items. The useful lives and residual values of assets are based on management’s estimation of the asset’s condition, expected condition at the end of the period of use, its current use, expected future use and the college’s expectations about the availability of finance to replace the asset at the end of its useful life. In evaluating how the condition and use of the asset informs the useful life and residual value management considers the impact of technology and minimum service requirements of the assets. Generally, depreciation is accrued over the useful lives of assets on a straight-line basis.

Effective interest rate

The College uses an appropriate interest rate, taking into account guidance provided in GRAP, and applying professional judgement to the specific circumstances, to discount future cash flows, to the present value of the item being discounted.

Refer to the respective notes for the carrying amounts of financial assets affected. Fair value determination of properties (excluding heritage assets)

In determining the fair value of investment property (and / or property, plant and equipment ) donated or acquired for no consideration, the College applies a valuation methodology to determine the fair value of the properties based on any one of, or a combination of the following factors: - The market related selling price of the property; or - The market related rental that can be earned for the property; or - The market related selling price of similar properties in the area; or - The rentals currently or previously earned by the property. Where the above information is not available or reliably determinable the College determines an approximation of fair-value by estimating the Depreciated Replacement Cost of the asset.

Refer to the respective notes for the carrying amounts of properties affected.

Biological assets

In determining the fair value less cost to sell of biological assets the College applied the market related selling price of the biological assets as the basis for the fair value.

Refer to Note 9 for the carrying amounts of biological assets affected.

Heritage Assets

Heritage assets, which are culturally, environmentally, historically, naturally, scientifically, technologically or artistically significant resources and which are shown at cost, are not depreciated due to the expectation that these assets will be held indefinitely. Where the valuation of heritage assets is required the valuation is dependent on the type of the asset and the availability of reliable information. Management makes estimates and assumptions about factors such as the restoration cost, replacement cost and cash flow generating ability in estimating fair value.

1,06 Biological assets that form part of an agricultural activity Biological assets that form part of an agricultural activity are measured at their fair value less costs to sell.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Agricultural produce harvested from the College’s biological assets are measured at its fair value less costs to sell at the point of harvest.

A gain or loss arising on initial recognition of a biological asset at fair value less costs to sell and from a change in fair value less costs to sell of a biological asset are included in surplus or deficit for the period in which it arises.

A gain or loss arising on initial recognition of agricultural produce at fair value less costs to sell are included in surplus or deficit for the period in which it arises.

There is a presumption that fair value can be measured reliably for a biological asset. However, that presumption can be rebutted only on initial recognition for a biological asset for which market-determined prices or values are not available and for which alternative estimates of fair value are determined to be clearly unreliable. In such a case, that biological asset is measured at its cost less any accumulated depreciation and any accumulated impairment losses. Once the fair value of such a biological asset becomes reliably measurable, the College measures it at its fair value less costs to sell.

Depreciation is provided on biological assets that form part of an agricultural activity where fair value cannot be determined, to write down the cost, less residual value, by equal instalments over their useful lives. Refer to Note 9 for the estimated useful lives.

1,07 Investment property

Investment property is property (land or a building - or part of a building - or both) held to earn rentals or for capital appreciation or both, rather then for:Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

- use in the production or supply of goods or services or for administrative purposes, or - sale in the ordinary course of operations.

Owner-occupied property is property held for use in the production or supply of goods or services or for administrative purposes.

Recognition and measurement

Investment property is recognised as an asset when it is probable that the future economic benefits or service potential that are associated with the investment property will flow to the entity, and the cost or fair value of the investment property can be measured reliably.

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired through a non-exchange transaction, its cost is its fair value as the date of acquisition.

Investment property is carried at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided to write down the cost, less estimated residual value by equal instalments over the useful life of the property. Refer to note 9 for the estimated useful lives.

Disposals

Investment property is derocognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits or service potential are expected from its disposal.

Gains or losses arising from the retirement or disposal or when the investment property is the difference between the net disposal proceeds and the carrying amount of the asset and is recognised in surplus or deficit in the period of retirement or disposal.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Deemed cost

When the College initially recognises an asset using Standards of GRAP, it measure such assets using either cost or fair value at the date of acquisition (acquisition cost). Where the accounting for assets is incomplete at the start of the reporting year as the acquisition of an asset is not available at that time, acquisition cost is measured using a surrogate value (deemed cost) at the date the college adopted the Standards of GRAP, or the transfer or merger date (the measurement date). Deemed cost is determined as the fair value of an asset at the measurement date.

1,08 Property, plant and equipment

Property, plant and equipment includeare tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one reporting period.

Recognition and measurement The cost of an item of property, plant and equipment is recognised as an asset when: - it is probable that future economic benefits or service potential associated with the item will flow to the entity; and - the cost of fair value of the item can be measured reliably.

Property, plant and equipment is initially measured at cost and subsequently measured at cost less accumulated depreciation and any accumulated impairment losses.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or assets, or a combination of assets and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item's fair value was not determinable, it's deemed cost is the carrying amount of the asset(s) given up.

The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the College is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Major spare parts and stand by equipment which are expected to be used for more than one period are included in property, plant and equipment. In addition, spare parts and stand by equipment which can only be used in connection with an item of property, plant and equipment are accounted for as property, plant and equipment.

Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaining inspection costs from the previous inspection are derecognised.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value. Refer to Note 7 for the estimated useful lives.

Derecognition

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use or disposal of the asset.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

Deemed cost

When the College initially recognises an asset using the Standards of GRAP, it measures such assets using either cost or fair value at the date of acquisition (acquisition cost). Where the acquisition cost of an asset is not available on adoption of the Standards of GRAP, acquisition cost is measured using a surrogate value (deemed cost) at the date a College adopts the Standards of GRAP (measurement date). Deemed cost is determined as the fair value of an asset at the measurement date.

1,09 Intangible assets An asset is identifiable if it either:

- is separable, i.e is capable of being separated or divided from an entity and sold, transferred, licensed, rented or

exchanged, either individually or together with a related contract, identifiable assets or liability, regardles of whether the entity intends to do so; or

- arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the form of a contract.

Recognition and measurement An intangible asset is recognised when:

- it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the entity; and

- the cost or fair value of the asset can be measured reliably.

The College assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.

Bad debt provision adjustment - it is technically feasible to complete the asset so that it will be available for use or sale. - there is an intention to complete and use or sell it. - there is an ability to use or sell it. - it will generate probable future economic benefits or service potential. - there are available technical, financial and other resources to complete the development and to use or sell the

asset. - the expenditure attributable to the asset during its development can be measured reliably.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Derecognition Intangible assets are derecognised: - on disposal; or - when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss is the difference between the net disposal proceeds, if any, and the carrying amount. It is recognised in surplus or deficit when the asset is derecognised.

Deemed cost

When the College initially recognises an asset using the Standards of GRAP, it measure such assets using either cost or fair value at the date of acquisition (acquisition cost). Where the acquisition cost of an asset is not available on the adoption of the Standards of GRAP, acquisition cost is measured using a surrogate value (deemed cost) at the date the college adopted the Standards of GRAP (measurement date). Deemed cost is determined as the fair value of an asset at the measurement date.

Refer to note 8 for more information on assets valued at deemed cost.

1,11 Financial instruments

A fiancial instrument is any contract that gives rise to a finacial asset of one entity and a financial liability or a residual interest of another entity.

The amortised cost of a finacial asset or finacial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.

The College has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category

Cash and cash equivalents Financial asset measured at armotised cost Receivables from Exchange transaction Financial asset measured at armotised cost Receivables from nn-exchange transactions Financial asset maesured at armotised Cost

The College has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category Trade and other Payables Finacial Liability measured at armotised cost Finance Leases Financial Liability measured at armotised cost The College recognises financial assets using trade date accounting.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 The College measures a financial asset and financial liability initially at its fair value plus transaction costs (for financial instruments at amortised cost) that are directly attributable to the acquisition or issue of the financial instrument.

The College first assesses whether the substance of a concessionary loan is in fact a loan. On initial recognition, the college analyses a concessionary loan into its component parts and accounts for each component separately. The College accounts for that part of a concessionary loan that is:

- a social benefit in accordance with the Framework for the Preparation and Presentation of Financial Statements, where it is the issuer of the loan; or

- non-exchange revenue, in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers), where it is the recipient of the loan.

The College measures all financial instruments after initial recognition as follows: - Financial instruments at fair value: Fair-value at reporting date - Financial instruments at amortised cost: Amortised cost using the effective interest rate method, less any

impairment losses. - Financial instruments at cost. Cost, less any impairment losses.

Where the College cannot reliably measure the fair value of an embedded derivative that has been separated from a host contract that is a financial instrument at a subsequent reporting date, it measures the combined instrument at fair value. This requires a reclassification of the instrument from amortised cost or cost to fair value.

If fair value can no longer be measured reliably for an investment in a residual interest measured at fair value, the College reclassifies the investment from fair value to cost. The carrying amount at the date that fair value is no longer available becomes the cost.

If a reliable measure becomes available for an investment in a residual interest for which a measure was previously not available, and the instrument would have been required to be measured at fair value, the College reclassifies the instrument from cost to fair value.

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectability of financial assets

The College assess at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.

Financial assets measured at amortised cost:

If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced directly OR through the use of an allowance account (debt impairment provision) . The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly OR by adjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Financial assets measured at cost:

If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is not measured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed.

Derecognition Financial assets

The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair values at that date. Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer.

If the College transfers a financial asset in a transfer that qualifies for derecognition in its entirety and retains the right to service the financial asset for a fee, it recognises either a servicing asset or a servicing liability for that servicing contract. If the fee to be received is not expected to compensate the College adequately for performing the servicing, a servicing liability for the servicing obligation is recognised at its fair value. If the fee to be received is expected to be more than adequate compensation for the servicing, a servicing asset is recognised for the servicing right at an amount determined on the basis of an allocation of the carrying amount of the larger financial asset.

If, as a result of a transfer, a financial asset is derecognised in its entirety but the transfer results in the college obtaining a new financial asset or assuming a new financial liability, or a servicing liability, the college recognise the new financial asset, financial liability or servicing liability at fair value.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit.

If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, the previous carrying amount of the larger financial asset is allocated between the part that continues to be recognised and the part that is derecognised, based on the relative fair values of those parts, on the date of the transfer. For this purpose, a retained servicing asset is treated as a part that continues to be recognised. The difference between the carrying amount allocated to the part derecognised and the sum of the consideration received for the part derecognised is recognised in surplus or deficit.

If a transfer does not result in derecognition because the College has retained substantially all the risks and rewards of ownership of the transferred asset, the College continue to recognise the transferred asset in its entirety and recognise a financial liability for the consideration received. In subsequent periods, the college recognises any revenue on the transferred asset and any expense incurred on the financial liability. Neither the asset, and the associated liability nor the revenue, and the associated expenses are offset.

Financial liabilities

The College removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another college by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Presentation

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when the College currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the College does not offset the transferred asset and the associated liability.

1,12 Statutory receivables

Funding receivable from DHET arise from non-contracted arrangements as the basis for DHET funding is found in the Continuing Education and Training Act (CET Act) and the The National Norms and Standards for Funding Technical and Vocational Education and Training Colleges. Cash receivable from DHET as part of programme funding is regarded as a "statutory receivable".

The statutory receivable is initially measured at the transaction amount and subsequently measured using the cost-method, which changes the initial measurement to reflect any impairment or amounts derecognised. An explanation on when the DHET programme funding and any related receivables or payables are recorded is provided in note 1.05 and 1.21.

The statutory receivable is included in Other receivables from non-exchange transactions. Refer to note 5.

1,13 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and building elements, the College assesses the classification of each element separately.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

Operating leases - lessor Operating lease revenue is recognised as revenue on a straight-line basis over the lease term.

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease revenue.

The aggregate cost of incentives is recognised as a reduction of rental revenue over the lease term on a straight-line basis. The aggregate benefit of incentives is recognised as a reduction of rental expense over the lease term on a straight-line basis. Income for leases is disclosed under revenue in statement of financial performance.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

1,14 Inventories Inventories are assets: - in the form of materials or supplies to be consumed in the production proccess; - in the form of materials or supplies to be consumed or distributed in the rendering of services; - held for sale or distribution in the ordinary course of operations; or - in the process of production for sale or distribution

Recognition and measurement Inventories are recognised as an asset if: - it is probable that future economic benefits or service potential associated with the item will flow to the entity; and - the cost of inventories can be measured reliably

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Subsequently inventories are measured at the lower of cost and net realisable value.

Inventories are measured at the lower of cost and current replacement cost where they are held for: - distribution through a non-exchange transaction; or - consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Net realisable value is the estimated value that can be recovered from the publishers on acceptable returns less the estimated costs necessary to complete the return or exchange.

The cost of inventories comprises of all costs of purchase and other costs incurred in bringing the inventories to their present location and condition.

The cost of inventories is assigned using the weighted average cost. The same cost formula is used for all inventories having a similar nature and use to the college.

Recognition as an expense

When inventories are issued to students, the carrying amounts of those inventories are recognised as an expense when the textbooks are distributed. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1,15 Cash and cash equivalents

Cash and cash equivalents consist of the following: i) cash; ii) cash in current bank accounts; iii) cash in interest bearing bank accounts or money market accounts where the funds are available immediately; and iv) fixed term deposits used to deposit funds until it is needed for the operations of the College, where the maturity date does not exceed twelve months from the reporting date. Longer term fixed deposits are classified as other financial assets.


1,16

Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Impairment of cash-generating assets

Cash-generating assets are those assets managed by the College with the primary objective of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated college, it generates a commercial return.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset's future economic benefits or service potential through depreciation (amortisation).

Identification When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The College assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the College estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the College also tests a cash-generating intangible asset with an indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use

Value in use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life.

When estimating the value in use of an asset, the College estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal and the College applies the appropriate discount rate to those future cash flows.

Basis for estimates of future cash flows In measuring value in use the entity:

- base cash flow projections on reasonable and supportable assumptions that represent management's best estimate of the renge of economic conditions that will exist over the remaining useful life of the asset. Greater weight is given to external evidence;

- base cash flow projections on the most recent approved financial budgets / forecasts, but excludes any estimated future cash inflows or outflows expected to arise from future rstructuring's or from improving or enhancing the asset's perfomance. Projections based on these budgets / forecasts covers a maximum period of five years, unless a longer period can be justified; and

- estimate cash flow projections beyond the period covered by the most recent budgets / forecasts by extrapolating the projections based on the budgtes / forecasts using a steady or declining growth rate for subsequent years, unles an increasing rate can be justified. This growth rate does not exceed the long-term average growth rate for the

- products, industries, or country or countries in which the entity operates, or for the market in which the asset is used, unless a higher rate can be justified.

Discount rate

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money, represented by the current risk-free rate of interest and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

Recognition and measurement (individual assets)



Notes to the Annual Financial statements for the year ended 31 December 2017 If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

Any impairment loss of a revalued cash-generating asset is treated as a revaluation decrease.

When the amount estimated for an impairment loss is greater than the carrying amount of the cash-generating asset to which it relates, the College recognises a liability only to the extent that is a requirement in the Standard of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Cash- generating units

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the College determines the recoverable amount of the cash- generating unit to which the asset belongs (the asset's cash-generating unit).

If an active market exists for the output produced by an asset or group of assets, that asset or group of assets is identified as a cash-generating unit, even if some or all of the output is used internally. If the cash inflows generated by any asset or cash-generating unit are affected by internal transfer pricing, the entity use management's best estimate of future price(s) that could be achieved in arm's length transactions in estimating:

- the future cash inflows used to determine the asset's or cash-generating unit's value in use; and

Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a change is justified.

- the future cash outflows used to determine the value in use of any other asset or cash-generating units that are affected by internal transfer pricing.

The carrying amount of a cash-generating unit is determined on a basis consistent with the way the recoverable amount of the cash-generating unit is determined.

An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carrying amount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on a pro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated as impairment losses on individual assets.

In allocating an impairment loss, the College does not reduce the carrying amount of an asset below the highest of: - its fair value less costs to sell (if determinable); - its value in use (if determinable); and - zero

The amount of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other cash-generating assets of the unit.

Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that non- cash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverable amount of the cash-generating unit.

Reversal of impairment loss

The College assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the College estimates the recoverable amount of that asset.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

A reversal of an impairment loss for a cash-generating unit is allocated to the cash-generating assets of the unit pro rata with the carrying amounts of those assets. These increases in carrying amounts are treated as reversals of impairment losses for individual assets. No part of the amount of such a reversal is allocated to a non-cash-generating asset contributing service potential to a cash-generating unit.

In allocating a reversal of an impairment loss for a cash-generating unit, the carrying amount of an asset is not increased above the lower of:

- its recoverable amount (if determinable); and

- the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior periods.

The amount of the reversal of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other assets of the unit.

The redesignation of assets from a cash-generating asset to a non-cash-generating asset or from a non-cash-generating asset to a cash-generating asset only occur when there is clear evidence that such a redesignation is appropriate.

1,17 Impairment of non-cash-generating assets

Cash-generating assets are those assets held by the entity with the primary objective of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profiy-oriented entity, it generates a commercial return.

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Identification

When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired. An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued non-cash-generating asset is treated as a revaluation decrease.

The College assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the College estimates the recoverable service amount of the asset.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Irrespective of whether there is any indication of impairment, the College also tests a non-cash-generating intangible asset with an indefinite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use Value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining service

potential.

The present value of the remaining service potential of a non-cash-generating assets is determined using the following approach:

Depreciated replacement cost approach

The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured as the reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset.

The replacement cost and reproduction cost of an asset is determined on an “optimised” basis. The rationale is that the College would not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned or overcapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides. Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the service potential required of the asset.

Restoration cost approach

Restoration cost is the cost of restoring the service potential of an asset to its pre-impaired level. The present value of the remaining service potential of the asset is determined by subtracting the estimated restoration cost of the asset from the current cost of replacing the remaining service potential of the asset before impairment. The latter cost is determined as the depreciated reproduction or replacement cost of the asset, whichever is lower.

Service units approach

The present value of the remaining service potential of the asset is determined by reducing the current cost of the remaining service potential of the asset before impairment, to conform to the reduced number of service units expected from the asset in its impaired state. The current cost of replacing the remaining service potential of the asset before impairment is determined as the depreciated reproduction or replacement cost of the asset before impairment, whichever is lower.]

Recognition and measurement

If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss.

An impairment loss is recongised immediately in surplus or deficit.

When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset to which it relates, the College recognises a liability only to the extent that is a requirement in the Standards of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Reversal of an impairment loss

The College assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the College estimates the recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Redesignation

The redesignation of assets from a cash-generating asset to a non-cash-generating asset or from a non-cash-generating asset to a cash-generating asset only occur when there is clear evidence that such a redesignation is appropriate.

1,18 Employee benefits

Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.

Other long - term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that sare due to be settled within twelve months after the end of the period in which the employees render related services.

When an employee has rendered service to the College during a reporting period, the College recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:

- as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the College recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

- as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

Other long-term employee benefits Other long-term employee includes: -other service benefits;

The amount recognised as a liability for other long-term employee benefits the net total of the following amounts: the present value of the defined benefit obligation at the reporting date minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled directly.

For other long-term employee benefits, the entity recognise the net total of the following amounts or revenue, except to the extent that another Standard requires or permits their inclusion in the cost of an asset:


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 - current service cost;

- interest cost; - the expected return on any plan assets and on any reimbursement right recognised as an asset; - actuarial gains and losses, which shall all be recognised immediately; - past service cost, which shall all be recognised immediately; and - the effect of any curtailments or settlements

When an employee has rendered service to the College during a reporting period, the College recognises the contribution payable to a defined contribution plan in exchange for that service:

- as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the reporting date, the College recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; &

Ÿ- as an expense, unless another Standard requires or permits the inclusion of the contribution in the cost of an asset.

Where contributions to a defined contribution plan do not fall due wholly within twelve months after the end of the reporting period in which the employees render the related service, they are discounted. The rate used to discount reflects the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the obligation.

The College recognises termination benefits as a liability and an expense when the college is demonstrably committed to either:

i) terminate the employment of an employee or group of employees before the normal retirement date; or ii) provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

The College is demonstrably committed to a termination when the college has a detailed formal plan for the termination and is without realistic possibility of withdrawal. The detailed plan includes [as a minimum]:

i) the location, function, and approximate number of employees whose services are to be terminated; ii) the termination benefits for each job classification or function; and iii) the time at which the plan will be implemented.

Implementation begins as soon as possible and the period of time to complete implementation is such that material changes to the plan are not likely.

Where termination benefits fall due more than 12 months after the reporting date, they are discounted using an appropriate discount rate. The rate used to discount the benefit reflects the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the benefit.

In the case of an offer made to encourage voluntary redundancy, the measurement of termination benefits shall be based on the number of employees expected to accept the offer.

DHET management fee

In terms of the CET Act, the college is the employer of the non-management personnel. The management personnel, defined in the CET Act as the principal and deputy principals, have migrated to DHET and are DHET employees.

Other long-term employee benefits Other long-term employee benefits includes: - long-term compensated absences such as long service or sabbatical leave; - other long service benefits; - long-term disability benefits;

- bonus, incentive and performance related payments payable twelve months or more after the end of the reporting '- period in which the employees render the related service;

- deferred compensation paid twelve months or more after the end of the reporting period in which it is earned; and


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 - compensation payable by the College until an individual enters new employment.

The amount recognised as a liability for other long-term employee benefits the net total of the following amounts: - the present value of the defined benefit obligation at the reporting date - minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled

directly

The expected costs of these benefits are accrued over the period of employment using the above accounting methodology. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to surplus or deficit in the period in which they arise. These obligations are valued annually by independent qualified actuaries using the projected unit credit method.

For other long-term employee benefits, the College recognises the net total of the following amounts as expense or revenue, except to the extent that another Standard requires or permits their inclusion in the cost of an asset:

- current service cost; - interest cost; - the expected return on any plan assets and on any reimbursement right recognised as an asset; - actuarial gains and losses, which shall all be recognised immediately; - past service cost, which shall all be recognised immediately; and - the effect of any curtailments or settlements

Management and other personnel are either remunerated directly by the college or by the provincial Department of Education, via Persal, on behalf of DHET. As management personnel are not on college employees, their remuneration cannot be classified as an employee expense of the college and is therefore classified as "DHET management fee".

DHET SAICA HR and CFO Support Project management fee

The cost of the management fee expense arising out of the service in kind revenue from the DHET SAICA HR and CFO Support project members placed at the College is measured at the cost of the remuneration of the Project members, for the proportion of time spent at the College to the total time spent on the Project, by those team members. The cost of remuneration is measured inclusive of leave, bonus and other employee related accruals and/or provisions, as and when incurred by the NSF. The related expense is recognised as a management fee expense as per note 22.

1,19 Provisions and contingencies

A provision is a liability of uncertain timing or amount.

A contigent liability is:

- a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence of one or more uncertaim future events not wholly within the control of the entity; or

- a present obligationthat arises from past events but is not recognised because:

- it is not probable that an outflow of resources embotying economic benefits or service potential will be required to settle the obligatio; or

- the amount of the obligation cannot be measured with sufficient reliability.

Provisions are recognised when: - the entity has a present obligation as a result of a past event;

- it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and

- a reliable estimate can be made of the obligation


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 The amount of a provision is the best estimate of the expenditurenexpected to be required to settle the present obligation at the reporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liablity.

A provision is used only for expenditure for which the provision was originally recognised. Provisions are not recognised for future operating deficits.

Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when it is virtually certain that reimbursement will be received if the College settles the obligation.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised. Provisions are not recognised for future operating deficits.

If the College has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision.

A constructive obligation to restructure arises only when the College has a detailed formal plan for the restructuring, identifying at least:

- the activity/operating unit or part of a activity/operating unit concerned; - the principal locations affected; - the location, function, and approximate number of employees who will be compensated for services being

terminated; - the expenditures that will be undertaken; and - when the plan will be implemented; and

- has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.

A restructuring provision includes only the direct expenditures arising from the restructuring, which are those that are both:

- necessarily entailed by the restructuring; and - not associated with the ongoing activities of the College

No obligation arises as a consequence of the sale or transfer of an operation until the College is committed to the sale or transfer, that is, there is a binding arrangement.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 After their initial recognition contingent liabilities recognised in College combinations that are recognised separately are subsequently measured at the higher of:

- the amount that would be recognised as a provision; and - the amount initially recognised less cumulative amortisation.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in notes 38 & 38.

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Loan commitment is a firm commitment to provide credit under pre-specified terms and conditions.

Where a fee is received by the College for issuing a financial guarantee and/or where a fee is charged on loan commitments, it is considered in determining the best estimate of the amount required to settle the obligation at reporting date. Where a fee is charged and the College considers that an outflow of economic resources is probable, the College recognises the obligation at the higher of: - the amount determined using in the Standard of GRAP on Provisions, Contingent Liabilities and Contingent Assets; and - the amount of the fee initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the Standard of GRAP on Revenue from Exchange Transactions.

1,20 Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the college receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Sale of goods

Revenue from the sale of goods is recognised when all the following conditions have been satisfied: - the College has transferred to the purchaser the significant risks and rewards of ownership of the goods; - the College retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; - the amount of revenue can be measured reliably; - it is probable that the economic benefits or service potential associated with the transaction will flow to the College; and - the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

- the amount of revenue can be measured reliably; - it is probable that the economic benefits or service potential associated with the transaction will flow to the College; - the stage of completion of the transaction at the reporting date can be measured reliably; and - the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised on a straight line basis over the specified time frame unless there is evidence that some other method better represents the stage of completion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until the significant act is executed.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date.

Interest, royalties, dividends and tuition fees Revenue arising from the use by others of entity assets yielding interes is recognised when: - it is probably that the economic benefits or service potential associated with the transaction will flow to the entity,

and - the amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.

Dividends or similar distributions are recognised, in surplus or deficit, when the College’s right to receive payment has been established.

Tuition fees are recognised over the period of instruction.

1,21 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an entity, which represents an increase in net assets, other than increases relating to contributions from owners.

Exchange transactions are transactions in which one entity receives assets or services , or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Recognition


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.

As the College satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the College.

When, as a result of a non-exchange transaction, the College recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.

Programme funding

The full programme funding allocated to the College in terms of the CET Act, the Funding Norms and the final grant letter received from the department is recognised in full in the College's financial year during which the enrolment and training of students, to which the grant pertains, are performed by the College. It is measured at the total amount allocated to the College by DHET, inclusive of both the the part paid in cash and the part paid via Persal as per note 20.

Transfers

Apart from Services in kind, which are only recognised as indicated below, the College recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

The College recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.

Gifts and donations, including goods in kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably.

Revenue arising from debt forgiveness is measured at the carrying amount of debt forgiven.

Services in-kind

"In terms of the CET Act, the college is the employer of the non-management personnel. The management personnel, defined in the CET Act as the principal and deputy principals, have migrated to DHET and are DHET employees.

The College recognised the services in kind received through the SAICA HR and CFO Support Projects when the College receives the services in kind. The services in kind received through these projects are measured at the direct cost incurred by the National Skills Fund on the remuneration of the resources placed at the College, for the proportion of time spent at the College to total time spent on the Project by the Project team members placed at the College. The transactions are disclosed in note 20.

Management personnel are remunerated from provincial funds and not from the college funds, and this constitutes services in kind which are recognised at the cash value of the services to the State. The income is recognised as "Services in kind" as part of revenue from non-exchange transactions, and the expense is recognised as "DHET management fee".


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 The College recognises services in-kind that are significant to its operations and/or service delivery objectives as assets and recognise the related revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably. If the services in-kind are not significant to the College’s operations and/or service delivery objectives and/or do not satisfy the criteria for recognition, the nature and type of services in-kind received during the reporting period is disclosed. When the criteria for recognition are satisfied, services in-kind are measured on initial recognition at their fair value as at the date of acquisition.

The College recognised the services in kind received through the DHET -SAICA CFO secondment projects and HR Support Projects when the College receives the services in kind. The services in kind received through these projects are measured at the direct cost of the remuneration of the resources placed at the College, for the proportion of time spent at the College to total time spent on the Project by the Project team members placed at the College. The transactions are disclosed in note 21

No other services in-kind are recognised."

1,22 Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

1,23 Comparative figures

When the presentation or classification of items in the financial statements is amended due to better presentation and/or better understandability and/or comparability and/or due to the implementation of a new or amended standard, prior period comparative amounts are reclassified. Where accounting errors have been identified in the current year, the correction is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly. Where there has been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly.

1,27 Related parties

A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control. In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form.

Significant influence may be exercised in several ways, usually by representation on the governing body but also, for example, by participation in the policy-making process, material transactions between entities within an economic entity, interchange of managerial personnel or dependence on technical information. Significant influence may be gained by an ownership interest, statute or agreement or otherwise. With regard to an ownership interest, significant influence is presumed in accordance with the definition contained in the Standard of GRAP on Investments in Associates.

Management are those persons responsible for planning, directing and controlling the activities of the College, including those charged with the governance of the college in accordance with legislation, in instances where they are required to perform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, that management in their dealings with the College.

Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.

1,28 Commitments


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 The College discloses commitments relating to each class of capital assets ( PPE, Investment properties, Intangible assets, Biological assets and Heritage assets) recognized in the financial statements as well as future minimum lease payments under non-cancellable operating leases for each of the following periods: - Not later than one year, - Later than one year and not later than five years, and - Later than five years.

1,29 Events after the reporting date

"Events after the reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue."&" Two types of events can be identified:

- those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date)"&"; and

- those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

Reporting date means the date of the last day of the reporting period to which the financial statements relate. The reporting date of the college is 31 December 2017.

The college adjusts the amounts recognised in its finacial statements to reflect adjusting events after the reporting date. The college does not adjust the amounts recognised in its financial statements to reflect non-adjusting events after the reporting date.

1,30 Prepayments

Payments for the purchase of assets are recognised on delivery of the assets.

Delivery is considered to have taken place when: - The physical asset or service has been received by the College - Rights and obligations of ownersjip of the asset have been fully transferred to the College

1,31 Impairment of Property Plant and Equipment

Cash-generating assets are those assets held by the College with the primary objective of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated entity, it generates a commercial return.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets held with the primary objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017 Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life. Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. Recoverable amount of an asset or a cash-generating unit is the higher its fair value less costs to sell and its value in use.

Recoverable amount of an asset or a cash-generating unit is the higher its fair value less costs to sell and its value in use. Useful life is either: (a) the period of time over which an asset is expected to be used by the College; or (b) the number of production or similar units expected to be obtained from the asset by the College. Criteria developed by the College to distinguish cash-generating assets from non-cash-generating assets are as follow:

Identification When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired. The College assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the College estimates the recoverable amount of the asset. Irrespective of whether there is any indication of impairment, the College also test a cash-generating intangible asset with an indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Recognition and measurement (individual asset) If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued cash-generating asset is treated as a revaluation decrease. When the amount estimated for an impairment loss is greater than the carrying amount of the cash-generating asset to which it relates, the College recognises a liability only to the extent that is a requirement in the Standard of GRAP. After the recognition of an impairment loss, the depreciation (amortisation) charge for the asset is adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of impairment loss The college assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods for any asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable amount of that asset. An impairment loss recognised in prior periods for asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued cash-generating asset is treated as a revaluation increase. After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.


Ekurhuleni West TVET COLLEGE Notes to the Annual Financial statements for the year ended 31 December 2017

4.6. Notes to the Annual Financial Statements

2017 2016

Restated

Note R R

2 Standards, amendments to Standards, Directives and Interpretations issued but not yet effective

The following Standards of GRAP and / or amendments thereto have been approved by the Accounting Standards Board, but will only become effective in future periods or have not been given an effective date by the Minister of Finance. The College has not early-adopted any of these new Standards or amendments thereto, but has referred to them for guidance in the development of accounting policies in accordance with GRAP 3 as read with Directive 5:

Title of the standard and nature of impending changes in accounting policy and expected impact

Effective date (Periods starting on or after)

Financial year in which the College plans to apply the Standard initially

GRAP 20 Related Party Disclosures: Currently use it as guidance for accounting policies, therefore no impact expected on initial adoption.

01 April 2019 Not yet set

GRAP 32 Service Concession Arrangements: Grantor: None Not yet set Not yet set

GRAP108 Statutory Receivables: No changes to recognition and measurement are expected, but additional disclosures and separate classification in the notes will be done on adoption.

Not yet set Not yet set

GRAP109 Accounting by Principals and Agents: No changes to recognition and measurement are expected, but additional disclosures in the notes will be done on adoption.


GRAP 110 Living and Non-living Resources: None Not yet set Not yet set

IGRAP 17 Interpretation of the Standard of GRAP on Service Concession Arrangements Where a Grantor Controls a Significant Residual Interest in an Asset: None


Directive 12 The Selection of an Appropriate Reporting Framework by Public Entities: None

Sunday, 01 April 2018 2019.12.31

3 Cash and cash equivalents

Cash and cash equivalents consist of the following:

Cash at bank

7 724 711 3 368 330

Call deposits

110 041 283 247 748 099

Call investments

134 672 199 -

252 438 193 251 116 428




2017 2016 Restated

Note R R

ABSA

Branch Name: & Account Number :

Cash book balance at beginning of year

3 368 330 3 151 510

Cash book balance at end of year

7 724 711 3 368 330

Bank statement balance at beginning of year

3 368 330 3 151 510

Bank statement balance at end of year

7 724 711 3 368 330

Call Accounts

Branch Name: & Account Number :

Cash book balance at beginning of year

247 748 099 251 503 619

Cash book balance at end of year

244 713 482 247 748 099

Bank statement balance at beginning of year

247 748 099 251 503 619

Bank statement balance at end of year

244 713 482 247 748 099

Cash and cash equivalents pledged as collateral

No cash and cash equivalents were pledged as collateral.

4 Trade and other receivables from exchange transactions

Gross Balances Provision for impairment

of debts Net Balance

31 December 2017 R R R

Student debtors 69 063 852 (35 479 012) 33 584 840

Employee advances 440 362 (339 753) 100 610

Prepayments 548 154 - 548 154

Creditors with debit balances 970 172 - 970 172

Other trade receivables 3 098 491 (427 569) 2 670 922

Deposits 755 428 - 755 428

Total trade and other receivables 74 876 459 (36 246 333) 38 630 126

Trade and Other Receivables at Amortised Cost (Using effective Interest Rate)

32 504 511



2017 2016

Restated

Note R R

Gross Balances Provision for impairment

of debts Net Balance

31 December 2016 R R R

Student debtors 43 038 676 (34 466 680) 8 571 995

Employee advances 442 042 (416 675) 25 367

Prepayments 1 883 743 - 1 883 743

Creditors with Debit Balances 2 675 130 - 2 675 130

Other Trade receivables 3 313 436 (755 800) 2 557 636

Deposits 740 874 - 740 874

Total trade and other receivables 52 093 901 (35 639 155) 16 454 746

Students: Ageing

Current (0 – 30 days)

8 683 518 634

31 - 60 Days

473 460 1 099 732

61 - 90 Days

1 096 865 1 566 673

91 - 120 Days

1 545 084 39 853 637

121 + Days

65 939 761

Total

69 063 852 43 038 676

Employee advances: Ageing

Current (0 – 30 days)

31 - 60 Days

- 166

61 - 90 Days

- 1 776

91 - 120 Days

- 440 100

121 + Days

440 362

Total

440 362 442 042

Reconciliation of the provision for debt impairment

Balance at beginning of the year

35 639 155 18 282 298

Contributions to provision

607 178 28 026 295

Bad debts written off against provision

- (10 669 438)

Bad debt provision adjustment

36 246 333 35 639 155

5 Other receivables from non-exchange transactions, including transfers

Other Receivables

21 013 049 22 228 000

Total other debtors

21 013 049 22 228 000



2017 2016

Restated

Note R R

6 Inventories

Carrying value of inventory

11 566 900 10 060 647

Consumable stores

12 706 112 10 060 647

Inventory write down

(1 115 380) -

Stock count adjustment

(23 832) -

Consumable stores include:

11 566 900 10 060 647

Text books

11 566 900 9 489 212

Calculators

- 571 435

Amounts recognised as an expense

The following amounts, related to inventory, were recognised in the statement of financial performance during the year:

Cost of inventory used to provide learning to students in the form of text books and included in the Statement of Financial Performance

17 212 112 18 275 211

Total amount of Inventories recognised in the statement of financial performance during the year

17 212 112 18 275 211

Other information

Inventory write-downs recognised

During the year, management assessed the inventory on hand and identified obsolete textbooks for write-downs. The write downs represents outdated textbooks as per the DHET syllabus specimen. The details of these write downs are as follows:

Textbooks

(1 115 380) -

Total

(1 115 380) -



2017 2016Note R R

7 Property, plant and equipment

2017 2016Cost Accumulated

Depreciation and Impairment

Carrying Value Cost Accumulated Depreciation and

Impairment

Carrying Value

R R R R R RLand 38 964 227 - 38 964 227 38 964 227 - 38 964 227 Buildings 302 267 725 (61 277 713) 240 990 012 301 408 781 (55 206 707) 246 202 074 Vehicles 14 652 892 (6 405 593) 8 247 300 13 902 698 (5 164 493) 8 738 205 Furniture and Fittings 40 058 292 (14 640 588) 25 417 705 36 299 527 (12 065 344) 24 234 182 Machinery and Equipment 108 618 219 (38 472 985) 70 145 234 87 245 021 (29 838 044) 57 406 977 Computer Equipment 34 684 870 (20 848 979) 13 835 891 29 053 071 (17 426 345) 11 626 727 Finance Leased Assets 4 223 765 (2 902 082) 1 321 683 4 223 765 (1 534 893) 2 688 872 Library books 1 184 890 (829 423) 355 467 1 184 890 (710 934) 473 956 Capital work in progress 70 640 298 - 70 640 298 33 830 332 - 33 830 332 Total 615 295 179 (145 377 363) 469 917 816 546 112 312 (121 946 761) 424 165 551

- Reconciliation of Property Plant and Equipment - 2017

Carrying ValueOpening Balance

Additions Acquisitions through entity combinations

Disposals Depreciation Transfers Impairment loss Impairment reversal Other movements Carrying ValueClosing Balance

R R R R R R R R R RLand 38 964 227 38 964 227 Buildings 246 202 074 858 944 (6 071 006) 240 990 012 Vehicles 8 738 205 750 194 (1 241 099) 8 247 300 Furniture and Fittings 24 234 182 3 830 639 (44 101) (2 525 368) (77 648) 25 417 705 Machinery and Equipment 57 406 977 21 780 770 (96 709) (8 945 805) 70 145 234 Computer Equipment 11 626 727 6 043 563 (37 273) (3 727 597) (69 529) 13 835 891 Finance Leased Assets 2 688 872 (1 367 189) 1 321 683 Library books 473 956 (118 489) 355 467 Capital work in progress 33 830 332 36 809 966 70 640 298 Total 424 165 551 70 074 077 - (178 083) (23 996 553) - (147 177) - - 469 917 816

Reconciliation of Property Plant and Equipment - 2016

Carrying ValueOpening Balance

Additions Acquisitions through entity combinations

Disposals Depreciation Transfers Impairment loss Impairment reversal Other movements Carrying ValueClosing Balance

R R R R R R R R R RLand 38 964 227 38 964 227 Buildings 142 951 663 667 791 (4 683 400) 107 266 020 246 202 074 Vehicles 6 257 051 3 420 766 (939 612) 8 738 205 Furniture and Fittings 17 289 815 4 852 591 (16 823) (1 984 640) 4 093 239 24 234 182 Machinery and Equipment 41 897 852 13 988 235 (155 548) (6 584 946) 8 261 384 57 406 977 Computer Equipment 6 709 445 4 757 053 (59 417) (2 370 849) 2 590 495 11 626 727 Finance Leased Assets 314 930 3 840 553 (1 466 611) 2 688 872 Library books 592 445 (118 489) 473 956 Capital work in progress 115 479 132 40 562 337 (122 211 138) 33 830 332 Total 370 456 559 72 089 327 - (231 788) (18 148 547) - - - - 424 165 551



2017 2016

Restated

Note R R Estimated useful lives

The annual depreciation rates are based on the following estimated asset useful lives:

Class Useful Life Range in Years

Land Indefinite Life

Buildings 50 - 70

Vehicles 10 - 50

Furniture and Fittings 15 - 18

Machinery and Equipment 7,5 - 15

Computer Equipment 5 - 15

Finance Leased Assets Shorter of the lease period or useful life of

related assets

Library books 10

Other information

Property, plant and equipment that was not used for any period of time during the reporting period that significantly impacted the delivery of goods and services of the entity (Carrying amount)

Fair value of property, plant and equipment carried at cost 469 917 816 424 165 551

Fully depreciated property, plant and equipment in use - -

469 917 816 424 165 551

Changes in estimates

The college assesses the useful lives and residual values of the items of property, plant and equipment at the end of each reporting period, in line with the accounting policy and GRAP 17 Property, plant and equipment. These assessment are based on primary physical verification and condition assessment, historic analysis, benchmarking, and the latest available and reliable information.

The useful lives of property, plant and equipment have been assessed as based on this analysis, the useful lives of furniture and equipment have been revised by a year. The impact of the change is the reduction in the annual depreciation charge of R274 116.00. (2016: R1 150 443).

Main events and circumstances that led to the recognition of impairment losses

Impairment indicators were identified relating to items of furniture and equipment that were no longer in use due to redundancy or broken for which no future economic benefits are expected to flow. As a result, the items of furniture and fittings were tested for impairment by comparing the carrying amount to its recoverable amount which is estimated at R Nil. As a result, an impairment charge of R 147 176.00 (2016: R -) was recorded in other operating expenses in profit or loss for the year.




9 Investment Property2017 2016

Cost Accumulated Depreciation and

Impairment

Carrying Value Cost Accumulated Depreciation and

Impairment

Carrying Value

R R R R R RVilla Bianca - Building S 741 041 (340 879) 400 162 741 041 (326 058) 414 983 Villa Bianca - Building T 1 038 466 (477 694) 560 772 1 038 466 (456 925) 581 541 Villa Bianca - Building U 1 184 658 (544 942) 639 715 1 184 658 (521 249) 663 408 Villa Bianca - Building V 1 537 534 (707 266) 830 268 1 537 534 (676 515) 861 019 Land 735 773 735 773 735 773 735 773 Total 5 237 472 -2 070 781 3 166 690 5 237 472 -1 980 747 3 256 724

Reconciliation of Investment Property - 2017Carrying Value

Opening BalanceAdditions Additions resulting

from capitalised subsequent expenditure

Transfers Depreciation Transfers Disposals Carrying ValueClosing Balance

R R R R R R R RVilla Bianca - Building S 414 983 (14 821) 400 162 Villa Bianca - Building T 581 541 (20 769) 560 772 Villa Bianca - Building U 663 408 (23 693) 639 715 Villa Bianca - Building V 861 019 (30 751) 830 268 Land 735 773 - 735 773 Total 3 256 724 - - - (90 034) - - 3 166 690

Reconciliation of Investment Property - 2016Carrying Value

Opening BalanceAdditions Additions resulting

from capitalised subsequent expenditure

Transfers Depreciation Transfers Disposals Carrying ValueClosing Balance

R R R R R R R RVilla Bianca - Building S 429 804 (14 821) 414 983 Villa Bianca - Building T 602 310 (20 769) 581 541 Villa Bianca - Building U 687 101 (23 693) 663 408 Villa Bianca - Building V 891 770 (30 751) 861 019 Land 735 773 735 773 Total 3 346 758 - - - (90 034) - - 3 256 724 Estimated useful lives

The annual depreciation rates are based on the following estimated average asset lives:

Class Useful Life Range in Years

Buildings 50 - 70Land Indefinite Life

Other informationRental income from investment property 542 599 545 062 Other direct operating expenses from rental generating property (573 959) (860 449)



Note 2017 2016 Restated R R

10 Trade and other payables from exchange transactions

Trade creditors

1 574 566 1 039 332

Deposits

3 700 3 700

Community Education and Training (CET) Colleges

4 038 328 4 077 632

Accrued Expenses

2 540 977 9 273 038

Debtors with credit balances

19 655 574 21 230 980

Other payables

284 167 719 103

VAT payable

- -

Total creditors

28 097 312 36 343 784

Fair value of trade and other payables

28 097 312 36 343 784

Community Education and Training (CET) Colleges

The college is managing funds allocated to the Community Learning Centres (CLCs) for the procurement of the goods and services on their behalf per agreement signed with DHET.

The liability represents the remaining balance of the allocation at the reporting date.

11 Provisions

Reconciliation of Movement in Provision - 2017

Provision for

Leave Pay Long Service

Awards Other Provisions Total

R R R R

Opening Balance 2 095 000 2 095 000

Provisions Raised 430 000 430 000

Amounts Used-Long service (197 192) (197 192)

Amounts Used-resignation (39 555) (39 555)

Change in Provision due to change in Estimation inputs

(64 253) (64 253)

Closing Balance - 2 224 000 - 2 224 000

Non-current provisions 1 796 000 1 796 000

Current portion provisions - 428 000 - 428 000




2017 2016

Restated

Note R R

Reconciliation of Movement in Provision - 2016

Provision for

Leave Pay Long Service

Awards Other Provisions Total

R R R R

Opening Balance 1 903 000 1 903 000

Provisions Raised 214 000 214 000

Amounts Used-Long service 189 000 189 000

Amounts Used-resignation (192 968) (192 968)

Change in Provision due to change in Estimation inputs

(18 032) (18 032)

Closing Balance - 2 095 000 - 2 095 000

Non-current provisions 1 665 000 1 665 000

Current portion provisions - 430 000 - 430 000

Long Service Awards

Long service benefits are awarded by the College in the form of fixed cash amounts (after 10, 15, 20, 25, 30, 35 and 40 years of continuous service). In addition, monetary gesture (fixed cash) amounts are also awarded by the College to staff members who resign for each year of past service of the resigning staff member. Outflows for Long Service awards take place once a year during December, while resignation gratuities are paid during the month the employee leaves service.

The amount or timing of outflows are uncertain and assumptions regarding the following have been made: - Discount Rate: The discount rate was set as the yield of the R208 South African government bond as at the valuation date. The actual yield on the R208 bond was sourced from the RMB Global Markets website on the 31th of December 2017. - Inflation Rate: The actual yield on the R208 and R197 government bonds was sourced from the RMB Global Markets website. Our assumed rate of inflation was set as the assumed value of CPI. The next increase was assumed to take place on 01 January 2018. - Average Retirement Age: The average retirement age for all active employees was assumed to be 63 years. This assumption implicitly allows for ill-health and early retirements.

12 Unspent conditional grants and receipts

Unspent Conditional Grants from other spheres of Government

Unspent conditional grant: INSETA (from project income)

346 500 1 341 766

Other

23 345 831 6 580 157

Total Unspent Conditional Grants and Receipts

23 692 331 7 921 922

Non-current portion of unspent conditional grants and receipts

Current portion of unspent conditional grants and receipts

23 692 331 7 921 922

Movements during the year

Balance at the beginning of year

7 921 922 4 865 735

Additions during the year

20 868 196 14 247 962

Income recognised during the year

(5 097 787) (11 191 774)

23 692 331 7 921 922




2017 2016

Restated

Note R R

13 Finance lease liability

2017

Future minimum lease payments

Future finance charges

Present value of future minimum lease payments

Amounts payable under finance leases

R R R

Within one year

1 695 085 (165 347) 1 529 738

Within two to five years

658 003 (25 915) 632 089

Later than five years

-

Total future minimum lease payments

2 353 089 (191 262) 2 161 827

Less: Amount due for settlement within 12 months (current portion)

(1 695 085) 165 347 (1 529 738)

Non-current future minimum lease payments

658 003 (25 915) 632 089

2016

Future minimum lease payments

Future finance charges

Present value of future minimum lease payments

Amounts payable under finance leases

R R R

Within one year

1 597 744 (274 622) 1 323 122

Within two to five years

2 045 923 (141 759) 1 904 165

Total future minimum lease payments

3 643 667 (416 381) 3 227 286

Less: Amount due for settlement within 12 months (current portion)

(1 597 744) 274 622 (1 323 122)

Non-current future minimum lease payments

2 045 923 (141 759) 1 904 165

Contingent rents recognised as an expense

Finance Leases consists of the following:

The entity leases some of its equipment under finance leases. The lease terms are for 28 and 36 months. Interest rates range from 8.5% to 9.25%. Interest rates are fixed. No contingent rent is payable Rentals can continue after the lease term has expired. No restrictions are imposed by lease arrangements.




2017 2016

Restated

Note R R

14 Other financial liabilities

Other financial liabilities

8 057 820 7 048 575

NSFAS

8 057 820 7 048 575

15 Tuition and related fees

Tuition fees paid directly by students or private bursaries

Tuition fees - students (Report 191)

14 817 250 14 411 022

Tuition fees - students (NCV)

73 643 577 71 853 444

Other tuition fees

10 622 689 10 076 864

99 083 516 96 341 330

Total tuition and related fees

99 083 516 96 341 330

16 Sale of goods and rendering of services

Rendering of services

SETA projects

8 697 12 297

Administration fee

123 750 67 500

132 447 79 797

Total sale of goods and rendering of services

132 447 79 797

17 Rental of facilities and equipment

Rental of facilities

1 202 229 1 194 505

- Straight-lined operating lease income

1 202 229 1 194 505

Rental of equipment

- -

Total rentals

1 202 229 1 194 505

18 Investment income

Interest - Bank

19 393 572 19 911 026

Other interest

5 554 6 960

Total interest income

19 399 126 19 917 986

Total investment income

19 399 126 19 917 986




2017 2016

Restated

Note R R 19 Other income

From exchange transactions

Sundry income

1 013 149 33 936

Actuarial gains

64 253 18 032

Printing

41 266 40 918

Bad debt provision adjustment

187 299 -

Project income

1 037 500 2 692 170

Grant income

3 826 966 3 170 066

Student support services

124 300 108 303

Study guide income

106 620 91 360

6 401 353 6 154 785

From non-exchange transactions

Project income

16 497 856 1 060 485

Grant income

1 270 822 8 021 708

Insurance pay-outs

- 62 182

Tender fees

131 187 234 000

Other

- 789 158

17 899 865 10 167 533

20 Government grants and subsidies

Reconciliation of Movement - 2017

Balance

unspent at beginning of

year

Current year receipts Conditions met - transferred to

revenue

Conditions still to be met - remain

liabilities

R R R R

Programme funding: Grants paid via Persal 182 230 020 (182 230 020) -

Programme funding: Grants paid cash 53 106 000 (53 106 000) -

Services in kind from SAICA CFO Support Project

961 160 (961 160) -

Total Government Grant and Subsidies

- 236 297 180 (236 297 180) -

Reconciliation of Movement - 2016

Balance

unspent at beginning of

year

Current year receipts Conditions met - transferred to

revenue

Conditions still to be met - remain

liabilities

R R R R

Programme funding: Grants paid via Persal 174 654 284 (174 654 284) 0

Programme funding: Grants paid cash 44 628 000 (44 628 000) -

Services in kind from SAICA CFO Support Project

440 437 (440 437) -

Other Government Grants and Subsidies - -

Total Government Grant and Subsidies

- 219 722 721 (219 722 721) 0

All government grants received were recognised as revenue during the year.




2017 2016

Restated

Note R R

21 Public contributions and donations

Donations

2 020 673 1 883 933

Total public contributions and donations

2 020 673 1 883 933

Reconciliation of conditional contributions

Balance unspent at beginning of year

-

Current year receipts

2 020 673 1 883 933

Conditions met - transferred to revenue

(2 020 673) (1 883 933)

Conditions still to be met - remain liabilities

- -

22 Employee related costs and DHET management fee

Employee related costs

Employee related costs - Salaries and Wages 7 247 045 7 985 641

Employee related costs - Contributions for UIF, pensions and medical aids 433 071 606 517

Travel, motor car, accommodation, subsistence and other allowances 568 411 199 270

Overtime payments 210 733 125 206

Long-service awards 242 000 214 000

Long service awards - interest costs 188 000 189 000

Other employee related costs 419 125 565 247

9 308 385 9 884 881

DHET management fee cost

Employee related costs - Salaries and Wages

177 148 571 163 583 284

DHET SAICA CFO Support Project management fee

961 160 440 437

178 109 731 164 023 721

Total employee related costs and DHET management fee

187 418 116 173 908 602

23 Impairment of debtors

Changes in debt impairment provision

607 178 17 356 857

607 178 17 356 857

24 Depreciation, amortisation and impairment

Property, plant and equipment

24 143 730 18 148 547

Intangible assets

425 302 164 438

Investment property

90 034 90 034

24 659 066 18 403 019



2017 2016

Restated

Note R R 25 Books and learning materials

Books & learning materials

16 980 696 18 078 807

Consumable materials

231 416 196 404

17 212 112 18 275 211

26 Learnership project stipend

Learnership Project Stipend

5 662 088 6 658 432

5 662 088 6 658 432

27 Repairs and maintenance

Land, buildings and infrastructure

6 253 440 3 513 918

Vehicles

314 260 298 639

Other property, plant and equipment items

680 786 396 032

Intangible assets

168 309 -

7 416 796 4 208 589

28 Professional services

Audit fees-external

2 213 036 1 105 248

Consultation fee

853 205 2 135 570

Internal audit

568 277 216 010

Consulting services

98 314 207 597

Legal Fees

689 539 931 622

Other professional services

1 481 560 1 435 593

5 903 930 6 031 640

29 Finance costs

Finance leases

395 296 267 430

395 296 267 430

30 General expenses

Bank charges

736 722 484 064

Debt collection commission

61 160 206 557

Cleaning and pest control

233 704 277 368

Outsourced services

17 069 655 17 499 849

Council fees

393 708 309 221

Exam registration fees

224 366 152 104

Fines and penalties

38 630 34 844

Insurance

1 362 696 1 627 388

Programme costs

10 109 921 8 089 865

Student support services

2 130 099 6 965 856

Subscription, membership fees and levies

265 623 307 149

Travel & Accommodation

1 226 492 836 433

Year-end Function

945 607 567 729

Catering Expenses

2 017 507 2 261 140

Uniforms, protective clothing and health and safety

104 192 36 553

Rates & taxes

1 168 221 1 296 676

Fuel, staff development, skills cost, other expenses

8 466 467 7 145 079

Other [Assets<R1000]

221 779 1 362 444

46 776 549 49 460 319

31 Gain/(Loss) on sale of assets

Property, plant and equipment

(178 082) (231 788)

(178 082) (231 788)




2017 2016 Restated Note R R

32 Cash flows from operating activities

Surplus/(deficit) for the year

62 746 217 33 353 619

Adjustment for:

Depreciation and amortisation

24 659 066 18 403 019

Movement in provisions

129 001 192 000

Actuarial (gain)/loss

- (18 032)

Bad debt written off

- 10 669 438

Debt impairment

(156 397) 17 356 857

Gain/loss on sale of assets

178 082 231 788

Other non-cash item

(1 513 987) 1 083 306

86 041 982 81 271 996

Changes in working capital:

(Increase)/decrease in inventories

(1 506 253) 2 560 562

(Increase)/decrease in trade and other receivables from exchange transactions

(22 175 380) (20 874 825)

(Increase)/decrease in other receivables from non-exchange transactions

1 214 951 6 688 366

Increase/(decrease) in unspent conditional grants and receipts

15 770 409 4 203 729

Increase/(decrease) in trade and other payables from exchange transactions

(8 246 472) (3 979 197)

Increase/(decrease) in payables from non-exchange

1 009 245

Net cash flows from operating activities

72 108 481 69 870 631

33 Change in accounting policy

The College has decided to voluntarily adopted to use the weighted average cost approach for valuation of inventory in the current year for the first time. Prior to the change in accounting policy the college used the First-In-First-Out (FIFO) approach. The average weighted cost approach provides reliable and more relevant information, as the current inventory management system allows for more reliable information on the basis of the average weighted cost approach.

The College believes the new policy is preferable as it more closely aligns the accounting for these transactions with the college primary objective of teaching and learning.

The impact of this voluntary change in accounting policy on financial statements is a marginal increase in inventory and related income statement amounts arising on such transactions.

There were no adjustments made to amounts previously reported in the financial statements of the College arising from the implementation of new accounting policy. It was impracticable to restate the cummulative value of the change in accounting policy on inventory due to the unavailability of appropriate accounting records as the college was not using an integrated inventory management module. No reliable audit trail is available for the preceeding years.

Title of the standards adopted that caused a change in the accounting policy

GRAP 12 Inventories




2017 2016

Restated

Note R R

Description of the nature of the change in accounting policy

GRAP 12 - Change in valuation approach from First In First Out to Average Weighted Cost. This change did not result in a material impact on the current year or any years included within these financial statements. The impact on each line item of the financial statements is shown in the table below:

Value derived using original

Policy

Value derived using new policy

Effect of the change

Statement of Financial Position

Inventory 11 634 575 11 566 900 (67 675)

Statement of Financial Performance

Inventory write-off 1 095 759 1 115 380 19 621

34 Correction of error

2017 2016

R R

During the year the following correction of errors occurred:

Reference

Furniture and Computers initially overcharged by supplier. Subsequent to payment the supplier adjusted the invoice.

A

Reversals for student debtors after cancellation of initial registration

B

Reallocation of land portion of investment property initially recorded as property plant and equipment

C

Accruals for 2016 were posted in 2017 on payments as if they were 2017 transactions

D

Correction of accruals for 2016 E

Restatement of DHET SAICA CFO project remuneration not recorded in 2016

F

Capital expenditure for work in progress was expensed as professional fees in error

G

The comparative amount has been restated as follows:

Statement of financial position

Property Plant and Equipment A,C&G 1 360 357

Trade and other receivables from exchange transactions A&B 675 424

Trade and other payables from exchange transactions D&E (1 732 165)

Investment Property C 735 773

1 039 389



2017 2016

Restated

Note R R

Statement of financial performance

Government grants and subsidies F (440 437)

Employee related costs and DHET management fee B,D&F 440 437

Repairs and maintenance A 13 389

Professional services G 604 517

Books and learning materials D 365 338

Telephone, postage, internet, network and communication costs

D 16 472

Marketing D 8 391

Depreciation A (26 565)

Municipal services D 1 207

General expenses D (2 022 137)

(1 039 389)

Net effect on Accumulated surplus opening balance -

35 Change in estimate

During the year the following changes were made to the estimations employed in the accounting for transactions, assets, liabilities, events and circumstances:

Value derived

using the original estimate

Value derived using amended estimate

R-value impact of change in estimate

in current and future periods

Change in depreciation / amortisation resulting from reassessment of useful lives. The following categories are affected:

901 691 627 576 274 116

Machinery - from 120 months to a maximum of 156 178 589 122 261 56 328

Furniture - from 180 months to a maximum of 216 3 275 2 248 1 027

Vehicles - from 120 months to a maximum of 156 54 307 37 514 16 793

Computer equipment - from 60 months to a maximum of 96

592 286 417 529 174 757

Computer software from 60 months to a maximum of 96 73 235 48 024 25 210

36 Reclassifications

The following amounts were reclassified

Reclassification of general expenses and security and cleaning services expenses previously classified as professional fees.

A

Reclassification of audit fees previously classified as general expenses.

B

Reclassification of Stipends previously classified as employee cost

C

Reclassification of repairs and maintenance previously classified as professional fees

D

Reclassification of deposits previously classified as prepaid expenses.

E

Reclassification of accounts with debit balances disclosed under Trade & Payables

F




2017 2016

Restated

Note R R

2016 2016 Change

Reclassified

Amounts included in (Income)/expense before Prior Year Adjustment

Professional Fees A,B&D 5 427 123 18 718 889 (13 291 766)

General Expenses A&B 51 482 456 37 668 245 13 814 211

Repairs and maintenance D 4 195 200 3 976 688 218 511

Employee related costs and DHET management fee C 173 468 165 174 209 121 (740 956)

Amounts in Statement of Financial Position

Deposits E 740 874 - 740 874

Prepayments E 1 883 743 2 624 617 (740 874)

Trade and other receivables from exchange transactions

F 15 779 323 15 617 020 162 303

Trade and other payables from exchange transactions

F (34 611 619) (34 449 316) (162 303)

Net Movement

-

37 Commitments

COMMITMENTS IN RESPECT OF CAPITAL EXPENDITURE

- Approved and contracted for

116 798 076 60 903 250

PPE

116 798 076 60 903 250

Buildings

116 442 576 40 072 802

Furniture & Fittings

355 500 3 585 816

Plant, Machinery & Equipment

17 244 632

- Approved but not yet contracted for

1 175 011 -

PPE

1 175 011 -

Equipment

1 175 011 -

Total capital commitments

117 973 088 60 903 250

The capital commitments will be financed from

- Own resources

117 973 088 60 903 250

117 973 088 60 903 250

COMMITMENTS IN RESPECT OF OPERATIONAL EXPENDITURE

- Approved and contracted for

60 379 476 48 500 728

Services

60 379 476 48 500 728

- Approved but not yet contracted for

- 26 735 121

Services

26 735 121

Total operational commitments

60 379 476 75 235 849

The operational commitments will be financed from

- Own resources

60 379 476 75 235 849

60 379 476 75 235 849



38


2017 2016 Restated R R Contingent liabilities

Contractual dispute

4 809 658

The College has instituted a high court review application against an Adjudicator's ruling in Trencon's favour in a delay claim with a financial exposure amounting to R3.2million plus 10.5% interest granted from 19 March 2017. In a counter claim, the college is claiming damages and slags from Trencon on the final account of R4.8million.

In the event that the award is granted in favour of Trencon, the college financial exposure will be R4.9million. According to the college's lawyer, if the counter application is granted in the High Court application, the amount of R3.2million will be substracted from the original claim of R4.9million therefore the amount of R1.6million will be outstanding to Trencon in terms of the award.

Labour Court dispute

91 850

The college is defending a case with an employee over a labour relations matter.

39 Related parties

• Members of key management

Day to day management of the EWC TVET

• Council members

Significant influence

• Department of Higher Education and Training

Responsible government department

• National Skills Fund

Under common control DHET

• SETA's


• Department of Military Veterans

Under the same government sphere

• TVET College's


• Community education and training college (CET college)


• Central Johannesburg College


• Department of Sport, Arts, Culture and Recreation


• Department of Rural Development and Land Reform (DRDLR)


• National Student Financial Aid Scheme (NSFAS)


• National Treasury


• National Lottery


• Gauteng Provincial Government


• Small Enterprise Develepment Agency (SEDA)





2017

2016

Restated

Note R R

Amounts included in Receivable (Payable) regarding related parties

• Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority (CATHSSETA)

192 028 192 028

• Community Education and Training College (CET College)

(4 038 329) (4 077 632)

• Central Johannesburg College

3 900 3 900

• Department of Military Veterans

(70 622) -


20 517 858 22 274 296

• Department of Sport, Arts, Culture and Recreation

(6 950) (6 950)

• Ekurhuleni East TVET College

50 970 50 790

• Food and Beverages Manufacturing Sector Education and Training Authority (FoodBev SETA)

- 106 258

• Department of Rural Development and Land Reform (DRDLR)

- 140 000


(4 635 394) (3 703 438)

• National Student Financial Aid Scheme (NSFAS)

(8 057 820) (7 048 575)

• National Treasury

(9 220) (4 722)

• Sedibeng TVET College

3 900 3 900

• South West Gauteng TVET College

3 900 3 900

• Gauteng Provincial Government

(13 511)

• ETDP Seta

155 000

• Wholesale and Retail Sector Education and Training Authority (W&RSETA)

51 872 125 000

Unspent conditional grants and receipts

• Insurance SETA (INSETA)

(346 500) (1 341 766)


(4 635 394) (1 578 603)

• Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA)

- (671 357)

• Bank SETA

(200 678) -

• DHET _Skills Development

(1 104 000) -

• Wholesale and Retail Sector Education and Training (W&RSETA)

(11 605 831) -

SEDA

(928 497)

• Food Processing and Manufacturing SETA (FP&M SETA)

(135 000) -

• DHET- GAP Funding

(4 768 431)




2017 2016

Restated

Note R R

Council members

• MOHLALA, M

49 992 39 120

• SETLHAKO, M C

40 256 30 208

• PETJE, M

25 984 33 856

• THWALA, W D

37 856 32 448

• LIAU, M

34 496 28 032

• MOLOKO, G K

36 672 23 744

• GILA, B N

42 784 45 728

• NAIDOO, T

28 096 20 576

• MANAMELA, S

39 786 47 640

335 922 301 352

Key management personnel employee cost

Salaries and wages

3 643 316 2 945 475

• Principal

1 198 374 1 071 988

• Chief Financial Officer

961 160 634 555

• Deputy Principal: Academic Affairs Corporate Services

749 843 555 764

• Deputy Principal: Academic Affairs Academic Affairs

733 939 683 168

DHET management fee cost

• Salaries and wages

177 148 571 163 583 284

Government grants


(236 297 180) (219 282 284)

Project or Grant (income) / expenditure

• Banking Sector Education and Training Authority (BANKSETA)

(1 270 822) (935 485)

• NSF Dual System Pilot Programme (DSPP)

(13 408 591) (2 473 843)

• Food and Beverages Manufacturing Sector Education and Training Authority (FoodBev SETA)

(130 537) (142 258)

• Insurance SETA (INSETA)

(2 329 092) (4 759 263)

• Wholesale and Retail Sector Education and Training Authority (W&RSETA)

(125 000)

• Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA)

(1 842 000) (1 488 568)


(2 473 843)

• National Lottery

(646 344)

• Small Enterprise Development Agency (SEDA)

(1 615 736) (1 681 499)

• The National Rural Youth Service Corps (NARYSEC) (DRDLR)

(1 037 500)

• Food Processing and Manufacturing SETA (FP&M SETA)

(629 637) -

Administration fees paid to (received from) related parties

• Community Education and Training College (CET College)

(296 100) (278 130)




2017 2016

Restated

Note R R

40 Events after the reporting date

Adjusting events

No adjusting events

Non-adjusting events

Furniture and equipment with a carrying amount of R58 400 were written off in 2018.

41 Going concern

We draw attention to the fact that at 31 December 2017, the College had accumulated profits of R 734,053,480.and that the College's total assets exceed its liabilities by R 734,053,480. The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The ability of the College to continue as a going concern is dependent on a number of factors. The most significant of these is that the College is dependent on programme funding received from DHET at a level which, when combined with other revenue generated by the College, is sufficient to fund the operations of the College.

42 Net Assets

In terms of the CET Act, the Minister of Higher Education and Training may close a public college subject to certain conditions. In such a case, the net assets of the College, comprising the accumulated surplus and reserves, will vest in the Minister of Higher Education and Training after the settlement of all liabilities.




2017 2016 Restated Note R R

43 Risk management and other financial instrument disclosures

Maximum credit risk exposure

Credit risk exposure arise from mainly from cash deposits, cash equivalents and trade debtors. The College only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise a widespread customer base, comprising mainly of students of the College. Management evaluates credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the council. The utilisation of credit limits is regularly monitored.

The financial assets expose the College to credit risk. The value of the maximum exposure to credit risk are as follows for each of classes of financial assets:

Cash and cash equivalents 252 438 193 251 116 428

Trade and other receivables from exchange transactions 38 630 126 16 454 746

Other receivables from non-exchange transactions, including transfers 21 013 049 22 228 000

Liquidity risk

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposures due to outstanding receivables from students and other trade receivables. Credit risk may also arise from debt securities should the college decide on borrowings. The college has no significant concentrations of credit risk. For banks and financial insititutions, only independently rated parties are accepted and the college has policies in place to ensure that rendering of education service are made to students with an appropriate credit history. The college's maximum exposure to credit risk is represented by the carrying amount of theses financial assets on the statement of financial position.

The table below analyses the entity’s financial liabilities into relevant maturity groupings based on the remaining period at the Statement of Financial Position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

The table below analyses the College’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

2017 Not later than one year

Later than one year

Gross finance lease obligations 1 695 085 658 003

Trade and other payables 28 097 312 -

2016 Not later than one year

Later than one year

Gross finance lease obligations 1 597 744 2 045 923

Trade and other payables 36 343 784 -



2017 2016

Restated

Note R R

Interest rate risk As the College has no significant interest-bearing assets, the College’s income

and operating cash flows are substantially independent of changes in market interest rates.

At year end, financial instruments exposed to interest rate risk were as follows: - Call deposits 110 041 283 247 748 099 - Notice deposits 134 672 199

Interest rate risk sensitivity analysis The susceptibility of the College's financial performance to changes in interest

rates can be illustrated as follows: Impact

2017

Interest income

Interest rate increase of 25 basis points 611 784

Interest rate decrease 25 basis points (611 784)

2016 Interest income Interest rate increase of 25 basis points 619 370

Interest rate decrease 25 basis points (619 370)

The method applied to determine the interest rate sensitivity analysis has the following limitations that may result in the information not being fully representative of the actual future results:

Most interest bearing call accounts are linked to prime and a change in the interest rate would cause an increase or decrease in the interest received for the year.

No changes were made to the methods and assumptions applied, in the prior year, to the determination of the sensitivity analysis.

Other price risk The college has no exposure to price risk as it does not have any instrument

affected by market price fluctuations.

Financial assets pledged as security No financial assets were pledged as security for liabilities. Credit quality of financial assets carried at amortised cost Method of determining credit quality of other non-current financial assets

The credit quality of trade and other receivables from exchange transactions are determined and monitored with reference to credit ratings obtained, for the customers included in the balance, from external credit ratings agencies.

The credit quality of trade and other receivables from exchange transactions are determined and monitored with reference to historical payment trends. Accordingly the credit quality of the customers included in the balance of trade and other receivables from exchange transactions is determined internally through application of the entity' own credit policy. Based on the evaluation of the historical payment trends, customers included in the balance are categorised into the following:

High credit quality - Customers included in this category have evidenced no defaults or breaches in the contractual repayments.

Medium credit quality - Customers included in this category are prone to late payments, but seldomly default on the entire balance owing.

Low credit quality - Customers included in this balance includes customers that frequently default on their outstanding balances and breach contract.




2017 2016

Restated

Note R R

Impairment and reconciliation disclosures related to financial assets

Impairment disclosures for non-current financial assets carried at amortised cost

Reconciliation between gross and net balances Gross Balances

Provision for Doubtful Debts

Net Balance

R R R

Trade and other receivables from exchange transactions - 2016

52 093 901 (35 639 155) 16 454 746

Trade and other receivables from exchange transactions - 2017

74 876 459 (36 246 333) 38 630 126

Total 126 970 360 (71 885 488) 55 084 872

Reconciliation of the doubtful debt provision

Balance at beginning of the year

35 639 155 18 282 298

Contributions to provision

607 178 17 356 857

Balance at end of year

36 246 333 35 639 155

Financial assets carried at amortised cost past due but not impaired

Financial assets carried at amortised cost which are less than 1 months past due are not considered to be impaired.

Other current financial liabilities measured at amortised cost through surplus and deficit

Finance leases

2 161 827 3 227 286

Trade and other payables

28 097 312 36 343 784

Total

30 259 138 39 571 071

44 Tax exemption

The College is exempt from normal taxation in terms of Section 10(1)(cA)(i) of the Income Tax Act, 1962 (Act No.58 of 1962).

Ekurhuleni West TVET College Annual Report 2017

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