FASSET ANNUAL REPORT

FASSET’s material issues We have provided material disclosure on governance and strategic risks and opportunities in relation to our financial and social performance. For the purpose of our reporting we have defined material issues as those issues which can

influence our stakeholders’ decisions in relation to our mandate as a SETA or which can impact on our ability to deliver against NSDP targets. The table below sets out how the risks associated with these issues are viewed and addressed.

Table 2: Material Issues and Risks Material issue s

Risk and potential impact Inability to meet operational commitments and objectives

Managing the risk

Section and page reference Financial Statements on page 89 and Revenue Collection on page 57

Income reduction due to Covid-19 payment holiday

We maintain a budget for administrative expenditure in case levies drop below the budgeted amount. We review shortfalls within programmes and re-allocate surplus funds We sign an annual SLA with DHEST, which commits us to delivering against NSDP outcomes as well as plans to improve performance We ensure compliance and good governance through relevant legislative and strong governance structures To ensure business continuity during the migration of ICT systems to the new ICT landscape, FASSET has developed a mechanism to migrate its ICT systems to the cloud platform to position the organisation and take advantage of the 4IR

Poor performance 40% attainment (down from 70% in previous financial year)

Failure to deliver on our SETA mandate could result in shortages of skills in the FASSET sector and the economy Failure to comply with regulatory and SETA-specific legislative framework could result in the loss of our operating licence, legal breach or failure to meet objectives Interruption in FASSET business due to migration to new ICT environment, including the Accounting system

Performance overview on page 42

Legislative and other mandates on page 24, and Corporate governance report page 58

Compliance with general regulatory and SETA-specific legislative frameworks to ensure good governance delivering on SETA mandate

Governance around information and communications technology (ICT) driving transformation in the FAS sector

Performance overview on page 42

FASSET Annual Integrated Report 2020/21

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