PERFORMANCE INFORMATION ON PRE-DETERMINED OBJECTIVES AND BUDGET (April 2013 to June 2013) Presentation to the Portfolio Committee on Higher Education and Training 11 September 2013

Presentation Outline Background Performance per Programme Administration Human Resource Development, Planning and Monitoring Coordination University Education Vocational and Continuing Education and Training Skills Development Budget Performance

Background There were 23 pre-determined targets during the quarter under review 57% (13) of the predetermined targets were achieved 43% (10) partially achieved All areas partially achieved are being given the necessary attention and will be finalised in the subsequent quarters

Total number of targets for 1st quarter Targets partially achieved Summary Programme Total number of targets for 1st quarter Targets achieved Targets partially achieved Targets not achieved 1. Administration 7 4 3 2. HRD, Planning and Monitoring Coordination 2 3. University Education* 4. Vocational and Continuing Education and Training 9 5 5. Skills Development Total 23 13 10 * It should be noted that Programme 3, University Education does not have quarterly targets but have reported on the progress of key process matters

Programme 1: Administration Purpose: Provide overall management and administration of the department 7 Targets: 4 Achieved and 3 Partially Achieved Key achievements 100% compliance to Supply Chain management (SCM) and logistical policies and standards compliance. Functional user-friendly and updated DHET website functional 365 days per year 16 exhibitions and public relations events were held All received requests for payments were processed within 5 days

Programme 1: Administration Deviation from targets: 98% queries received via call centre were successfully responded during the quarter under review Not complying fully with security directives due to renovations of the building. Systems had to be disconnected First issue of the Department’s internal newsletter was compiled and will be published as soon as approval is obtained from the editorial committee

Programme 2: HRD, Planning and Monitoring Coordination Purpose: Provide strategic direction in the development, implementation and monitoring of departmental policies and Human Resource Development Strategy for South Africa 2 Targets: 2 Achieved Key achievements: 1 Quarterly performance report on Annual Performance Plan was produced and approved by the Director General 2 Requests for advice were answered within standards approved by the Branch Head

Programme 3: University Education Purpose: Develops and coordinates policy and regulatory frameworks for an effective and efficient university education system and provides financial support to universities, National Student Financial Aid Scheme and National Institutes for Higher Education There were no specific targets for the quarter Transfers to universities and public entities are up to date and by the end of June 2013, 49% of the budget had been transferred to universities, 50% to the Council for Higher Education (CHE) and 51% to the National Student Financial Aid Scheme (NSFAS)

Programme 3: University Education The University of Limpopo (UL) Council has submitted a forensic investigation report requested by the Department following serious allegations received through the Public Protector’s office. A report with recommendations have been submitted for Ministerial Substantial progress has been made towards the establishment of the two new universities in the Northern Cape and Mpumalanga. Records of intent on publically owned land for the two institutions were signed by the Minister of Higher Education, the Minister of Public Works and the Premiers of the two Provinces

Programme 3: University Education Progress has been made towards the establishment of a new health and allied sciences university that will incorporate the Medical University of South Africa (MEDUNSA) Campus of the UL, and with respect to the unbundling of MEDUNSA from UL Comments on the draft policy on Distance Education have been received and analysed. The final draft policy has been prepared and submitted to the Minister for approval for publication in the Government Gazette In line with the Integrated Strategic Planning Framework for Teacher Education and Development, 8 Provincial Teacher Education and Development committees have now been established and meetings held

Programme 3: University Education The Strengthening Foundation Phase Teacher Education Programme is progressing well. Progress reports were received from 17 universities and funds have been released A draft policy on Professional Qualifications for Adult Educators has been completed and is ready for release for public comment during the second quarter The Draft Policy for Student Housing at Public Universities and the Minimum Norms and Standards Applicable was gazetted for public comment

Programme 4: Vocational and Continuing Education and Training Purpose: Plan, develop, evaluate, monitor and maintain national policy, programmes, assessment practices and systems for vocational and continuing education and training, including further education and training colleges and post-literacy adult education and training 9 Targets: 5 Achieved and 4 Partially Achieved Key achievements: 67 SSS Managers and lecturers were trained to implement the comprehensive student support services frame work

Programme 4: Vocational and Continuing Education and Training 215 Lecturers were trained to support curriculum delivery: Training was conducted during recess and more lecturers than planned took part in order to share best practices that would be adopted immediately to enhance the current teaching and learning activities 75 Provincial Education Department (PED) official were trained to support new curriculum delivery: More officials were trained as opposed to the targeted 30. The approach of taking training to PEDs as opposed to having PED officials converging in a central place

Programme 4: Vocational and Continuing Education and Training 59 Personnel in Public FET Colleges were trained in financial management 79 personnel at Public FET Colleges trained in Strategic and Operational Planning Deviation from targets Registration of candidates for 2nd trimester Engineering Studies and resulting of 1st trimester Engineering Studies and 1st Semester Business Studies were completed. 40% of the NC (V) 2012 November candidates were certificated 1st trimester Engineering Studies were not certificated due to alleged irregularities

Programme 4: Vocational and Continuing Education and Training 64% (32 colleges) conducted improved assessments. An irregularity report for the 1st Trimester Engineering Studies has been produced 99% (1 535 centres instead of the targeted 1540) centres conducted improved assessments Business Management System standards are in draft form and will be finalised during the fourth quarter for implementation in all 50 public FET colleges

Programme 5: Skills Development Purpose: Promote and monitor the national skills development strategy. Develop skills development policy and a regulatory framework 5 Targets: 2 Achieved and 3 Partially Achieved Key achievements: 6 038 artisan candidates entered learning nationally Report on the implementation of the National Skills Development Strategy (NSDS) by SETAs was compiled

Programme 5: Skills Development Deviation from targets: 1 402 artisan candidates were found competent Nationally against the target of 2 000 Pass rate for national artisan learners during the quarter under review was 44% instead of the targeted 46% Only 1 instead of 5 audits were conducted at SETA s

Financial Information Adjustments appropriation Adjusted appropriation Programmes Budget Expenditure Balance % Spent Main appropriation Adjustments appropriation Adjusted appropriation Apr'13 - Jun'13 Total R'000 1: Administration 200 621 - 38 821 161 800 19.4 % 2: Human Resource Development, Planning and Monitoring Coordination 48 066 10 244 37 822 21.3 % 3: University Education 28 303 651 13 863 407 14 440 244 49 % 4: Vocational and Continuing Education and Training 5 664 457 1 591 764 4 072 693 28.1 % 5: Skills Development 105 596 22 967 82 629 21.7 % Total: Voted Funds 34 322 391 15 527 203 18 795 188 45.2 % Direct Charges 12 403 000 2 535 137 9 867 863 20.4 % Total: Department of Higher Education and Training 46 725 391 18 062 340 28 663 051 38.7%

Financial Information Budget for 2013/14 financial year increased by R2.8 billion from the adjusted budget of R31.5 billion of the previous year to R34.3 billion excluding direct charges, which is an increase of 9% 92% relates to transfer payments which include R20.2 billion for HEI Overall expenditure for the period under review including commitments was 45.3%. The greater portion of expenditure went to subsidies to HEI. Excluding subsidies, total spending for the period was 39.1% Ideal spending considering the unevenness of transfers to HEI and Conditional Grants to FET Colleges should be 40.9%

Financial Information Average spending for normal operational activities including compensation of employees was 25.9% as opposed to the ideal 25% Transfers to public entities such as NSFAS, CHE, SAQA and QCTO accounted for 50.5% of the total transfers to public entities for the year whilst 48.6% was transferred to Higher Education Institutions during this quarter Overall spending trends for all programmes are normal Although month-to-month fluctuations due to uneven submission of claims and processing of invoices were noticed, this did not have an adverse effect on the overall performance for the quarter

Financial Information Despite all challenges and risk factors identified, Departmental spending for the 1st Quarter was successfully kept within acceptable limits Senior management is aware of the constraints and stringent control measures that have been put in place to ensure that the Department still manages to curb its expenditure and survive within the means at its disposal without compromising service delivery even in the next Quarter

Thank You