Revised Strategic Plan 2011 MTEF Budget Allocations 2010/11 - 2014/15 & 2011 MTEF Budget Allocations Portfolio Committee 23 March 2011

Introduction First Strategic Plan was presented in 2010 Newly constituted department which brought together two disparate streams of education and training into one department Past 2 years have seen intense activity Conceptualising the post-schooling landscape Moving of Skills from Department of Labour Legislative Amendments Commenced with the Green Paper Revised Strategic Plan sets out our stated outcomes, targets and budget

Revised Strategic Plan Alignment with Outcome 5 Address priorities in the New Growth Path Focus on Recognition of Prior Learning Differentiation and articulation of post-schooling system Curricular transformation including artisan training and second chance opportunities Improve funding for students Strengthen the relationships between institutions and the world of work Total expansion of the system to include more citizens in universities, colleges, adult training centres, learnerships, apprenticeships and other skills based courses

Vision Differentiated and fully inclusive post-school system that allows all South Africans to access relevant post-school education and training, in order to fulfill the economic and social goals of participation in an inclusive economy and society. Mission To develop capable, well educated and skilled citizens that are able to compete in a sustainable, diversified and knowledge-intensive international economy, which meets the developmental goals of our country.

Approach Reducing skills bottlenecks especially in priority and scarce skills areas Improving low participation rates in the post-school system Correcting distortions in the shape, size and distribution of access to post-school education and training Improving the quality and efficiency in the system, sub-systems and institutions Refocussing of SETAs

Structure of Strategic Plan Over-arching framework is the Human Resource Development Strategy for South Africa (HRDSA) led by the Deputy President and managed by DHET Long term strategic plan: 20-30 years Medium term strategic objectives: 5 years Short term operational plans: 1 year Performance Agreement of Minister

5 Programmes Administration Human Resource Development, Planning and Monitoring Coordination University Education Vocational and Continuing Education and Training Skills Development

ADMINISTRATION PROGRAMME 1 Programme 1 provides the support and corporate services for the DHET and includes the offices of the Minister and Deputy Minister. OBJECTIVES FOR PROGRAMME 1 A To establish a functional department with the requisite capacity to deliver on its strategic objectives B To establish the regional/provincial presence of DHET

To establish a credible institutional mechanism for skills planning. HUMAN RESOURCE DEVELOPMENT, PLANNING AND MONITORING COORDINATION PROGRAMME 2 Programme 2 is currently misnamed as the HRD function has been moved to Programme 5. Programme 2 provides key transversal services for the DHET in the following areas to support the work of the line functions: Planning, Information, Monitoring and Evaluation Coordination; International Relations; Legal and Legislative Services; Social Inclusion and Equity in Higher Education and Training The Chief Directorate: Planning, Information, Monitoring and Evaluation Coordination is responsible for the implementation of Output 5.1 of the Delivery Agreement for Outcome 5, namely: To establish a credible institutional mechanism for skills planning.

PROGRAMME 2 KEY PRIORITIES FOR PROGRAMME 2 A To develop an integrated information system for the DHET and to build a credible institutional mechanism for skills planning B To ensure credible planning processes in the DHET, supported by quality data and well developed monitoring and evaluation indicators C To ensure international cooperation in education and training matters D To provide effective and efficient legal and legislative services to all branches and functions of the DHET E To pursue an education and training system that includes all citizens of the country without exclusion caused by race, disability, gender, class or age F To provide career guidance services for the citizens of the country, again ensuring the full inclusion of all citizens without regard to race, disability, gender, class or age

PROGRAMME 3 UNIVERSITY EDUCATION Programme 3 provides University Education services in the following areas: Academic Planning and Management; Financial Planning and Information Systems; Policy and Development; Teaching Development The University Education branch is responsible for the implementation of Output 5.4 and Output 5.5 of the Delivery Agreement for Outcome 5, namely: Increase access to high level occupationally-directed programmes in needed areas and Increase research, development and innovation in human development for a growing knowledge economy.

PROGRAMME 3 KEY PRIORITIES FOR PROGRAMME 3 A To ensure successful transformation in the university sector B To increase the number of graduates in needed areas including teacher education C To provide a transformative funding model for the sector to ensure that historically disadvantaged institutions are able to “catch up” to well resourced institutions D To improve student funding via the National Student Financial Aid Scheme E To improve access to the university sector via a Central Application Service and the development of universities in Mpumalanga and Northern Cape F To improve innovation and research in the country at post-graduate level

Vocational and Continuing Education and Training PROGRAMME 4 Programme 4 provides Vocational and Continuing Education and Training services in the following areas: Planning and Institutional support; Programmes and Qualifications; National Examinations and Assessment The VCET branch is the lead branch for the implementation of Output 5.2 of the Delivery Agreement, namely; Increase access to programmes leading to intermediate and high level learning.

PROGRAMME 4 KEY PRIORITIES FOR PROGRAMME 4 A To manage the curricular transformation of the college sector including provision for artisan training B To expand and increase access to the post-school system by offering additional qualifications for youths and adults who do not meet the requirements for entrance into post-secondary college or university courses C To provide a credible examination system for the college and adult education sectors D To ensure that colleges become institutions of choice by: eradicating inefficiencies in the college system through the provision of support to the management and governance functions of colleges improving articulation between the college and university sectors E To strengthen the relationship between colleges and employers F To improve student funding at colleges via the National Student Financial Aid Scheme

Skills Development PROGRAMME 5 Programme 5 provides services related to the development of skills for the country in the following areas: SETA coordination; The National Skills Fund; The Secretariat for the National Skills Authority; Human Resource Development for South Africa The Institute for the National Development of Learnerships, Employment skills and Labour Assessment (INDLELA) The Skills branch is the lead branch for the implementation of Output 5.3 of the Delivery Agreement, namely; Increase access to occupationally directed programmes in needed areas and thereby expand the availability of intermediate level skills (with a special focus on artisan skills)

PROGRAMME 5 KEY PRIORITIES FOR PROGRAMME 5 A To provide a dynamic interface between workplaces and learning institutions and to promote quality learning at work and for work B To advance the Human Resource Development Strategy of South Africa through funding of relevant priorities via the National Skills Fund C To ensure the successful implementation of the National Skills Development Strategy 3 via the SETA’s D To actively promote the alignment of skills development outputs with the needs of the workplace and with the broader growth needs of the country’s economy E To secure an increased number of workplace learning opportunities in both the public and the private sector (learnerships, apprenticeships, skills courses) F To ensure coordination, integration, alignment and facilitation with relevant policies, strategies and stakeholders with regard to the Human Resource Development Strategy for South Africa (HRDSA)

5-year Objectives and 1-year Operational Plans Strategic Objectives For each of the Programmes 2 to 5, the above mentioned priority areas are translated into specified strategic objectives per sub-programme and per directorate. (page 68 to 79 of the strategic plan) Targets and Outputs The 1-year operational plan for each directorate and chief directorate provides the detailed performance measures, activities, targets and outputs to be met for each objective for the 2011/12 year. (page 82 to 130 of the strategic plan) The budgets for each sub-programme are also indicated.

Year-on-Year Increase Annual Average Growth over the MTEF FINANCE 2011 MTEF Allocations 2010/11 2011/12 Year-on-Year Increase 2012/13 2013/14 Annual Average Growth over the MTEF   R'million % Total Allocation 32 144.9 37 377.3 16.28% 40 924.6 43 822.7 10.88% Less: Direct Charges 8 424.2 9 148.7 8.60% 9 606.1 10 134.5 6.35% SETAs 6 739.4 7 319.0 7 684.9 8 107.6 NSF 1 684.8 1 829.7 1 921.2 2 026.9 6.36% Voted for Department 23 720.7 28 228.6 19.00% 31 318.5 33 688.2 12.40%

Year-on-Year Increase Annual Average Growth over the MTEF FINANCE 2011 MTEF Allocations 2010/11 2011/12 Year-on-Year Increase 2012/13 2013/14 Annual Average Growth over the MTEF   R'million % Distribution per Programme 1. Administration 100.5 161.6 60.80% 174.7 185.9 22.75% HRD, Planning and Monitoring Coordination 26.0 33.8 30.00% 35.2 37.2 12.68% 3. University Education 19 534.7 23 429.5 19.94% 26 076.5 27 844.5 12.54% 4. Vocational and Continuing Education and Training 3 891.2 4 475.4 15.01% 4 889.2 5 462.9 11.97% 5. Skills Development 168.3 128.3 -23.77% 142.9 157.7 -2.15% Total 23 720.7 28 228.6 19.00% 31 318.5 33 688.2 12.40%

Year-on-Year Increase Annual Average Growth over the MTEF FINANCE 2011 MTEF Allocations 2010/11 2011/12 Year-on-Year Increase 2012/13 2013/14 Annual Average Growth over the MTEF   R'million % Distribution per Economic Classification Compensation of Employees 228.9 301.5 31.72% 334.1 359.7 16.26% Salary Bill 208.2 249.4 19.79% 264.5 279.1 10.26% Examiners and Moderators 20.7 52.1 151.69% 69.6 80.6 57.32% Goods and Services 153.5 154.3 0.52% 180.3 194.9 8.28% Transfers 23 328.5 27 764.7 19.02% 30 796.1 33 126.7 12.40% Capital 9.8 8.1 -17.35% 8.0 6.9 -11.04% Total 23 720.7 28 228.6 19.00% 31 318.5 33 688.2

2011 MTEF FINANCE Programme 3 (83%) and Programme 4 (15.9%) are the biggest portions of the budget due to the transfers to Universities, public entities and FET Colleges Programme 1: Administration remains at a level of around 0.56% of the total budget Transfers remain the biggest item and account for approximately 98.3 of the budget over the MTEF The Department’s budget increases at an annual average rate of 12.4% from R23.7 billion in 2010/11 to R33.7 billion in 2013/14 The Department’s total budget for 2011/12 grows with 19% from 2010/11 The growth in the budget is mainly due to the additional funding on transfer items as well as compensation of employees including the provision for examiners and moderators

Key budget increases: 2011 MTEF FINANCE Key budget increases: 2011 MTEF 2011/12 2012/13 2013/14   R'million NSFAS Bursaries 1 650.0 2 714.2 3 151.1 University Education 751.8 1 333.2 1 536.1 FET College Education 898.2 1 381.0 1 615.0 Establishment of Universities in Mpumalanga and Northern Cape 50.0 100.0 150.0 Examination Services 39.0 61.9 71.2 Municipal and accommodation charges 17.0 20.0 22.0 FET Colleges Conditional Grant 354.0 536.0 864.0 Increased student enrolment 250.0 427.0 749.0 Conditions of service 104.0 109.0 115.0 Total 2 110.0 3 432.1 4 258.3

Allocations to Institutions 2011 MTEF FINANCE Allocations to Institutions 2011/12 2012/13 2013/14   R'million Universities 19 352.7 20 752.9 21 938.8 FET Colleges (Conditional Grant) 4 326.0 4 705.1 5 262.4 Public Entities 4 053.4 5 297.5 5 876.2 NSFAS Bursaries 3 956.8 5 194.7 5 768.3 Administration 77.4 82.0 86.6 University Education 2 644.2 3 377.9 3 693.3 FET College Education 1 235.2 1 734.8 1 988.4 Council on Higher Education 36.8 39.2 40.8 SAQA 41.4 43.6 46.1 QCTO 18.4 20.0 21.0 Other 9 148.7 9 606.1 10 134.5 SETAs (Skills Levy) 7 319.0 7 684.9 8 107.6 National Skills Fund 1 859.6 1 959.1 2 073.3 Skills Levy 1 829.7 1 921.2 2 026.9 Exchequer Contribution 29.9  37.9  46.4  Total 36 910.7 40 399.5 43 258.3

2011 MTEF FINANCE R’million Based on the above, limited funds are available for the Department’s operations, including the key roles of monitoring and support Furthermore, the Department were required to implement efficiency savings to the amounts of R93.3 million, R100.1 million and R105.9 million over the three MTEF years The Department’s operational costs for 2011/12 as indicated below amount to R162.5 million compared to R163 million for 2010/11 Taking into account the increases for the newly established Deputy Ministry, Examination Services as well as municipal and accommodation charges, the Department’s operational costs decline R’million Total voted funds 37 377.3 Less: Direct charges (SETA funding and NSF) 9 148.7 Balance of voted funds 28 228.6 Less Transfers: Universities 19 352.7 NSF (Contribution by Exchequer) 29.9 Public Entities 4 053.4 FET Conditional Grant 4 326.0 Other ( such as SETA) 2.6 Less Compensation of Employees 301.5 Balance available for operational/project costs 162.5

Thank You