The CHE’s Annual Performance Plan and Budget for 2018/19 2018/12/06 06 June 2018 Presentation to the Select Committee on Education and Recreation

Contextual Factors that Situate the Strategic Plan Ongoing pressure to increase enrolments to accommodate burgeoning social demand for higher education opportunities, while resources are not increasing proportionately Radical changes in the world of work, with many forms of employment rapidly becoming redundant as work is automated and other jobs transform, which places pressure on universities to undertake more regular, ongoing curriculum reform to keep their programmes relevant and rethink traditional notions of quality;

Ongoing challenges faced by the majority of students who come from a poor socio-economic background, who are not adequately prepared for the demands and rigours of university studies, and who are also not fully proficient in the media of instruction at universities; Renewed pressure for meaningful transformation in the higher education sector; An explosion in collective sharing and generation of knowledge online, which is in turn posing serious challenges to many of the traditional roles of universities within society; and 2018/12/06

Growing pressures on the time of the academic and administrative staff to complete a wide and growing array of administrative tasks in order to comply with relevant legislation, regulatory requirements, and quality assurance systems (both national and institutional) Digitisation as a motive force, posing ongoing challenges and costs on universities to keep pace and to harness the affordances of technology

Organisational Considerations that Inform the Strategic Plan A steady increase in annual accreditation and re-accreditation applications received, which has had the effect of overloading the process as it is currently designed. This calls for attention to streamlining the programme accreditation process Commitment to reintroducing institutional audits or reviews in order to fulfil the mandate of auditing the quality assurance mechanisms of higher education institutions as stipulated in the Higher Education Act

Intention to increase the number of national reviews of programmes because national reviews have recorded significant success in both raising the profile of key quality assurance issues and leading to binding actions that have a significantly positive effect on quality in higher education Need to bring Directorates to work more closely with one another and move away from working in silos Need to introduce greater agility into the structure and functions of the CHE to enable greater responsiveness to the rapidly changing external environment

Strategic Outcome-oriented Goals Strategic Goal 1 CHE as a quality assurer Goal Statement The CHE is a credible, efficient quality assurer in higher education, with processes developed and implemented to inform, assure, enhance, and promote quality in HEIs Strategic Goal 2 Centre for information, policy analysis, and advice The CHE is a recognized centre for information, policy analysis, and advice on higher education that informs and influences the public dialogue for the transformation of the higher education system

Strategic Goal 3 Quality Council Goal Statement The CHE is a well-established Quality Council promoting the goals of the NQF in the context of the PSET sector. Strategic Goal 4 Effective, sustainable, and dynamic organization The CHE strives to be an effective, sustainable, and dynamic organization, with systems, processes, and capacity/resources that enable it to discharge its mission and legal mandate optimally

Programmes and their Strategic Objectives Programme 1: Institutional Quality Assurance The purpose of this programme is to advance the realisation of Strategic Goal 1: develop and implement processes to inform, assure, enhance and promote quality in higher education institutions The programme has three sub-programmes: Programme Accreditation Quality Enhancement Project (QEP): up to 2017/18 financial year Institutional Audits: from 2019 (resource constraints)

Strategic Objectives To accredit new programmes submitted by higher educational institutions To re-accredit existing programmes of private higher education institutions that are due for re-registration with the DHET To conduct site visits to verify the institutional capacity to offer accredited programmes To implement and complete Phases 1 and 2 of the QEP To conduct institutional audits once the methodology has been developed

Deliverables/Outputs Refined methodology for institutional audits developed by 2018 8 institutional audits conducted and completed by 2020 New programmes received within a year are accredited Existing programmes for private higher education institutions received within a year are re-accredited Site visits to institutions are conducted every year Revised accreditation framework and the implementation thereof by 2020 Completion of Phase 1 of the QEP by 2017 Completion of Phase 2 of the QEP by 2018

Programme 2: Qualifications Management and Programme Review The purpose of this programme is to advance the realisation of Strategic Goal 3: promotion of the goals of the National Qualifications Framework (NQF) within the context of the post-school education and training (PSET) sector The programme has three sub-programmes: Management of the Higher Education Qualifications Sub-Framework (HEQSF) Development of Qualification Standards National Reviews

Strategic Objectives To develop (or review) and implement HEQSF-related policies To maintain a database of student records for the private higher education institutions and submit the data to the NLRD To develop and review qualification standards to ensure the relevance, comparability and currency of qualifications To undertake national reviews of existing programmes in selected subject fields and qualification levels

Deliverables/Outputs 1 new HEQSF-related policy developed or 1 existing HEQSF-related policy reviewed every year Ongoing maintenance of the Higher Education Quality Committee Information System (HEQCIS), and submission of data to the NLRD 2 times every year 4 qualification standards developed within a cycle of 18 to 24 months 1 national review completed within a cycle of 24 to 36 months

Programme 3: Research, Monitoring and Advice 2018/12/06 The purpose of this programme is to advance the realisation of Strategic Objective 2: making the CHE a recognised centre for information, policy analysis, and advice on higher education that informs and influences the public dialogue for the transformation of the higher education system The programme has four sub-programmes: Research Monitoring Advice Global trends in quality assurance

Strategic Objectives To produce and share reliable research on key issues to inform the development and transformation of higher education To collate and disseminate monitoring information on key trends and developments in higher education To provide research-based recommendations and advice on issues of national importance to the higher education sector, both proactively as well as in response to requests from the Minister To keep abreast of global trends in quality assurance

Deliverables/Outputs 1 research publication every year VitalStats produced every year 2 advisory documents every year, and 1 advisory document in response to request for advice 1 hosted conference every year 1 benchmarking report every year

Programme 3: Administration and Support The purpose of this programme is to provide strategic direction, corporate services, enabling systems, structures and facilities in support of the core functions The programme has five sub-programmes: Human Resource Management Information and Communication Technology Facilities Management Finance and Supply Chain Management Office of the Chief Executive Officer [Including Governance]

Strategic Objectives To develop and maintain an integrated online workflow and information management system To ensure that governance of ICT complies with statutory requirements To provide an enabling and nurturing human resource management environment that optimises the skills and human capacity To implement efficient and effective financial management and supply chain management processes To ensure ongoing adherence to legislative, policy and good corporate governance prescripts

Deliverables/Outputs Functional integrated online workflow and information management system by 2020 Ongoing compliance with statutory ICT governance prescripts Training of staff every year Unqualified audit report every year Functional governance structures that meet according to an annual schedule Functional strategic partnerships with international quality assurance bodies and networks Media releases, communiqués, newsletters and other corporate information resources

Part II: APP for 2018/19 Programme 1: Institutional Quality Assurance Strategic Objective Target for 2018/19 To develop methodology for a new cycle of institutional audits N/A (Should have been completed in 2017/18) To conduct institutional audits once methodology has been developed 2 pilot institutional audits To accredit new programmes submitted by higher educational institutions 75% of received applications are processed, evaluated and adjudicated on by the HEQC

To re-accredit existing programmes of private higher education institutions that are due for re-registration with the DHET 80% of received applications are processed, evaluated and adjudicated on by the HEQC To conduct site visits to verify the institutional capacity to offer accredited programmes 75% of site visit reports are tabled at HEQC To revise, pilot and publish a framework and process for programme accreditation Pilot of the revised framework and processes To implement and complete Phases 1 and 2 of the QEP   N/A (Should have been completed in 2017/18)

Programme 2: Qualifications Management and Programme Review Strategic Objective Target for 2018/19 To develop (or review) and implement of HEQSF-related policies 1 policy developed or reviewed To maintain the database of student records for the private HEIs and submit the data to the NLRD 2 reports on HEQCIS data uploads to the NLRD To develop and review qualification standards to ensure the relevance, comparability and currency of qualifications 3 qualification standards developed

To undertake national reviews of existing programmes in selected subject fields and qualification levels   Progress report on monitoring and evaluation of improvement plans Activities report on the review of doctoral programmes Completion of national review manual and self-evaluation report

Programme 3: Research, Monitoring and Advice Strategic Objective Target for 2018/19 To produce and share reliable research on key issues to inform the development and transformation of higher education 1 research publication To collate and disseminate monitoring information on key trends and developments in higher education 1 VitalStats publication To provide research-based recommendations and advice on issues of national importance to the higher education sector, both proactively as well as in response to requests from the Minister 2 advisory reports submitted to the Minister

To keep abreast of global trends in quality assurance   1 hosted conference 1 benchmarking report

Programme 4: Administration and Support Strategic Objective Target for 2018/19 To develop and maintain an integrated online workflow and information management system Implementation of Phase 1 of the project To ensure that governance of ICT complies with statutory requirements 2 ICT policies developed 1 framework reviewed 4 existing policies reviewed To provide an enabling and nurturing human resource management environment that optimises the skills and human capacity 31 staff training interventions undertaken 85% of posts on the organisational structure are filled

To implement efficient and effective financial management and supply chain management (SCM) processes   2 new Finance and SCM policies developed 6 existing Finance and SCM policies reviewed 100% (all) eligible suppliers paid within 30 days of submitting invoices 4 quarterly expenditure reports submitted To ensure ongoing adherence to legislative, policy and good corporate governance prescripts 22 meetings of governance structures held

To develop and maintain functional strategic partnerships with international quality assurance bodies and networks 5 functional international partnerships or collaborative activities or events To develop and maintain good relations with stakeholders   5 media releases, communiqués, newsletters and other corporate information resources

BUDGET ALLOCATION 2018-19 PROGRAMME: SUMMARY ECONOMIC CLASSIFICATION LOADED BUDGET REQUESTED BUDGET (SHORTFALL)/SURPLUS BUDGET Compensation of employees 35 635 905,13 0,00 Provision for bonuses 1 069 077,15 Goods and Services 17 371 017,72 28 883 484,27 -11 512 466,55 Grand Total 54 076 000,00 65 588 466,55

BUDGET ALLOCATION ON COMPENSATION OF EMPLOYEES FOR THE FINANCIAL YEAR 2018/2019 PROGRAMMES LOADED BUDGET Administration 16 357 700,94 Institutional Quality Assurance 12 314 482,31 Qualifications Management and Programme Reviews 3 224 183,10 Research, Monitoring and Advice 4 808 615,93 Total for Compensation of employees 36 704 982,28

NOTES ON COMPENSATION OF EMPLOYEES BUDGET 2018/12/06 The budget allocation is based on the number of employees per Programme and salary scales of each employees. The budget covers 51 funded employees from various programmes and takes 68% of the total baseline budget allocation. Programme: Administration has 22 employees and also include the provision for bonuses for all programmes and takes 43% of the total compensation of the employees. Programme: Institutional Quality Assurance has 18 employees and takes 34% of the total compensation of the employees. Programme: Qualifications Management and Programme Reviews has 4 employees and takes 9% of the total compensation of the employees. Programme: Research, Monitoring and Advice has 7 employees and takes 14% of the total compensation of the employees.

COMPARISON OF LOADED BUDGET AND REQUESTED BUDGET 2018-19 Programmes: Summary Goods and Services Programmes Loaded Budget Requested budget (Shortfall)/Surplus Budget Administration 10 208 283,96 18 548 642,01 -8 340 358,05 Institutional Quality Assurance 3 993 299,68 5 492 643,12 -1 499 343,44 Qualifications Management and Programme Reviews 2 919 493,60 3 922 466,54 -1 002 972,94 Research, Monitoring and Advice 249 940,48 919 732,60 -669 792,12 Total for Goods & Services 17 371 017,72 28 883 484,27 -11 512 466,55

NOTES ON GOODS AND SERVICES BUDGET The budget allocation is based on activities that need to be undertaken to achieve the set strategic objectives of the Programmes as per the APP. The budget methodology used is zero based and also activity based budget. The goods and services budget takes 33% of the total baseline budget allocation and includes Programme: Administration takes 58% of the total goods and services. Programme: Institutional Quality Assurance takes 23% of the total goods and services Programme: Qualifications Management and Programme Reviews take 17% of the total goods and services. Programme: Research, Monitoring and Advice take 2% of the total goods and services.

FUNDING PROPOSAL FOR BUDGET SHORTFALL Description Projected/Estimated Amount Notes Goods & Services 11 512 466,55   Projected/Estimated rollover of funds from 2017/2018 allocated funds in December 2017. 9 276 683,17 The reflected amount is just a projection/estimation based on the January 2018 expenditure report. It might be lower or higher at the end of March 2018. Projected/Estimated shortfall after approval of rollover of funds by DHET. 2 235 783,38 Shortfall for developing integrated online management system. 10 000 000,00 The development will be done in two phases and estimated completion and implementation date is the beginning of the year 2020/2021. Grand total shortfall to be funded 12 235 783,38

RECOMMENDATION Select Committee Members to note the APP and budget allocation with its challenges and proposed funding for a budget shortfall for the financial year 2018/19.

2018/12/06 THANK YOU