Umalusi’s budget review presentation to the Portfolio Committee on Basic Education Tuesday, 24 March 2015 Cape Town 1

Umalusi mandate Vision, mission, goals and KRA’s 2014/15 Revenue & Expenditure 2015/16 Budget Three Year Budget Forecast Conclusion Overview 2

As a Quality Council to develop and manage a sub-framework of qualifications for general and further education and training; To develop and quality assure qualifications and curriculum; To quality assure assessments at exit points; To certificate learner achievements; To quality assure provision and accredit private providers of education and training, and assessment; To conduct research related to the sub-framework; and To advise the Minister on matters related to the sub-framework Umalusi Mandate 2014/15 3

Umalusi Council is the cornerstone on which the country’s educational aspirations and standards are anchored and built; and as such the Council and staff are committed to ongoing improvement in standards and quality in general and further education and training. In order to issue learners with credible certificates, Umalusi, through its leadership and expert knowledge, develops and secures standards through: quality assuring qualifications and curricula, confirming that assessment is fair, valid and reliable, quality assuring the provision of education and training, and assessment providers, and grounding its work in research to ensure informed positions and approaches Vision & Mission 4

Promote quality and internationally comparative standards in GFET Maintain and improve educational standards through development and evaluation of qualifications and curriculum, quality assurance of assessment, and accreditation of providers of education, training and assessment, Continuously develop in-depth knowledge and expertise in mandated areas through rigorous research, Report on the quality of education and training in GFET within the mandate, Issue appropriate and credible certificates of learner achievement in terms of specific qualifications on the GFET Framework of Qualifications, Provide reliable and credible leadership and guidance in standard setting and quality assurance, Ensure the financial efficiency and sustainability of the organisation, and Determine expectations and appropriately respond to these within the parameters of Umalusi’s mandate. Goals 5

1. Establishing and maintaining a system to develop, evaluate and certify qualifications (and curriculum) 2. Improving and maintaining the system for quality assuring assessment for certification 3. Establishing and implementing a system for evaluation and accreditation of private providers – schools, colleges and adult learning centres as well as private assessment bodies 4. Researching, matters related to the sub-framework of qualifications and reporting on quality in general and further education and training supported by statistical analysis 5. Developing and ensuring good corporate governance and management of the office of the Chief Executive Officer 6. Ensuring that Information Technology systems are established, maintained and improved 7. Ensuring that finance, human resources and administrative support systems are maintained and improved 7 Key Result Areas 6

Unaudited Statement of Financial Performance as at 28 February 2015  Net surplus of R  97% of Budgeted Revenue from operations recognized  100% Grant from the Department of Basic Education received with thanks  82 % of the budgeted expenses incurred with vacancy rate at 12.2 % EXECUTIVE SUMMARY 7

Unaudited Statement of Financial Position, Cash flow, Debtors and Investments as at 28 February 2015  Total Assets valued at R  % of invoiced debts collected to date  Cash available at the end of the period amounted to R  Investments R , attracting net interest of 5.88 % p.a. from Reserve Bank CPD EXECUTIVE SUMMARY (2) 8

Comparative total expenditure vs 3 year average 9

2014/15 Revenue Budget vs Actual Revenue Streams BudgetActual%Comment Accreditation Fees %As institutions request accreditation – cannot predict number of applications Certification Fees %Fees collected from private assessment bodies Department of Basic Education Grant %Grant payment transfer per approved schedule Interest %Due to non-use of reserves Reserve Funds %Unused to date due to collection of revenue Verification Fees %Verification of qualifications on request from private verification companies Other %Private telephone calls, rental income, t-shirt sales to staff, etc. R R % 10

2014/15 Expenditure Budget vs Actual (Current) ExpenditureBudgetActual%Comment National Operations %Per mandate Corporate Services %Salaries for posts to be filled R R %18 % available till end of March 2015 Net surplus as at 28 February 2015 is therefore R

Statement of Financial Position as at 28 February 2015 Feb 2013/14Feb 2014/15 Assets Cash and cash equivalents Current assets R R Capital and Reserves Current Liabilities R R

Budget for 2015/16 The Budget for 2015/16 of R was approved by the Minister of Basic Education on 10 February The grant approved is R

Reserve Forecast for 31 March 2015 Internal renovations to premises transferred into Umalusi’s name in January Installation of disabled access to current and new building Payment for accrued expenses and creditors not paid at year end Reserve for possible litigation and contingencies TOTALR

Qualifications, Curriculum & Certification OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Qualifications sub-framework developed and maintained Standards for new qualifications developed Curricula evaluated and/or developed Policy developed and implemented Learner achievements certificated Verification processes maintained and improved Qualifications Standards Committee and sub-committees maintained R R Despite the 21 % decrease QCC will be able to achieve its objectives through reprioritization and / or redesign of projects for greater efficiency 15

Quality Assurance of Assessments OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Question papers moderated Marking standardized CASS moderated Exams monitored Standards for assessment articulated and maintained Stakeholder relations established and managed Management, support and governance structures maintained and improved – Assessment standards Committee R R The 6% decrease will be accommodated by reprioritization or redesign of quality assurance processes for greater efficiency 16

Evaluation and Accreditation OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Accreditation and monitoring system for providers of education and training reviewed, maintained and extended Accreditation and monitoring system for assessment bodies maintained Provider site visits conducted and reported on Policy developed and implemented Stakeholder relationships developed and maintained Data management systems developed and maintained Administrative systems maintained and improved Accreditation Committee of Council maintained R R Despite the 10% decrease E & A will be able to achieve its objectives through reprioritization of work 17

Statistical Information and Research OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Reports developed (Research reports and quality reports per qualifications) Research is planned, managed and implemented Statistical supports provided to other units Research forum/committee maintained Strategic support provided Stakeholders consulted on strategic research Stakeholders engaged with through conferences and published documents Resource Centre maintained /improved R R Despite the 9% decrease SIR will be able to achieve its objectives through reprioritization and redesign of research projects 18

Public Relations & Communications OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Public relations programme implemented R R The increase of 3.9% accommodates the increases for travel and administrative costs 19

Governance and Office of the Chief Executive Officer OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Organizational plans developed and implemented Planning and implementation reviewed Organizational governance maintained Stakeholder relations established and managed R R Despite the 6% decrease GOCEO will be able to achieve its objectives 20

Corporate Services: Information Technology OUTCOMES Previous Budget Current Budget 2015/16 Motivation Information technology systems established, maintained and improved Certification IT program effectively implemented Adequate computer hardware and software installed and maintained to support operations R R Despite the 6% decrease IT will be able to achieve its objectives 21

Corporate Services: Finance and Supply Chain Management OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Finance and Accounting systems maintained and improved including payroll payments Supply Chain Management system maintained and improved Building and security systems maintained and improved R R % increase due to additional posts approved by Council, and approximately 5.6% towards cost of inflation linked salary increments 22

Corporate Services: Human Resource Management and Development OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Administration of Human resources carried out HR development plans implemented General services provided Records Management Services provided R R Despite the 9% decrease HRM&D will be able to achieve its objectives through reprioritization of training and development initiatives GRAND TOTALR R % decrease 23

Total Income 2000/1 (actual) to 2017/18 (budget) 24 YEARINCOMEBUDGETDBE GRANTGRANT % 2000/01R /02R /03R R /04R R /05R R /06R R /07R R /08R R /09R R /10R R /11R R /12R R /13R R /14R R /15 R R /16 R R /17 R ?? 2017/18 R ??

3 Year Budget Forecast 25

Challenges 26 White paper on post school education and its implications for Umalusi Strengthening of the quality assurance of marking process The proposed amendments and extension of the Senior Certificate Development of certification systems for new qualifications No channels of reporting to the Portfolio Committee on Higher Education despite perennial problems with the DHET examinations systems Strengthening the monitoring processes in the light of the new phenomenon of group copying Class action – litigation by learners whose results have been blocked as a result of pending group copying hearings

Thanks to Ms N Gina, Chairperson of the Portfolio Committee, and Honourable members for this opportunity to present Umalusi’s budget review Dr MS Rakometsi THANK YOU 27