Click to edit Master subtitle style Umalusi’s budget review presentation to the Portfolio Committee on Basic Education 18 April 2012 Cape Town

 Umalusi mandate  Vision, mission, goals and KRA’s  2011/12 Revenue & Expenditure (Current)  2012/13 Budget (Forecast)  Three Year Budget Forecast  Conclusion Overview

 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 Umalusi Mandate 2011/12

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

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

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 providers 4. Research, diagnose and report on quality in general and further education and training supported by statistical analysis 5. Developing and maintaining management support structures and governance 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

Statement of Financial Performance as at 31 March 2012  Net surplus of R 19,9m  117% of Budgeted Revenue from operations recognised  100% Grant from the Department of Basic Education received with thanks  92% of the budgeted expenses incurred EXECUTIVE SUMMARY

Statement of Financial Position, Cash flow, Debtors and Investments  Total Assets valued at R 63,3m subject to revaluation of buildings which could increase by approximately R 8m  105% of invoiced debts collected to date  Cash available at the end of the period amounted to R1,1m  Investments R 26,3m, attracting net interest of 5,49% p.a of which R 6,4m has been set aside / reserved (through National Treasury) for internal renovations to create open plan offices to accommodate staff EXECUTIVE SUMMARY (2)

Comparative total expenditure vs 3 year average

2011/12 Revenue Budget vs Actual Revenue Streams BudgetActual%Comment Accreditation Fees % As institutions request accreditation – cannot enforce applications Certification Fees % Early requests for certification of 2011 candidates to the value of R 20m as budgeted for the 2012/13 financial year….this should be rolled over. Extra R 8 m received due to increase in pass rates and certification tariff Department of Basic Education Grant % Grant payment transfer on schedule Interest % Due to non-use of surpluses Reserve Funds % +R 8m extra income and R 6,6m under spending…excluding the R 20m certification fee for the next year Verification Fees % DPSA circular requiring all government departments to verify staff qualifications via SAQA Other % ETDP seta refund, provider conference fees, private telephone, etc R %Above budget As approved by the Minister of Basic Education on 24 March 2011

2011/12 Expenditure Budget vs Actual (Current) ExpenditureBudgetActual%Comment National Operations Human resource capacity requirements to fully expend budget. Council approved additional posts for 2012/13. Corporate Services Maintenance and replacement of assets unspent due to renovation programme started March 2012 R R % unspent Net surplus as at 31 March 2012 is therefore R due to certification fees which should have been accounted for in the next financial year only. Revenue of R 92,7m ( if R20 m certification removed then R 72,7m …balances actual budgeted income to actual budgeted expenditure for 2011/12)

Statement of Financial Position as at 31 March 2012 Mar 2012Mar 2011 Assets CPD Current assets R R Capital and Reserves Current Liabilities R R

Qualifications, Curriculum & Certification OUTCOMESPrevious Budget Current Budget 2012/13 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 R R % increase in budget due to some functions in previous year being done together with the Statistical Information and Research unit, thus not a true indication of actual expenses.

Quality Assurance of Assessments OUTCOMES Previous Budget Current Budget 2012/13 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 R R % increase due to increase in Moderator costs as per Ministerial approval and also increase in moderation/ monitoring sample sizes

Evaluation and Accreditation OUTCOMES Previous Budget Current Budget 2012/13 Motivation Accreditation and monitoring system for providers of education and training maintained and extended Provisional accreditation and monitoring maintained Provider site visits conducted Monitoring reports developed Policy developed and implemented Stakeholder relationships Accreditation and monitoring system for assessment bodies maintained and extended New and existing assessment bodies monitored and reported on R R % increase due to increase in the number of institutional site visits.

Statistical Information and Research OUTCOMESPrevious Budget Current Budget 2012/13 Motivation Reporting (Printing of Reports) 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 % decrease in budget due to work done with QCC in previous financial year.

Management Support Structures OUTCOMESPrevious Budget Current Budget 2012/13 Motivation Organisational planning and implementation reviewed Organizational governance maintained Stakeholder relations established and managed Public relations programme implemented R R % increase due to administrative costs for travel, accommodation and flights of all governance structures

Corporate Services: Information Technology OUTCOMES Previous Budget Current Budget 2012/13 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 % increase required due to increase in computer costs mainly for replacement of hardware and software., including the development of an electronic document management system

Corporate Services: Finance and Supply Chain Management OUTCOMES Previous Budget Current Budget 2012/13 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, as per the HR review and approximately 5% towards cost of inflation increases

Corporate Services: Human Resource Management and Development OUTCOMES Previous Budget Current Budget 2012/13 Motivation Administration of Human resources carried out HR development plans implemented General services provided Records Management Services provided R R % increase due to HR development strategies with staff workshops and implementation of records management services GRAND TOTALR R % increase in the budget for 2012/13

Total Income 2000/1 (actual) to 2014/15 (budget) YEARINCOMEBUDGETDBE GRANTGRANT % 2000/01R /02R /03R R /04R R /05R R /06R R /07R R /08 R R /09 R R /10R R /11R R /12R R /13R R /14R Possible move to fully fund certification /15R Possible move to fully fund certification 90

3 Year Budget Forecast 2011/122012/132013/142014/15 R R R R /13 Budget approved by the Minister of Basic Education on 8 February Grant improved from R 18,3m to R 44m including improvement in conditions of service (R 859K) Y/Y Percentage Increase 15%18%14%12%

Umalusi future as published in the Higher Education and Training Green paper: Umalusi Position Umalusi recommendations Umalusi Strategic and Annual Performance Plans submitted Challenges

Thanks to Ms H Malgas, Chairperson of the Portfolio Committee, and Honorable members for this opportunity to present Umalusi’s budget review. We would like to express our sincere gratitude to this committee, the Minister of Basic Education and the Department for its support in ensuring that the grant awarded to Umalusi is improved so that our mandate of quality assuring standards is achieved in South Africa. Dr MS Rakometsi THANK YOU