DEPARTMENT HIGHER EDUCATION AND TRAINING

DEPARTMENT HIGHER EDUCATION AND TRAINING
ANNUAL REPORT 2012/13 DEPARTMENT HIGHER EDUCATION AND TRAINING Presentation to the Portfolio Committee on Higher Education and Training 09 October 2013

Presentation Outline Achievements Background Information
Programme Performance on Predetermined Objectives Targets partially and not achieved Current status of targets Programme Performance for the first two quarters of the 2013/14 financial year (Financial and non- financial performance) Financial Statements Audit Report 2012/13 – Allocation versus Expenditure Main Reasons for Under-Expenditure 2014 MTEF Funding Requirements

Achievements Further Education and Training student headcount enrolments increased by 90% from in 2010 to in 2012 Student headcount enrolments at universities increased by 14% from in in 2010 to in 2012 The establishment of the two new universities in Mpumalanga and the Northern Cape. Both universities will open their doors in 2014 in selected academic programmes, using existing buildings Demerger of Medunsa Campus from University of Limpopo and establishment of a new university of health sciences Building of 12 new Further Education and Training campuses and refurbishment of 2 campuses Improved HR and financial management in FET College sector

Achievements NSFAS which is the primary tool to ensure access for poor students to post-school education has assisted 1.4 million students since 1991 with many NSFAS alumni now playing an important role in our economy and society NSFAS student bursary funding at FET Colleges has increased from R318 million in 2010 benefitting students to R1.988 billion in 2013 targeting students NSFAS student bursary funding at Universities has increased from R2.2 billion in 2010 benefitting 148 387 students to R3.693 billion in 2013 targeting students Expansion and strengthening of teacher education for all education sub-sectors, including pre-schooling, schooling and post-schooling has resulted in an increase from just under new teacher graduates in 2008 to in 2012

Background Information
The 2012/13 Annual Report is the third Annual Report of the Department of Higher Education and Training For the 2012/13 financial year the Department had a total of 107 planned targets: 62 targets were achieved 33 targets were partially achieved 12 targets were not achieved 11 of the partially and not achieved targets have subsequently been achieved post 31 March 2013 Implementation of the phasing-in of VCET function shift and other matters

National Certificate (Vocational) Certification
Unlike the traditional matric examination, examinations for FET colleges are conducted seven times a year and twice a year for AET, with candidates being assessed and certificated in each of these nine examination cycles Prior to the establishment of the Department in 2009, certification challenges had already existed in the issuing of NC(V) certificates NC(V) Levels 2 to 4 certificates have been issued certificates were initially not issued because public FET Colleges owed certification fees to Umalusi. The Department has successfully intervened and ensured that Umalusi lifts this block. Certificates, which are now being processed for release 3 491 certificates have not been issued by Umalusi because of outstanding certification fees owed by private FET Colleges. The Department has contacted each of these institutions to settle outstanding certification debt certificates have not been processed due to data anomalies in the candidate’s datasets. This is the actual backlog. The Department is in constant engagement with SITA to address these anomalies. SITA is also in the process of sourcing additional capacity to resolve this matter

Leakages of FET Examination Papers
Leakages affect only the Engineering Studies Trimester examination cycles: November 2012 and April 2013 (24 subjects): Candidates implicated at several centres along with individual candidates at other centres. Leakages reported 2 days ahead of examination August 2013 (16 subjects): Candidates implicated at only one centre and limited to individual candidates per centre at other centres – leakages reported during or after the examination Measures put in place: Changed distribution to daily delivery of question papers during August 2013 examinations, i.e. afternoon before, instead of 1-2 weeks in advance as was happening in previous examination cycles Exploring viability of moving daily delivery to the morning of the examination Collaboration with National Police Commissioner’s office to investigate and detect source of leakages Arrests have been made and disciplinary enquiries are underway with regards to implicated staff and students

FET College Councils Number of Colleges which currently have council governance structures Sixteen public FET Colleges currently have council governance structures Due date for the appointment of Councils The appointments to the Free State, Eastern Cape, KwaZulu-Natal and Limpopo Councils will be completed within the next two weeks and Gauteng, Northern Cape and North West shortlisting and due diligence have already been completed and appointments will be made during November 2013 Mpumalanga and Western Cape Councils are still in place as they have not yet expired 8 Colleges under administration with their governance structure being fulfilled by the Administrators

FET College Principal and Deputy Principal Posts
Principals: Post advertised: 13 Interviews conducted: 11 Posts due for short listing: 2 Appointments made: 7 Due for re-advertisement: 3 Interviews done and in process of appointment : 1 Deputy Principals: Number appointed: 21 Vacant: 11 posts are in the process of being filled

FET College Turnaround Strategy
To support on human resource management aspects, 20 Human Resource generalists have been appointed and deployed to FET colleges South African Institute for Chartered Accountants (SAICA) have been deployed Chartered Accountants in all FET colleges with a view to strengthen financial management capacity A College Improvement Project in the Eastern Cape and Limpopo Province is being implemented Substantive actions are currently being implemented in FET colleges in pursuit of improved student performance which includes the following: - Daily monitoring of student attendance, particularly for bursary recipients where travel and accommodation allowance disbursement is linked to attendance - The administration of the student selection and placement test at the commencement of the academic year - Delivery of academic support programmes

Programme 1: Administration Performance Status as at 31 March 2013
Purpose: To conduct the overall management of the Department and provide centralised support services Performance Status as at 31 March 2013 Targets Achieved 11 Partially achieved 6 Not achieved 3 Total Targets 20

Link between Expenditure and Budgets and performance plans in relation to key indicators
Programme 1: Administration R’000 Adjusted Appropriation Actual Expenditure Deviation Virement Applied Final Variance Compensation of Employees 90 901 88 023 2 878 (2 613) 265 Goods and Services 69 721 78 885 (9 164) 9 343 179 Transfers and Subsidies 1 014 1 172 (158) 205 47 Machinery and Equipment 2 530 3 575 (1 045) 1 050 5 Total (7 489) 7 985 496 Performance Information Achieved Partially Achieved Not Achieved Targets (20) 11 6 3

Programme 1: Administration Performance Indicators
Achievements: Performance Indicators Planned Target /13 Actual Achievement 2012/13 Comments To improve efficiency by implementing the necessary information technology infrastructure and systems ICT governance maturity level achieved Maturity level 1 Target achieved (no deviation) Percentage network connectivity uptime 99.9% network 100% Availability of IT services IT services available 24 hours, 7 days a week (24/7) 24/7

Programme 1: Administration Performance indicators
Planned Target /13 Actual Achievement 2012/13 Comments To provide effective and efficient human resource planning and management services Number of months to fill a vacancy 4 months to fill a vacancy 4 months Target achieved (no deviation) Percentage vacancy rate in the department Vacancy rate in the department to be reduced to 15% 11% (exceeded) Number of days to resolve disciplinary cases 90 days to resolve disciplinary cases 148 days Partially achieved: 58 days more to resolve disciplinary cases (experienced delays with the INDLELA cases due to postponements and non-availability of key witness)

Planned Target /13 Actual Achievement 2012/13 Comments Percentage compliance with the Human Resource Strategic Planning Framework 95% compliance 63% compliance Partially achieved: 32% below the target HR Plan was not approved on 30 March 2013. 2013 Employment Equity report was submitted after 15 January 2013. Percentage compliance with performance Management framework 100% compliance with PMDS policy and poor performance managed 100% Target achieved (no deviation)

Planned Target /13 Actual Achievement 2012/13 Comments Ensure adherence to policies and standards on logistical services Percentage compliance to SCM and logistical policies and standards 100% compliance to SCM and logistical policies and standards Compliance to SCM and Logistical Policies and standards except for the incidents mentioned in the comments Partially achieved Investigations are taking place on an incident of irregular expenditure due to the non-compliance with SCM policies and failure not to report all transactions above R to National Treasury

Programme 1: Administration
Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Ensure adherence to policies and standards on logistical services Number of days to pay invoices from service providers 30 days to pay invoices from service providers 30 days except for some exceptions Partially achieved Payments later than 30 days are mainly due to incorrect banking details provided by service providers and large transfer payments that were rejected by the system and required reprocessing

Planned Target /13 Actual Achievement 2012/13 Comments To provide effective communication services and events management Functional DHET website with quarterly newsletters Website available 365 days per year with 4 quarterly newsletters published Website available 365 days per year with 1 newsletter published Partially achieved Newsletters could not be published for 3 quarters. as there was no editorial policy. Percentage response to queries via call centre 100% response to queries via call centre 97.3% Partially achieved: Below target by 2.7% Non-issuing of FET College and SETA certificates Number of exhibitions and Public Relations events conducted 8 11 Target achieved

Planned Target /13 Actual Achievement 2012/13 Comments To ensure a safe and healthy physical environment Percentage compliance with Occupational Health and Safety (OHS) 98% 90% Partially achieved: Below target by 10%. Due to renovations of the building and delays in approval of OHS and Security policies. To prevent fraud and corruption Fraud and anti-corruption strategy developed and implemented Fraud and anti-corruption policy implemented Whistle blowing system developed and implemented policy implemented Whistle blowing system developed and implemented Target achieved

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments To ensure an efficient and effective system of financial and asset management, governance and controls in the department and in relation to its public entities Number of days to process transfers and payments Within 5 days Target achieved Approved financial statements Percentage compliance to PFMA 100% compliance The majority of PFMA compliance matters have been complied with Partially achieved. The Department did not reach the target of 30 day payments Number of agreements concluded and projects supported 10 agreements No new agreements were signed Not achieved Percentage of assets lost and / or unauthorised movements Less than 1%

Strategy to deal with under performance in targets in achieved: In dealing with the delayed resolutions of disciplinary cases, the Department intends to provide the Chairpersons with a mandate not to allow/grant unnecessary postponements which results into delays. Compliance with the Human Resource Strategic Planning Framework will improve as: - The HR Plan has now been approved and there is improved capacity - Report on the implementation of the HR Plan has been developed for submission to DPSA - Macro-organisational structure has been approved by the Minister and was submitted to MPSA for consultation - Micro-organisational structure has been approved - Service Delivery Improvement Plan has been approved

Quarterly Performance on Predetermined Targets & Annual Allocation versus Expenditure 2013/14

Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the 1st & 2nd Quarter To improve efficiency by implementing the necessary information technology infrastructure and systems % of network connectivity uptime 99.9 % of network connectivity uptime 99.9 Achieved Availability of IT services IT services available 24 hours, 7 days a week and (24/7) IT services available 24 hours,7 days a week and (24/7) 24/7 To provide effective and efficient Human Resource Planning and Management services Period it takes to filling a vacancy from the date of advertisement (in terms of months) 4 Months to fill a vacancy (120 days) 4 months Vacancy rate in the department Vacancy rate in the Department to be reduced 10% 20% 15.47% Number of days to resolve disciplinary cases 90 days to resolve disciplinary cases 90 days Ensure adherence to policies and standards on logistical services % compliance to SCM and logistical policies and standards 100% compliance to SCM and logistical policies and standards 100% compliance (for all activities undertaken) Period of time taken to pay invoices from service providers from the day the invoice was received(in terms of days) 28 days taken to pay invoices from the service provider from the day the invoice was received 28 days

Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the 1st & 2nd Quarter To provide effective ccommunication services and events management Functional user-friendly DHET website User friendly and updated DHET website functional 365 days per year Functional user friendly and updated DHET website Secure and accessible to the public for 92 days Achieved Number of DHET internal newsletters published 4 DHET internal newsletter published An internal newsletter published Two issues of electronic newsletters published % of response to queries via call centre 100% (All) response to queries via call centre 100% (All)response to queries via call centre 98.4% Partially Achieved Number of exhibitions and public relations events conducted 10 exhibitions and PR events conducted 3 7 To ensure a safe and healthy physical environment % compliance with security directives 95% compliance with security directives 95% 90% To ensure an efficient and effective system of financial and asset management, governance and controls in the department and in relation to its public entities Period of time taken to process transfers and payments (in terms of days) Within 5 days

Annual Allocation versus Expenditure: 2013/14 Second Quarter Expenditure Programme Allocation R’000 Actual Expenditure Variance % Spent Administration 99 889 50.2

Performance Status as at 31 March 2013
Programme 2: Human Resource Development, Planning and Monitoring Coordination Purpose: To provide strategic direction in the development, implementation and monitoring of the Department policies. Coordinate activities in relation to the HRDS for South Africa. Performance Status as at 31 March 2013 Targets Achieved 16 Partially achieved 3 Not achieved Total Targets 19

Adjusted Appropriation Performance Information
Link between Expenditure and Budgets and performance plans in relation to key indicators Programme 2: Human Resource Development, Planning and Monitoring Coordination R’000 Adjusted Appropriation Actual Expenditure Deviation Virement applied Final Variance Compensation of Employees 35 967 33 412 2 555 (2 268) 287 Goods and Services 5 617 6 487 (870) 977 107 Transfers and Subsidies 2 544 2 639 (95) 96 1 Machinery and Equipment 214 291 (77) 98 21 Total 44 342 42 829 (1 513) (1 097) 416 Performance Information Achieved Partially Achieved Not Achieved Targets (19) 16 3

Performance indicators
Programme 2: Human Resource Development, Planning and Monitoring Coordination Achievements: Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Establish and maintain an integrated education and training management information system, linking all providers of education and training into a single system, to provide accurate data on skills supply and demand in the country Percentage of public institutional data integrated into education and training management information system 80% of public institutional data integrated into education and training management information system (Public FET and HE institutions and SETAs) data integrated (Public FET and HE and AET institutional data integrated) into education and training management information system Target achieved

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Establish and maintain a coherent career management and career information system by 2014 A coherent career management and information system established (module based) established (2 additional modules) The National Career Advice Portal (NCAP) is established and 2 additional modules are completed (learning pathways and learning directory). It is accessible through the DHET and SAQA websites as well as through direct accessing the NCAP Target achieved (exceeded) Number of users reached by career guidance services Radio: 2.7 million Exhibitions: Helpline: Web portal: Radio: million per week Exhibitions: Helpline: Web Portal:

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Status as at 9 October 2013 Promote research and innovation in the Higher Education and Training Sector by publishing an annual academic journal of contributions from stakeholders in the sector annually Number of academic journals published for Higher Education and Training 1 academic journal published for Higher Education and Training The research bulletin has been approved by the DG, but must still be published Partially achieved due to capacity constraints within the unit responsible The research bulletin has now been published (June 2013)

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Manage and maintain credible planning and budgeting process for the DHET annually Annual DHET Performance Plan developed with performance indicators Performance Plan developed with Target Achieved Annual MTEF Bid developed Number of quarterly performance progress reports on the implementation of the strategic plan and the APP produced 4 quarterly performance progress reports on the APP produced annually progress reports

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Status as at 9 October 2013 An investment report on education and training Draft education and training investment report produced Partially achieved: Draft education and training investment report has been produced but could not be finalised before the end of March 2013 due to capacity constraints within the unit (The official responsible resigned) The report will be finalised by October 2013.

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Status as at 9 October 2013 Pursue and strengthen bilateral relations with priority countries in Africa, Middle East, South and the North as well as with multilateral agencies such as COMEDAF, SADC, AU, ADEA, NESCO, ILO, OECD and the Commonwealth International relations operational framework strategy developed and approved for implementa-tion Draft international relations Partially achieved: An international relations operational framework strategy has been developed and submitted for approval. However the draft had to be subjected to internal consultation processes The draft international relations operational framework strategy will be finalised by October

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Implementation plans with priority countries and multilateral agencies developed Implementation plans with priority countries and multilateral agencies developed. Target achieved

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Maintain database of international engagements of all public post-school institutions and publish an annual report on international collaborations A publication on International cooperation produced A publication on international cooperation produced. Target achieved Database of international engagements of all public post-school institutions maintained engagements of all public post-school institutions maintained Database of international engagements of all public post-school institutions maintained.

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Support, advise and monitor the implementation of the post-school education system legislative framework annually Percentage of litigations dealt with 100% of litigations Target achieved Percentage of legislation and regulations drafted and amended 100% of legislation Percentage of legal opinions and agreements drafted 100% of legal

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Establish a well functioning Social inclusion, equity and transformation services within the DHET and its entities that will focus on policy research, monitoring and evaluation in matters relating to race, class, gender, age , disability, HIV/ Aids and on career information services and counseling A policy document developed A policy document was developed and submitted to the Minister and the Oversight Committee on Transformation Target achieved

Programme 2: Human Resource Development, Planning and Monitoring Coordination Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Monitor and support actions needed to implement the statutory functions assigned to the Minister, Director- General, SAQA, CHE, Umalusi and QCTO in terms of the National Qualifications Act Number of monitoring and evaluation reports A monitoring and evaluation report Monitoring report developed Target achieved Annual Ministerial policy guidelines developed Ministerial policy guideline developed Ministerial policy guideline was developed percentage of requests for advice from Minister and SAQA answered 100%

Quarterly Performance on Predetermined Targets &
Programme 2: Human Resource Development, Planning and Monitoring Coordination Quarterly Performance on Predetermined Targets & Annual Allocation versus Expenditure 2013/14

Programme 2: HRD, Planning and Monitoring Coordination
Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the 1st & 2nd Quarter Manage and maintain credible planning and budgeting process for the DHET annually Annual MTEF Bid developed and approved by the Director General Achieved Quarterly performance progress reports on the implementation of the strategic plan and the APP produced and approved by the DG 4 quarterly APP produced and approved by the DG 1 Approved 1st quarter performance progress report on the implementation of the strategic plan and the APP Monitor and support the implementation of the National Qualification Framework Act Percentage of requests for advice answered within standards approved by the Branch Head 100% advice request answered 100% requests for advice answered within standards approved by the Branch Head 100% ( 3 out of 3) requests for

Programme 2: Human Resource Development, Planning and Monitoring Coordination
Annual Allocation versus Expenditure: 2013/14 Second Quarter Expenditure Programme Allocation R’000 Actual Expenditure Variance % Spent Human Resource Development, Planning and Monitoring Coordination 48 066 21 616 26 450 45.0

Programme 3: University Education
Purpose: To develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. To provide financial support to universities, the National Student Financial Scheme and the National Institute for Higher Education Performance Status as at 31 March 2013 Targets Achieved 16 Targets partially achieved 13 Targets not achieved 2 Total Targets 31

Programme 3: University Education Adjusted Appropriation
Link between Expenditure and Budgets and performance plans in relation to key indicators Programme 3: University Education R’000 Adjusted Appropriation Actual Expenditure Deviation Virement applied Final Variance Compensation of Employees 36 072 30 579 5 493 (5 181) 312 Goods and Services 7 062 8 343 (1 281) 1 436 155 Transfers and Subsidies (231) 311 80 Machinery and Equipment 321 323 (2) 12 10 Total 3 979 (3 422) 557 Performance Information Achieved Partially Achieved Not Achieved Targets (31) 16 13 2

Programme 3: University Education Performance indicators
Achievements: Performance indicators Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Expand the higher education sector in order to increase equitable access with success Number of students enrolled in higher education studies at universities students enrolled in higher education studies at universities 938 201 students enrolled in higher education studies at universities Target exceeded: 28 485 more students enrolled than the target 2012 Audited: students enrolled in higher education studies at universities Target exceeded Total headcount enrolment over population 20 to 24 years 17.9 Target achieved Note 1: The achievement reported as at 31 March 2013 are the 2011 audited figures

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Number of first time enrolments at universities first time enrolments at universities 179 105 first time enrolments at universities Partially achieved: 688 less students enrolled 2012 Audited: first time enrolments at universities Environmental impact study conducted Preparations for environmental impact study completed, applications submitted and studies underway. Full studies on all land parcels not complete. Target not achieved: Environmental impact study not yet complete. Environmental impact study in process and will be achieved by March 2014

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Gazetting of Seat, and Interim Council for each university Nominations for Interim Councils received and recommendations made; All processes in terms of the Promotion of Administrative Justice Act (PAJA) complete; Draft Gazettes prepared for Minister’s signature. Target not achieved at the time of reporting as Gazettes were not published Gazettes published in the second quarter of 2013/14

Planned Target for 2012/13 Actual achievement 2012/13 Comments Programme Qualification Framework for each university Programme qualification Framework has been developed for each university Target achieved Spatial plan for each university Initial spatial plans for each university developed Number of public higher education institutions involved in foundation phase teacher education 20 public higher education institutions involved in foundation 20 public universities are now involved in Foundation Phase teacher education

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 A policy document on FET lecturer qualifications is developed and implemented A finalised policy on FET lecturer qualifications gazetted The final draft is complete and was submitted to the CHE for comments as required by the Higher Education Act Partially achieved: Final policy not published in the Gazette Gazetted Number of African students at universities African students at universities African students at universities Target achieved (exceeded) 14 352 more students enrolled than the target

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Number of female students at universities female students at universities 542 997 female students at universities Partially achieved: 50 599 less female students enrolled than the target 2012 Audited: female students at universities Total number of students in foundation provisioning programmes at universities students in foundation provisioning programmes at universities 14 359 students in foundation programmes at universities Partially achieved: 241 less students enrolled than the target 2012 Audited: students in foundation programmes at universities

Planned Target for 2012/13 Actual achievement 2012/13 Comments Improve success rates in higher education studies at public institutions and therefore increase graduate outputs by 2014 Improved use of foundation provisioning funds and report produced Revised policy to improve the use of Foundation Programmes approved for implementation in 2013/14. Analysis of current use of funding done and report produced. Target achieved

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Percentage success rate 76% success rate 75% success rate Partially achieved: 1% below target 2012 Audited : 76% Number of graduates from universities graduates from universities graduates from universities Partially achieved: 7 181 less graduates than the target 2012 Audited: graduates from universities Number of graduates in Engineering Sciences from universities graduates in Engineering Sciences from universities 9 387 graduates in Engineering Sciences from universities Partially achieved: 1 295 less graduates than the target 9 974 graduates in Engineering Sciences from universities

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Number of graduates in Human Health and Animal Health from universities 8 535 graduates in Human Health and Animal Health from 8 070 graduates in Human Health and Animal Health from Partially achieved: 465 less graduates than the target 2012 Audited: 8 015 graduates in Human Health and Animal Health from Number of graduates in Natural and Physical Sciences from universities 5 052 graduates in Natural and Physical Sciences from universities 5 526 graduates in Natural and Physical Sciences from universities Target achieved (exceeded): 474 more graduates than the target 6 366 graduates in Natural and Physical Sciences from universities

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Number of graduates in initial Teacher Education from universities 9 700 graduates in initial Teacher Education from universities graduates in initial Teacher Education from universities Target achieved (exceeded): 843 more graduates than the target 2012 Audited: graduates in initial Teacher Education from universities

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at October 2013 Monitor good governance and management of the Higher Education system in order to build capacity and efficiency Percentage of public higher institutions with good governance and management 78% of public higher institutions with good governance and management 78% of public higher institutions with good governance and management Target achieved (no deviation) Percentage registered Private Higher Education Institutions (PHEIs) complying to regulatory criteria 100% PHEIs registered complying to regulatory criteria 99 % of PHEIs complied with the regulatory criteria Partially achieved: 1% below target 2 (out of 166) PHEIs did not comply with the regulations and were de-registered

Planned Target for 2012/13 Actual achievement 2012/13 Comments Percentage of Statutes of universities reviewed and published in government gazette 100% of Statutes of universities reviewed and published in 100% - four statutes submitted for revision in 2012/13 were approved and published in the government gazette. Target achieved Number of governance training workshops for ministerial appointees 1 governance training workshop for ministerial appointees 1 governance training workshop successfully held on 1 February 2013

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Number of universities with five Ministerial council appointees appointed 23 universities with five Ministerial council appointees 18 universities with five ministerial appointees appointed Partially achieved: 5 less universities than the target

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 To develop and enhance the research capacity and productivity of universities Number of postgraduate graduates postgraduate graduates postgraduate graduates Partially achieved: less graduates than targeted 2012 Audited: postgraduate graduates Number of Masters graduates 4 978 Masters graduates 5 281 Masters graduates Target achieved (exceeded): 303 more graduates than targeted 6 071 Masters graduates

Planned Target for 2012/13 Actual achievement 2012/13 Comments Status as at 9 October 2013 Number of doctoral graduates 1 785 doctoral graduates 1 576 doctoral graduates Partially achieved: 209 less graduates than targeted 2012 Audited: doctoral graduates Number of publications publications 11 191 publication units produced Target achieved (exceeded): 384 more than the target Ratio of research output units per instructional / research staff 1.30 1.25 Partially achieved: 0.05 below target 2012 Audited: 1.30

Planned Target for 2012/13 Actual achievement 2012/13 Comments To maintain and enhance the Higher Education Management Information System (HEMIS) Number of updates on the HEMIS for audited student and staff data 2 updates for 23 universities 2 updates for each of the 23 institutions’ student and staff data has been loaded into the National database and reports have been generated No deviation Number of updates on the HEMIS system for final building space data from the Universities 1 annual update for 23 universities 1 annual update for each of the 23 institutions’ building space data has been loaded to the National database and reports have been generated

During the quarter under review there were no specific quarterly targets in the Annual Performance Plan to report against. Progress towards ensuring the annual targets are being achieved: The two new universities, Sol Plaatje University in the Northern Cape Province, and the University of Mpumalanga in Mpumalanga Province, were established as legal entities during the quarter. A Government Gazette indicating the Minister’s intention to establish a new health and allied sciences university that will incorporate the Medical University of South Africa (MEDUNSA) Campus of the University of Limpopo was published for comment during the quarter. The unbundling of the MEDUNSA campus from the UL is a parallel process that has also registered progress. The transitional arrangements in the form of a draft protocol have been developed during the quarter. The Administrator of Vaal University of Technology (VUT) completed his term of office during the quarter and submitted his final report. The new Council for VUT was installed and has taken over the governance of the institution.

The appointment of the Administrator at Walter Sisulu University (WSU) has been extended for a further six months to allow all aspects to be finalised before the Administrator leaves his office. The investigation into allegations of irregularities at the University of Limpopo has been concluded and a report submitted to the Minister and the public protector. The Minister has written to the Council to attend to the matter. The Report on the Review of Funding of Universities has been edited and ready for approval by the Minister for publishing. A draft Teaching Development Grant Policy was developed and a workshop held with all universities during the quarter. Training of Provincial Evaluators for the evaluation of qualifications for employment of educators in schooling started with the training of 18 Gauteng Provincial evaluators. The Apply Now! campaign was implemented during the quarter. The campaign included three public events including a Launch by the Deputy Minister. Work is progressing well and on track to achieve set targets. This is despite the serious lack of resources, particularly the lack of adequate personnel and funding to exercise sufficient oversight.

Annual Allocation versus Expenditure: 2013/14 Second Quarter Expenditure Programme Allocation R’000 Actual Expenditure Variance % Spent University Education 74.5

Programme 4: Vocational and Continuing Education and Training
Purpose: To plan, develop, evaluate, monitor and maintain national policy, programmes and systems for vocational and continuing education and training, including further education and training colleges and post-literacy Adult Education Performance Status as at 31 March 2013 Targets Achieved 9 Partially achieved 10 Not achieved 3 Total Targets 22

Programme 4: Vocational and Continuing Education and Training R’000 Adjusted Appropriation Actual Expenditure Deviation Virement applied Final Variance Compensation of Employees (1 759) 3 517 1 758 Goods and Services 52 842 52 950 (108) 417 309 Transfers and Subsidies (512) 520 8 Machinery and Equipment 1 410 720 690 (554) 136 Total (1 689) 3 900 2 211 Performance Information Achieved Partially Achieved Not Achieved Targets (22) 9 10 3

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Increase access to and improve success in programmes leading to intermediate and high-level learning by 2014 Number of learners enrolled in AET Level 1-4 learners enrolled in AET Partially achieved: learners below target The data provided by Provincial Education Department suggests that the funding of the programme is inadequate to support the envisaged expansion of adult education and training

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Increase access to and improve success in programmes leading to intermediate and high-level learning by 2014 Number of headcount enrolments in public FET College programmes headcount enrolments in public FET college programmes Target achieved (exceeded) • Increased bursary funding made available through the NSFAS, the NSF and SETAs • Increased focus by the Department on proﬁling of FET Colleges to make them institutions of choice • Active campaigning through media and career guidance activities, by the Department to urge the youth to consider taking vocational programmes oﬀered in FET Colleges

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments National Senior Certificate for Adults (NASCA) developed Curriculum support programmes developed Curriculum support programmes were not developed Funding for the curriculum development function was only secured during the latter part of the financial year and progress on the project will commence during the 2013/14 financial year. Number of FET College students awarded bursaries NC(V) College students awarded bursaries Target exceeded by Extra funding was secured to cater for more students than was projected

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Number of colleges offering NQF level 5 to 6 programmes 8 colleges offering higher education programmes 8 Colleges offering higher education programmes Target achieved

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Certification rates in the VET qualification GETC : 30% NC(V) L2: 44% NC(V) L3: 45% NC(V) L4: 47% N1-N3: 33% N4-N6: 40% GETC: 37% NC(V) L2: 43% NC(V) L3: 43% NC(V) L4: 41% N1-N3: 24% N4-N6: 25% Curriculum interventions coordinated by the Department assisted with the focus on performance in the GETC by emphasising the provisioning of learning and teaching support material, the training of educators and focusing on the Site Based Assessment Tasks. The low performance, except for the GETC, can mainly be attributed to lecturer capacity, institutional instability and the inability of students to cope with subjects such as Physical Science, Electronic Control and Digital Electronics.

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Pass rate in Mathematics and Mathematical Literacy Mathematics: NC(V) L2: 32% NC(V) L3: 26% NC(V) L4: 26% Mathematical Literacy: NC(V) L2: 39% NC(V) L3: 37% NC(V) L4: 47% NC(V) L2: 44% NC(V) L3: 36% NC(V) L4: 43% NC(V) L2: 65% NC(V) L3: 78% NC(V) L4: 85% The improvements in student performance in Mathematics and Mathematical literacy are related to lecturer training in 2012 on both subjects and the development of and training on the Internal Continuous Assessments (ICASS) guidelines.

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Certification rates of bursary recipients NC(V) L2: 39% NC(V) L3: 42% NC(V) L4: 43% N1-N3: 40% N4-N6: 40% NC(V) L2: 36% NC(V) L3: 34% NC(V) L4: 35% N1-N3: 26% N4-N6: 31% The significantly lower certification rate of bursary recipients suggests that FET Colleges may not effectively apply the academic merit eligibility criteria outlined in the Bursary Scheme Administration Guidelines.

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Business Management Standards, Qualifications, review, NC(V) selected subjects review and Student Support Services interventions implemented to selected FET Colleges through donor funding and reported on quarterly. 4 quarterly reports Target achieved

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Number of lecturers, SSS managers and PDE/Regional offices officials trained to implement the comprehensive student support services framework 128 201 Target achieved (exceeded by 73)

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Number of trained lecturers to support new curriculum delivery 700 708 trained Target Achieved Number of trained Provincial Education Department (PED) officials to support new curriculum delivery PED officials trained: 60 35 PED officials trained Partially achieved: Below target by 25. Provinces are not in all instances willing to incur costs to attend workshops. Absenteeism of officials is also experienced.

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Strengthen the institutional capacity of VET institutions to improve their performance and efficiency Number of personnel in vocational education and training institutions trained to support curriculum delivery in AET and Colleges 128 No training took place This training could not happen in the absence of the curriculum and curriculum support materials. Number of personnel at VET institutions trained in financial management 276 The deployment of support CFOs through the SAICA intervention programme addressed this indicator and further training was not considered

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Number of fully constituted college councils 50 college councils fully constituted 31 Partially achieved: 19 college councils could not be constituted . The target was not achieved due to failure to attract suitable candidates in most colleges. The Department will re-advertise and headhunt for suitable candidates

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Human Resource Management and Planning (HRM&P) framework for FET Colleges developed and implemented A generic HRM&P framework developed and approved A draft generic HRM&P framework developed Partially achieved: A draft generic HRM&P framework developed but not approved . Organisational structure completed, Post provisioning norms currently being researched and the career pathing model was delayed by the staff migration processes.

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Status as at 9 October 2013 Manage and administer a credible and efficient examinations and assessment system for VET institutions An efficient registration, resulting, And certification system An efficient registration, resulting, and certification system Candidates in all 449 examination centers were successfully registered for exams. All Report 191 candidates who had successfully completed their part qualifications were certificated. Partially achieved. No certificates issued for NC(V) certificates issued for NC(V) graduates.

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Percentage of vocational education and training institutions conducting improved assessments 100% vocational education and training institutions conducting 87% institutions conducting national examinations in a credible manner Partially achieved: 13% of examination centers implicated in leakages during the 7 FETC examination cycles conducted in 2012. Leakages occurred during the 3 Engineering Studies examination cycles in April, August and November 2012 which affected 60 out of the 449 centers that participated in national examinations

Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Provide support for the implementation of a monitoring, evaluation, and research for the improvement of the vocational education and training subsystem Number of colleges implementing Business Management System standards BMS expanded to 8 colleges BMS has been expanded to 8 colleges Target achieved Number of AET centers where annual surveys were conducted 2 820 Number of FET Colleges where annual surveys were conducted 50 A model for FET Colleges expansion developed A model for FET Colleges expansion developed A model for FET Colleges expansion has been developed

Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the 1st & 2nd Quarter Increase access to and improve success in programmes leading to intermediate and high-level learning by 2014 Number of reports on the coordination of the following donor-funded projects: Business Management Standards, Qualifications, review, NC (V) selected subjects review and Student Support Services interventions implemented to selected FET Colleges. 2 reports on the coordination of the following donor-funded projects: Business Management Standards, Qualifications, review, NC (V) selected subjects review and Student Support Services interventions implemented to selected FET Colleges.(Approved by the Director-General) 1 report approved by the Director-General Draft report has been compiled but not yet approved by the Director-General Partially achieved Number of Lecturers trained to support curriculum delivery 600 Lecturers 150 160 Achieved 375 Strengthen the institutional capacity of VET institution to improve their performance and efficiency Number of personnel in vocational education and training institutions trained to support the curriculum delivery in AET and Colleges 130 VCET personnel trained 60 307

Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the 1st & 2nd Quarter Strengthen the institutional capacity of VET institution to improve their performance and efficiency Number of personnel in Public FET Colleges trained in financial management 184 personnel trained 50 163 Achieved 222 Number of personnel at Public FET Colleges trained in strategic and Operational planning 300 personnel trained 75 129 208 Number of provinces where training and assessment of the implementation of the Collective Agreement is conducted 9 provinces where training and assessment of the implementation of the Collective Agreement is conducted Training on and assessment of the implementation of the Collective Agreement in 3 Provincial HR units No training took place Not Achieved No training has taken place to date

Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the 1st & 2nd Quarter Manage and administer a credible and efficient examinations and assessment system for VET institutions An efficient registration, resulting, and certification system per examination cycle 100% of the registered candidates are resulted and certificated 100% registration of the following: -2nd semester Business Studies -3rd trimester Engineering Studies -GETC-ABET 100% resulting of the following: -2nd trimester Engineering Studies 100% certification of the following: -1st semester business studies 100% resulted of the following: 0% GETC-ABET (No candidates resulted due to an error in the data set on IT system) All data set processed for printing 0% certification as result not yet released. Partially Achieved

Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the Quarter Manage and administer a credible and efficient examinations and assessment system for VET institutions % of AET Centres conducting improved assessments 100% (1540) AET Centres conducting improved assessment 100% (1 540) AET Centres implementing side based assessment Achieved

Annual Allocation versus Expenditure: 2013/14 Second Quarter Expenditure Programme Allocation R’000 Actual Expenditure Variance % Spent Vocational and Continuing Education and Training 52.8

Programme 5: Skills Development Performance Status as at 31 March 2013
Purpose: To promote and monitor the National Skills Development Strategy Performance Status as at 31 March 2013 Targets Achieved 10 Partially achieved 1 Targets not achieved 4 Total Targets 15

Programme 5: Skills Development R’000 Adjusted Appropriation Actual Expenditure Deviation Virement applied Final Variance Compensation of Employees 65 787 61 268 4 519 (4 501) 18 Goods and Services 14 043 10 552 3 491 (3 443) 48 Transfers and Subsidies 20 417 20 896 (479) 482 3 Machinery and Equipment 452 546 (94) 96 2 Total 93 262 7 437 (7 366) 71 Performance Information Achieved Partially Achieved Not Achieved Targets (15) 10 1 4

Programme 5: Skills Development Performance indicators
Achievements: Performance indicators Planned Target /13 Actual Achievement 2012/13 Comments Status as at 9 October 2013 Provide a dynamic interface between the workplace and learning institutions and to promote quality learning at work and for work by 2014 Number of artisan candidates found competent Nationally. 10 000 8 655 Partially achieved: Below target by Due to the fact that the performance reported is based on reports received from SETAs and is being corrected through on site validations and support at each SETA. The target has since been met and exceeded for the year, now at At the time of concluding the AR audit processes, verification of the last quarter reports in all affected SETAs was not completed, an exercise that is important for accuracy of reported information

Planned Target /13 Actual Achievement 2012/13 Comments Number of graduates receiving Work Integrated Learning (WIL) 8 500 14 961 Target achieved (exceeded) Universities of Technology (UoTs) = 9 981 Public Further Education and Training graduates (FET) = 4 980 Secure trade testing system developed and implemented at all trade test centers System for management of trade test tasks developed and piloted at 5 test centers Not achieved Target not achieved: No system developed. Tender for System issued February 2013. Number of audits conducted at SETA accredited trade test centers 20 52 Target achieved (exceeded by 32). Accelerated operationalisation of NAMB

Planned Target /13 Actual Achievement 2012/13 Comments Learning Programme Regulations aligned to the Occupational Qualifications Framework Draft Learning Regulations issued for public comment Target achieved Policy Framework for ISOE and SDI Agencies developed and implemented Agency Regulations issued for public comment Agency Regulations were issued as part of the Learning Programme regulation for public comment Best Practice annual critical path Framework signed off by NSA and implemented Best Practice Framework and Guideline implemented Framework and Guideline in place and implemented. Percentage of SETAs implementing NSDS III with approved Service Level Agreement 100% SETAs implementing NSDS III with approved Service 100% SETAs implementing NSDS III with approved Service Level Agreement

Planned Target /13 Actual Achievement 2012/13 Comments Promote the alignment of skills development outputs to the needs of the workplace and to the broader growth needs of the country’s economy Number of SETAs’ Strategic Plans analysed in relation to the Sector Skills Plans and approved 21 Strategic Plans analysed in relation to the Sector Skills Plans and approved Target achieved Improved communication with SETAs through SETA Fora 4 SETA Fora held to improve communication with SETAs Number of NSDS implementation reports 4 quarterly NSDS implementation reports 4 quarterly NSDS implementation reports

Planned Target /13 Actual Achievement 2012/13 Comments Number of annual review reports 1 Annual review report No report was produced Misalignment of timelines with audited information from stakeholders. Annual review for 2012/13 to be finalised during 2013/14 Provide funds to support projects that are national priorities in the NSDS, that advance the Human Resource Development Strategy (HRDS) of South Africa and that support the NSA in its work Amount earmarked to support projects of national priority R 2.3 billion R8.833 billion Achieved (exceed by R6.533 billion). The NSF’s high level of performance in committing funds towards skills development projects of national priority during the past ﬁnancial year is in line with meeting objectives of the NSDS III.

Planned Target /13 Actual Achievement 2012/13 Comments Number of projects supported by National Skills Fund 262 projects supported by National Skills Fund 157 projects Partially achieved: 105 less projects . The NSF funded projects of higher amounts and learner numbers. Hence the NSF over-achieved on the amounts earmarked target and the number of learners trained even though the number of projects as target was not achieved. FET system was able to accommodate more learner intake than smaller projects. Number of learners trained in NSF projects 32 179 learners trained in NSF projects Learners Achieved (exceeded by ). The NSF’s high level of performance of disbursing funds towards skills development projects during the past financial year led to the over-achievement

Programme 5: Skills Development

Performance indicators Annual Target for 2013/14) 2st Quarter Target 2t Quarter Actual output Performance Status for the 1st & 2nd Quarter Provide a dynamic interface between the workplace and learning institutions and to promote quality learning at work and for work by 2016 Number of artisan candidates entering learning nationally 26 000 5 000 4 321 Partially Achieved 10 359 Number of artisan candidates found competent nationally 12 000 3 000 2 231 3 633 % of national artisan learners pass rate 48% 46% 44% Number of audits conducted at SETA or QCTO accredited trade test centres 30 10 14 Achieved 15 Promote the alignment of skills development outputs to the needs of the workplace and to the broader growth needs of the country’s economy Improved communication with SETA through targeted number of SETA fora 4 SETA fora targeted to improve communication SETA’s 2 SETA fora 3 SETA fora 3 Number of SETA’s NSDS implementation reports complied and approved by the Director- General 4 quarterly SETA’s NSDS implementation reports SETA’s NSDS implementation reports QMRs from SETAs are due by 15 October 2013 Provide funds to support projects that are national priorities in the NSDS, human Resource Development Strategy (HRDS) of South Africa and that support the NSA in its work Number of projects supported by National Skills Fund 350 50 NSF is listed as a public entity and therefore will report on its own.

Annual Allocation versus Expenditure: 2013/14 Second Quarter Expenditure Programme Allocation R’000 Actual Expenditure Variance % Spent Skills Development 48 835 56 761 46.2

FINANCIAL INFORMATION

Auditor-General Report
The Department received an unqualified audit opinion Key matters raised by the Auditor-General: Significant uncertainties As disclosed in disclosure note 20 to the financial statements, the Department is the defendant in law suits. The Department is opposing the claims and the ultimate outcome of these cannot presently be determined. Restatement of Corresponding Figures As disclosed in disclosure note 24 to the financial statements, the corresponding figure for lease commitments for the 2011/12 financial year has been restated as a result of a calculation error discovered during March 2013 in the financial statements relating to the year ending 31 March 2012. As disclosed in notes 3, 10, 12 and 15 to the financial statements, the corresponding figures for departmental revenue, cash and cash equivalents, receivables and departmental revenue to be surrendered to the revenue fund for 31 March 2012 has been restated as a result of new classification requirements. Both restatements were accounting related without any impact on the financial status of the Department.

Compliance with laws and regulations Human resource management and compensation: Verification processes not performed prior to appointments of new officials Annual financial statements: The financial statements submitted for audit purposes did not comply with section 40(1)(a) of the PFMA. The material misstatement identified by the AGSA with regards to cash and cash equivalents, receivables, departmental revenue and NRF receipts to be surrendered to the revenue fund and the employee benefits disclosure note was subsequently corrected Other: The Sector Education and Training Authorities’ revised strategic plans were not approved before the beginning of the financial year by the Minister as required by Treasury Regulation 30.1

Internal Control Leadership: Management developed action plans to address previously reported root causes resulting from previous year and recurring findings. However some committed action plans are not yet implemented There is inadequate consequence management for action plans not implemented to address previously reported internal control deficiencies by external and internal audits The Department does not have documented policies and procedures at a programme level for collating, recording and verifying of reporting on actual achievement of planned objectives, indicators and targets

Financial and performance management The department does not have adequate processes in place to ensure that financial disclosure notes included in financial statements are accurate Governance Appropriate risk management activities were not implemented to manage risks identified from the risk assessment process

Findings on performance information: Performance targets are not specific Significantly important targets in relation to programme 3 were not specific in clearly identifying the nature and the required level of performance. Performance targets not time bound Significantly important targets in relation to programme 3 were not time bound in specifying a time period or deadline for delivery. Indicators/measures not verifiable Significantly important indicators in relation to programme 4 were not verifiable in that valid processes and systems that produce the information on actual performance did not exist.

Reliability of information Programme 3: Significantly important targets were regarded as misstated. Programmes 4 and 5: AG was unable to obtain information and explanations considered necessary to satisfy the AG with regards to the reliability of information presented with respect to significant targets. This was due to limitations placed on the scope of work due to the absence of systems in place to verify the reporting of actual achievements against significant planned objectives, indicators and targets. The current systems did not allow the AG to perform alternative procedures. 39% of total planned targets were not achieved. Mainly due to the fact that indicators and targets were not suitably developed during the strategic planning process.

Action Plan Audit Findings
The Department completed action plans regarding audit findings These plans include all areas raised in the Audit Report as well as all other matters identified during the audit that resulted in audit queries Progress on the action plans are being monitored on a bi-weekly basis and will be reported to the Minister, Audit Committee and Senior Management meetings

2012/13 Allocation versus Expenditure
Programme Allocation R’000 Actual Expenditure Variance % Spent 1: Administration 496 99.7 2: Human Resource Development, Planning and Monitoring Coordination 43 245 42 829 416 99.0 3: University Education 557 100.0 4: Vocational and Continuing Education and Training 2 211 5: Skills Development 93 333 93 262 71 99.9 6: Direct Charges (SETAs and NSF) - Total 3 751

Spending Trends per Economic Classification Economic Classification
Allocation R’000 Actual Expenditure Deviation % Spent Compensation of Employees 2 640 99.3 Goods and Services 831 99.5 Financial transactions in assets and liabilities 33 (33) 0.0 Transfer Payments Provinces and municipalities 100.0 Departmental agencies and accounts 41 Universities (current) 81 Foreign governments and international organisations 2 639 1 Non-profit institutions 5 000 Households 2 305 2 289 16 Capital Expenditure Machinery and equipment 5 629 5 455 174 96.9 Total 3 751

Explanations of Variances
Programme 1: Administration (Unspent: R ) Under-expenditure mainly due to: Staff attrition and posts not filled as projected Invoices i.r.o. travel and accommodation not received as projected. Programme 2: Planning and Monitoring (Unspent: R ) Invoice i.r.o. the strategic plan not received as projected. Programme 3: University Education (Unspent: R ) Invoices i.r.o. travel and accommodation not received as projected Claims for interest and redemption not received as projected

Explanations of Variances
Programme 4: Vocational and Continuing Education and Training (Unspent: R2.211 million) Under-expenditure mainly due to: Examination claims i.r.o. examiners and moderators not received as projected Travel and subsistence claims i.r.o. examiners and moderators not received as projected Invoices for travel and accommodation not received as projected Saving on computer equipment due to revision of replacement period for some of the equipment as a result of budget constraints Programme 5: Skills Development (Unspent: R71 000) Invoices for goods and services not received as projected.

Annual Financial Statements Allocation versus Expenditure
2013/14

2013/14: Second Quarter Expenditure per Programme
Allocation R’000 Actual Expenditure Variance % Spent 1: Administration 99 889 50.2 2: Human Resource Development, Planning and Monitoring Coordination 48 066 21 616 26 450 45.0 3: University Education 74.5 4: Vocational and Continuing Education and Training 52.8 5: Skills Development 48 835 56 761 46.2 6: Direct Charges (SETAs and NSF) 45.3 Total 63.9

Spending Trends per Economic Classification Economic Classification
Allocation R’000 Actual Expenditure Deviation % Spent Compensation of Employees 49.6 Goods and Services 90 271 88 274 50.6 Transfer Payments Provinces and municipalities 56.2 Departmental agencies and accounts 57.4 Universities (current) 72.3 Foreign governments and international organisations 2 864 - 0.0 Non-profit institutions 49.9 Households 807 (807) Capital Expenditure Machinery and equipment 4 041 2 427 1 614 60.1 Total 63.9

Annual Financial Statements 2014 MTEF Funding Requirements

Funding Requirements 2014 MTEF
The Department of Higher Education and Training is experiencing serious financial constraints that makes it difficult for the Department to function effectively in order to ensure that we meet the requirements of the current administration and citizens of our country. The Department has to deliver on key Government priorities and programme objectives for the 2014 MTEF period and to reach the targets envisaged for 2030. Since the establishment of the Department on 1 April 2010, the Department is functioning on a constructed baseline and minimum capacity which requires urgent attention. The Department is under pressure to fill vacancies, which is impossible within the current available resources. The establishment of the National Artisan Moderation Body and the numerous challenges with the additional work required for the FET function shift create a further burden on the existing budget.

The Department may require close to R500 million per year over the 2014 MTEF to improve current operations. This would address areas such as the staff establishment (including the review of the current organisational structure to strengthen specific areas for improved service delivery and the implementation of the revised structure), legal services, the management of the shifting of functions, provincial/entity monitoring as well as examination services costs. Of critical importance is additional funding required for: Walter Sisulu University (estimated at R3.1 billion over the three years); Increased NSFAS funding to address current shortfalls (R2.5 billion per year); The medical campus for the University of Limpopo (R800 million); The establishment of the new Health University (Medunsa) (R500 million per annum); The central application service (R60 million); Curriculum reviews for the FET College sector (R380 million);

The implementation of the National Senior Certificate for Adults (R6 billion); and The ongoing operationalisation of NAMB (R30 million per year from 2015/16) The following needs exist in public entities and would also require assistance: SAQA – funding for verification processes and operations (Estimated at approximately R30 million per year) NSFAS – Possible increased operational costs for the student centred model In addition to the above, various expansion initiatives within the post-school education system are required. This in itself would require substantial additional resources, that also requires consideration. The Department is fully aware of the current pressures on the National Revenue Fund and the budget constraints in Government. The Department did, however, bring the constraints to the attention of the National Treasury.

It should be noted that the MTEF guidelines did not allow Departments to submit requests for additional funding and during recent meetings with National Treasury it was clearly communicated that no additional funds are available.

Annual Financial Statements Status of FET Function Shift

Status of FET Function Shift
Processes are underway to facilitate the transfer of the FET Colleges function to DHET To manage and administer the FET College function shift funds need to be shifted from the Provincial Equitable Share to DHET DHET calculated and discussed a proposal for an Administrative budget to be shifted with officials from Provincial Education Departments (PEDs), Provincial Treasuries, National Treasury and the Financial and Fiscal Commission National Treasury were requested to lead the process with Provincial Treasuries A Task Team lead by National Treasury has been established and is required to provide feedback by 31 October 2013 in order to meet the timeframe of the 2014 MTEF budget process It is expected that the Minister of Finance will announce on the function shift during the 2013 MTBPS The Department would appreciate the support of the Portfolio Committee to ensure that the process of the function shift is completed by 1 April 2014

Thank You

DEPARTMENT HIGHER EDUCATION AND TRAINING

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DEPARTMENT HIGHER EDUCATION AND TRAINING

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