1. Department of Higher Education and Training
ANNUAL REPORT 2014/15
Department of Higher Education and Training
Presentation to the
Select Committee on
Education and Recreation
4 November 2015

2. Presentation Outline Strategic Overview: 2014/15
Programme Performance on Predetermined Objectives
Achievements
Non achievement of targets
Financial Information
Report of the Accounting Officer
Report of the Audit Committee
Report of the Auditor-General : Action Plan to improve audit findings
Financial Statements
Impact of the 2014/15 Financial Outcome on operations

3. Service Delivery Overview
Strategic Overview: 2014/15
The Annual Report of 2014/15 is a concluding report on the achievements of the Department’s strategic goals that were set out in the 2010 – 2014 Strategic Plan
It is informed by the work performed by the Department during the 2014/15 financial year in terms of the Annual Performance Plan
There were five budget programmes during the year under review with a combined total of 43 predetermined targets:
31 (72%) targets were achieved
12 (28%) targets were not achieved
The Department used the year under review to consolidate the gains and shortcomings made in previous years
Continued to pursue our mission of improving the provisioning of post-school education and training opportunities

4. Service Delivery Overview
Considerable efforts in the refinement of legislation and policy directives aimed at improving the Post-School Education and Training (PSET) system were made as follows:
Commenced a process of developing a new National Plan for Post-School Education and Training system
The Joint Task Team reviewed the Higher Education Act (101 of 1997, as amended)
Published Policy for the Provision of Distance Education in South Africa
Minister approved National Trade Test Regulations for implementation with effect from 1 April 2015
Launched Social Inclusion Policy Framework to address, amongst others, the establishment of disability units in all PSET institutions

5. Service Delivery Overview
In response to our efforts towards increasing access and success, both the university and Technical and Vocational Education and Training (TVET) college sectors have registered growing student enrolments during 2014/15
Established a Ministerial Committee to review funding frameworks of TVET colleges as well as the new Community Education and Training (CET) colleges to address student access, economy and efficiency related challenges
To address the current low articulation levels in the system, the Department published a draft National Articulation Policy and Guidelines for public comment
The Annual Report also provides comprehensive details on the envisaged strategies to deal with targets that were not achieved per programme

6. Programme 1: Administration Performance Status as at 31 March 2015
Purpose: To provide overall management and administration to the
Department
Strategies to deal with under performance on targets that were not achieved, are underway. Affected areas include:
Filling of vacancies within stipulated time
Implementation of Information and Communication Technology (ICT) governance framework components
The period it takes to award a bid
Performance Status as at 31 March 2015
Targets
Achieved
Not achieved 3
Total Targets

7. Programme 1: Administration
Other Significant Achievements:
The vacancy rate is slightly above 10% (10.28%)
The Department’s Internship Programme provided access to 7% interns compared to the national target of 3%
Most disciplinary cases were resolved within the required 90 days (out of 16 disciplinary cases, 11 have been finalised)
Successful transfer of TVET and CET staff from a provincial to a national competency
Satisfactorily resolved 99.5% of the queries received by the call centre

8. Performance Status as at 31 March 2015
Programme 2: Human Resource Development, Planning and Monitoring Coordination
Purpose: To provide strategic direction in the development,
implementation and monitoring of Departmental policies and the Human Resource Development Strategy (HRDS) for
South Africa.
Achievements:
Public institutional data (50 public TVET colleges, 23 Higher Education Institutions and 21 SETAs) integrated into education and training management information system
Draft career development policy was communicated and consulted with stakeholders
Performance Status as at 31 March 2015
Targets
Achieved 2
Not achieved 1
Total Targets 3

9. Programme 2: Human Resource Development, Planning and Monitoring Coordination
Other Key Achievements
2013 Data and Statistics on Post-School Education and Training in South Africa were published
A framework on skills supply and demand which lays out the structure of the Annual Report on Skills and Demand in South Africa was approved by the Minister for public comment
Published Ministerial Guidelines 2014/15 to provide strategic direction for SAQA and the three Quality Councils
Monitoring and Evaluation reports on the work of SAQA and the three Quality Councils have been completed
The Department has gazetted a list of occupations in high demand
Social Inclusion Policy Framework was finalised and approved by the Minister for public comment

10. Programme 2: Human Resource Development, Planning and Monitoring Coordination
The target that relates to the ‘International Engagement Plans developed and implementation report compiled’ was not achieved by the end of the financial year but has subsequently been achieved

11. 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 Aid Scheme and National Institute for Higher Education
Achievements:
Note: The achievement reported as at 31 March 2015 are for the
2013 academic year audited in 2014
students enrolled in higher education studies at universities ( more than targeted)
African students enrolled at universities ( more than targeted)
Performance Status as at 31 March 2015
Targets
Achieved 22
Not achieved 4
Total Targets 26

12. Programme 3: University Education
Female students enrolled at universities (9 698 more than targeted)
First time foundation students
Post-graduate graduates (2 673 more graduates than targeted)
2 051 Doctoral graduates (101 more Doctoral graduates than targeted)
Sefako Makgatho University was established as a juristic person in terms of Higher Education Act on 15 May 2014
Monitoring report on the use of the earmarked grant to support the development of University of Mpumalanga and Sol Plaatje University
National Policy on Professional Qualifications for Educators in Community and Adult Education and Training was published in a Government Gazette

13. Programme 3: University Education
Disbursed of R2.2 billion to universities for the improvement of different projects (infrastructure grant disbursement)
A monitoring report on the effective use of infrastructure grants by each university was produced
Approved monitoring report on the outputs of scarce skill graduates from 23 universities with recommendations for interventions
An annual report on the financial health of 25 universities with recommendations for improvement was approved
Strategies to deal with under performance on targets that were not achieved are underway. These targets include:
First time enrolments at universities for the 2013 academic year ( )
Proportion of enrolments in Science Engineering and Technology (SET): Business: Science: Humanities (29:29:42)
Success rate of students at universities (76%)

14. Programme 4: Vocational and Continuing Education and Training
Purpose: To plan, develop, evaluate, monitor and maintain national policy, programmes and assessments practices for vocational and continuing education and training, including TVET colleges and post-literacy Adult Education and Training
Achievements:
Nine (9) Community Colleges have been established as planned
Performance Status as at 31 March 2015
Targets
Achieved 1
Not achieved 4
Total Targets 5

15. Programme 4: Vocational and Continuing Education and Training
Other Performance Areas:
Headcount enrolments in TVET colleges increased from in 2013 to in 2014
However, the 2014 TVET colleges headcount enrolments are below target by
The underperformance is attributed to:
Physical (infrastructure) and human resource (teaching staff) limitations at TVET colleges
Insufficient student and programme funding in the sector

16. Programme 4: Vocational and Continuing Education and Training
Other Performance Areas:
Overall performance in respect to certification rates on exit levels in the Report 190/1 and NC(V) qualifications was below target
However, the achieved 59.5% of N1-N3 certification rate is 9.5% above target and it is an improvement of 5.1% from the certification rate
Lack of performance in Mathematics and Mathematics Literacy has had a compounded effect on the overall NC(V) performance
2014/15 Targets
Performance
NC(V) L4: 57%
34.4%
N1-N3: 50%
59.5%
N6: 50%
42.7%

17. Programme 4: Vocational and Continuing Education and Training
Other Performance Areas:
Overall performance in respect to the pass rate in the NC(V) Levels 2 to 4 Mathematics and Mathematics Literacy programmes is also mainly below target
2014/15 Targets
Performance
Mathematics
NC(V) L2: 52%
47.2%
NC(V) L3: 46%
46.4%
NC(V) L4: 56%
35%
Mathematics Literacy
NC(V) L2: 72%
70.5%
NC(V) L3: 82%
82.4%
NC(V) L4: 87%
78.7%

18. Programme 4: Vocational and Continuing Education and Training
Other Performance Areas:
Overall performance on certification rates for bursary recipients enrolled in the Report 190/1 and NC(V) qualifications is below target
2014/15 Targets
Performance
NC(V) L4: 59%
39%
N1-N3: 52%
43%
N4-N6: 52%

19. Programme 4: Vocational and Continuing Education and Training
Cross-cutting factors that contribute to the college sector’s failure to achieve the set targets are mainly related to student, lecturer and curriculum
Student related:
Poor class attendance and disruptions caused by strikes
Poor profiling of students for awarding of bursaries due to inadequate application of bursary guidelines
Poor student proficiency in English and numeracy
Lecturer related:
Inappropriate or lack of pedagogical training
Unsuitable teaching and learning and management practices
High staff turnover and inability to recruit suitable teaching staff

20. Programme 4: Vocational and Continuing Education and Training
Curriculum related:
Most subjects of the N programmes are outdated and curricula are poorly formulated
Lack of systematic screening of teaching and learning materials
In order to mitigate future underperformance on the expansion of access and increasing success. Amongst others, the following measures are being undertaken:
Bidding for additional funding
Reviewing N programmes
Development of content/curriculum frameworks
Ensuring both on-course academic support and non-academic support for students especially bursary recipients

21. 2014/15 TVET College Bursaries
Other Performance Areas: Overall performance in respect of the number of bursary beneficiaries was below the national target of
Province
Allocations
% Share
No. of Beneficiaries
Eastern Cape R
11%
25 787
Free State R 7%
18 059
Gauteng R
22%
50 574
KwaZulu-Natal R
21%
52 380
Limpopo R
13%
31 277
Mpumalanga R 6%
12 771
Northern Cape R 2%
5 142
North West R
10 532
Western Cape R
22 758
National R
100%

22. TVET College Subsidies
Province
Budget Allocation
% Share
Expenditure
% Spent
R’000
Eastern Cape
14%
94%
Free State 7%
97%
Gauteng
23%
96%
KwaZulu-Natal
18%
Limpopo
11%
100%
Mpumalanga
Northern Cape
94 427 2%
North West 5%
99%
Western Cape
12%
Total
98%

23. Number of Community Learning Centers
Update on the establishment of Community Education and Training Colleges (CETC)
Region
Name of College
Number of Community Learning Centers
Eastern Cape
Eastern Cape CETC
304
Free Sate
Free State CETC
204
Gauteng
Gauteng CETC 47
Limpopo
Limpopo CETC
779
KwaZulu-Natal
KZN CETC
1 097
Mpumalanga
Mpumalanga CETC
252
North West
North West CETC
143
Northern Cape
Northern Cape CETC
191
Western Cape
Western Cape CETC
254
Total
3 271

24. TVET Colleges: 2014 Enrolments
TOTAL HEADCOUNT ENROLMENTS
Province
NC(V)
Report 191
Other Programmes
Total Headcount Actual Students Enrolled
Eng N1 - N3
Eng N4 - N6
Bus Intro
N4 - N6
Eastern Cape
20 769
14 752
6 033
26 165
3 581
71 300
Free State
7 597
18 902
7 513
27 021
2 704
63 737
Gauteng
32 593
50 576
24 883
49 598
7 555
Kwa-Zulu Natal
33 599
26 636
15 397
44 241
23 063
Limpopo
23 728
22 799
12 108
26 988
5 694
91 317
Mpumalanga
11 084
14 024
4 554
6 724
2 210
38 596
North West
9 996
15 738
4 643
13 213
1 239
44 829
Northern Cape
2 923
6 318
395
7 354
2 900
19 890
Western Cape
14 952
15 049
4 398
22 158
15 168
71 725
National
79 924
64 114
Data source: Weekly Enrolment Monitoring as at 31 October 2014

25. Programme 5: Skills Development Performance Status as at 31 March 2015
Purpose: To promote and monitor the National Skills Development Strategy, develop skills development policy and a regulatory framework for an effective skills development system
Achievements
Artisan learners were registered nationally (target exceeded by and an increase of 631 or 2.3% from the 2013 baseline)
Artisan candidates were found competent nationally (target exceeded by 1 389)
Performance Status as at 31 March 2015
Targets
Achieved 6
Not achieved
Total Targets

26. Programme 5: Skills Development
Achievements
Graduates received structured work place learning (target exceeded by and an increase of or 48% from the baseline)
52% of INDLELA national artisan learners passed trade tests (target exceeded by 4%)
60 Audits were conducted at SETA or QCTO accredited trade test centres
42 TVET colleges entered into partnership agreements with SETAs (above target by 12 partnership agreements

27. Financial Information
The financial information in the Annual Report consists of the following:
Report of the Accounting Officer
Report of the Audit Committee
Report of the Auditor-General
Financial Statements (Including the Appropriation Statement, Statement of Financial Performance, Statement of Financial Position, Changes in Net Assets, Cash Flow, Notes to the Financial Statements and Supplementary Annexures)
The presentation focusses on the following:
A brief summary of each report
A summary of the Financial Statements
Action Plan to improve audit findings
Impact of the 2014/15 Financial Outcome of 2014/15 on operations

28. Report of the Accounting Officer
The Report of the Accounting Officer provides a summary of the financial affairs of the Department including a summary of significant events, key policy decisions and spending trends
It also includes a summary of services, capacity constraints and organisational arrangements as well as the corporate governance arrangements within the Department

29. Report of the Audit Committee
The Report of the Audit Committee expresses the Committee’s views on the effectiveness of internal control within the Department, the quality of reporting in terms of PFMA requirements, the operations of Internal Audit and Risk Management within the Department
On the basis of the above, the Audit Committee is satisfied with the operations within the Department
The Committee is emphasising that the system of internal control was not always entirely effective and instances of non-compliance were raised by the Auditor-General and Internal Audit
A concern is also raised regarding the collation and reporting of performance information

30. Report of the Auditor-General
The Department received an unqualified audit opinion
Key matters raised by the Auditor-General include the following:
Significant uncertainties
As disclosed in Note 19 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
Predetermined Objectives
Programme 3: University Education – No material findings
Programme 4: Vocational and Continuing Education and Training – Unable to obtain information on the reliability of reported performance information
Programme 5: Skills Development – Unable to obtain sufficient evidence on the achievement of certain reported performance information. Misstatements were found on the reported performance information

31. Report of the Auditor-General
Matters of non-compliance with Legislative Requirements PFMA
Insufficient systems of risk management and internal controls on performance information
Misstatements in the Financial Statements on Provisions, Accruals, Commitments and Contingent Liabilities
Procurement procedures regarding price quotations
Public Service Regulations
Insufficient verification processes before appointments are made
Internal Control
Matters of concern raised include the insufficient implementation of action plans to address internal controls, inadequate consequence management, funding and human resources capacity constraints regarding verification and monitoring functions and insufficient validation of reported performance information

32. Financial Statements: Appropriation Statement
The Appropriation Statement provides an indication of the Department’s spending against the final Appropriated Funds for the year.
In summary, the position is as follows: R’000
Final Appropriation:
Including Voted Funds
Direct Charges
Actual Expenditure:
Including Voted Funds
Variance (On Voted funds only):
Detailed Information per Programme and Economic Classification from page 163 to 184 of the Annual Report

33. Financial Statements: Appropriation Statement
Summary of variance of R1.160 million: R’000
Per Programme:
Administration
HRD, Planning and Monitoring Coordination 828
University Education
VCET
Skills Development
Economic Classification:
Compensation of Employees (Natural attrition/
Filling of vacancies)
Goods and Services (Travel/Stationery/Supplies) 58
Transfers (DHET SETA Contribution) 172
Capital (Equipment)
Detailed Information from page 163 to 184 of the Annual Report

34. Action Plan to improve Audit Findings
The Department completed an audit action plan to address the control deficiencies based on the 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 is reported by each Branch Head to the Director- General
Regular reports will be submitted to the Minister and Audit Committee
Due to key operational activities and insufficient staff capacity, delays are already experienced in progress with implementing some of the actions

35. Financial Statements: Impact on Operations
The Departmental surplus declined due to the improved utilisation of donor resources and the decline in unutilised voted funds. This is not a negative position as it is reflecting an improvement in the effective utilisation of resources
Although the Department managed to utilise the majority of voted funds, strict measures had to be put in place to prevent overspending of the Vote
When the results of provisions, accruals and commitments are taken into account, the Department did overspend
The Report of the Accounting Officer also emphasises the capacity constraints in the Department – Refer to page 140 of the Annual Report.

36. Financial Statements: Impact on Operations
The current pressures on the economy and the limitations placed on the utilisation of resources could result in a similar outcome during 2015/16
Managers and staff to understand the position the Department is in, makes it more difficult to manage the limited resources
Key pressures are also experienced due to the additional responsibilities as a result of the TVET and AET function shift such as more pressure to ensure regional presence, the monitoring of the entire post-school system and operational activities at the Department

37. Thank You