1. DIVISION OF REVENUE BILL VOTE 16: HIGHER EDUCATION AND TRAINING Presentation to Select Committee on Appropriations 5 March 2010

2. Presentation Information 1.Restructuring of Education and distribution of budget 2.Conditional Grants 2

3. Part 1 Restructuring of Education and distribution of budget The Department was established through the split of the Department of Education through the Government restructuring process during 2009 The Department received functions from the Departments of Education and Labour These functions include: Adult Education and Training Vocational Education and Training University Education Skills Development 3

4. Restructuring of Education and distribution of budget (2) The budget for the Department consist of funds based on the split of the Department of Education as well as the transfer of functions from the Department of Labour The splitting of funds from the Department of Education was done on an agreed framework in line with the allocation of functions as well as the distribution of the staff compliment (See next slide on extract from Distribution Framework for Education) The shifting of funds from the Department of Labour was done by the National Treasury based on the functions allocated to the Department The Department may experience budget constraints during the 2010/11 financial year onwards due to limited additional funds allocated for the establishment of the Department 4

5. Budget Distribution Framework: Education Budget was split according to an agreed framework between the Departments Compensation of employees were distributed according to an agreed ratio for each directorate Earmarked Funds were allocated based on functional responsibility Commitments such as audit fees, rental machines, computer services, bank charges, etc. were determined for both departments and allocated to the respective directorates Funds for operational costs and projects were dealt with as follows: –MTEF amounts for all components were split in an agree ratio between the two Departments –Operational costs of Directorates/components were allocated based on specific requirements –Available balance was reserved for projects 5

6. Restructuring of Education and distribution of budget (3) The aim of the Department is to develop and support a quality higher education and vocational education sector, and promote access to higher and vocational education and skills development training opportunities. The Department has a total budget of R32.145 billion as follows in R000: Total voted funds32 144 926 Less: Direct charges (SETA funding and NSF) 8 424 228 Balance of voted funds23 720 698 Less Transfers:Universities17 516 740 NSF 51 731 Public Entities 1 986 740 FET Conditional Grant 3 772 661 Other ( such as SETA) 569 Less Compensation of Employees 228 901 Balance available for operational/project costs 163 356 6

7. Restructuring of Education and distribution of budget (3) The Departments budget consists of the following Programmes as per the 2010 ENE: Administration (R100.5 million) Overall management and administration of the Department Human Resources Development, Planning and Monitoring Coordination (R26.0 million) Provide strategic direction in development, implementation and monitoring of departmental policies. Coordinate activities regarding HRDS-SA 7

8. Restructuring of Education and distribution of budget (4) University Education (R19 534.7 million) Develop and coordinate policy and regulatory frameworks for an effective and efficient university education system Vocational and Continuing Education and Training (R3 891.2 million) Plan, develop, evaluate, monitor and maintain national policy, programmes and systems for vocational and continuing education and training Skills Development (R168.3 million) Promote and monitor the national skills development strategy 8

9. Part 2 Conditional Grants The Department is responsible for one Schedule 4 conditional grant with effect from 1 April 2010 namely the grant for the Further Education and Training Colleges Sector Based on previous funding of FET College Sector through the provincial equitable share The purpose of the grant is to ensure the successful transfer of the further education and training colleges function to the Department and is a general conditional allocation to provinces The funding of the grant over the 2010 MTEF is as follows: 2010/11: R3 772.661 million 2011/12: R3 971.989 million 2012/13: R4 169.088 million 9

10. Part 2 Conditional Grants (2) Grant management and monitoring will be performed as part of the normal baseline allocation of the Department The allocations for the grant makes provision for the improvement of conditions of service for the lecturers employed by College Councils Some of the key outputs of the grant are: Enrolment of a minimum of NC(V) Programmes as set out in college enrolment target planning; Expanding ICT for teaching and learning towards connectivity norms; Continue Implementing MIS systems for the delivery of transversal MIS services; Implementation of the Funding Norms for FET Colleges; and Refurbishment, maintenance and repairs of infrastructure and equipment to support the delivery of approved programmes 10

11. Part 2 Conditional Grants (3) The conditions of the grant are as follows: Provincial Education Departments must maintain the value of the current funding and resource requirements of FET Colleges, as well as the growth projections thereof; On receipt of a transfer for a college, the provincial department of education must transfer the funds to the relevant college within 14 days of receipt thereof. The date of transfer to a college must be confirmed with the DoHET within 2 days thereof; and Provincial Implementation Protocol must be signed between Provincial Education Department accounting officers and the accounting officer of the Department of Higher Education and Training 11

12. Part 2 Conditional Grants (4) The Department will be responsible to: Provide a framework for the development of College Operational Plans and Strategic Plans. Monitor the grant according to approved College operational plans Consolidate and submit quarterly reports to National Treasury. Monitor the utilisation of the grant against the set outcomes and to take appropriate action if cases of non-compliance are discovered Calculate the programme based funding per college based on the Funding Norms for FET Colleges each year and recommend the transfer of this to the relevant FET College Establish provincial level institutional support to FET Colleges Evaluate the performance of the conditional grant and submit the required evaluation report 12

13. Part 2 Conditional Grants (5) Provincial Education Departments will be responsible for: Support the process of concluding the required Provincial Implementation Protocol with the Department Ensure provincial officials who are currently supporting FET College functions to continue such support Transfer of grant allocations to colleges within 14 days of receipt of transfer of funds and confirm transfer with the Department within 2 days Note: The payment of the grant will be in two tranches (April and September) As the grant contains Improvements to the Conditions of Service of college employees, an adjustment to budgets across provinces may be required once the programme costs are aligned with the pending labour agreement 13