1. DEPARTMENT OF HIGHER EDUCATION AND TRAINING
2019/20 Annual Performance Plan
Briefing to the Portfolio Committee on Higher Education, Science and Technology
03 July 2019

2. Presentation Outline
Mandate of the Department of Higher Education and Training
Post School Education and Training Landscape
DHET Budget Programme Structure
DHET Five year goals ( )
Overview of 2019/20 Annual Performance Plan
Programme Level plans and targets
2019/20 Budget

3. Mandate of the Department of Higher Education and Training
The legislative mandate of the Department is derived from the Constitution
Section 29 states that “Everyone has the right-
to a basic education, including adult basic education; and
to further education, which the state, through reasonable measures, must make progressively available and accessible”.
The MTSF entrusted the Department with the responsibility of ensuring “A skilled and capable workforce to support an inclusive growth path”.
Four sub-outcomes were identified as follows:
Developing a credible institutional mechanism for labour market and skills planning;
Increasing access and success in programmes leading to intermediate and high level learning;
Increasing access to and efficiency of high-level occupationally directed programmes in needed areas; and
Increasing access to occupationally directed programmes in needed areas and thereby expanding the availability of intermediate level skills with a special focus on artisan skills.

4. Overview of the Post School Education and Training Landscape

5. Vision and Mission Vision
Leading Post-School Education and Training for growth.
MISSION
To provide national strategic leadership in support of the Post-School Education and Training system for improved quality of life of South Africans.
VALUES
Integrity
Accountability
Commitment and Responsiveness
Proactive behaviour
Continuous learning
Rationality
Team work
Emotional intelligence

6. DHET Budget Programme Structure
The Department has six Budget Programmes as follows:
Support Programmes:
1) Administration
The Ministry, Director-General and Departmental support functions
2) Planning, Policy and Strategy
Mainly responsible for the development, implementation and monitoring of Departmental policies and in the HRD strategy for South Africa
Core Delivery Programmes:
3) University Education
Mainly responsible for the university sector, NSFAS, CHE and national institutes for higher education
4) Technical and Vocational Education and Training
Mainly responsible for the TVET sector
5) Skills Development
Mainly responsible for the skills sector, including the national skills development strategy, skills development policy and the management of the skills levy
6) Community Education and Training
Mainly responsible for the Community Education and Training sector

7. DHET Budget Programme Structure

8. Goals of the current Strategic Plan: 2015 - 2020
The 5 Year goals of the Department ( ):
Sound steering frameworks
Improved capacity and services
Strong stakeholder network
Excellent business operations in the Department
Good oversight
Areas of focus over the five year period covered by the Strategic Plan:
Steering mechanisms development and implementation (legislation, regulations, policies etc.), ensuring
access to education and training of the highest quality;
that there are barriers in receiving education and training, especially in relation to disability, gender, race and geographic location
Provision of Teaching and learning support (academic success)
Infrastructure development and maintenance (Geographic spread)
Oversight monitoring (ensure a responsive education and training)

9. Overview of 2019/20 Annual Performance Plan
The 2019/20 Annual Performance Plan is informed by:
The 2019/20 APP is based on the current five year Strategic Plan
It is the last APP 2019/20 for the period covered by the Strategic Plan
The focus of the core delivery Programmes (Prg 3, 4, 5, & 6):
Oversight on system performance in terms of access, success, transformation, institutional governance, etc.
Development of mechanisms to address deficiencies or challenges in specific areas identified in the system (steering mechanisms)
Continue to provide teaching and learning support
Oversight on the various funding grants
Infrastructure development and maintenance

10. Overview of 2019/20 Annual Performance Plan
Key delivery outputs of the Department for the 2019/20 include:
To ensure filling of vacancies, resolving disciplinary cases, payment of invoices from creditors and the achievement of a clean audit opinion from the AG.
Produce oversight reports on the PSET system in respect to: 
Institutional governance
Teaching and learning
Examinations and certification in TVET college programmes
The financial health of universities
Research outputs of universities
Institutional funding grants
Partnerships
Student leadership capacity development
Infrastructure development
Regulatory compliance of education institutions including the private higher Institutions
NSDS III
Career Development Services and Open Distance Learning
Social Inclusion in higher education

11. Overview of 2019/20 Annual Performance Plan
Produce management information and statistics on the performance of the system (Universities, TVET colleges, CET Colleges, SETAs) using Performance indicators in respect to Access, Success, Artisan development as well as Transformation (reflected in the APP as system targets)
Produce reports to inform decision making in relation to policy, planning and institutional funding.
The following slides provide programme level plans for the year.

12. Programme level Plans for 2019/20
Programme 3: University Education
The objective of the branch is:
To develop and coordinate policy and regulatory frameworks for an effective and efficient university education system.
Provide financial support to universities, the National Student Financial Aid Scheme and to National Institutes for Higher Education.
Key NDP 2030 Targets that the Branch seeks to achieve are:
Increasing student enrolments in universities to 1.62 million per annum
Produce and retain a new generation of university academics, transforming the historical and social composition of the academic work force
75% of academics should have PhDs
100 additional young (black and/or women) entrants to workforce per annum
Increase the number of doctoral graduates from universities to 100 PhDs per million per annum i.e per annum

13. Programme 3: University Education
Key Targets of the Branch for 2019/20
Produce a draft regulatory framework for universities fees to regulate fees universities charges their students;
Develop guidelines for student funding for the DHET bursary scheme for students at public universities;
Develop guidelines on international scholarships offered by government departments;
Develop Ministerial Statement on University Enrolment Planning for 2020 – 2025;
Develop a plan for piloting the Central Application System for universities;
Produce oversight reports on: (1) financial health of universities; (2) institutional governance; (3) effective use of the infrastructure and efficiency grants for 24 universities; (4) effective use of new universities earmarked grant; (5) PHEI compliance with the regulations; (6) research outputs of 26 universities; (7) Foundation Provision Grant; (8) Ministerial enrolment planning targets; (9) University Capacity Development Programme; (10) TLDCIP; (11) Cohort study report on higher education; and (12) BRICS partnership report

14. Programme 3: University Education
Key Targets of the Branch for 2019/20
Revise and approve the Student Leadership Capacity Development
Allocate 100 new Generation of Academics Programme lecturers posts to universities, of which 80% must be black and/or woman South African citizens under the age of 45
Support 50 academic and professional staff at universities to undertake Doctoral studies through the University Capacity Development Programme.
Implement four International Scholarships Programmes through international country- level partnership agreements to assist students to study abroad.

15. Programme 3: University Education Performance Indicators
University Education System Targets
Performance Indicators
2018/19
Actual
2019/20 Targets
5 year Target
( )
Access
Number of students enrolled in public higher education studies (universities) *
Number of eligible university students obtaining financial aid (NSFAS) **
Number of students in foundation programmes
21 289
35 000*
36 000
Number of universities accredited to offer TVET College lecturer qualifications 3
10*** 10
Success
Number of graduates in Engineering Sciences from universities
49 869
(cumulative)
13 000*
57 000
Number of graduates in Human Health and Animal Health from universities
39 376
11 000*
45 000

16. Programme 3: University Education
University Education System Targets
Performance Indicators
2018/19
2019/20 Targets
5 Year Target
( )
Success
Number of graduates in Natural and Physical Sciences from universities
31 870
(cumulative)
9 000*
36 000
Number of graduates in Initial Teacher education from universities
87 089
25 900*
99 000
Number of Doctoral graduates from universities
10 642
3 200*
12 000
Number of Research Masters graduates
(cumulative)
8 100*
34 000
Percentage of success rates at universities
77%
78%*
78%
Percentage of higher education undergraduate success rates (contact)
82%
82%*
81%
Percentage of higher education undergraduate success rates (distance)
67%
68%*
71%

17. Programme 3: University Education
University Education System Targets
*2018 academic year, verified though HEMIS audits by October 2019 except for teacher education where an
additional verification process will take place in the 4th quarter.
**2018/19 NSFAS Annual Report
***For the 2019/20 financial year verified by the end of March 2020
****For the 2019 academic year
Performance Indicators
2018/19
2019/20 Targets
5 Year Target
( )
Institutional governance
Percentage of proportion of universities meeting standards of good governance
Good governance indicators approved
70%***
70%
Transformation
Percentage of university academic staff with PhDs
46%
46%*
Number of additional first-time entrants (black and women) to academic workforce in addition to normal replacement and plans
549
100****
100

18. Programme 4: TVET
Programme 4: Technical and Vocational Education and Training (TVET)
The objective of the branch is:
To plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for Technical and Vocational Education and Training
Key NDP 2030/MTSF Targets that the Branch seeks to achieve are:
Increase enrolments in TVET colleges to 2.5 million enrolment per annum
Enrol 5000 TVET students in need of support in foundation programmes
Establish appropriate training opportunities for TVET college staff
30% TVET lecturers undergoing specified hours of work in their industry for specified periods every two years from 2019
Establish TVET college campuses and expand as per demand estimates and agreements

19. Programme 4: TVET Key Targets of the Branch for 2019/20
Ensure that 65% of TVET Colleges compliance to approved financial governance standards
Ensure that 70% (R1,038,800,000) of TVET Colleges maintenance budget is spent in terms of approved infrastructure maintenance plans
All (100%) Public TVET Colleges examination centres should conduct national examination and assessments in compliance with national policy
Issue certificates to qualifying candidates following publication of results within 3 months;
Revise TVET Funding norms to steer the TVET system based on changes in landscape due to the phasing in of occupational programmes as well as fee-free higher education;
Develop CET Act regulations for TVET Colleges to strengthen the regulatory framework and to align more with the PFMA
Produce oversight reports on the performance of TVET Colleges in enrolments, teaching and learning.

20. Performance Indicators
Programme 4: TVET
TVET System targets for 2019/20
Performance Indicators
2018/19
Actual
2019/20
Targets
5 year target
( )
Number of headcount enrolments in TVET Colleges
including State funded ( ), College funded ( ) and funded from other sources (45 787)
Number of qualifying TVET students obtaining NSFAS financial assistance per annum pa
Number of TVET students enrolled in foundation programmes
368
4 000
5 000
Percentage of certification rate of NC(V) L4
50%
40%

21. Performance Indicators
Programme 4: TVET
TVET System targets for 2019/20
Performance Indicators
2018/19
Actual
2019/20 Targets
5 year Targets
( )
Percentage of certification rate of N3
76.8%
65%
Percentage of certification rate of N6
96.1%
Percentage of TVET throughput rate
33.47%
36%
Percentage of funded NC (V) L4 throughput rate
Percentage of TVET lecturers undergoing specified hours of work in their industry for specified periods
8.8%
33% 0%

22. Programme 5: Skills Development
The objective of the branch is to promote and monitor the national skills development strategy Develop skills development policies and regulatory framework for an effective skills development system
The key NDP 2030 Target that the Branch seeks to achieve in respect to Artisan Development is to increase the number of qualified artisan produced per annum to
The branch has prioritised the following for 2019/20:
Put in systems to ensure that the approved National Skills Development Plan is implemented by April 2020
Conduct strategy, policy and systems analysis to inform the implementation of the National Skills Development Plan
Implement Skills Education Training Management Information system to collect skills information for performance reporting purposes

23. Programme 5: Skills Development Performance Indicators
Key Targets of the Branch for 2019/20
To conduct trade test within 60 days from the receipt of application
Register new artisan learners
Achieve 65% trade test pass rate
Achieve new artisan learners qualified
Produce oversight reports on:
the implementation of the National Skills Development Strategy by SETAs on a quarterly basis
the implementation of good governance standards by SETAs
System performance on skills development
Performance Indicators
2018/19
Actual
2019/20
Targets
5 year Targets
( )
Number of work based learning opportunities
Percentage of National artisan learners employed or self-employed
77%
80%

24. Programme 6: Community Education And Training
Programme 6: CET
The objective of the branch is to plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for community education and training
The key NDP 2030 Target that the Branch seeks to achieve is to increase enrolment in CET colleges to 1 million enrolment per annum
Key Targets of the Branch for 2019/20:
Develop a report on the CET College sector performance for the 2018/19 financial year against targets set in policy, legislation and annual performance plans
Produce a draft progress report on the CET College sector performance for the 2019/20 financial year

25. Programme 6: Community Education And Training
Progress report on the CET College sector performance for the 2019/20 financial year will focus on the implementation of the following areas:
Piloting of the concept of community education and training;
Teaching and learning support framework
Implementation of the Strategy for Forging Partnerships;
Service delivery framework for CET Colleges;
Governance and financial policies;
CET College Infrastructure maintenance plans;
Access to and success in CET programmes;
Financial Performance of the CET College sector;
Monitoring and evaluation policy for CET Colleges; and
Annual reporting policy
The above reports culminate in a comprehensive System Performance report on CET Colleges

26. M&E Policy for CET colleges
The M&E policy was approved in September 2016 to guide the Department in delivering on its mandate to support and perform an oversight function on CET Colleges.
The object of the M&E Policy is to provide standards to monitor, measure and evaluate the impact and the quality of access to and success in the CET programmes by adults, and out-of-school youth.
The policy focuses on the function clusters for monitoring and evaluation of the CET system, namely (a) education, training and development, (b) planning, institutional development and support, (c) financial management capacity and systems and (d) Infrastructure development and maintenance.
Using the M&E policy as a guide, the Department supports and monitors implementation of national policies, guidelines and the development of plans and interventions to improve quality and efficiency of the CET system.

27. Service delivery framework
The Service Delivery Framework (SDF) for CET Colleges was developed in 2017 and mediated to CET colleges in 2018.
The SDF is meant to provide colleges with guidance on positioning themselves to deliver on the mandate of CET by understanding the nature of programmes they need to deliver informed by national priorities and local government plans, the target group for CET colleges and the importance of partnerships.
Focal areas for support and monitoring in 2019
Increasing access and improving success
Programme diversification
Focus on innovation and responsive programmes as per community needs
Physical and ICT infrastructure
Student support services
Community mobilisation and participation
Advocacy strategies
Strategic partnerships

28. Governance and financial policies
The Department has the responsibility to provide support and monitor the proper utilisation of State funds.
In appreciation of the fact that CET Colleges are new and has no capacity for policy development, the Department developed 29 Governance policies and presented them to councils of CET colleges in 2017 for adoption or adaptation.
The policies are designed to assist colleges to implement standardised systems and controls.
In 2018 the Department embarked in a project to build capacity of colleges on financial management and all 9 CET College are in possessin of assurance certificates as required by the PFMA and the Councils have adopted the policies.
2019 marks the first year of implementation of the policies by colleges.
Focal areas for support and monitoring in 2019:
Mediation of the policies to councils
Support the adaptation of policies to address the college dynamics
Evaluate and support the composition of councils’ subcommittees who are key in implementation and compliance with the policies
Training on Internal audit and Risk Management for the Council and Audit and Risk Committee

29. CET college infrastructure maintenance
The CET college sector is characterised by disparate sites and facilities which are in various levels of disrepair. Most CLCs are operating from schools some without formal agreements.
Focal areas for support, monitoring and reporting in 2019:
Build capacity of management in infrastructure maintenance
The CET colleges are new and do not have institutional history of setting up maintenance systems for infrastructure
Colleges will be capacitated to prepare basic site layouts for college sites of activity; compiling immovable asset registers; assess and interpret the status of bulk and essential services; and prepare cost estimates.
Spatial Planning Information System
The intention is to assist colleges with the capability of putting together the spatial, economic, enrolment and programme offering information.
The spatial information will be captured into a database which links the sites to the wards and poverty indices as well as linking the sites to a spatial footprint using verified GPS (Global Positioning System) coordinates.

30. CET college infrastructure maintenance
Development of site plans
The National Immovable Asset Maintenance Management Standard (NIAMMS) requires that the immovable assets must be identified and designated in a manner that supports the allocation of resources and the tracking of maintenance.
The colleges will be monitored and supported to convert a Google Earth Pro photos into a Word document to be able to produce a scale sketch plan of each CET college site.
Property location and descriptions of the 54 pilot sites and determination of their infrastructure maintenance needs
Focal areas for immediate support in infrastructure needs
Formalising rental agreements; and
Identifying underutilised/unused state buildings for CLCs to move into.

31. Annual reporting policy
The annual reporting policy for CET Colleges was approved and gazetted in March 2018
Colleges are required to submit annual reports at the end of September on an annual basis.
The annual reports are analysed based on the following information:
Performance information-achievements as per Strategic plan and APP, other significant achievements, college achievement as per expected outcomes and the strategy to deal with underperformance where applicable
Governance and management-Composition of the council and its sub-committees, reports by sub-committees, report of the accounting officer and the statement of Council Chairperson
The report of Council on risk assessment and management of risks
Financial information-the audited annual financial statements (AFS)

32. Programme 6: Community Education And Training Performance Indicators
The branch has also prioritized the following for 2019/20:
Strengthening the capacity of the 54 CLCs to pilot the CET concept over the next 5 years
Developing financial management systems for CET Colleges so that they comply with the standards set in the PFMA, 1999 and its Regulations
Developing norms and standards for funding CET Colleges
Improving strategies for increasing access to and success in CET programmes
Finalise the CET plan, which seeks to improve efficiency and effectiveness of CET colleges through the gradual rationalisation and consolidation of CLCs and Satellite Learning Centres.
CET System Target
Performance Indicators
2018/19
2019/20 Targets
5 Year Targets
(2015 – 2020)
Number of headcount enrolments in CET Colleges
Percentage of certification rates in CET formal qualifications
38%
45%

33. CET Enrolment Target: 2019 CET College Budget % Skills Focus
Gen Academic
Total EC 7
1163
22 093
23 256 FS 5
850
16 150
17 000 GA 33
5554
KZN LP 13
2188
41 570
43 758 MP 12
2040
38 760
40 800 NC 2
340
6 460
6 800 NW WC 9
1515
28 780
30 294
100

34. New National Norms and Standards for Funding CET Colleges
In April 2015, the National Norms and Standards for Funding CET Colleges was put in place as an interim measure when the function became a national competence
Draft Policy on the new National Norms and Standards for Funding CET Colleges was published on 12 April 2019 for public comment.
In a nutshell, the new funding norms addresses issues relating to the following, amongst others:
Funding for personnel costs (both lecturing and support staff in colleges)
Non-personnel and non-capital funding (college operational costs)
Infrastructure Funding (new, refurbishment and ongoing maintenance)
Programme vs. enrolment funding
Earmarked funding (for e.g. special needs in education, rurality, student support services, etc.)
Integrated funding to include other funding streams

35. New National Norms and Standards for Funding CET Colleges
The new policy will provide a framework for the distribution of funds, such that amongst others, the following considerations will be made both at national and institutional level when distribution the allocated budget:
Cost of programmes
Geographical locations, particularly for rural colleges and distances between head office and Community Learning Centres (CLCs).
Number of CLCs administered by a college.
Current and projected number of student enrolment for expansion.
Programmes and Qualifications Mix.
Conditions of existing infrastructure and assets (maintenance and refurbishment).

36. New National Norms and Standards for Funding CET Colleges
While the funding norms do not bring any additional or new funding, however it will assist to close gaps in the following areas which are not being addressed in the current interim funding norms:
Fairness and equity to ensure equitable distribution of funds
The effects of the continued historical way of allocating
The different operational needs at institutional level
The need to uplift the standards in some colleges to ensure appropriate level of functionality

37. Teaching and Learning support Framework
The areas of monitoring and support will focus on teaching and learning in relation to student attendance, performance and availability of learning and teaching support materials
Student performance-analysis of results to inform improvement strategies
Lecturer development and support- reskilling, continuous professional development and training for the unqualified and underqualified lecturers
Piloting of the concept of community education and training
2019 marks the first year of piloting the concept of CET. The pilot project will run for 5 years in 54 Community Learning Centres across the 9 CET Colleges with a focus on the following:
innovation and programme diversification in particular introduction of skills programmes;
ICT infrastructure development; and
offering of programmes through partnerships.

38. Programme 2: Planning, Policy and Strategy
The objective of the branch is to provide strategic direction in the development, implementation and monitoring of Departmental policies and the human resource development strategy for South Africa
Budget sub-programmes:
Programme Management;
Human Resource Development, Strategic Planning and Coordination;
Policy, Information, Monitoring and Evaluation;
International Relations;
Legal and Legislative Services; and
Social Inclusion in Education.

39. Programme 2: Planning, Policy and Strategy
Key targets for 2019/20
Gazette the proposed amendments to the NQF Act for public comment
Gazette the Policy framework on Gender-Based Violence in the PSET system
Produce oversight reports to inform planning and decision making:
National Qualifications Framework
Social Inclusion
Implementation of Open Learning in PSET
Skills supply and demand
Publish Post-School Education and Training
Enter at least two agreements on international scholarships with foreign countries.

40. Programme 2: Planning, Policy and Strategy
The branch has also prioritised the following for 2019/20
Initiating a process for the development of a Master Skills Plan in support of government’s priority projects.
Monitor, coordinate and improve the implementation of the NQF Act
Institutionalise the function of Career Development Services
Develop and implement the National Open Learning System for the PSET System
Ensure that research, information and analysis on PSET is used by the Department to inform policy, planning and other forms of decision-making;
Ensure that international educational opportunities and donor funding is secured through international engagements
Coordinate and monitor Social Inclusion in the PSET system.

41. Programme 1: Administration
The objective of the branch is to provide overall management and administration of the Department
Key Targets of the Branch for 2019/20
To fill 90% of approved vacancies in terms of the funded organisational structure
Resolve all (100%) disciplinary cases within 90 days per annum
Reduce the average number of days to fill an advertised position to 180 days from the date of advertisement
Process valid invoices and pay creditors within 30 days
Achieve an unqualified audit opinion from the Auditor-General of South Africa in respect of the preceding financial year
Approve a remedial plan on audit findings in the previous financial year
Improve on the 95% of network connectivity uptime

42. Programme 1: Administration
The Branch has also identified other priorities for 2019/20 as follows:
Finalise and implement the Organisational Structure and Post Provisioning Norms for Colleges;
Improve performance management practices and ensure alignment with the departmental performance;
Automate business processes and Enterprise Content Management;
Implement the ICT strategy with special focus on improving TVET Colleges and implementing a Cloud based IT Examination System;
Implement the Communication Policy and ensure corporate identity guidelines for TVET and CET Colleges are implemented;
Facilitate the construction of the Head Office and the acquisition of regional office accommodation; and
Implement the Fraud Prevention, Ethics Management and Risk Management strategies to instill a risk free culture and ethical behavior.

43. Programme 1: Administration
The Branch has achieved the following:
Vacancy rate is at 6.2% and the average number of days to fill vacancies is at 159 days
Finalised and approved the interim Organisational Structure for Head Office and Regional Offices;
Finalized the Post Provisioning Norms for TVET Colleges to be implemented in the next financial year;
Developed the e-performance management system for roll-out in 2020/21;
Implemented e-leave management, submissions, invoice tracking, placement of orders as part of automation of business processes and digital ECM;
Secured NSF grant and signed the MoU with SABEN and current processes of procurement for proposals in for the provision of Access Network Circuits Connecting Technical and Vocational Education and Training College Campuses to the South African National Research Network. SABEN will utilize the grant funding to cover the capital expenditures (up-front costs) for the envisaged connections;
The new Examinations system in final stages of development, to be implemented in 2020;
Corporate identity guidelines for TVET and CET Colleges approved and presented to Colleges; three Communication Fora (for SETAs, Colleges and Universities) established and operational;
Secured the land and registered a PPP with National Treasury for the Head Office and the acquisition for four regional office accommodation completed (KZN, Free State, Northern Cape and Mpumalanga outstanding); and
Established a Directorate for Fraud Prevention and Corruption, Ethics and Integrity Management.

44. Financial Information 2019 MTEF: Estimates of National expenditure
Budget structure Budget trends ENE allocations over the 2019 MTEF

45. Budget Structure
The budget for the Department is distributed between six Programmes as follows: 1) Administration Represents all Departmental support functions including the Office of the Director-General 2) Planning, Policy and Strategy Responsible for the development, implementation and monitoring of Departmental policies and in the HRD strategy for South Africa 3) University Education Responsible for the university sector, NSFAS, CHE and national institutes for higher education 4) Technical and Vocational Education and Training Responsible for the TVET sector and Examination Services 5) Skills Development Responsible for the skills sector, including the national skills development strategy, skills development policy, the Indlela Institute and the management of the skills levy 6) Community Education and Training Responsible for the Community Education and Training sector

46. Budget Structure
The department’s budget consists of two funding sources namely Voted funds and “direct charges”
Voted funds consist of the budgetary allocation through the National Revenue Fund while the direct charges consist of a direct commitment namely the skills levy revenue collected by SARS for the funding of SETAs and the NSF
As reflected in the Estimates of National Expenditure, the allocations over the 2019 MTEF are as follows:

47. Budget Trends
The Department’s budget (Voted Funds) increases at an average annual rate of 12.6% over the 2019 MTEF increasing from R73 billion in 2018/19 to reach R104.4 billion in 2021/22
It should be noted that the baseline budget of the Department increased substantially from the 2018 MTEF due to the roll-out of fee- free higher education for qualifying poor, vulnerable and missing middle students as well as increased subsidies for universities and TVET colleges
The baseline adjustments (additional allocations) since 2018/19 are R billion (2018/19), R billion (2019/20) and R billion (2020/21). These adjustments forms part of the allocations in the MTEF and is integrated in the baseline for 2021/22

48. Budget Trends
The increased baseline is a positive outcome of the Department’s continuous bids for additional funding
The emphasis of the increased baseline from 2018/19 is primarily for the funding of our poor and missing middle students as well as improved sector funding
This has resulted in a substantive increase on NSFAS funding which is totalling R billion over the 2019 MTEF period
The increased subsidies of universities is a strong push towards improved baseline funding of institutions and a substantive drive towards the sector’s funding as a percentage of GDP, from 0.67% in 2017/18 to an average of 0.77% over the 2019 MTEF
The TVET sector also benefits substantially from additional allocations. Institutional subsidies have more than doubled since 2018/19 and the sector has also been allocated an infrastructure grant that amounts to almost R4.9 billion over the 2019 MTEF

49. Budget Trends Allocation 2019/20 2020/21 2021/22 R'million
Higher Education and Training
Year-on-year growth
20.4%
10.09%
6.30%
GDP
Higher Education % of GDP
2.11%
2.05%
2.03%
Total Education Expenditure
9.95%
7.55%
6.73%
Higher Education % Total Education Spending
28.39%
29.06%
29.95%
Total National Government Expenditure
8.92%
7.07%
6.08%
Higher Education % National Expenditure
15.81%
16.26%
16.29%

50. Budget Trends/Skills Levy
The direct charges (skills levy) on the budget increase at an average annual rate of 9.6% over the 2019 MTEF increasing from R16.9 billion in 2018/19 to reach R22.3 billion in 2021/22
The skills levy allocations over the 2019 MTEF based on the collection estimates by National Treasury are as follows:
2019/20: SETAs R billion
NSF R3.752 billion
2020/21: SETAs R billion
NSF R4.087 billion
2021/22: SETAs R billion
NSF R4.461 billion

51. Budget Trends
The Department’s budget is dominated by Programme 3: University Education, which represents 82 per cent of the budget in 2019/20
This is mainly as a result of the subsidy payments to universities and the National Student Financial Aid Scheme
As a result, the budget is also dominated by transfer payments in terms of the economic classification of expenditure
Normal operational activity funding remains limited and all possible efforts are implemented to ensure that all required activities can be performed as effectively and efficiently as possible, especially the required monitoring, evaluation and control of the system as a whole
The next four slides provides a breakdown of the 2019 MTEF allocations per programme and economic classification as well as information on transfers and the operational activity funding

52. Allocations per Budget Programme
Adjusted Appropriation
Medium-Term Expenditure Estimate
R’000
2018/19
2019/20
2020/21
2021/22
Administration
Planning, Policy and Strategy
79 904
90 771
98 114
University Education
Technical and Vocational Education and Training
Skills Development      
Community Education and Training
Subtotal
Skills Levy
Total

53. Allocations per Economic Classification
Adjusted Appropriation
Medium-Term Expenditure Estimate
R’000
2018/19
2019/20
2020/21
2021/22
Compensation of Employees
Goods and Services
Transfers and subsidies (Refer to next slide for detail)
Payments for capital assets
13 862
12 048
11 661
12 352
Subtotal
Skills levy
Total

54. Detail of Transfer Payments
Economic Classification
Detail of Transfer Payments
Adjusted Appropriation
Medium-Term Expenditure Estimate
R’000
2018/19
2019/20
2020/21
2021/22
National Student Financial Aid Scheme
Public entities (SAQA, CHE, QCTO, PSETA)
ETDPSETA: Training contribution for TVET and CET
17 949
18 957
19 991
21 091
Universities
TVET Colleges
Including Infrastructure
Community Education Training Colleges
Universities South Africa (HEAIDS)
17 919
18 781
19 813
20 903
Commonwealth of Learning and IBSA
3 691
3 898
4 112
4 338
National Institute for Humanities and Social Sciences
38 837
36 196
38 187
40 287
Leave gratuities
4 700 -
Total

55. Budget for 2019/20
Within the Department the funding distribution is as follows:
R’million
Total Voted Funds
Less: Direct Charges (Skills levy to SETAs and NSF)
18 759
Balance of Voted funds
89 498
Less: Transfers:
Universities
42 307
(R billion)
NSFAS
30 822
Public Entities
261
TVET Colleges
5 569
CET Colleges
149
Other 78
Less: Compensation of Employees
9 638
Less: Earmarked funds 72
Balance available for operational costs
602

56. Thank You