1. Presentation to Higher Education and Training Portfolio Committee 23 May 2012 1QCTO presentation 23 May 2012

2. Contents 1.QCTO Mandate in SD Act 2.QCTO establishment history 3.QCTO Council Composition 4.QCTO Business Plan 5.Achievements in the establishment of the QCTO 6.Achievements on the mandate of the QCTO 7.QCTO Model 8.Operational imperatives 9.QCTO Strategic Plan 10.Funding issues 2QCTO presentation 23 May 2012

3. QCTO’s mandate in Skills Development Act: The functions the Council was established to perform were set out in Section 26H of the SDA Act. They are, in summary: To advise the Minister on all matters of policy relating to occupational standards and qualifications; To design, develop and maintain occupational standards and qualifications; To quality assure occupational standards and qualifications in and for the workplace; To promote the objectives of the National Qualifications Framework; and To liaise with the National Skills Authority and the South African Qualifications Authority, other Quality Councils and professional bodies on matters to do with occupational qualifications. 3QCTO presentation 23 May 2012

4. QCTO establishment history QCTO Council members & Acting CEO appointed in Feb ‘10; QCTO formally established on 1 April 2010 under Section 26 G of the Skills Development Act, 1998, as amended in 2008; Higher Education Laws Amendment Act passed in December 2010 permitting QCTO to appoint and transfer staff; On 31 st December 2010 QCTO listed as a Public Entity backdated with effect from 1 April 2010 permitting QCTO to receive transfer budget from DHET (before budget under DHET); Minister of Finance requested a Business Case for the organisation (retrospective – as the QCTO had already been established). The language was changed to Business Plan. QCTO submitted Business Plan in March, Minister approved in October ’11 This permits the QCTO to appoint permanent staff 4QCTO presentation 23 May 2012

5. QCTO Council Composition Chairperson: Mr Wilson Nzimande (resigned Sep 2011), Prof Lolwana appointed Oct 2011; CEO of the QCTO: Ms Adrienne Bird Acting since April 2010, Ms Joyce Mashabela appointed from 1 April 2012. Ex-officio: CEOs of SAQA; NSA; CHE; and Umalusi; Organised Labour Mr Tantsi (NUM); Ms Mogopodi (NUMSA) Organized Business Ms Carthy (BUSA); Mr Matthiae (BUSA); Organizations of community and development interests Mr Maleka and Mr Mabuza; Interests of public education and training providers Dr. Mahlobo Private providers Dr. le Grange – APPETD; Two members to represent the interests of the State – Department of Trade DTI ( Ms Masebe) DHET (resigned – to be replaced) 5QCTO presentation 23 May 2012

6. 6 Business Plan (approved October 2011) Business Plan developed & submitted in March 2011, approved by Minister on 18 October 2011, includes: Service delivery model (development and quality assurance) Strategic plan (2011/12-2013/14) Operational Structure and Functions –Governance framework –Operational Functions and positions - 3 phase build-up to full start- up organogram: (1) selected priority posts 21 posts, (2) priority posts 34 posts, (3) start-up organogram 46 posts, NB: desired organogram consists of 69 posts Budget and financial plan (based on 3-phases) QCTO presentation 23 May 2012

7. CEO-commenced duties 1 April CD: OQ Management---Short listing 30 May Dir: OD Design, Provisioning, Accreditation and M&E DD: OQ Design (4) commenced duties 1 April SP: OQ Design SP: Provider Accreditation Dir: OQ Assessment, Cetification and FL DD: OQ Assessment (3) commenced duties 1 April SP: Foundational Learning CD: CFO and Corporate Services—Short listing 5 June Director: Information Technology Assistant Director: Finance Practitioner: Finance Senior Clerk: Procurement AD: HR, Admin, Marketing and Capacity Building SC: HR, Admin, Marketing and Capacity Building Dir: Governance, Strategy, Secretariat Services and Appeals DD: Gov, Strategy, Secretariat Services and Appeals AD: Gov, Strategy, Secretariat Services and Appeals Prac: Gov, Strategy, Secretariat Services and Appeals Secretary Personal Assistant OQ: Occupational Qualification Gov:Governance FL: Foundational Learning HR: Human Resources IT: Information technology M&E: Monitoring and Evaluation Admin:Administration QCTO Organogram – Phase 1 – 24 Feb 2012 7QCTO presentation 23 May 2012

8. Achievements in the establishment of the QCTO MOA signed with DHET on 13 July 2011 to permit QCTO to ‘use’ DHET systems until March 2012, extended until 31 March 2013. DHET CFO is acting as QCTO CFO under MOA Opened bank account with ABSA Bank end Sept. 2011 and all relevant funds were transferred from DHET to QCTO’s bank account Minister gave final approval of Category A2 for remuneration of Council Members Policy for remuneration of QCTO and Its committees approved by FINCOM (Council Finance Committee) Finance and Audit Committees in place (DHET Audit Committee until 31 July 2012, QCTO Audit Committee onwards from August 2012) 6 additional Financial Accounting Policies and the Materiality Framework approved by Council to prepare the Annual Financial Statements 44 job profiles graded and approved Permanent staff hired (CEO and 6 Deputy Directors) Strategic Plan submitted on time and approved 4 Quarterly Performance reports submitted on time 8QCTO presentation 23 May 2012

9. Achievements on the QCTO Mandate Policy advice to the Minister  Final draft of QCTO Sub-framework submitted to the Minister in July 2011 (sub-framework included in the government gazette December 2011  Comments on Green Paper on Post-School Education and Training System submitted on time Occupational qualifications and quality assurance  QCTO qualifications model developed  Developed 3 key policies to implement model  The first QCTO part qualification has been recommended to SAQA for registration  Finalizing first generation IT system for capturing qualification development products and reports Delegations  Functions of education and training quality assurance to SAQA  Functions of certification of trade courses to DHET  Functions of qualification design to 17 Development Quality Partners to design or revise over 100 qualifications which include 19 trades  1 Assessment Quality Partner (National Artisan Moderation Body) provisionally contracted for trade qualifications 9QCTO presentation 23 May 2012

10. 10 Illustrated QCTO model Illustrated QCTO model Knowledge / theory PracticalWork experience External, summative assessment (to be conducted by AQP) Occupational Qualification Registered SAQA Occupational Purpose DQP Curriculum components Assessment Specs. Qualification document Process produces: QCTO presentation 23 May 2012

11. QUALIFICATIONS DEVELOPMENT PROCESS STEPS RESULTS Curriculum Scope & SLA with (DQP) Occupational Profile & SLA with (AQP) B Learning Com- ponent Specifications (incl Internal Assessment) Occupational Curriculum (B+C) Occupational Qualification (C+D) Receive and Pro- cess Application Oversee Scoping Meeting with Constituency Develop Occupa- tional Profile and Identify AQP Develop Module and Subject Specifications Finalise Assess- ment Specifications Submit Manage Verification Process RESPONSIBLE Manage Verifi- cation Process AC QCTO Qualification Assessment Specifications (External) DE DQP with Expert Practitioners (incl Assessors Appoint AQP 3 DQP with Expert Practitioners and AQP 5 QCTO Staff 4 2 1 QDF with Expert Practitioners, AQP & Educationalists 8 DQP with Constituency Group 7 QDF with Expert Practi- tioners, AQP & Educationalists 6 DQP & QDF 9

12. Operational imperatives Articulation Updating the ‘N’ subjects in partnership with Umalusi Transitional Arrangement More than 1,000 qualifications historically quality assured by SETAs as SAQA accredited them as Education and Training Quality Assurers (ETQA); At end of Sept 2011, QCTO delegated to SAQA the respo,nsibility to extend SETA ETQA accreditation In anticipation of the expiry of this delegation, QCTO signed MOAs with over 50% of the SETAs to prepare for the transition to nationally standardized qualification development and quality assurance processes in line with QCTO policy, to detail the roles and functions of SETAs vis- à-vis QCTO and to revise and upgrade all currently registered qualifications in line with the QCTO model Recognition of Prior Learning (RPL) RPL was envisioned by the ANC-led government as a strategy to address the objectives of the NQF, namely access and redress. This was to be done by assessing and accrediting learning acquired in different contexts, that is, formally, informally or non-formally, if it meets the requirements of the targeted qualification or part qualification. As QCTO, our commitment is to ensure that Assessment Policies of our Assessment Quality Partners (AQPs) and their constituent providers, indicate mechanisms for assessing learners for prior learning, towards completion of targeted occupational qualifications or parts thereof 12QCTO presentation 23 May 2012

13. QCTO Strategic Plan QCTO submitted its Strategic Plan for 2012/13 to 2016/17 along with its associated Annual Performance Plan as required by the PFMA. The Strategic Plan was approved by the Minister and tabled March 2012 in Parliament. Strategic Plan focuses on three goals: 1. The QCTO is an effective and efficient organisation that is respected in the labour market by employers, learners and providers; 2.The QCTO provides South Africans with access to an occupational learning system that enables them, through lifelong learning, to succeed and progress in the labour market and to contribute to the country’s growth and development; 3.The QCTO will actively contribute to an improved NQF landscape. 13QCTO presentation 23 May 2012

14. 14 Highlights from Strategic Plan 1.Number of qualifications recommended to SAQA Target set: 60 2.Number of Assessment Quality Partners’ systems evaluated to be valid Target set: 15 3.Average time to issue certificates after assessment (weeks) Target set: 8 4.At least one provider accredited per new occupational qualification registered Target set:60 5.Number of research projects completed Target set:1 QCTO presentation 23 May 2012

15. The QCTO is funded through a transfer from the Department of Higher Education and Training The total allocation for 2011/12 amounted to R26.8 million, which included a roll-over of R8,5 million from the 2010/11 financial year Final allocations over the 2012 MTEF compared to initial budget requests are as follows: Bids were submitted during the MTEF process for additional funds, in order to address the delivery of the services for which the QCTO is responsible. Financial yearAllocation R’ million MTEF Request R’ million 2012/1320.227.3 2013/1421.439.4 2014/1522.744.1 Funding issue: 15QCTO presentation 23 May 2012

16. Funding issue: 16 1.Due to delay in the finalisation of Business Plan, the appointment of staff was delayed and therefore there is current under-expenditure. 2.However, going forward, insufficient funds to build capacity of QCTO (i.e. to move from phase 1 to phases 2 and 3); 3.Funding source: currently only voted funds through DHET 4.Possible alternative sources of funding? i.Fee Structure policy circulated for comment. Negatively received. Study report commissioned and submitted, QCTO Council has decided to establish a Funding Model Working Group to investigate proposals from research report and other alternatives. ii.SETA ETQA levy funds (Proposed transfer of maximum 0,5% of administration funds from SETAs to QCTO – comments submitted by QCTO). iii.NSF establishment grant application under consideration. This is a key issue for QCTO. Without additional funds it will only be able to fill about 27 positions the majority of which may be filled by staff being ‘transferred’ from DHET or were filled during DD appointment process i.e. status quo. QCTO presentation 23 May 2012

17. Thank you 17QCTO presentation 23 May 2012