1. ANNUAL REPORT 2011/12 DEPARTMENT HIGHER EDUCATION AND TRAINING Presentation to the Portfolio Committee on Higher Education and Training 16 October 2012

2. Presentation Outline 2 Background Information Performance on Predetermined Objectives Financial Statements Auditor-General Report

3. Background Information 3 The 2011/12 Annual Report is the second report post the split of the Department of Education The Annual Report includes the following information: -General information -Information on predetermined objectives -Annual Financial Statements -Human Resources Management

4. Background Information 4 National Skills Fund: Performance information and annual financial statements is incorporated Department of Education: The Department is still listed in Schedule 1 of the Public Service Act as a functional Department. All outstanding balances have been closed by 31 March 2012 and balances that could not be cleared were transferred to the Departments of Basic Education as well as Higher Education and Training Predetermined objectives: -Key achievements -Status of targets -Challenges experienced -Measures put in place

5. Programme 1: Administration 5 Purpose: To conduct the overall management of the Department and provide centralised support services Key Achievements: The focus for 2011/12 was to build on the work that commenced during 2010/11 and put the necessary administrative systems, policies and procedures into place, as well as to provide core capacity for the smooth running of the department 133 Appointments were made

6. Programme 1: Administration 6 847 Funded posts of which 843 are filled Staff turnover has been reduced from 12% to 7.6% A number of policies were developed and approved in Information Communication Technology, Human Resources and Supply Chain Management (3, 16 and 8 respectively) Call centre has continued to provide a meaningful service to citizens by responding to 95% of the Presidential Hotline queries

7. Programme 1: Administration 7 Macro-organisational structure approved and consulted with MPSA Human Resource and Employment Equity Plans approved 27 Posts for regional offices created and pilot started in KwaZulu-Natal and Eastern Cape Challenges: ICT services – LAN Desktop support has been slow in addressing user calls Training levels of the security staff needs to be improved

8. Programme 1: Administration 8 Lack of modern call centre technology and inadequate facilities for call centre operators Procurement of new offices did not materialise No risk management capacity Mitigation: Appoint an external service provider for LAN and end- to-end user desktop support Increased capacity in security advisory services and provide training Develop a new integrated system for the Call Centre Acquisition of land for office construction Contract appointment for risk management

9. Programme 2: Human Resource Development, Planning and Monitoring Coordination 9 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 Budget sub-programmes: Academic Planning and Management Support Human Resource Development, Strategic Planning and Coordination Planning, Information, Monitoring and Evaluation Coordination International Relations Legal and Legislative Services Social Inclusion in Education

10. Programme 2: Human Resource Development, Planning and Monitoring Coordination 10 Key Achievements: Work on the integrated information system continued and three integrated strategic information systems, namely Higher Education and Training Management Information System, Labour Market Intelligence System (LMIS) and Career Advice System are being built The Information Framework and Career Advice Services Framework were developed Education Policy of 2004 was updated Partnership with HSRC to conduct research for LMIS UNESCO data mission hosted and data plan for SA developed

11. Programme 2: Human Resource Development, Planning and Monitoring Coordination 11 Data collection of FET and Artisan sectors was strengthened and an electronic web based data collection system were developed DHET hosted IBSA Academic Forum Study visits were undertaken for accessing and sharing best practices, enhance cooperation with Switzerland, Finland, Sweden, Denmark, Germany, Norway, Oman, Cuba, Rwanda, and Burundi Agreements of cooperation were signed with Cuba, Rwanda and Burundi A new trilateral cooperation project supported by USAID was approved

12. Programme 2: Human Resource Development, Planning and Monitoring Coordination 12 Higher Education Laws Amendment Bill, 2011 and Skills Development Bill 2011, were promulgated Further Education and Training Colleges Amendment Bill, 2011 were approved by both houses of Parliament 3 Sets of Regulations and 8 notices were drafted and published 42 Legal opinions were drafted or vetted 60 Agreements were drafted and/or vetted 24 Court cases administered Supported the establishment of the Ministerial Task Team on Recognition of Prior Learning and received public submissions on the proposed qualifications sub- frameworks

13. Programme 2: Human Resource Development, Planning and Monitoring Coordination 13 Challenges: No major challenges, all programmes operated on a reduced and constrained budget 8 Targets were partially achieved and 1 target was not achieved Some of the targets were not achieved within the programme as a result of capacity constraints: -Director only assumed duty on the 1 September 2011 - Deputy Director was temporary seconded to another unit

14. Programme 2: Human Resource Development, Planning and Monitoring Coordination 14 Mitigation: Seconded Deputy Director is back within the Branch To date 2 of these targets have been achieved and remaining 8 will be achieved before the end of the financial year

15. Programme 3: University Education 15 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 Budget sub-programmes: Academic Planning and Management Support Financial Planning and Information Systems University Subsidies Policy and Development Teacher Education

16. Programme 3: University Education 16 Key Achievements:  The Ministerial Statement on Enrolment Planning in Universities for 2011/12-2013/14 was approved and communicated to all universities  Approved Project Plan, Project Management Team and Project Steering Committee to oversee the establishment of the two new universities  Final draft of the Policy framework for the provision of distance higher education in South Africa was submitted to the Minister for approval to publish in government gazette for public comment

17. Programme 3: University Education 17  Project plan for the establishment of a national Central Application Service was developed and work has started  Report of the Ministerial Committee for the Review of the Provision of Student Housing at South African Universities was published and launched by the Minister  Implementation of Phase 3 of the Higher Education HIV/AIDS Programme was successfully implemented A National Transformation Seminar was held as a follow-up to the Higher Education Stakeholder Summit held in 2010

18. Programme 3: University Education 18 Launch of the Ministerial panel on African languages Integrated Strategic Planning Framework for Teacher Education and Development in South Africa (2011-2025) was published and launched The Minimum Requirements for Teacher Education Qualifications (MRTEQ) was published in the Government Gazette as policy and implementation started The draft Minimum Requirements for FET College Lecturer Qualifications was completed and ready to publish for public comment

19. Programme 3: University Education 19 Foundation Phase Teacher Education was strengthened: -20 Universities involved in Foundation Phase Teacher Education (up from 13 in 2009; 14 offering programmes and 6 preparing to offer by 2014) -24 New childhood education academics employed at universities -13 Research and development projects involving 20 universities supported -Publication of 33 journal articles -Scholarship support for 4 Honours students, 34 MEd students and 39 PhD students (human resource development for expansion)

20. Programme 3: University Education 20 -South African Journal for Childhood Education (SAJE) supported and launched with two editions published -South African Association for Research in Early Childhood Education (SAARECE) established Challenges: 3 Universities were placed under administration (University of Zululand; Tshwane University of Technology, Walter Sisulu University) and independent assessments in 2 other universities (Vaal University of Technology and Central University of Technology) were undertaken

21. Programme 3: University Education 21 26 Targets were partially achieved and 10 targets were not achieved Staff shortages remain the biggest internal challenge Mitigation: To date 11 of these targets have been achieved, 19 partially achieved and 6 not achieved Increase capacity in the Branch (4 Director posts have been advertised in this regard) Improved communication and relations with universities

22. Programme 3: University Education 22 Improved monitoring and evaluation measures, including implementation of new reporting regulations and criteria for earmarked grants Strengthen relations with CHE and SAQA with respect to their responsibilities as described in the NQF Act to ensure better alignment with the DHET objectives Improve performance management in certain sections of the Branch

23. Programme 4: Vocational and Continuing Education and Training 23 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 Budget sub-programmes: Planning and institutional support Programmes and qualification

24. Programme 4: Vocational and Continuing Education and Training 24 Key Achievements: The community education and training centres and the conversion of DFET Colleges into VCET Institutions has been gazetted as delivery institutions for the VCET sector The National Senior Certificate for Adults was published for public comment An additional National Certificate (Vocational) programme, namely Transport and Logistics has been introduced A Ministerial Task Team was established to review the NCV qualifications at levels 2-4

25. Programme 4: Vocational and Continuing Education and Training 25 The curriculum for an additional programme, namely Primary Health was completed in partnership with the HWSETA and the Department of Health for implementation in 2013 The internal continuous assessment (ICASS) guidelines were developed to strengthen the NCV delivery 26 units of lecturer training delivered in the last financial year supported the implementation of the Internal Continuous Assessment guidelines in all 50 colleges

26. Programme 4: Vocational and Continuing Education and Training 26 Access into FET colleges was significantly expanded through the R1.270 billion bursary allocation awarded to 165 273 students enrolled in the state-subsidized programmes The Quality Council for Trades and Occupations (QCTO) has assumed the role of quality assurance for N4-N6, including the National Diploma in Report 191 On-site training of NC(V) Level 4 and ABET-GETC Level Panel is in setting of question papers and site- based assessments tasks was held

27. Programme 4: Vocational and Continuing Education and Training 27 9 National Examination Cycles were held (7 were for FET College sector, and 2 for AET) with the following achievements: - Registration of 866 491 candidates for National Examination -Monitoring and registration of 382 Public and Private examinations centres -Setting and moderation of 1 417 question papers and 65 site-based assessment tasks -Printing, packing and distribution of question papers for the FET College sector

28. Programme 4: Vocational and Continuing Education and Training 28 -Marking of 2.5 million scripts for the FET College sector -Capturing of 5.08 million marks for the FET College candidates -Monitoring of examination centres during the conduct of examinations and marking sessions throughout the year -Standardisation of all examination marks -Resulting and certification of candidates for the FET college sector -Enrolment rates rose by 34% from 2011

29. Programme 4: Vocational and Continuing Education and Training 29 -The success rates based on November 2011 results showed a dramatic improvement in success rates averaging 40% across levels In regulating private FET colleges, the following were achieved: -501 Private colleges were registered -123 Private colleges were registered as examination centres -Compliance and performance reports on 384 provisionally registered colleges -Identification of 28 illegally operating private colleges and the arrest of their managers

30. Programme 4: Vocational and Continuing Education and Training 30 Challenges: Capacity constraints were experienced in the areas of on-site security, staff allocation and budget allocation in regard to the examination function 15 Targets were partially achieved and 13 targets were not achieved Delays in securing the National Treasury Technical Assistance Unit to provide technical expertise in scoping and supporting the move of the provincial VCET functions, budgets and personnel to the Department

31. Programme 4: Vocational and Continuing Education and Training 31 Continued operation of unregistered private institutions Lack of readiness across the AET system to implement the funding norms for public Adult Learning Centres Mitigation: To date 11 of these targets have been achieved, 9 partially achieved and 8 not achieved Amendment to FET Colleges Act of 2006 in May 2011 resulted in new consultative structures Draft Policy on Professional Qualifications for FET College Lecturers was published in the Government Gazette

32. Programme 4: Vocational and Continuing Education and Training 32 Piloting of the Integrated Financial Management Systems (IFMS) Draft document - National Norms and Standards for Funding FET Colleges All remaining outstanding policies, reports, curriculum and programme development will be completed within this financial year

33. Programme 5: Skills Development 33 Purpose: To promote and monitor the National Skills Development Strategy Budget sub-programmes: SETA Coordination National Skills Development Services Quality Development and Promotion

34. Programme 5: Skills Development 34 Key Achievements : The National Artisan Moderation Body (NAMB) was partly operationalised and appointed as the first assessment quality partner for the QCTO 13 168 Artisan learners completed training nationally Convened the Skills conference on the deepening of understating of the NSDS III SETA levies were managed and disbursed on a monthly basis Scarce skills information was aggregated as per the sector skills plans The OFO codes and guidelines were updated

35. Programme 5: Skills Development 35 New SETA landscape and establishment of SETAs were published in government gazette SETAs were supported in the development and alignment of their sector skills plan through the SSP framework and Strategic Plan Framework Challenges: Staff vacancies at INDLELA relating to technical persons who are able to carry out testing due to the scarcity of qualified artisans who are also assessors 14 Targets were partially achieved and 13 targets were not achieved

36. Programme 5: Skills Development 36 Full operationalisation of NAMB Regular breakdown of IT services due to cable theft limits the efficiency of INDLELA operations Delay in the provision of advice on the Annual Performance against the NSDS III by NSA Mitigation: To date 12 of these targets have been achieved, 8 partially achieved and 7 not achieved Ongoing advertising and head hunting. Started the re- engineering of INDLELA to focus on RPL for artisans aides

37. Programme 5: Skills Development 37 Lack of funding from National Treasury has been replaced with funds from National Skills Funds Recruitment in process for 16 Deputy Directors and 36 Interns Process to purchase a wireless micro link to avoid reliance in cables in process with SITA/GITO NSDS data collection in progress from all stakeholders

38. Financial Statements 38 Programme Allocation R’000 Actual Expenditure R’000 % Spent 1: Administration155 688152 40497.9% 2: Human Resource Development, Planning and Monitoring Coordination 38 73438 07498.3% 3: University Education23 428 99123 428 356100.0% 4: Vocational and Continuing Education and Training 4 545 4634 540 83899.9% 5: Skills Development130 638122 02593.4% 6: Direct Charges (SETAs and NSF)10 095 11310 025 25199.3% Total38 394 62738 306 94899.8%

39. Allocation versus Expenditure Variances 39 Programme 1: Administration –Slow filling of vacant positions and concomitant under-expenditure on machinery and equipment –Lower than expected invoicing of Audit work by 31 March 2012 Programme 2: Human Resource Development, Planning and Monitoring Coordination; Programme 3: Universities and Programme 4: Vocational and Continuing Education and Training –Had no material allocation versus expenditure variances Programme 5: Skills Development –Under-spending on the Indlela security system

40. 40 Economic Classification Allocation R’000 Actual Expenditure R’000 % Spent Compensation of Employees 310 168305 598 98.5 Goods and Services 159 166155 165 97.5 Financial transactions in assets and liabilities -96 - Transfer Payments Provinces and municipalities4 375 311 100.0 Departmental agencies and accounts14 177 15814 107 295 99.5 Universities and Technikons (current)19 354 159 100.0 Foreign governments and international organisations2 4432 379 97.4 Non-profit institutions3 000 100.0 Households245240 98.0 Capital Expenditure Machinery and equipment12 8623 591 27.9 Software and other intangible assets115114 99.1 Total38 394 62738 306 94899.8 Spending Trends per Economic Classification

41. Auditor-General Report 41 Received an unqualified audit opinion Key matters raised by the Auditor-General: –Significant Uncertainties Defendant in a number of law suits. The department is opposing the claims and the ultimate outcome of these cannot be presently determined –Restatement of Corresponding Figures Lease commitments for the 2010/11 financial year has been restated –Performance Information Major variances are not in all cases supported by sufficient appropriate evidence

42. Action Plan 42 The Department has developed action plans to address matters raised 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 will be monitored on a monthly basis and will be reported to the Audit Committee and Senior Management

43. Thank You 43