1. PERFORMANCE INFORMATION ON PRE-DETERMINED OBJECTIVES AND BUDGET Presentation to the Portfolio Committee on Higher Education and Training 20 August 2014

2. Presentation Outline 2 1. Background 2.Performance per Programme (2013/14 fourth quarter and 2014/15 first quarter) Administration Human Resource Development, Planning and Monitoring Coordination University Education Vocational and Continuing Education and Training Skills Development 3. Budget Performance

3. 3 For the quarter ending 31 March 2014 (4 th Quarter) There were 107 pre-determined targets during the fourth quarter of the 2013/14 financial year As at 31 March 2014, 67% (72) of the targets were achieved, 33% (35) were not achieved Further to this date, some of the targets that have not been achieved has subsequently been achieved after 31 March 2014 Background

4. 4 For the quarter ending 30 June 2014 (1 st Quarter) The Department had 5 pre-determined targets, mainly in the University Education and Vocational and Continuing Education and Training (VCET) programmes Of the 5 targets, 3 were achieved and 2 were still in the implementation phase Implementation of targets that will be fully reported at the end of the financial year has also commenced and each programme will present progress status thereof Background

5. 4 th Quarter Performance: 22 Targets: 20 Achieved and 2 Not achieved Key Achievements ICT governance maturity level 3 achieved (above the targeted level 2) IT services available 24 hours, 7 days a week (24/7) to DHET users (as planned) Functional user-friendly and updated DHET website functional 90 days per year (as planned) Purpose: Provide overall management and administration of the department Programme 1: Administration 5

6. Achieved an average of four months to fill a funded vacancy from the date of advertisement to the date of recommendation (as planned) Reduced vacancy rate of funded posts in the department to 7.1% (target was10%) Disciplinary cases during the quarter were resolved within 58 days (target 90 days) Achieved 98% performance against the Human Resource Strategic Planning Framework as measured by the Department of Public Service and Administration (DPSA) assessment tool Programme 1: Administration 6

7. 100% compliance to SCM transactional processes complying with SCM policies (as planned) Issued 3 DHET internal newsletters published quarterly (target was 1) 99.72% of response to queries via call centre (as planned) 4 exhibitions and public relations events held (as planned) 99% compliance with Occupational Health and Safety (OHS) (as planned) 96% compliance with security directives (target 95%) Risk management strategy and policy have been developed and approved (as planned). Programme 1: Administration 7

8. Processed transfers was within an average period of 5 days (as planned) DHET financial statements were prepared and approved 100% compliance to PFMA (as planned) Less than 1% of asset lost and / or unauthorised movements Programme 1: Administration 8

9. Deviations from targets during the fourth quarter  The target to pay invoices from service providers within 28 days from the day the invoice was received was not achieved. − Instead valid claims / invoices were settled within 30 days. In terms of section 8.2.3 of the Treasury Regulations all payments due to creditors must be settled within 30 days from receipt of an invoice and this was met where possible Programme 1: Administration 9

10.  100% compliance with performance management framework is not achieved. − The Department will hold Managers and Supervisors with direct supervisors, accountable for ensuring that the planning and assessment timelines issued by HR are met. This will be effective from 1 April 2014. A circular will go out in this regard. Programme 1: Administration 10

11. 2014/15 1 st quarter performance There were no specific delivery targets for the 1 st quarter of the 2014/15. However progress towards ensuring that annual targets are achieved was made. The main focus during the quarter under review was: –Departmental IT Governance Framework aligned with the Corporate Governance of ICT Policy developed by the Department of Public Service Administration (DPSA) has been developed Programme 1: Administration 11

12. The Department managed to keep the vacancy rate below 10% (currently 8%) and the average period of 4 months to fill funded posts In respect to the period it takes to award a bid from the date of receiving the draft bid specifications from programme managers, there seems to be a challenge to reach the 90 days target Programme 1: Administration 12

13. Programme 2: HRD, Planning and Monitoring Coordination 4 th quarter performance: 18 Targets: 13 Achieved and 5 Not achieved Key Achievements: 100% of public institutional data (50 Public TVET Colleges, 23 HE institutions and 21 SETAs) integrated into education and training management information system (as planned) Purpose: Provide strategic direction in the development, implementation and monitoring of departmental policies and Human Resource Development Strategy for South Africa 13

14. Programme 2: HRD, Planning and Monitoring Coordination Career Management and Information system modules developed and 3 modules developed during the quarter (target 2 modules) Targeted users were reached by career guidance services through different platforms (radio, web portal, exhibition and helpline) – as planned. DHET Annual Performance Plan was developed with performance indicators and approved (as planned) Quarterly performance progress report on the implementation of the strategic plan and the Annual Performance Plan produced and approved (as planned) 14

15. Programme 2: HRD, Planning and Monitoring Coordination International relations operational framework strategy was developed and implementation report produced and approved (as planned) Engagement plans developed and implementation report compiled and approved (as planned) A publication on international collaboration produced and approved (as planned) 15

16. Programme 2: HRD, Planning and Monitoring Coordination Litigations against the Department were dealt with in line with prescribed court rules Legal opinions and agreements were provided as per requests Annual Ministerial policy guidelines developed and approved (as planned) Dealt with requests for advice within the standards approved by the Branch Head (as planned) 16

17. Programme 2: HRD, Planning and Monitoring Coordination Deviation from planned targets during fourth quarter  A research bulletin was approved and published after the end of the quarter due to qualitative checks that took longer than planned  An investment report on education and training was compiled and approved by after the deadline of 31 March 2014 due to qualitative checks that took longer than planned  Monitoring report on the implementation of the Social Inclusion Framework was subsequently finalised and approved in April 2014 17

18. Programme 2: HRD, Planning and Monitoring Coordination  Updated database of international engagements of all public post-school institutions − The revision of the electronic data capturing system was delayed due to system development delays as the Department did not have at its disposal technical resources that could develop an online application − The technical resource was only allocated in November 2013 to this project. Surveys have since been submitted to Universities and the content will be updated accordingly 18

19. Programme 2: HRD, Planning and Monitoring Coordination Monitoring and evaluation report on the mandatory role of the Quality Councils and SAQA: − Due to consultative process followed the monitoring and evaluation report was finalised and approved after 31 March 2014. 2014/15 1 st Quarter Performance There were no specific delivery targets for the 1 st quarter of the 2014/15 financial year. However progress towards ensuring that annual targets are achieved was made: 19

20. Programme 2: HRD, Planning and Monitoring Coordination 2014/15 1 st Quarter Performance Institutional data integration: 50% Data integrations have been initiated for Adult Education and Training (AET) and Technical and Vocational Education and Training (TVET) 2013 Annual Surveys. The Minister has approved and signed the Standard for the Publication of Post-School Education and Training Statistics Report in South Africa as well as Data Dissemination Standards which was published in the Government Gazette on 12 June 2014 as Gazette No. 37733 of June 2014 20

21. Programme 2: HRD, Planning and Monitoring Coordination On track with the development of a Career Development Policy and implementation strategy: -A draft Career Development Policy has been developed and will be presented to the National Career Development Government Forum for consultation -The Career Development Services tender to extend the National Career Advice Portal (NCAP) modules is in process. The Service Provider for the ‘Competency Framework for Career Development Practitioners’ has delivered the first draft for consultation 21

22. Programme 2: HRD, Planning and Monitoring Coordination The engagement plan to pursue and strengthen bilateral relations with priority countries in Africa, Middle East, South and the North as well as with multilateral agencies has been compiled and being finalised 22

23. Programme 3: University Education Purpose: Develops and coordinates policy and regulatory frameworks for an effective and efficient university education system and provides financial support to universities, National Student Financial Aid Scheme and National Institutes for Higher Education 4 th quarter performance: 17 Targets: 14 Achieved and 3 Not achieved Achievements: 18% headcount enrolment at universities over population 20 to 24 year old (as planned) 2 public higher education institutions established 23

24. Programme 3: University Education 21 universities are now involved in Foundation Phase teacher education Monitoring report on the implementation of TVET Lecturer Qualifications developed and approved 18 universities had indicated interest to develop TVET College lecturer qualifications (target 10) Monitoring and evaluation reports on the use of infrastructure grants to universities produced Monitoring and evaluation reports on the use of teaching development grants to universities produced 87% of the 23 public higher education institutions with good governance and management in place 24

25. Programme 3: University Education 100% (3) statutes of universities reviewed and published in government gazette Governance training workshop for ministerial appointees conducted (as planned) 12 363 Publications units produced in the 2012 calendar year, as reported in the Research Outputs Report, was approved by January 2014 1.38 ratio of research output units per instructional / research staff in 2012 (above target of 1.36) 2 updates on the HEMIS for audited student and staff data (as planned) 1 annual update on the HEMIS system for final building space data from the Universities (as planned) 25

26. Programme 3: University Education Deviation from targets during the fourth quarter  The draft Policy on Professional Qualifications for Adult Educators and Community Education and Training Lecturers was not published for public comment as planned. − The draft policy document had been widely consulted and finalised early in the third quarter and is undergoing an approval process 26

27.  97% of Private Higher Education Institutions (PHEIs) comply with the regulatory criteria –The 100% target is ambitious and an ideal. The achievement of 97% compliance, while not meeting the ideal, is considered to be acceptable. A total of 116 PHEIs were registered by the end of the quarter, and of these only 4 were non-compliant with all the regulations, and had been put under notice of intent to cancel. Programme 3: University Education 27

28. The target of five Ministerial Appointees on each university council has not been achieved. -Universities are autonomous institutions and their individual statutes determine the number of Ministerial appointees for their Council. Currently eight of the 25 universities have statutes that do not specify 5 Ministerial Appointees -The Department has requested these universities to review their statutes to enable the Minister to appoint 5 members to their Councils Programme 3: University Education 28

29. While some of these universities have indicated they are considering the request, others have indicated already that they do not intend to comply The review of the Higher Education Act (of 1997, as amended) currently underway will consider this issue and whether or not the Act should stipulate that councils must have five ministerial appointees. Any change in the act will require these universities to review their statutes Programme 3: University Education 29

30. 2014/15 1 st quarter performance The University Education programme had two specific quarterly targets in the APP which were not were fully achieved during the quarter In addition to the specific quarter targets, one of the quarterly targets set for later in the financial year was also achieved, namely the establishment of the third new university in South Africa since 1994, the Sefako Makgato Health Sciences University (SMU) 23 University teaching development plans (3-years) were submitted and approved (target was 24 universities) Programme 3: University Education 30

31. 24 Research Development Plans were submitted and evaluated by a review panel in terms of criteria. All 24 RDPs have been recommended for approval However the submissions requesting approval were not completed during the quarter, and therefore the final approval was not obtained by June 2014. It is anticipated that all 24 plans will be approved during the second quarter. Programme 3: University Education 31

32. Significant progress has been made by the branch on other 2014-15 annual targets: –HEMIS second submission 2013 student data for the 23 Institutions has been loaded to the National database and all standard reports have been generated for all the enrolment target indicators –2013 final audited data will be uploaded during July to the national database. Thereafter reports will be generated and the verification process against the external audit reports will commence –The process is on track and the final audited 2013 data will be available in October 2014 Programme 3: University Education 32

33. Programme 3: University Education 33  A monitoring report on the use of the earmarked grant to support the development of each of the newly established universities (University of Mpumalanga (UMP) and Sol Plaatje University (SPU)) produced and approved by 31 March 2015 The annual report on the establishment of UMP and SPU from the project management team has been received and found to be satisfactory. On-going monitoring is being carried out and the final monitoring report will be completed during the 4 th quarter for approval  5 universities have submitted applications for PQM approval to offer the qualification programmes for TVET College lecturers by 31 March 2015 2 universities have thus far submitted applications for approval  A national Policy on Professional Qualifications for Educators in Community and Adult Education and Training is published in the Government Gazette by 31 March 2015 The draft policy has been published for public comment. Interested parties were given until the 15 July to submit comments. Once comments are received they will be analysed and the draft final policy will be prepared for approval. This process is on track

34. Programme 3: University Education 34  R2 2 billion disbursed to universities by 31 March 2015 R140m was disbursed during the first quarter.  A monitoring report on the effective use of infrastructure grants by each university (23) produced and approved by 31 March 2015 Most universities have submitted their annual infrastructure progress reports and these have been analysed. Selective site visits to some infrastructure projects will be carried out during the 2 nd and 3 rd quarters. The final monitoring will be completed in the 4 th quarter  Annual monitoring report on the outputs of scarce skills graduates from 23 universities with recommendations for interventions produced and approved by 31 March 2015 Once the audited 2013 HEMIS data is available (i.e. October 2013) the annual monitoring report will be developed

35. Programme 3: University Education 35  An annual report on the financial health of 25 universities with recommendations for improvement produced and approved by 31 March 2015 21 of 25 universities submitted their annual reports by the 30 June as required. 4 universities were granted an extension to submit by the 31 July. The analysis of the audited financial statements commenced during June. The final report will be ready for approval in the 4 th quarter  Draft revised regulations for regulating PHEIs are approved by the Minister and published in the Government Gazette for public comment by September 2014 Draft regulations have been developed and a submission has been drafted for Ministerial approval  An annual monitoring report on PHEIs’ compliance with the regulatory criteria with recommendations for improvement produced and approved by 31 March 2015 109 PHEIs submitted their annual reports and the process of analysing the annual reports for compliance is underway and is expected to be completed by October 2014. The final monitoring report will be compiled on the basis of the analysis and on-going

36. Programme 3: University Education 36  An improved Policy on the measurement of research outputs of universities is approved by the Minister and published in the government gazette for implementation by 31 March 2015 The final policy statement was completed after taking into account the public comments on the draft policy published in the previous financial year. The final policy statement was sent to the CHE for advice. Comments have been received from the CHE and will be analysed. Once finalised it will be submitted for ministerial approval for publication. The process is on track to meet the target of 31 March 2015.  An annual report on the research outputs of 23 universities approved by 31 March 2015 23 institutions had submitted their research outputs claims by early June 2014. All books and conference proceedings were screened and sent for expert evaluation by the end of June 2014. The next step will be to receive the expert reports, and for the research outputs panel to meet and make decisions on the recommendations. It is expected that by November 2014 the panel will have made its final recommendations and the draft research outputs report will be ready for final approval

37. Programme 3: University Education 37  2 (1 student and 1 staff) updates for 23 universities by 31 March 2015 All HEMIS second submission 2013 student data for the 23 institutions has been loaded to the National database and all standard reports have been generated. All preliminary staff data for 2013 has been uploaded to the National database and standard reports generated. The University of Zululand submitted late due to the fact that they had to appoint a new HEMIS officer  1 annual update for 23 universities by 31 March 2015 The 2013 space data for 21 of the 23 universities has been loaded to the National database. UNISA has submitted their data but there are issues with the loading of the data due to the format provided. The University of Zululand still has to submit their space data as the new HEMIS officer is waiting verification of data from the assets department. UCT, the University of Fort Hare, University of Venda and the University of Witwatersrand (Wits) submitted their data late. Wits’ data has errors as they cannot verify the classification of subject matter for some of the venues

38. Programme 4: Vocational and Continuing Education and Training Purpose: Plan, develop, evaluate, monitor and maintain national policy, programmes, assessment practices and systems for vocational and continuing education and training, including further education and training colleges and post- literacy adult education and training 4 th quarter performance: 37 Targets: 13 Achieved and 24 Not achieved as at 31 March 2014 Key Achievements: 290 106 learners were enrolled in AET Centres 670 455 headcount enrolments in TVET Colleges 38

39. Programme 4: Vocational and Continuing Education and Training 273 679 TVET college students awarded bursaries Report on the coordination of the following donor- funded projects produced: − Business Management Standards − Qualifications, review, NC (V) selected subjects review − Student Support Services interventions implemented to selected TVET Colleges NASCA related policies and regulations developed 9 institutions have been identified to for declaration as community colleges 39

40. Programme 4: Vocational and Continuing Education and Training 75 personnel at Public TVET Colleges were trained in strategic and Operational planning Training and assessment of the implementation of the Collective Agreement was conducted in 9 provinces All (50) public TVET Colleges responding to annual survey conducted by the Department A TVET college model was developed and forms the basis for all underway projects of constructing new campuses and refurbishment of existing ones 100% of registered private colleges comply with applicable regulations 40

41. Programme 4: Vocational and Continuing Education and Training Deviation from targets during the fourth quarter  New 1x3 NC (V) qualification registered on the NQF was not been achieved: − Delay in the completion of this output is attributable to the extensive stakeholder consultative process undertaken in formulating the final recommendations − The NC (V) qualifications policy will only be revised once the Departmental recommendations have been approved 41

42. Programme 4: Vocational and Continuing Education and Training  Material development for the National Senior Certificate for Adults Qualification: − A protracted engagement on articulation by the Department of Basic Education (DBE), DHET, Umalusi and South African Qualifications Authority (SAQA) resulted in the National Senior Certificate for Adults (NASCA) only being registered as a qualification at the end 2013 − This development impacted negatively on the crafting of the curriculum, the related training and the development of the teaching and learning materials as envisaged − The material development activity is currently underway and subsequently overlapped into 2014/15 activities 42

43. Programme 4: Vocational and Continuing Education and Training  AET educators and TVET College lectures trained for the NASCA and GETC: − Due to the threat of a disengagement programme by AET educators in Limpopo, the scheduled training sessions could not go ahead (1 056 AET practitioners were to be trained) − In KZN, scheduled training sessions had to be postponed as a result of the province not being able to transport educators to the various venues (1 000 educators were targeted) 43

44. Programme 4: Vocational and Continuing Education and Training Approval of the Amended National Certificate (Orientation): − The Amended National Certificate (Orientation) was planned to have been developed and approved in the fourth quarter under review. Owing to financial and human capacity constraint in the Department, this output was not realized − Umalusi will undertake the development of the new qualification in the 2015/16 financial year Colleges offering NQF level 5 to 6 programmes: − The number of colleges offering HE programmes has reduced from the 8 reported in the previous year to 7 in the current year and 3 less than the target of 10 44

45. Programme 4: Vocational and Continuing Education and Training − This is attributed to the fact that this offering is not funded and students are expected to fund their studies at their own cost. This proved unachievable given the present economic climate 46 College councils trained in institutional and corporate governance (target 50): − Training was delayed as a result of not having fully constituted College councils 45

46. Programme 4: Vocational and Continuing Education and Training Construction of 6 new TVET college campuses : − There were delays caused by environmental impact assessment, procurement process and awarding of tenders on the construction of new TVET college campuses The target to have all (100%) AET Centres with improved conditions of service for educators was not achieved due to lack of funding. Could not obtain funding for provinces to implement the mandate 46

47. Programme 4: Vocational and Continuing Education and Training 100% (all) of public TVET College functions transferred to the Department - The progress on the transfer of functions is impacted by factors outside the control of the Department Targets for the training of TVET college lecturers, PEDs officials, and other personnel in TVET colleges were achieved in quarters preceding the quarter under review 98% AET colleges conducted improved assessments (target 100%) 96% (i.e.48 out of 50) of TVET Colleges conducted improved assessments as only 2 public TVET Colleges reported irregularities – Majuba and East Cape Midlands 47

48. Programme 4: Vocational and Continuing Education and Training  A national examination report compiled and approved: − A draft performance report for 2013 examination cycle was compiled and then amended to reflect a full academic year instead of only the November examination cycle after March 2014 and is yet to be approved 48

49. Programme 4: Vocational and Continuing Education and Training 2014/15 1 st Quarter Performance There were no specific delivery targets for the 1 st quarter of the 2014/15. However, progress towards ensuring that annual targets are achieved was made: In the first term of the Report 190/1 trimester and semester based programmes; and the yearlong National Certificate (Vocational) programmes, 359 119 unaudited headcount student enrolments have been reported. This figure excludes students enrolled in other occupationally directed short skills programmes and is almost 50% of the annual target. 49

50. The Department is still on track with public institutions to be identified for declaration as Community Colleges A draft National Policy on Community Colleges to facilitate the community college establishment process has been developed for gazetting Nine potential sites have been identified for the establishment of these colleges and operational cost projections for the establishment after declaration and piloting of community colleges have been developed with a view to submitting it to the National Treasury through a bidding process Programme 4: Vocational and Continuing Education and Training 50

51. Substantive broad and specific or project driven interventions aimed at improving academic performance i.e. pass and certification rates of TVET college students enrolled in Report 190/1 and NC(V) programmes are being implemented by colleges and administered by the Department Programme 4: Vocational and Continuing Education and Training 51

52. Programme 5: Skills Development Purpose:Promote and monitor the national skills development strategy. Develop skills development policy and a regulatory framework 4 th quarter performance: 13 Targets: 10 Achieved and 3 Not Achieved as at 31 March 2014 Key Achievements: 5 154 artisan candidates were found competent nationally 27 346 graduates were receiving work intergraded learning (WIL) 16 audits conducted at SETA or QCTO accredited trade test centres (target 10) 52

53. Programme 5: Skills Development All SETAs (21) have partnership agreements with public TVET Colleges and Universities (284 partnership agreements) (target was at least 4) 100% (All) SETAs implementing NSDS III with approved service level agreement All 21 SETAs Strategic plans were approved 2 SETA Fora targeted to improve communication with SETAs were held (as planned) 1 NSDS quarterly implementation report compiled 53

54. Deviation from targets during the fourth quarter 7 450 artisan learners registered nationally (target was 13 000) − Incomplete reports from SETAs which get corrected progressively 45% of national artisan learners pass trade test (target 48%) − This performance only reflects testing conducted at INDLELA. Artisan RPL System still in pilot phase to assist persons who are RPL candidates tested at INDLELA Scarce and critical skills list has been compiled but could not be approved within the planned timeframe Programme 5: Skills Development 54

55. 2014/15 1 st Quarter performance All 3 planned targets for the 1 st quarter were achieved. -6 097 artisan candidates registered nationally (Target was 3000) -2 329 artisan candidates found competent nationally (Target was 2000) -9 audits conducted at SETA or QCTO accredited trade test centres (Target was 5) Progress has been made towards the achievement of the 2014-15 annual targets which is as follows: Programme 5: Skills Development 55

56. Programme 5: Skills Development 56  37 016 graduates receiving Structured Work Place Learning by 31 March 2015 All 21 SETAs’ Service Level Agreements were approved with the inclusion of the graduate placement targets. Measures are in place for SETAs to report placement of graduate on quarterly basis and validate the quarterly reports that are received from SETAs. Lastly all SETAs’ first quarterly reports were submitted as required providing progress towards predetermined objectives and performance targets  48% of INDLELA national artisan learners pass trade test by 31 March 2015 Measures are in place to convey at least two workshop trainings for electricians and boilermakers to assist with improving competencies for unemployed before testing. A centralized National Artisan Development Quality Assurance Committee has been established to coordinate audits to trade test centres with the SETAs on a monthly basis. Provincial Artisan Development Steering Committees are being established in each province that combines all the public TVET Colleges into a single structure to coordinate artisan development in each province that will have specific emphasis of RPL for artisans that will also have an impact on the trade test pass rate nationally

57. Programme 5: Skills Development 57  30 TVET colleges with partnership agreements with SETAs by 31 March 2015 All 21 SETAs’ Service Level Agreements were approved with the inclusion of targets for TVET colleges’ partnership agreements and SETAs first quarterly reports were submitted as required providing progress towards predetermined objectives and performance targets

58. 2013/14 Financial Year End 58 Programme Allocation R’000 Actual Expenditure R’000 Variance R’000 % Spent 1: Administration203 729203 04468599.7 2: Human Resource Development, Planning and Monitoring Coordination 43 82743 53529299.3 3: University Education28 299 50728 299 279228100.0 4: Vocational and Continuing Education and Training 5 686 8065 686 388418100.0 5: Skills Development100 03199 72330899.7 6: Direct Charges (SETAs and NSF) 12 090 186 -100.0 Total46 424 08646 422 1551 931100.0

59. Explanations of Material Variances 59 Programme 1: Administration (Unspent: R685 000) Under-expenditure mainly due to: –Staff attrition and posts not filled as projected –Invoices i.r.o. travel and accommodation not received as projected Programme 2: Planning and Monitoring (Unspent: R292 000) Under-expenditure mainly due to: –Invoices i.r.o. travel and accommodation not received as projected –Invoices i.r.o. legal and legislative claims not received as projected –Fewer active court cases outside Pretoria Programme 3: University Education (Unspent: R228 000) Under-expenditure mainly due to: –Staff attrition and posts not filled as projected –Invoices i.r.o. travel and accommodation not received as projected

60. Reasons for Deviations 60 Programme 4: Vocational and Continuing Education and Training (Unspent: R418 000) Under-expenditure mainly due to: –Examination claims i.r.o. examiners and moderators not received as projected –Travel and subsistence claims i.r.o. examiners and moderators not received as projected –Saving on computer equipment due to revision of replacement period for some of the equipment as a result of budget constraints Programme 5: Skills Development (Unspent: R308 000) Under-expenditure mainly due to: –Staff attrition and posts not filled as projected –Indlela security system because of transitional arrangements and the extent of the project

61. 61 Economic Classification Allocation R’000 Actual Expenditure R’000 Deviation R’000 % Spent Compensation of Employees 398 903398 45045399.9 Goods and Services 178 844178 13471099.6 Transfer Payments Provinces (TVET Colleges Conditional Grant)2 454 188 -100.0 Sector Education and Training (skills levy)9 673 818 -100.0 National Skills Fund (skills levy)2 416 368 -100.0 National Student Financial Aid Scheme5 769 405 -100.0 Public Entities: Other transfers such as SAQA, QCTO and CHE113 201113 14556100.0 Universities (current)22 388 767 -100.0 Commonwealth of Learning and IBSA2 9172 927(10)100.3 TVET College Subsidies3 013 189 -100.0 Higher Education South Africa for HEAIDS project7 000 -100.0 Leave Gratuities1 8151 70511093.9 Capital Expenditure Machinery and equipment5 6365 03260489.3 Intangible assets3527877.1 Total46 424 08646 422 1551 931100.0 2013/14: Spending Trends per Economic Classification

62. 2014/15: First Quarterly Report: Summary 62 The overall spending rate for the first quarter is 41.2% (including Direct Charges) The spending rate for the first quarter excluding Direct Charges is 47.5% The reasons for this high spending trend is due to the uneven transfers made to universities and TVET Colleges Average spending for normal operational activities including compensation of employees was 28.9% as opposed to the ideal 25% that it should have been The spending rate on compensation of employees is 27.3% which is higher than the normal trend and is made up as follows: -The spending rate on Departmental Personnel Expenditure is 24.8% Spending on this item is at a high risk as vacancies are still in process of being filled and the upgrading of posts from levels 9 and 11 to 10 and 12 respectively still need to be paid. - The spending rate on Examiners and Moderators is 37.7% Spending on this item is at a high risk and will mainly be influenced by examinations later in the year. This item is also directly impacted by the number of enrolments in TVET Colleges The Spending on transfers and Subsidies are on track Expenditure trends are monitored closely within the Department Cost saving measures have been implemented in the Department

63. 2014/15 Financial Year End: First Quarter 63 Programme Allocation R’000 Actual Expenditure R’000 Variance R’000 % Spent 1: Administration 217 10157 597159 50426.5 2: Human Resource Development, Planning and Monitoring Coordination 48 7859 72639 05919.9 3: University Education 30 448 03715 689 74914 758 28851.5 4: Vocational and Continuing Education and Training 6 042 1771 737 1154 305 06228.7 5: Skills Development 110 58124 77285 80922.4 6: Direct Charges (SETAs and NSF)13 440 0003 189 22510 250 77523.7 Total50 306 68120 708 18429 598 49741.2

64. 64 Economic Classification Allocation R’000 Actual Expenditure R’000 Deviation R’000 % Spent Compensation of Employees 426 540116 259310 28127.3 Goods and Services 183 99441 418142 57622.5 Transfer Payments Provinces (TVET College Conditional Grant)2 631 346877 1261 754 22033.3 Sector Education and Training (skills levy)10 752 6472 551 4268 201 22123.7 National Skills Fund (skills levy)2 687 353637 7992 049 55423.7 National Student Financial Aid Scheme6 138 8323 451 4362 687 39656.2 Public Entities: Other transfers such as SAQA, QCTO and CHE121 03730 21590 82225.0 Universities (current)24 155 09312 203 00111 952 09250.0 Commonwealth of Learning and IBSA2 915- 0.0 TVET College Subsidies3 195 827798 9632 404 28425.0 Higher Education South Africa for HEAIDS project7 240-7 4200.0 Leave Gratuities-25(25)- Capital Expenditure Machinery and equipment3 6775153 16214.0 Intangible assets---- Total50 306 68120 708 18329 598 49841.2 2014/15: Spending Trends per Economic Classification

65. Thank You