1. Umalusi’s budget review presentation to the Portfolio Committee on Basic Education Tuesday, 24 March 2015 Cape Town 1

2. Umalusi mandate Vision, mission, goals and KRA’s 2014/15 Revenue & Expenditure 2015/16 Budget Three Year Budget Forecast Conclusion Overview 2

3. As a Quality Council to develop and manage a sub-framework of qualifications for general and further education and training; To develop and quality assure qualifications and curriculum; To quality assure assessments at exit points; To certificate learner achievements; To quality assure provision and accredit private providers of education and training, and assessment; To conduct research related to the sub-framework; and To advise the Minister on matters related to the sub-framework Umalusi Mandate 2014/15 3

4. Umalusi Council is the cornerstone on which the country’s educational aspirations and standards are anchored and built; and as such the Council and staff are committed to ongoing improvement in standards and quality in general and further education and training. In order to issue learners with credible certificates, Umalusi, through its leadership and expert knowledge, develops and secures standards through: quality assuring qualifications and curricula, confirming that assessment is fair, valid and reliable, quality assuring the provision of education and training, and assessment providers, and grounding its work in research to ensure informed positions and approaches Vision & Mission 4

5. Promote quality and internationally comparative standards in GFET Maintain and improve educational standards through development and evaluation of qualifications and curriculum, quality assurance of assessment, and accreditation of providers of education, training and assessment, Continuously develop in-depth knowledge and expertise in mandated areas through rigorous research, Report on the quality of education and training in GFET within the mandate, Issue appropriate and credible certificates of learner achievement in terms of specific qualifications on the GFET Framework of Qualifications, Provide reliable and credible leadership and guidance in standard setting and quality assurance, Ensure the financial efficiency and sustainability of the organisation, and Determine expectations and appropriately respond to these within the parameters of Umalusi’s mandate. Goals 5

6. 1. Establishing and maintaining a system to develop, evaluate and certify qualifications (and curriculum) 2. Improving and maintaining the system for quality assuring assessment for certification 3. Establishing and implementing a system for evaluation and accreditation of private providers – schools, colleges and adult learning centres as well as private assessment bodies 4. Researching, matters related to the sub-framework of qualifications and reporting on quality in general and further education and training supported by statistical analysis 5. Developing and ensuring good corporate governance and management of the office of the Chief Executive Officer 6. Ensuring that Information Technology systems are established, maintained and improved 7. Ensuring that finance, human resources and administrative support systems are maintained and improved 7 Key Result Areas 6

7. Unaudited Statement of Financial Performance as at 28 February 2015  Net surplus of R 19 440 165  97% of Budgeted Revenue from operations recognized  100% Grant from the Department of Basic Education received with thanks  82 % of the budgeted expenses incurred with vacancy rate at 12.2 % EXECUTIVE SUMMARY 7

8. Unaudited Statement of Financial Position, Cash flow, Debtors and Investments as at 28 February 2015  Total Assets valued at R 103 994 330  134.33% of invoiced debts collected to date  Cash available at the end of the period amounted to R 4 988 405  Investments R 53 224 298, attracting net interest of 5.88 % p.a. from Reserve Bank CPD EXECUTIVE SUMMARY (2) 8

9. Comparative total expenditure vs 3 year average 9

10. 2014/15 Revenue Budget vs Actual Revenue Streams BudgetActual%Comment Accreditation Fees 4 370 0009 701 115222%As institutions request accreditation – cannot predict number of applications Certification Fees 2 880 000 2 724 79895%Fees collected from private assessment bodies Department of Basic Education Grant 107 354 000 100%Grant payment transfer per approved schedule Interest 1 550 000 3 158 959204%Due to non-use of reserves Reserve Funds 10 654 09800%Unused to date due to collection of revenue Verification Fees 8 000 0007 593 45995%Verification of qualifications on request from private verification companies Other 0464 1350%Private telephone calls, rental income, t-shirt sales to staff, etc. R 134 808 098R 130 996 46697% 10

11. 2014/15 Expenditure Budget vs Actual (Current) ExpenditureBudgetActual%Comment National Operations 58 358 55746 896 84580%Per mandate Corporate Services 76 449 54164 077 43384%Salaries for posts to be filled R 134 808 098R 110 974 27882%18 % available till end of March 2015 Net surplus as at 28 February 2015 is therefore R 19 440 165 11

12. Statement of Financial Position as at 28 February 2015 Feb 2013/14Feb 2014/15 Assets37 955 71037 448 030 Cash and cash equivalents51 364 67258 215 207 Current assets8 299 8528 331 093 R 97 620 234R 103 994 330 Capital and Reserves88 998 03293 130 001 Current Liabilities8 622 20210 864 329 R 97 620 234 R 103 994 330 12

13. Budget for 2015/16 The Budget for 2015/16 of R 134 639 131 was approved by the Minister of Basic Education on 10 February 2015. The grant approved is R 112 705 000. 13

14. Reserve Forecast for 31 March 2015 Internal renovations to premises transferred into Umalusi’s name in January 2014 15 000 000 Installation of disabled access to current and new building 4 000 000 Payment for accrued expenses and creditors not paid at year end 11 000 000 Reserve for possible litigation and contingencies17 000 000 TOTALR 47 000 000 14

15. Qualifications, Curriculum & Certification OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Qualifications sub-framework developed and maintained Standards for new qualifications developed Curricula evaluated and/or developed Policy developed and implemented Learner achievements certificated Verification processes maintained and improved Qualifications Standards Committee and sub-committees maintained R 7 850 000R 6 200 918Despite the 21 % decrease QCC will be able to achieve its objectives through reprioritization and / or redesign of projects for greater efficiency 15

16. Quality Assurance of Assessments OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Question papers moderated Marking standardized CASS moderated Exams monitored Standards for assessment articulated and maintained Stakeholder relations established and managed Management, support and governance structures maintained and improved – Assessment standards Committee R 34 700 000R 32 495 350 The 6% decrease will be accommodated by reprioritization or redesign of quality assurance processes for greater efficiency 16

17. Evaluation and Accreditation OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Accreditation and monitoring system for providers of education and training reviewed, maintained and extended Accreditation and monitoring system for assessment bodies maintained Provider site visits conducted and reported on Policy developed and implemented Stakeholder relationships developed and maintained Data management systems developed and maintained Administrative systems maintained and improved Accreditation Committee of Council maintained R 10 903 000R 9 758 381 Despite the 10% decrease E & A will be able to achieve its objectives through reprioritization of work 17

18. Statistical Information and Research OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Reports developed (Research reports and quality reports per qualifications) Research is planned, managed and implemented Statistical supports provided to other units Research forum/committee maintained Strategic support provided Stakeholders consulted on strategic research Stakeholders engaged with through conferences and published documents Resource Centre maintained /improved R 4 905 557R 4 439 701Despite the 9% decrease SIR will be able to achieve its objectives through reprioritization and redesign of research projects 18

19. Public Relations & Communications OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Public relations programme implemented R 1 900 000R 1 975 463The increase of 3.9% accommodates the increases for travel and administrative costs 19

20. Governance and Office of the Chief Executive Officer OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Organizational plans developed and implemented Planning and implementation reviewed Organizational governance maintained Stakeholder relations established and managed R 1 961 311R 1 837 680Despite the 6% decrease GOCEO will be able to achieve its objectives 20

21. Corporate Services: Information Technology OUTCOMES Previous Budget Current Budget 2015/16 Motivation Information technology systems established, maintained and improved Certification IT program effectively implemented Adequate computer hardware and software installed and maintained to support operations R 8 170 091R 7 653 885Despite the 6% decrease IT will be able to achieve its objectives 21

22. Corporate Services: Finance and Supply Chain Management OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Finance and Accounting systems maintained and improved including payroll payments Supply Chain Management system maintained and improved Building and security systems maintained and improved R 60 040 894R 66 281 45310% increase due to additional posts approved by Council, and approximately 5.6% towards cost of inflation linked salary increments 22

23. Corporate Services: Human Resource Management and Development OUTCOMESPrevious Budget Current Budget 2015/16 Motivation Administration of Human resources carried out HR development plans implemented General services provided Records Management Services provided R 4 377 245R 3 996 300Despite the 9% decrease HRM&D will be able to achieve its objectives through reprioritization of training and development initiatives GRAND TOTALR 134 808 098R 134 639 131-0.13% decrease 23

24. Total Income 2000/1 (actual) to 2017/18 (budget) 24 YEARINCOMEBUDGETDBE GRANTGRANT % 2000/01R 6 150 786 00 2001/02R 7 027 948 00 2002/03R 13 757 861 R 1 513 00011 2003/04R 18 076 902 R 3 050 00017 2004/05R 23 547 626 R 12 869 00055 2005/06R 28 603 979 R 7 690 00027 2006/07R 32 972 345 R 10 286 00031 2007/08R 36 013 566 R 12 652 00035 2008/09R 46 434 369 R 16 044 00035 2009/10R 52 442 731 R 16 494 00031 2010/11R 59 464 754 R 17 350 00029 2011/12R 93 219 718 R 18 391 00020 2012/13R 81 527 016 R 42 330 00052 2013/14R 120 904 924 R 97 662 00081 2014/15 R 134 808 098R 107 354 00080 2015/16 R 134 639 131R 112 705 00084 2016/17 R 173 409 843?? 2017/18 R 193 296 806??

25. 3 Year Budget Forecast 25

26. Challenges 26 White paper on post school education and its implications for Umalusi Strengthening of the quality assurance of marking process The proposed amendments and extension of the Senior Certificate Development of certification systems for new qualifications No channels of reporting to the Portfolio Committee on Higher Education despite perennial problems with the DHET examinations systems Strengthening the monitoring processes in the light of the new phenomenon of group copying Class action – litigation by learners whose results have been blocked as a result of pending group copying hearings

27. Thanks to Ms N Gina, Chairperson of the Portfolio Committee, and Honourable members for this opportunity to present Umalusi’s budget review Dr MS Rakometsi THANK YOU 27