1. ANNUAL PERFORMANCE PLAN AND BUDGET FOR 2013/14 Presentation to the Select Committee on Education and Recreation 24 April 2013

2. Presentation Outline 2 1.Mandate and Progress 2.Programme Plans and Targets for 2013/14 -Administration -Human Resource Development, Planning and Monitoring Coordination -University Education -Vocational and Continuing Education and Training -Skills Development 3. 2013/14 MTEF Budget Information

3. Expand access to education and training for the youth Adequately capacitate educational institutions for effective provision or facilitation of learning Increase the number of students successfully entering the labour market upon completion of training Colleges with a curriculum responsive to the demands of the market place with a special emphasis on artisan training Credible institutional mechanisms for skills planning to support an inclusive economic growth path Expand research, development and innovation capacity for economic growth and social development Highly effective, professional, efficient administration informed by good corporate governance practices Mandate 3

4. Students headcount enrolments at universities increased by 12% from 837 779 to 937 455 First time enrolments at universities increased by 9% from 164 528 to 179 101 Graduates from universities increased by 11% from 144 810 to 160 299 Graduates in Engineering Sciences increased by 9% from 8 424 to 9 193 Graduates in Human Health and Animal Health increased by 10% from 7 341 to 8 049 Graduates in Natural and Physical Sciences increased by 59% from 3 468 to 5 518 Research Masters graduates increased by 26% from 4 179 to 5 281 Doctoral graduates increased by 15% from 1 373 to 1 576 Initial teacher education graduates increased by 60% from 6 315 to 10 133 NSFAS students bursary funding at FET Colleges increased from R318 million in 2010 to R1.9 billion in 2013 targeting 222 817 students Progress on Key Performance IndicatorsProgress since 2009 4

5. Headcount enrolments in FET Colleges increased by 24% from 345 566 in 2010 to 427 423 in 2011 and 657 690 in 2012 Introduced a draft Framework for lecturer qualification for FET Colleges for public comment Established the Quality Council for Trades and Occupation (QCTO) and National Artisan Moderation Body (NAMB) Artisan candidates found competent increased by 60% from 8 238 to 13 168 3 400 graduates received Work Integrated Learning in 2011 Artisan trade test pass rate has improved from 41% to 43% in 2009 and 2011 respectively Entered into 8 bilateral and multilateral agreements 138 international scholarship offers are being afforded to South African students Progress since 2009 5

6. 6 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 15% Vacancy rate in the departmentVacancy rate reduced to 10% 4 Months to fill a vacancy from the date of advertisement 4 Months to fill a vacancy ICT Governance maturity Level 1 achievedMaturity Level 2 achieved 30 Days to pay invoices from service providers from the day the invoice was received 28 Days to pay invoices from service providers from the day the invoice was received Responded to all (100%) queries received via call centre Respond to all (100%) queries received via call centre 90 Days to resolve disciplinary cases Programme 1: Administration Purpose: Provide overall management and administration of the department

7. 7 Risk DescriptionMitigation Measures Adequacy of budget to fill vacancies Continuous engagement with National Treasury with a view to motivate for an increased allocation of compensation budget Instability of the IT network environment and poor support from SITA Appointment of an external service provider to provide Network and Desktop support for a period of 3 years Inadequate and unsuitable office accommodation for all DHET space requirements Facilitate the process of build to specifications project with Public Works Non compliance with Supply Chain Management Framework due to lack of training Training and exposure of managers on Supply Chain Management Policy Legal and regulatory compliance Policies, procedures and internal controls as well as assigned responsibility Risks and Mitigation Measures

8. 8 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 A coherent career management and information system established (2 modules developed and implemented) 2 Modules developed and implemented Provinces are already able to use the www.careerhelpline.org.za and the walk in centres www.careerhelpline.org.za Total number of users reached by career guidance services : Radio 2.7 million, Exhibitions 25 000, Helpline 12 000, Web portal 70 000 Total number of users reached by career guidance services : Radio 3 million, Exhibitions 28 000, Helpline 15 000, Web Portal 120 000 100% of legislation, regulations, legal opinions and agreements drafted/amended Programme 2: Human Resource Development, Planning and Monitoring Coordination Purpose: Provide strategic direction in the development, implementation and monitoring of departmental policies and Human Resource Development Strategy for South Africa

9. 9 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 80% (50 FET colleges, 23 HE institutions) of public institutional data integrated into education and training management information system 100% (50 FET colleges, 23 HE institutions and 21 SETAs) of public institutional data integrated into education and training management information system Monitoring and evaluation report on the mandatory role of the Quality Councils and SAQA compiled Ministerial policy guidelines developed Research bulletin on cutting-edge issues in the post-school system published An integrated education and training management information systems maintained – including Adult Education and Training Annual update of the integrated education and training management information system with reliable information Programme 2: Human Resource Development, Planning and Monitoring Coordination

10. 10 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 An international relations operational framework implemented and report compiled 1 Implementation report compiled Implementation plans with priority countries and multi-lateral agencies developed Engagement plans and report compiled A publication on international cooperation compiled Database of international engagements of all public post school institutions maintained An updated database 100% (All) Litigations dealt withDeal with all litigations against the DHET or Minister Social Inclusion Policy Framework developed1 Monitoring report on the implementation of the Framework Programme 2: Human Resource Development, Planning and Monitoring Coordination

11. 11 Risk DescriptionMitigation Measures Without a social inclusion framework, the transformation of the post-school sector may not happen quickly and effectively Policies, procedures and internal controls Data availability, integrity and reliability in the integrated information system Information policy, standards and frameworks implemented Lack of adequate career guidance services Career services web based system developed and operational Career services framework developed and implemented Credibility of strategic plan Provide planning support to Branches, conduct workshops on planning processes with Branches The post-school system is not fully articulated and differentiated if the NQF is not properly implemented Publication of the 3 sub-frameworks Risks and Mitigation Measures

12. 12 6 Budget sub-programmesKey activities in 2013 Academic Planning and Budget support Enrolment planning for cycle 2014 – 2019; 3 new universities (MP; NC; GP); Central Application Service Financial Planning and Information systems New framework for university funding; Infrastructure development including student housing University subsidiesTotal transfer budget: R26.082 billion [includes R 18.438 billion to universities for the block grant; R7.643 billion to NSAFS ] Policy and developmentImplement the Apply Now! Campaign; Implement improved research outputs policy; Regulate PHEIs Teacher EducationImplement Integrated strategic; Establishing teacher education campuses in KZN; Limpopo and EC. Programme 3: University Education Purpose: 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 the National Institutes for Higher Education

13. 13 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 909 716 Students enrolled in higher education studies at universities 935 710 Students enrolled in higher education studies at universities 179 793 First time enrolments183 893 First time enrolments New2 new universities established [3 new universities established over the 2013 – 2015 MTEF] 20 Public higher education institutions involved in foundation phase teacher education Programme 3: University Education Strategic Objective: Expand the higher education sector in order to increase equitable access with success Purpose: 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 the National Institutes for Higher Education

14. 14 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 14 600 Students in foundation provisioning programmes 15 200 Students in foundation provisioning programmes at universities 593 260 African students at universities 610 357 African students at universities 539 596 Female students at universities 563 509 Female students at universities New indicator10 Universities identified and supported to offer programmes for FET College lecturers in line with new FET lecturer qualification policy New indicatorA policy document on Adult Educator Qualifications developed R1.8 billion on infrastructure. Site visit reports and audit reports on infrastructure projects R 2 billion on infrastructure. A report on the effective use of infrastructure funds at Universities Programme 3: University Education

15. 15 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 76% Success rate in higher education studies at public institutions by 2015/16 77% Success rate in higher education studies at public institutions by 2015/16 167 807 Graduates179 780 Graduates 10 682 Graduates in engineering sciences 11 247 Graduates in engineering sciences 8 535 Graduates in human health and animal health 9 006 Graduates in human health and animal health 5 052 Graduates in natural and physical sciences 5 387 Graduates in natural and physical sciences 9 700 Graduates in initial teacher education 10 673 Graduates in initial teacher education Strategic Objective 2: Improve success rates in higher education studies at public institutions and therefore increase graduate outputs by 2014 Programme 3: University Education

16. 16 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 78% of public higher education institutions with good governance and management 83% of public higher institutions with good governance and management 100% Registered Private Higher Education Institutions complying to regulatory criteria 1 Governance training workshop for ministerial appointees on councils 1 Governance training workshop for Ministerial appointees on Councils Strategic Objective 3: Monitor good governance and management of the Higher Education system in order to build capacity and efficiency Programme 3: University Education

17. 17 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 44 520 post graduate graduates47 617 post graduate graduates 22452 Honours graduates24 019 Honours graduates 4 978 research masters graduates5 287 research masters graduates 1 785 doctoral graduates 1 941 doctoral graduates 10 807 publications units 11 603 publications units Ratio of research output units per instructional / research staff 1.30 Ratio of research output units per instructional / research staff 1.36 Programme 3: University Education Strategic Objective 4: To develop and enhance the research capacity and productivity of universities.

18. 18 Risk DescriptionMitigation Measures Equitable access to higher education opportunities not increased Close working relationships developed and maintained with universities and with Deans of scarce skill subjects to ensure that enrolment targets are met Funding support provided to universities to ensure that they are able to meet their targets Careful monitoring of the system and leveraging of funding to ensure quality of provision Success rates in quality higher education not improved Monitoring the success and graduation rates across the universities and using this information to identify possible challenges where intervention may be required Monitoring the qualitative use of foundation provisioning and teaching development funds to ensure that institutions put in place mechanisms for ensuring improved teaching and learning and success Risks and Mitigation Measures

19. 19 Risk DescriptionMitigation Measures Good governance and management capabilities across the higher education system Developing a good governance model and ensure this is communicated to the system Support through developing and implementing policies on good governance Working with HESA and the Chairs of Councils to implement approved training programmes Lack of research productivity and innovation Use of funding to support research and research development at institutions; Development of good communications to ensure that research development is collaborative and develops communities of practice Poor or inadequate information for planning and resourcing of the university sector Support and advice provided to institutions to ensure that information is correctly captured Information received from institutions with an Audit report to confirm accuracy and reliability Risks and Mitigation Measures

20. 20 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 Strategic Objective: Increase access to and improve success in programmes leading to intermediate and high-level learning by 2014 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 255 000 Learners enrolled in AET Centres278 000 Learners enrolled in AET Centres 550 000 Headcount enrolments in FET Colleges 650 000 Headcount enrolments in FET Colleges 180 826 FET College students awarded bursaries 222 817 FET College students awarded bursaries Programme 4: Vocational and Continuing Education and Training

21. 21 ProvinceTargets for 2013/14 Eastern Cape47 260 Free State11 120 Gauteng33 360 KwaZulu-Natal52 820 Limpopo47 260 Mpumalanga33 360 Northern Cape8 340 North West22 240 Western Cape22 240 NATIONAL278 000 Expanding Access to AET Programmes

22. 22 ProvinceEnrolment Targets for 2013/14 Eastern Cape58 216 Free State21 209 Gauteng127 189 KwaZulu-Natal127 342 Limpopo76 220 Mpumalanga38 451 Northern Cape17 354 North West50 023 Western Cape103 995 NATIONAL650 000 Expanding Access to FET Colleges

23. 23 ProvinceTargets for 2013/14 Eastern Cape23 962 Free State15 747 Gauteng49 545 KwaZulu-Natal47 288 Limpopo29 707 Mpumalanga13 637 Northern Cape4 574 North West14 336 Western Cape24 021 NATIONAL222 817 Expanding Access to FET College NSFAS Bursaries

24. 24 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 Curriculum support programmes for NASCA developed NASCA LTSM developed and approved 8 FET Colleges offering NQF levels 5 - 6 programmes 10 FET Colleges offering NQF levels 5-6 programmes 128 Lecturers, Student Support Services (SSS) managers and PDE/Regional offices officials trained to implement the comprehensive student support services framework 130 Lecturers, Student Support Services (SSS) managers and PDE/Regional offices officials trained to implement the comprehensive student support services framework 700 Lecturers trained to support curriculum delivery in FET Colleges 600 Lecturers trained to support curriculum delivery in FET Colleges 60 Provincial Education Department (PED) officials to support the new NASCA and GETC curriculum delivery Programme 4: Vocational and Continuing Education and Training

25. 25 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 Certification rates in the VET qualification increasing to: GETC : 30% NC(V) L2: 44% N1-N3: 33% NC(V) L3: 45% N4-N6: 40% NC(V) L4: 47% Certification rates in the VET qualification increasing to: GETC : 40% NC(V) L2: 50% N1-N3: 43% NC(V) L3: 50% N4-N6: 48% NC(V) L4: 52% Pass rate in Maths and Maths Literacy: Maths: Maths Literacy: NC(V) L2: 32% NC(V) L2: 39% NC(V) L3: 26% NC(V) L3: 37% NC(V) L4: 26% NC(V) L4: 47% Pass rate in Maths and Maths Literacy: Maths: Maths Literacy: NC(V) L2: 48% NC(V) L2: 70% NC(V) L3: 44% NC(V) L3: 80% NC(V) L4: 55% NC(V) L4: 85% Programme 4: Vocational and Continuing Education and Training

26. 26 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 Certification rates of bursary recipients: NC(V) L2: 39% N1-N3: 40% NC(V) L3: 42% N4-N6: 40% NC(V) L4: 43% Certification rates of bursary recipients: NC(V) L2: 44% N1-N3: 45% NC(V) L3: 46% N4-N6: 45% NC(V) L4: 47% New indicator3 600 AET Educators and FET College lecturers trained for NASCA and GETC New indicatorAmended National Certificate (Orientation) developed and approved New indicator Approved amended National Senior Certificate for adults and out of school youth New indicator Assessment Regulations for the NASCA Programme 4: Vocational and Continuing Education and Training

27. 27 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 128 Personnel trained to support curriculum delivery in AET and Colleges 130 Personnel trained to support curriculum delivery in AET and Colleges 276 Personnel trained in financial management 184 Personnel trained in financial management 300 Personnel trained in Strategic and Operational planning New indicator50 College Councils trained in institutional and corporate governance New indicator9 Public institutions identified for declaration as community colleges New indicator6 New FET College campuses built Strategic Objective: Strengthen the institutional capacity of VET institutions to improve their performance and efficiency Programme 4: Vocational and Continuing Education and Training

28. 28 ProvinceTargets for 2013/14 Eastern Cape4 Lusikisiki, Graaf-Reinet, Sterkspruit, Aliwal North KwaZulu-Natal7 Sisonke, Msinga, Nkandla, Greytown, Mkhanyakude, KwaGqikazi, Vryheid Limpopo2 Thabazimbi and Giyani Mpumalanga1 Balfour NATIONAL14 Campuses Establishment of 14 FET College Campses

29. 29 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 BMS expanded to 8 public FET CollegesBMS reporting standard set for 50 public FET Colleges 2 820 AET centres responding to an annual survey conducted by DHET 3 083 AET centres responding to an annual survey conducted by DHET A model for FET Colleges expansion developed Model implemented in all new projects 490 private colleges complying with applicable regulations 100% of private colleges complying with applicable regulations Strategic Objective: Provide support for the implementation of a monitoring, evaluation, and research for the improvement of the vocational education and training subsystem Programme 4: Vocational and Continuing Education and Training

30. 30 Risk DescriptionMitigation Measures Limited access to, retention of learners in, as well as diversity and quality of programmes offered in VCET institutions -Improved DHET FET Colleges Bursary Scheme management and administration -Increased training and support for FET College lecturers and Adult Education and Training teaching personnel -Qualification review process following the recommendations of the Ministerial Task Team -Curriculum reviews and updates of selected National Certificate (Vocational) and Report 191 subjects -Enhanced monitoring of the subsystem -Planned infrastructure development and investment Low pass and certification rates in VCET institutions -Implementation and revision of the existing Student Support Services Framework, which includes academic support for learners -Lecturer professional development policy developed Risks and Mitigation Measures

31. 31 Risk DescriptionMitigation Measures Lack of adequate integration in terms of planning, funding, and reporting processes and systems at a strategic and operational level -Development of an integrated monitoring, evaluation, and research framework under way -Common Business Management System in FET Colleges being implemented -Transition of FET Colleges and Adult Learning Centres (ALCs) into a sole national mandate Credibility and efficiency of the examination and certification system -Procurement of a comprehensive ICT system for the National examinations and assessment -Enhanced ICASS guidelines and planned training for effective implementation -Employment of personnel with requisite skills Inadequate funding-Sourcing and effective management of donor funding to support delivery on strategic objectives Risks and Mitigation Measures

32. 32 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 25 000 Artisan candidates entering learning nationally 26 000 Artisan candidates entering learning nationally 10 000 Artisan candidates found competent nationally 12 000 Artisan candidates found competent nationally 8 500 Graduates receiving Work Integrated Learning (WIL) 27 279 Graduates receiving Work Integrated Learning (WIL) 45% National artisan learners pass trade test 48% National artisan learners pass trade test New indicatorScarce and Critical Skills List published New Indicator21 SETAs with at least 4 partnerships agreements Strategic Objective: Provide a dynamic interface between the workplace and learning institutions and to promote quality learning at work and for work by 2016 Programme 5: Skills Development Purpose: Promote and monitor the national skills development strategy. Develop skills development policy and a regulatory framework

33. 33 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 All SETAs’ Strategic Plans analysed and approved by the Minister (in relation to the Sector Skills Plans) Improved communication with SETAs through 4 SETA fora engagements 4 SETA fora engagements Strategic Objective: Promote the alignment of skills development outputs to the needs of the workplace and to the broader growth needs of the country’s economy Programme 5: Skills Development

34. 34 Estimated performance on selected indicators: 2012/13 Targets for 2013/14 R 2.3 billion earmarked to be spent on projects of national priority R2.4 billion earmarked to be spent on projects of national priority 262 Projects supported by National Skills Fund350 Projects supported by National Skills Fund 32 179 learners receiving training in NSF projects40 000 Learners receiving training in NSF projects Strategic Objective: Provision of funding to support projects that are national priorities in the NSDS, advance the Human Resource Development Strategy (HRDS) of South Africa and support the NSA in its work Programme 5: Skills Development

35. 35 Risk DescriptionMitigation Measures Alignment of Skills Development outputs with the needs of the workplace Continuous discussions with the SETAs to produce sector level scarce skills information Increased consultation and sharing of knowledge between stakeholders through stakeholder forums Critical Skills attraction and retention Continuous staff development and performance management system Innovation Increase research and development capacity Increase consultation and knowledge sharing Integration of Systems Establishment of IT governance requirements and integrated business workflow process system Quality of research outputIdentification of DHET staff members to be capacitated in research Risks and Mitigation Measures

36. For the 2013 MTEF the Department’s budget is still based on the original 5 Programmes as approved by National Treasury The Department’s budget consists of two portions namely: - The normal voted funds for the 5 Programmes of the Department - The skills levy funding for the NSF and the SETAs that is listed in the budget as “Direct Charges” The Department’s allocation for 2013/14 is, therefore, in two parts: - Normal Voted funds: R34.322 billion - Direct charges: R12.403 billion Financial Information 36

37. Normal voted funds increases at an annual average rate of 7.8 % from R31.6 billion in 2012/13 to R39.5 billion in 2015/16 The amount of R34.3 billion for 2013/14 is an increase of 8.7% (R2.7 billion) on the 2012/13 allocation mainly for additional financial support to universities, FET Colleges and student funding through NSFAS Over the 2013 MTEF period, baseline increases with R300.5 million (2013/14), R693.4 million (2014/15) and R1.8 billion (2015/16) Additional allocations are mainly for improved service conditions (including FET Colleges) and capital infrastructure allocations for the two new universities in Northern Cape and Mpumalanga: R150 million, R500 million and R1 billion Financial Information – Normal Voted Funds 37

38. The Direct Charges represent the skills levy revenue that is transferred to the NSF and SETAs Direct charges increases at an annual average rate of 9.1% from R11.4 billion in 2012/13 to R14.8 billion in 2015/16 The levy is distributed at an 80:20 ratio in terms of the current legislative framework For 2013/14 the distribution is as follows: - 80% to the SETAs: R9.922 billion - 20% to the NSF: R2.481 billion Financial Information – Direct Charges 38

39. Programme Adjusted Appropriation Medium-Term Expenditure Estimate R’000 2012/132013/142014/152015/16 Administration164 166200 621211 335221 288 Human Resource Development, Planning and Monitoring Coordination 44 34248 06652 82255 762 University Education26 232 69228 303 66130 426 038 32 803 475 Vocational and Continuing Education and Training 5 044 2525 664 4576 012 4646 342 409 Skills Development100 699105 596112 672118 873 Subtotal31 586 15134 322 39136 815 331 39 541 807 Direct charge against the National Revenue Fund 11 400 00012 403 00013 544 000 14 817 000 Total42 986 15146 725 39150 359 331 54 358 807 Financial Information 39

40. Programme Expenditure Estimate R’000 2013/14 Administration200 621 Human Resource Development, Planning and Monitoring Coordination 48 066 University Education28 303 661 Vocational and Continuing Education and Training 5 664 457 Skills Development105 596 Subtotal34 322 391 Direct charge against the National Revenue Fund 12 403 000 Total46 725 391 Financial Information 40 Programme 1 provides for the overall management and administration of the Department and represents 0.6% of the budget Total allocations Direct charges Biggest programme: Subsidies to Universities and NSFAS (Bursaries for Universities and FET Colleges (R1.988 billion)) Includes funding for FET Colleges: Conditional grant: R2.443 billion FET Colleges Subsidies: R3.013 billion 1 4 3 2

41. Economic classification Expenditure Estimate R’000 Expenditure Estimate R’000 2013/14 Compensation of Employees402 700 Goods and Services178 545 Transfers and subsidies46 140 105 Of which: FET Conditional Grant2 442 679 Departmental agencies (18 285 606) Public Entities Skills Levy 5 882 606 12 403 000 Universities22 388 767 Non profit institutions3 020 189 Foreign governments and international organisations 2 864 Households- Payments for capital assets4 041 Total46 725 391 Financial Information 41 Grant to PEDs NSFAS Bursaries FET College Subsidies

42. The funding of the FET College Sector increases as follows over the MTEF period: From 1 April 2013 the Department will transfer subsidies directly to FET Colleges in terms of the Funding Norms Financial Information 42 FET Colleges Budget Allocation (R'million) 2012/132013/142014/152015/16 Conditional Grant to Provinces4 8452 4432 6002 759 FET Colleges subsidies*3 0133 1963 361 Total4 8455 4565 7966 120 Included in Conditional Grant: R2.543 billion

43. Thank You