DEPARTMENT OF BASIC EDUCATION

1
ANNUAL REPORT 2011/12 DEPARTMENT HIGHER
EDUCATION AND TRAINING Presentation to
the Select Committee on Education and
Recreation 6 March 2013
2
Presentation Outline

• Background Information
• Performance on Predetermined Objectives
• Financial Statements
• Auditor-General Report

3
Background Information

• 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

• 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

• 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
• 187 Posts were identified to be filled with 133
  appointments made and 54 posts were in the
  process of being filled

6
Programme 1 Administration

• 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
• Macro-organisational structure approved and
  consulted with MPSA

7
Programme 1 Administration

• Human Resource and Employment Equity Plans
  approved
• 27 Posts for regional offices created and started
  filling posts for KwaZulu-Natal, Eastern Cape,
  Mpumalanga and Western Cape
• 6 Disciplinary hearings with 3 dismissals related
  to mismanagement of funds
• Challenges
• ICT services LAN and Desktop support has been
  slow in addressing user calls
• Training levels of the security staff needs to be
  improved

8
Programme 1 Administration

• Lack of modern call centre technology and
  inadequate facilities for call centre operators
• Procurement of new offices did not materialise
• No risk management unit
• 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

• 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
• 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

• 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

• Data collection of FET and Artisan sectors was
  strengthened and an electronic web based data
  collection system was 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

• 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

• Challenges
• No major challenges, all programmes operated on a
  reduced and constrained budget
• 43 Targets were fully achieved, 9 targets
  partially achieved and 1 target 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 temporarily seconded to
  another unit

14
Programme 2 Human Resource Development, Planning
and Monitoring Coordination

• 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

• 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

• Key Achievements
• Enrolments increased from 892 936 in 2010 to 938
  201 in 2011
• Graduates increased from 153 325 in 2010 to 160
  626 in 2011
• Students funded through NSFAS increased from
  148 387 in 2010 to 216 874 in 2011.
• 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

17
Programme 3 University Education

• 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
• Review of the funding framework almost complete
  and report to be finalised and presented to the
  Minister by November 2012
• 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 launched

18
Programme 3 University Education

• Implementation of Phase 3 of the Higher Education
  HIV/AIDS Programme was successfully implemented
• National Transformation Seminar was held as
  follow-up to Higher Education Stakeholder Summit
  held in 2010
• 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
• Minimum Requirements for Teacher Education
  Qualifications (MRTEQ) 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

• Foundation Phase Teacher Education was
  strengthened
• - 14 Universities offering Foundation Phase
  Teacher Education programmes with 6 preparing to
  offer these programmes 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

20
Programme 3 University Education

• - 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

• 29 Targets were fully achieved, 26 targets
  partially achieved and 10 targets 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

• 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

• 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
• National examinations and assessment

24
Programme 4 Vocational and Continuing Education
and Training

• Key Achievements
• Student numbers increased from 345 566 in 2010 to
  396 819 in 2011
• Students funded through NSFAS increased from 64
  527 in 2010 to 165 273 in 2011
• The Community Education and Training Centres and
  the conversion of Public FET Colleges into VCET
  Institutions has been gazetted as delivery
  institutions for the VCET sector for public
  comment
• The National Senior Certificate for Adults was
  published for public comment

25
Programme 4 Vocational and Continuing Education
and Training

• 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
• 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
• Internal Continuous Assessment (ICASS)
  guidelines were developed to strengthen the NCV
  delivery
• 826 Lecturers trained to improve teaching and
  learning

26
Programme 4 Vocational and Continuing Education
and Training

• 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

• 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
- 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 partial certification of
candidates for the FET college sector - Enrolment
rates rose by 34 from 2011
29
Programme 4 Vocational and Continuing Education
and Training

• - The success rates based on November 2011
  results showed an improvement in success rates
  from an average 24 in 2010 to 40 in 2011 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

• Challenges
• Capacity constraints were experienced in the
  areas of on-site security, staff allocation and
  budget allocation in regard to the examination
  function
• 42 Targets were fully achieved, 15 targets
  partially achieved and 13 targets 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

• Continued operation of unregistered private
  institutions
• Lack of readiness across the AET system to
  implement the funding norms for public Adult
  Learning Centres
• SITA inability to deliver on the Service Level
  Agreement
• Delays in certification of FET College candidates
• Mitigation
• To date 11 of these targets have been achieved, 9
  partially achieved and 8 not achieved
• Turnaround strategy developed for FET Colleges
  and AET

32
Programme 4 Vocational and Continuing Education
and Training

• Chief Financial Officers appointed in FET
  Colleges in collaboration with SAICA
• Human Resource and Labour Relations managers
  appointed to facilitate staff appointments
• UNISA-DHET Task Team currently undertaking an
  audit of FET national examination processes to
  facilitate, review and advise on the national
  examination function

33
Programme 5 Skills Development

• 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

• 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

• 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
• 42 Targets were fully achieved, 14 targets
  partially achieved and 13 targets not achieved

36
Programme 5 Skills Development

• 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

• 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
National Skills Fund

• January 2011 Minister launched National Skills
  Development Strategy III
• NSF Reviewed its funding framework to align it
  with the new NSDS III
• 14 Targets were fully achieved and 7 partially
  achieved. 5 Targets have subsequently been
  achieved whilst the remaining 2 is in the process
  of being completed
• In 2011/12, NSF paid out in grant distribution
  the highest amount ever in a year since its
  inception, representing 69 of its budgeted
  revenue
• 59 Projects were funded in relation to IPAP, NGP,
  Rural Development, Disabilities, Health and
  Education

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Financial Statements
Programme Allocation R000 Actual Expenditure R000 Spent
1 Administration 155 688 152 404 97.9
2 Human Resource Development, Planning and Monitoring Coordination 38 734 38 074 98.3
3 University Education 23 428 991 23 428 356 100.0
4 Vocational and Continuing Education and Training 4 545 463 4 540 838 99.9
5 Skills Development 130 638 122 025 93.4
6 Direct Charges (SETAs and NSF) 10 095 113 10 025 251 99.3
Total 38 394 627 38 306 948 99.8
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Allocation versus Expenditure Variances

• 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

41
Spending Trends per Economic Classification
Economic Classification Allocation R000 Actual Expenditure R000 Spent
Compensation of Employees 310 168 305 598 98.5
Goods and Services 159 166 155 165 97.5
Financial transactions in assets and liabilities - 96 -
Transfer Payments
Provinces and municipalities 4 375 311 4 375 311 100.0
Departmental agencies and accounts 14 177 158 14 107 295 99.5
Universities and Technikons (current) 19 354 159 19 354 159 100.0
Foreign governments and international organisations 2 443 2 379 97.4
Non-profit institutions 3 000 3 000 100.0
Households 245 240 98.0
Capital Expenditure
Machinery and equipment 12 862 3 591 27.9
Software and other intangible assets 115 114 99.1
Total 38 394 627 38 306 948 99.8
42
NSF and Entities

• NSF received an unqualified audit opinion
• 22 Universities received unqualified audit
  opinions with 1 university receiving a qualified
  audit opinion
• 28 FET Colleges received unqualified audit
  opinions with 6 receiving qualified audit
  opinions, 1 disclaimer and 15 did not submit at
  time of review
• 16 SETAs received unqualified audit opinions with
  4 receiving qualified audit opinions and 1
  disclaimer
• National Student Financial Aid Scheme (NSFAS),
  Council for Higher Education (CHE), South African
  Qualification Authority (SAQA) and Quality
  Council for Trades and Occupations (QCTO)
  received unqualified audit opinions

43
Auditor-General Report

• 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

44
Action Plan

• 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

45
Thank You