STRATEGIC PLAN (2015/16 – 2019/20) and ANNUAL PERFORMANCE PLAN (2015/16 MTEF)

STRATEGIC PLAN (2015/16 – 2019/20) and ANNUAL PERFORMANCE PLAN (2015/16 MTEF) Presentation to the Select Committee on Education and Recreation 29 April 2015

Presentation Outline • Strategic Overview • Budget Programmes and Financial Information • Programme Plans and Targets for 2015/16 • Administration • Human Resource Development, Planning and Monitoring Coordination • University Education • Vocational and Continuing Education and Training • Skills Development

Strategic Overview • The Department of Higher Education and Training is responsible for all post-school education and training in the country • It is the coordinating Department for Outcome 5 of government’s 14 outcomes “A skilled and capable workforce to support an inclusive growth path” • In 2014, the Department released a White Paper for Post-School Education and Training (PSET) • The White Paper has created a framework that defines the Department’s vision for PSET, its focus and priorities • The Strategic Plan covers the period 2015 to 2020 and is informed by the vision espoused in the National Development Plan, 2014 - 2019 Medium Term Strategic Framework (MTSF) and imperatives of the White Paper.

Strategic Overview Vision Leading Post-School Education and Training for growth Mission To provide national strategic leadership in support of an integrated Post-School Education and Training system towards improved quality of life of the South African citizenry

Five Year Strategic Goals • Strategic Goal 1: To provide a sound Post-School Education and Training legislative framework • Strategic Goal 2: To provide Post-School Education and Training services • Strategic Goal 3: To provide Post-School Education and Training capacity • Strategic Goal 4: To facilitate a strong stakeholder network • Strategic Goal 5: To ensure continuous business excellence within the Department of Higher Education and Training

Five Year Strategic Goals In line with the strategic goals identified, we will: • Develop and review legislative frameworks aimed at steering the Post-School Education and Training system in line with the imperatives of the White Paper • Strive to expand and improve the quality of Post-School Education and Training by introducing appropriate teaching and learning support interventions for Universities and Technical and Vocational Education and Training (TVET) colleges, as well as artisan development • Establish, develop and expand a new institutional type –Community Colleges – primarily to promote education and training opportunities for those young people who cannot access the universities or TVET colleges

Five Year Strategic Goals • Improve the capacity of the system through infrastructure development for technical and vocational education and training • Maintain good stakeholder relations in support of an effective Post-School Education and Training system • Ensure good corporate governance including efficient resource management within the Department and its entities.

Focus Areas in the Next Five Years • To substantially expand access to education and training for youth and adults, regardless of whether or not they have completed school • To improve the alignment between universities, TVET colleges, Sector Education and Training Authorities (SETAs), South African Qualifications Authority (SAQA) and quality councils in an effort to improve student and learner mobility across institutions and qualifications • To expand the availability of opportunities for workplace training for students in colleges and universities and to expand other forms of workplace training such as learnerships and apprenticeships

Focus Areas in the Next Five Years • To ensure that our Post-School Education and Training system prioritises funding of the marginalised, enabling them to access post-school institutions and fulfill dreams of careers thought to be unrealisable • To further develop post-graduate studies to ensure the expansion of the academic profession and development of high level knowledge and skills • To diversify provision based on open learning principles to improve learning opportunities across the Post-School Education and Training sector by expanding and strengthening the post-school distance education landscape

Focus Areas in the Next Five Years • To integrate disability into the broader policy arena by introducing a national policy to guide education and training institutions in the post-school domain • To integrate Recognition of Prior Learning (RPL) into the post-school education and training system

Financial Information The financial information of the Department is presented as follows: • An explanation of the Department’s structure, budget and expenditure trends • A summary of the allocations per programme over the 2015 Medium-Term Expenditure Framework (MTEF) • A summary per economic classification that covers the key expenditure items • Key budget pressures that are facing the Department’s financial performance

Structure, Budget and Expenditure Trends The Department’s budget structure is based on its organisational structure and consists of five programmes that represent Branches in the Department. The programmes are as follows: • Administration Provide strategic leadership, management and support services to the Department 2) Human Resource Development, Planning and Monitoring Coordination Provide strategic direction in the development, implementation and monitoring of Departmental policies and the Human Resource Development Strategy of South Africa

Structure, Budget and Expenditure Trends 3) University Education Develops and coordinates policy and regulatory frameworks for an effective and efficient university education system. The Branch also provides financial support to universities, the National Student Financial Aid Scheme (NSFAS) and national institutes for higher education 4) Vocational and Continuing Education and Training Plans, develops, monitors, maintains and evaluates national policy, programmes, assessment practices and systems for vocational and continuing education and training including for TVET colleges and post-literacy Adult Education and Training (AET)

Structure, Budget and Expenditure Trends 5) Skills Development Promotes and monitors the national skills development strategy. Develops a skills development policy and regulatory framework for an effective skills development system

Structure, Budget and Expenditure Trends • The budget also includes “direct charges” which are amounts reflected that constitute a direct commitment from the National Revenue Fund in terms of specific legislative requirements and are not defined as Voted funds such as for the above five programmes • The “direct charge” for the Department is the skills levy revenue collected by the South African Revenue Service (SARS) for the Sector Education and Training Authorities (SETAs) and the National Skills Fund (NSF)

Structure, Budget and Expenditure Trends • For the 2015 MTEF, the Department’s budget (excluding direct charges) increases at an annual average rate of 5.9%, from R39.0 billion in 2014/15 to R46.3 billion in 2017/18 • The amount of R41.8 billion for 2015/16 is an increase of R2.9 billion (nominal increase of 7.3%) on the 2014/15 allocation, excluding direct charges • Direct charges (the skills levies for SETAs and NSF), increases at an annual average rate of 9.6% from R13.2 billion in 2014/15 to R17.4 billion in 2017/18 • The Department’s budget is dominated by Programme 3: University Education, which represents 78.5% of the budget in 2015/16 (See slide 20). As a result, transfer payments also dominate the budget in terms of the economic classification of expenditure (See slide 21)

Structure, Budget and Expenditure Trends • Normal Departmental services (excluding university transfers, transfers to public entities, Technical and Vocational Education and Training colleges, Adult Education and Training centres, other organisations and earmarked funds) represents 18.67% of the budget • Compensation of employees amounts to R7 308.192 million (17.5%) for 2015/16. Remaining funds for operations amounts to R505.310 million in 2015/16 which represents 1.21% of the budget

Structure, Budget and Expenditure Trends • The Department received an additional allocation of R15.9billion over the MTEF. These additional funds are mainly for the following purposes: • R7 billion from the Provincial Education (provincial equitable share) for the TVET and the AET colleges function shift (R2.22 billion in 2015/16, R2.34 billion in 2016/17 and R2.4 billion in 2017/18) • R8.9 billion from the TVET conditional grants to provincial government for the TVET colleges function shift from provincial to national (R2.8 billion in 2015/16, R3 billion in 2016/17 and R3.1 billion in 2017/18)

Funding of TVET and AET Functions

Financial Information

Key Budget Pressures Facing the Department • The Department acknowledges the current fiscal constraints of Government • This has numerous challenges in itself, but also has a serious impact on the service delivery requirements of the Department • The Department is unable to attain the growth requirements within the post-school education system in terms of enrolments, infrastructure development, increased operations and student support • Limitations are placed on Departmental operations due to the capping of compensation of employees and the inability to roll out the new staff establishment and regional presence

Key Budget Pressures Facing the Department • Institutional monitoring and evaluation is limited to most critical areas • Reliance on NSF project support such as the funding of the activities of the National Artisan Moderation Body • An immediate pressure is the management of the TVET and AET function shift as well as cost implications for examination services

Financial Performance • The Department managed to remain within its budget since being in operation from 1 April 2010 • Underspending on voted funds was as follows: 2010/11: R 23.848 million 2011/12: R 17.817 million 2012/13: R 3.751 million 2013/14: R 1.931 million • Unspent amounts were committed for specific goods or services and including outstanding claims for examiners and moderators • The Department received unqualified audits to date

Programme 1: Administration Programme Purpose: Provide strategic leadership, management and support services to the Department

Programme 1: Administration

Programme 2: Human Resource Development, Planning and Monitoring Coordination Programme Purpose: Provide strategic direction in the development, implementation and monitoring of departmental policies and the HRD strategy of South Africa

Programme 2: Human Resource Development, Planning and Monitoring Coordination

Programme 3: University Education Programme Purpose: Develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. The Branch also provides financial support to universities, NSFAS and national institutes for higher education

Programme 3: University Education

Programme 4: Vocational and Continuing Education and Training Programme Purpose: Plan, develop, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for vocational and continuing education and training including for TVET colleges and post-literacy adult education and training

Programme 4: Vocational and Continuing Education and Training

TVET College Budget Allocation

TVET Colleges Bursary Allocation

STRATEGIC PLAN (2015/16 – 2019/20) and ANNUAL PERFORMANCE PLAN (2015/16 MTEF)