ANNUAL REPORT 2013/14 DEPARTMENT HIGHER EDUCATION AND TRAINING Presentation to the

1. ANNUAL REPORT 2013/14 DEPARTMENT HIGHER EDUCATION AND TRAINING Presentation to the Portfolio Committee on Higher Education and Training 15 October 2014

2. Presentation Outline • Strategic Overview: 2013/14 • Programme Performance on Predetermined Objectives • Achievements • Non achievement of targets • Financial Information • Audit Report • 2013/14 – Allocation versus Expenditure • Main reasons for variances

3. Service Delivery Overview • Our strategic goals are: • To increase the number of skilled youth by expanding access to education and training • To adequately capacitate individual institutions to effectively provide or facilitate all learning • To increase the number of students successfully entering the labour market upon completion of training • To expand research, development and innovation capacity for economic growth and social development

4. Service Delivery Overview • To create a college curriculum that is responsive to the demands of the market place and can transform, and adapt quickly and effectively to changing skills needs, with a special emphasis on artisan training • To develop a credible institutional mechanism for skills planning to support an inclusive economic growth path • To sustain a highly effective, professional, efficient administration informed by good corporate governance practices

5. Service Delivery Overview • Strategic Overview: 2013/14 • During the year under review, the expansion of the post-school education and training opportunities remained the key focus for the citizens of the country especially the youth • The following are some of the key milestones that were achieved during the year under review: • The launch of the White Paper for Post-School Education and Training • Publication of the Policy for the Provisioning of Distance Education in South African Universities • Policy framework for differentiation of the Higher Education and Training System • Policy for a Generic National Artisan Learner Grant Funding and Administration System

6. Service Delivery Overview • Establishment of the two new universities, namely Sol Plaatje University (SPU) and University of Mpumalanga • Establishment of the National Institute for Humanities and Social Sciences • Declared 2013 as the ‘Year of the Artisan’: • Advocacy programme was rolled out in all nine provinces targeting young people • Success of programme has necessitated the Department to expand it until 2024 and will be known as ‘Decade of the Artisan’ • A national artisan development database has been developed • Extended the Higher Education and Training AIDS (HEAIDS), to TVET Colleges

7. Service Delivery Overview • Also placed strong emphasis on career guidance • Exhibitions increased in number, and the quantity and quality of information that was made available to learners improved • A national Career Advice Portal was developed • There were five budget programmes during the year under review with a combined total of 127 planned targets: • 82 (65%) targets were achieved • 45 (35%) targets were not achieved • In respect to targets that were not achieved (the annual report provides details on strategies to deal with underperformance in respective programmes)

8. Programme 1: Administration Purpose: To conduct the overall management of the Department and provide centralised support services

9. Programme 1: Administration • The Department’s ICT governance maturity level has moved from level 1 in 2012 to level 3 in 2013/14 as planned (one level higher than planned) • The Department managed to reduce the vacancy rate to 7.11 % (funded posts) from 11% in 2012 • The Department managed to fill advertised posts within the planned period of four (4) months (on average). • The average number of days to resolve disciplinary cases was 74 days Key Achievements:

10. Programme 1: Administration • Strategies to deal with under performance in areas in which targets were not achieved are underway. These areas include: • Network connectivity • Adherence to Performance Management Development System policy • Payment of invoices within prescribed timeframe • Identification of fraud cases (early warning system)

11. 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.

12. Programme 2: Human Resource Development, Planning and Monitoring Coordination • 100% of public institutional data for 2010, 2011 and 2013 were integrated into a single management information system (50 TVET Colleges, 23 Higher Education Institutions and 21 SETA’s) • The National Career Advice Portal (NCAP) has been developed as an integrated education and training career development information system and is live (http://careerhelp.org.za/ncap) • A multi-platform helpline has been operational (radio, exhibitions, helpline and web portal incl. website and mobi-site) Key Achievements:

13. Programme 2: Human Resource Development, Planning and Monitoring Coordination • The Department’s first international relations strategy was developed • All litigations were dealt with within the timeframes set by the Rules of Court • The following targets were reported as not achieved at the end of the financial year but have ssubsequently been achieved: • A research bulletin was approved and published after the end of the financial year due to qualitative checks that took longer than planned • An investment report on education and training was compiled after the end of the deadline of 31 March 2014 due to qualitative checks that took longer than planned

14. Programme 2: Human Resource Development, Planning and Monitoring Coordination • Monitoring report on the implementation of the Social Inclusion Framework was subsequently finalised and approved in April 2014 • Due to consultative process followed, the monitoring and evaluation report on the mandatory role of the Quality Councils and SAQA was finalised and approved after 31 March 2014 • The Ministerial policy guidelines issued in terms of the NQF Act, 2008 (s. 8(2 (c) which requires the Minister to “publish guidelines which set out government’s strategy and priorities for the NQF, and which may be updated annually”

15. Programme 2: Human Resource Development, Planning and Monitoring Coordination • 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 updating is underway

16. 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

17. Programme 3: University Education Key Achievements: Note: The achievement reported as at 31 March 2014 are for the 2012 academic year audited in 2013 • 953 373 students enrolled in higher education studies at universities (43 657 more than targeted) • 19.2% Headcount enrolment over population 20 to 24 years (1.3 % above target) • 2 Public higher education institutions have been established • 662 123 African students enrolled at universities (68 863 more than the target) • 554 840 Female students enrolled at universities (15 244 more than the target)

18. Programme 3: University Education • 76% Success rate of students enrolled in higher education studies at public institutions • 9 974 Graduates in Engineering Sciences from universities • 8 015 Graduates in Human Health and Animal Health from universities • 6 366 Graduates in Natural and Physical Sciences from universities (979 more graduates than targeted) • 13 740 Graduates in initial Teacher Education from universities (3 067 more graduates than targeted) • 45 598 Postgraduate graduates (1 297 more graduates than targeted)

19. Programme 3: University Education • Strategies to deal with under performance in areas in which targets were not achieved are underway. Amongst others these targets include: • A draft policy on Adult Educator Qualifications • 1 812 fewer students graduated from universities in the 2012 academic year than targeted • 17 of 25 universities have statutes that specify 5 ministerial appointees rather than the targeted24 • 3 044 fewer honours graduates from universities in the 2012 academic year than targeted

20. 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

21. Programme 4: Vocational and Continuing Education and Training Key Achievements: • The targeted 650 000 headcount enrolments for TVET colleges was exceeded as 670 455 students (headcounts) were enrolled in a variety of college programme offerings • 273 679 College students were awarded bursaries (target exceeded by 50 862) • The Branch continued to intensify lecturer training and student support services in TVET Colleges to increase the throughput and certification rates: • 167 Lecturers, SSS managers trained to implement the comprehensive student support services framework

22. Programme 4: Vocational and Continuing Education and Training • 692 trained lecturers to support curriculum delivery • 75 Trained Provincial Education Department (PED) officials to support the new NASCA and GETC curriculum delivery • 307 Personnel in VCET institutions trained to support curriculum delivery in AET and Colleges • 256 Personnel at public FET Colleges trained in financial management

23. Programme 4: Vocational and Continuing Education and Training • Strategies to deal with under performance in areas in which targets were not achieved are underway. Amongst others, these targets include: • TVET College councils fully constituted • College Councils trained in institutional and corporate governance • Colleges campuses built • FET Colleges implementing the Business Management System • FET Colleges offering Level 5 and 6 qualifications

24. Programme 4: Vocational and Continuing Education and Training • Student under-performance and certification rates in VET qualification • Training on the NASCA and GETCA • New 3-year NC(V) qualification policy development • Amended National Certificate (Orientation) developed and approved • Certification rates of bursary recipients

25. Programme 5: Skills Development Purpose: To promote and monitor the National Skills Development Strategy

26. Programme 5: Skills Development Key Achievements: • 27 670 Artisan candidates entering learning nationally (target exceeded by 1 670) • 18 110 Artisan candidates found competent nationally (target exceeded by 6 110) • 27 346 graduates received work integrated learning (target exceeded by 67) • All SETAs (21) have at least 4 partnerships agreements with Public TVET Colleges and Universities (Total 284 partnership agreements) • All SETAs implement NSDS III with approved service level agreement and reports produced

27. Programme 5: Skills Development • Strategies to deal with under performance in areas in which targets were not achieved are underway. These targets include: • 48 % of national artisan learners pass trade test by 2013/14 (INDLELA only) • Secure trade testing system developed and implemented at all trade test centres • Scarce and critical skills list compiled

28. Auditor-General Report • The Department received an unqualified audit opinion • Key matters raised by the Auditor-General: • As presented by the Auditor-General to the Committee on 14 October 2014 • All these are included in the Audit Report on pages 188 to 192 of the Annual Report • The Department developed an action plan to address the matters raised by the Auditor-General. These actions are explained below

29. Auditor-General Report Significant Uncertainties • The note in the Audit Report regarding the Department’s involvement in lawsuits is a standard note. However, the Department is addressing the concern raised by the Auditor-General regarding the estimated value of these lawsuits that is disclosed in the Annual Financial Statements as a Contingent Liability. This will be managed through Legal Services and the Office of the State Attorneys to ensure that by the end of February accurate estimates have been determined in this respect

30. Auditor-General Report Compliance with laws and regulations • Strategic planning and performance management The Department will procure an appropriate system to collect, collate, verify and store performance information. It is estimated that the system will be in place to be tested for the third quarter information

31. Auditor-General Report • Annual financial statements The material misstatements are linked to differences identified regarding the interpretation of accounting principles during the audit which was clarified with National Treasury and the Auditor-General. Adjustments were required on areas linked to the impairment of receivables and commitments identified by the auditors. Differences identified regarding the application of virement and treatment of the skills levy were resolved and did not require any adjustments Due to the fact that the interpretation matters were resolved, it should not have an impact on disclosures in future financial years

32. Auditor-General Report • Human resource management and compensation Department will sign a contract with SAQA to verify the claims made by employees in their applications. The backlog will be processed and policy will be reviewed in this regard. The Department will fast track the process of filling funded vacant posts by reviewing delegations of authority to appoint. Policy prescriptions and DPSA regulations will be adhered to • Procurement and contract management Officials performing remunerative work outside their employment were identified and received warning letters. Department will conduct information workshops annually. CIPRO processes will be followed quarterly and a report will be submitted to the Director-General on the outcomes

33. Action Plan Audit Findings • Areas raised in the Audit Report are included in the Department’s audit action plan as well as other matters identified during the audit that resulted in audit queries • The final plan includes specific commitments by the Minister on operational matters raised by the Auditor-General on areas not included in the Audit Report such as policies and procedures to address the collection, verification and reporting on performance targets achieved • As required, the Department’s action plan will be submitted to National Treasury • Progress on the action plans are being monitored on a bi-weekly basis and will be reported to the Minister, Audit Committee and Director-General

34. 2013/14 Allocation versus Expenditure

35. Spending Trends per Economic Classification

36. Explanations of Variances • Programme 1: Administration • (Unspent: R685 000) • Staff attrition and posts not filled as projected • Invoices i.r.o. travel and accommodation not received as projected • Transfer to SETA due to the finalisation of the skills levies to be paid • Programme 2: Planning and Monitoring • (Unspent: R292 000) • 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) • Staff attrition and posts not filled as projected • Invoices i.r.o. travel and accommodation not received as projected

37. Explanations of Variances • Programme 4: Vocational and Continuing • Education and Training • (Unspent: R418 000) • 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) • Staff attrition and posts not filled as projected • Indlela security system because of transitional arrangements and the extent of the project.

38. Thank You