ANNUAL REPORT 2011/12

       Presentation to the
     Portfolio Committee on
  Higher Education and Training

        16 October 2012
         Presentation Outline

• Background Information

• Performance on Predetermined

• Financial Statements

• Auditor-General Report

              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

               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

          Programme 1: Administration

Purpose: To conduct the overall management of the
         Department and provide centralised support

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
• 133 Appointments were made

       Programme 1: Administration
• 847 Funded posts of which 843 are filled
• 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
• Call centre has continued to provide a meaningful
  service to citizens by responding to 95% of the
  Presidential Hotline queries

        Programme 1: Administration
• Macro-organisational structure approved and consulted
  with MPSA
• Human Resource and Employment Equity Plans
• 27 Posts for regional offices created and pilot started in
  KwaZulu-Natal and Eastern Cape

• ICT services – LAN Desktop support has been slow in
  addressing user calls
• Training levels of the security staff needs to be

        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 capacity

• 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
 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:
•         Academic Planning and Management Support
•         Human Resource Development, Strategic
          Planning and Coordination
•         Planning, Information, Monitoring and
          Evaluation Coordination
•         International Relations
•         Legal and Legislative Services
•         Social Inclusion in Education
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
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 were 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
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
• 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-
Programme 2: Human Resource Development,
   Planning and Monitoring Coordination

• No major challenges, all programmes operated on a
  reduced and constrained budget
• 8 Targets were partially achieved and 1 target was not
• Some of the targets were not achieved within the
  programme as a result of capacity constraints:
   - Director only assumed duty on the 1 September
   - Deputy Director was temporary seconded to another

Programme 2: Human Resource Development,
   Planning and Monitoring Coordination

• 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

       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
       Programme 3: University Education

Key Achievements:
 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
 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

       Programme 3: University Education
 Project plan for the establishment of a national Central
  Application Service was developed and work has
 Report of the Ministerial Committee for the Review of
  the Provision of Student Housing at South African
  Universities was published and launched by the
 Implementation of Phase 3 of the Higher Education
  HIV/AIDS Programme was successfully implemented
• A National Transformation Seminar was held as a
  follow-up to the Higher Education Stakeholder Summit
  held in 2010

       Programme 3: University Education

• 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
• The Minimum Requirements for Teacher Education
  Qualifications (MRTEQ) was published in the
  Government Gazette as policy and implementation
• The draft Minimum Requirements for FET College
  Lecturer Qualifications was completed and ready to
  publish for public comment

       Programme 3: University Education
• Foundation Phase Teacher Education was strengthened:

   - 20 Universities involved in Foundation Phase
     Teacher Education (up from 13 in 2009; 14 offering
     programmes and 6 preparing to offer by 2014)
   - 24 New childhood education academics employed at
   - 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 (human resource
     development for expansion)

       Programme 3: University Education
   - South African Journal for Childhood Education
     (SAJE) supported and launched with two editions
   - South African Association for Research in Early
     Childhood Education (SAARECE) established
• 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

       Programme 3: University Education
• 26 Targets were partially achieved and 10 targets were
  not achieved
• Staff shortages remain the biggest internal challenge

• 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

       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

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

Programme 4: Vocational and Continuing
       Education and Training
Key Achievements:
• The community education and training centres and the
  conversion of DFET Colleges into VCET Institutions
  has been gazetted as delivery institutions for the VCET
• The National Senior Certificate for Adults was published
  for public comment
• An additional National Certificate (Vocational)
  programme, namely Transport and Logistics has been
• A Ministerial Task Team was established to review the
  NCV qualifications at levels 2-4

Programme 4: Vocational and Continuing
       Education and Training
• 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
• The internal continuous assessment (ICASS)
  guidelines were developed to strengthen the NCV
• 26 units of lecturer training delivered in the last financial
  year supported the implementation of the Internal
  Continuous Assessment guidelines in all 50 colleges

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
• 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

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

   - Registration of 866 491 candidates for National
   - 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
Programme 4: Vocational and Continuing
       Education and Training
  - Marking of 2.5 million scripts for the FET College
  - Capturing of 5.08 million marks for the FET College
  - Monitoring of examination centres during the
    conduct of examinations and marking sessions
    throughout the year
  - Standardisation of all examination marks
  - Resulting and certification of candidates for the FET
    college sector
  - Enrolment rates rose by 34% from 2011

Programme 4: Vocational and Continuing
       Education and Training
   - The success rates based on November 2011 results
      showed a dramatic improvement in success rates
      averaging 40% across levels
• In regulating private FET colleges, the following were
   - 501 Private colleges were registered
   - 123 Private colleges were registered as examination
   - Compliance and performance reports on 384
      provisionally registered colleges
   - Identification of 28 illegally operating private
      colleges and the arrest of their managers
Programme 4: Vocational and Continuing
       Education and Training

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

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

• To date 11 of these targets have been achieved, 9
  partially achieved and 8 not achieved
• Amendment to FET Colleges Act of 2006 in May 2011
  resulted in new consultative structures
• Draft Policy on Professional Qualifications for FET
  College Lecturers was published in the Government

Programme 4: Vocational and Continuing
       Education and Training
• Piloting of the Integrated Financial Management
  Systems (IFMS)
• Draft document - National Norms and Standards for
  Funding FET Colleges
• All remaining outstanding policies, reports, curriculum
  and programme development will be completed within
  this financial year

       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

        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

        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


• 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
• 14 Targets were partially achieved and 13 targets were
  not achieved
        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

• 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

        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
• 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

                            Financial Statements

              Programme                                Expenditure    % Spent
1: Administration                           155 688         152 404   97.9%

2: Human Resource Development,                38 734         38 074   98.3%
  Planning and Monitoring Coordination
3: University Education                   23 428 991     23 428 356   100.0%

4: Vocational and Continuing Education     4 545 463      4 540 838   99.9%
  and Training
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%

    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
• Programme 5: Skills Development
   – Under-spending on the Indlela security system

  Spending Trends per Economic Classification
                    Economic Classification                               Expenditure      % 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
              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
                      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

Thank You


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