Department of Higher Education and Training Quarter 3 performance, with Deputy Minister

Meeting report

Department of Higher Education and Training 3rd Quarter (2017/18) Performance Report

Mr Theuns Tredoux, CFO, DHET, stated that the Department’s Annual Performance Plan for 2017/18 had 86 targets, covering the direct outputs of the budget programmes of the Department. The focus of these targets is mainly on the Department's interventions in the Post-School Education and Training (PSET) system - these include the development of steering mechanisms, teaching and learning support, student support services, implementation and oversight. Moreover, the Department monitors the performance of its delivery institutions in terms of the Medium Term Strategic Framework targets. These are targets implemented by universities, Skills Education Training Authorities (SETAs), Technical Vocational Education and Training (TVET) and Community Education and Training (CET) colleges. The presentation provided the status of the Department’s performance as at 31 December 2017.

Programme Three: University Education

Mr Mahlubi Mabizela, Chief Director: University Policy, DHET, further said that the purpose of the programme is to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system and it provides financial support to universities, the National Student Financial Aid Scheme (NSFAS) and NIHE.

-2017/18 Strategic Objectives

There were 20 targets for the 2017/18 Financial Year and seven for the third quarter – six of these targets (86%) were achieved in the third quarter.

-Achievements:

• The draft policy framework on collaboration between professional bodies, government departments and quality councils has been developed and consultations completed
• Final draft on the amendments to the NSFAS Act has been developed and consultations completed
• A report on the financial health of universities in the 2015 academic year was approved on 15 December 2017
• A Report on the implementation of the Teaching and Learning Development Programme was approved on 11 December 2017
• A report on the effective use of the 2016/17 Foundation Provision Grant was developed and approved on 5 December 2017
• Data verification and generation of a cohort study report commenced as planned.

-Target not achieved:

• Developing the final draft national plan for PSET. The plan has not been developed, as consultations were not completed as expected by December 2017.

Programme 4: TVET

Ms Aruna Singh: Acting Chief Director; Programmes and Qualifications further indicated that purpose of the programme is to plan, develop, implement, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for the TVET sector.

-2017/18 Strategic Objectives

• To develop and review TVET steering mechanisms
• To ensure effective monitoring and evaluation of the TVET sector
• To provide TVET teaching and learning support plans
• To develop infrastructure for TVET colleges
• To ensure a strong TVET stakeholder network
• There were 28 targets for this programme for the 2017/18 Financial Year and 12 targets/outputs for the third quarter. Nine of these targets were achieved (75%) – two of the remaining three targets have subsequently been achieved.

-Achievements:

• Reporting policy on the performance of TVET colleges has been developed and approved on 11 December 2017
• Draft policy for TVET College finance management was consulted with TVET colleges and a final draft was prepared for approval as planned. The purpose of the programme is to plan, develop, implement, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for the TVET sector.

-Targets not achieved

• A report on the conduct of public TVET college examination centres during national examinations and assessments – this target was subsequently achieved although approved outside the timeframe
• A report on the certificate backlog eradication – this target was subsequently achieved although approved outside the timeframe
• Draft plan for TVET college lecturer development consulted with individual colleges and finalised

Programme 5: Skills Development

In his presentation, Mr Maliviwe Lumka, Chief Director: SETA Coordination; commented that the purpose of the programme is to promote and monitor the national skills development strategy and develop a skills development policy and regulatory framework for an effective skills development system.

-2017/18 Strategic Objectives

• To develop and review steering mechanisms for artisan development
• To ensure effective artisan development and assessment services
• To ensure effective monitoring and evaluation of artisan development
• To develop infrastructure/facilities for artisan development
• There were eight targets for this programme in the 2017/18 Financial Year and five for the third quarter – all five of the targets (100%) were achieved.

-Targets achieved:

1. Developed the second draft of the National Skills Development Plan following consultation with the National Economic and Labour Development Council (NEDLAC) and the National Skills Authority
2. Report on the implementation of the National Skills Development Strategy by SETAs was approved on 11 December 2017. The report provides progress status on the implementation of SETAs strategic and annual performance plans in terms of the signed Service Level Agreements
3. Report on the governance of SETAs was approved on 5 December 2017
4. The process of conducting trade tests for qualifying applications was 100 days during the quarter under review
5. The implementation of the security infrastructure development plan at INDLELA progressed well during the quarter under review. Quarterly meetings and progress reports are being compiled as planned

Programme 6: CET 

Mr Tredoux further presented that the purpose of the programme is to plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for community education and training.

-2017/18 Strategic Objectives

• To develop and review CET steering mechanisms
• To ensure effective monitoring and evaluation of the CET sector
• There were six targets for the 2017/18 Financial Year and one target/output for the third quarter – this target was achieved (100%).

-Achievements:

Public comments on the draft reporting policy for CET colleges have been received and incorporated into the final draft policy for submission to the Minister for approval

Programme 2: Planning, Policy and Strategy

Mr Reineth Mgiba: Director: Strategy Planning, DHET, presented that the purpose of the programme is to provide strategic direction in the development, implementation and monitoring of departmental policies and the human resource development strategy for South Africa.  

-2017/18 Strategic Objectives:

• To develop appropriate steering mechanisms for the PSET system
• To ensure effective oversight of the PSET system
• To develop and implement a teaching and learning support plan
• To provide student support services
• To provide management information statistics
• There were 12 targets for the 2017/18 Financial Year and eight targets/outputs for the third quarter – all eight targets (100%) were achieved.

-Achievements

• First draft list of occupations in high demand has been developed as planned.  Once finalised, the list will inform skills planning in the country to support the Department’s planning processes with respect to enrolment planning, resource allocations, career advice and qualifications development. A final policy document on disability has been completed as planned. It was presented to Cabinet for approval on 6 December 2017
• Quarterly oversight reports on the implementation of Social Inclusion, Open Learning, Career Development Services and investment trends in PSET were compiled as planned
• The development of MIS for CET colleges is at an advanced stage. The data load specification document has been consulted with relevant stakeholders
• Draft statistics report was compiled and consulted with data managers

Programme 1: Administration

Mr Tredoux in his presentation stated that the purpose of the Programme is to provide overall management and administration of the Department.  

-2017/18 Strategic Objectives:

• To ensure effective human resources management within the Department
• To ensure effective financial management practices
• To improve Information and Communication Technology (ICT) services
• There were 12 targets for the 2017/18 Financial Year and three targets for the third quarter – all three targets (100%) were achieved.

-Achievements

1. A plan to reduce the number of days to resolve disciplinary cases was developed and approved on 29 September 2017
2. Data centre infrastructure has been established - the establishment of the data centre infrastructure is informed by the Corporate Governance of ICT Policy Framework (CGICTPF) developed by the Department of Public Service and Administration, which states that departments must develop their own CGICTP to ensure proper governance of ICT and address effective use of IT resources
3. Implementation of an ICT governance framework was approved on 11 January 2018. The framework serves as a guide for implementing corporate governance of ICT in the Department

Financial Information

• The overall spending rate by the third quarter was 85.3% (including Direct Charges)
• Average spending for normal operational activities including compensation of employees was 72.6%
• The spending rate on compensation of employees is 72.1% as follows: 71.6% for personnel expenditure and 99.6% for examiners and moderators.
• Cost containment measures are implemented in the Department and expenditure is monitored on a monthly basis to ensure the Department stays within the budget allocation
• Transfer payments and subsidies were processed as planned and in accordance with payment schedules
• The highest spending trends are experienced by Programme Three due to subsidy payments to universities and NSFAS
• Consequently transfer payments comprises the spending item that reflects the highest trend

Remarks by the Deputy Minister

Mr Buti Manamela, Deputy Minister of Higher Education and Training, remarked that the third quarter report reflects the overall performance of the Department in the last quarter which also marks the end of the academic year. It as well coincided with the announcement of fee-free higher education articulated by former President Jacob Zuma. The impact of that announcement might only begin to be reflected in quarter one of the 2018/19 Financial Year.  The Department has done its bit towards ensuring that the policy announcement is implemented. The Department’s concern is related to programme three and the non-achievement of set targets of student’s enrolment in public higher education studies and in specific disciplines. Another area of concern is on the issuing of certificates to TVET college students. The Department is working with SETAs to ensure that a turnaround is achieved. The Department is also worried that it made negligible progress towards achieving the set target of qualifying new artisans. It could only achieve 9 787 out of a target of 21 110. The same goes for artisan learners registered where 20 276 learners were registered out of a set target of 27 750. These are the issues of concern to the Department and in which more redoubled efforts are to be spent in the next quarter to meet set targets. 

Discussion

The Chairperson thanked the Department for its presentation and asked for the Committee to be provided with the areas where vacancies exist and the colleges that were pointed out by the Auditor-General of SA (AGSA) as institutions of concern. An update should be provided in the pension liability matter and colleges fingered in the audit findings. In addition she requested the Committee be informed of the NSFAS Act, the announcement made in December and what was achieved. Where is consultation going to take place on 1 March? Apart from the University of SA (Unisa) which other universities are not achieving set targets and why?  Which year of certificates is the Department reporting on?

Ms J Kilian (ANC) asked when the NSFAS Act and consultations completed will be tabled in Parliament. She noted the underachievement in programme three and stated that if Unisa sneezes the entire system catches a cold i.e. if Unisa hits a snag it affects enrolment. Judging from what happened at the beginning of the year, Unisa is not out of the woods yet - the system it has reverted back to is still problematic and as a result many students still do not have the opportunity to study in quarter one. Are the targets annually set based on the National Development Plan (NDP)? If the Department is not achieving its set goals, it will have a knock on effect on the NDP. Going back to the Annual Report of 2016/17, the AGSA expressed concern on the Information System and the Department’s inability to generate reliable data on TVET throughput rate and funded National Certificate Vocational (NCV) Level Four programmes. Looking at Quarter Three TVET targets, certain draft policies were developed and important key steps were delayed. On the systematic targets of infrastructure roll outs in the Strategic Plan for this year, there are very serious delays.  Also in 2015/16, student support services were approved but yet there was no implementation - these are key issues in the TVET sector. On the roll out of systemic targets, is there feedback on the headcount on enrolment?  Does it mean TVETs have no management information system with data that can be trusted? How can government then continue to put in money on a sector/programme that it cannot evaluate performance? It was even stated that data is inaccurate because of inaccuracies on the data file - is that a true reflection of the sector? Is there a system in place or not? Implementation of disciplinary was approved on 29 September – is there any indication if any disciplinary had taken place since then? How can the issue of exam moderators be resolved? Students should be assisted in high schools with career choices because subjects selected in Matric are serious stumbling blocks for some students when making the right career choice. Is there any career development planning between high schools and the Department? 

Mr C Kekana (ANC) questioned the bargaining chamber especially with community education and training. People teaching at this level complained they do not know whether they are paid as teachers in basic education or as lecturers in higher education. These same issues pervade in the TVET colleges as well. It is well known that universities have institutional autonomy but does it then mean that every university is at liberty to decide what to pay, how to pay or to even choose to continue with practices of the past whereby there is no racial pay parity? How then do the bargaining chambers deal with such issues? When the Committee conducted an oversight visit to Jabulani TVET College, that college had an old workshop that was not functional.  That is a serious concern because TVET students continue to complain they do not do enough practicals as the emphasis was on theory. For this sector to succeed, the practical component of studies must be indispensable. Every design from the industrial revolution was accomplished through apprenticeship and on-the-job training.  The right mix must be 70% practical and 30% theory.  It has to be stated that even ‘till date, historical black institutions of higher learning do not have engineering faculties - this has to be reversed. What is the role of the SETAs? Can they be exposed to experiential learning? There should be a monitoring mechanism to ensure that SETAs adhere to their founding instruments. On the construction of the proposed TVET campuses, only one is under construction - where will others located?

Mr A van der Westhuizen (DA) was concerned whether the target set really addresses the issues reminiscent with the higher education sector in SA and questioned whether the substances that the Department should aim to address are covered by these targets. He questioned the big disparity between the targets set by the TVET colleges and the universities. If the universities can set a target of, for instance, 3 000 doctoral graduates should the TVET colleges also set a target of say 10 000 NCV Level Four graduates? The Department has challenges that are not getting the attention it deserves because they are stipulated targets.  A case in point is examination leaks that are ongoing even in Quarter Three. If Basic Education could organise a Matric exam in many sites why is DHET not making this a serious target? DHET also seem powerless on the reports on fruitless and irregular expenditure. Do we know how much it costs to reprint and courier leaked exam papers? Why is the Department building new hostels when existing ones are standing empty? How many of the construction contracts have been allocated? If all certificates were issued to qualifying candidates after the publication of results within three months, this should reflect a figure of 100%. What is the issuance rate for NCV Level Four certificates?  

Dr B Bozzoli (DA) emphasised registration and universities noting that the university system could have taken 20 000 students but it failed to do so at this juncture when students are desperate for university education. This shocking unmet target is a grave concern.  The reasons for this failed target could be attributed from the experience of an aggrieved student who applied to study at Unisa this year. The student applied to study at Unisa in September 2017. She made payment for the mandatory registration and submitted all required documents. She received a student number informing her she will hear from Unisa around mid-December. When registration opened in January, there still was no news from Unisa. She tried registering on the internet but was told there were still outstanding documents and then she resubmitted all the documents again four more times only to receive an automated response that generated a case number assuring her that they would attend to the matter. She went in person to Unisa on the 23 January and stood in the queue for three hours. When the gates were opened at 8am, everyone was informed to go home because of staff strike. She went again the next day at 4am in the morning and managed to get into the building at 10am but was told they reached the maximum of people to attend to for the day.  She returned again on 29 January, managed to receive a ticket with a number and was sure to be helped the next day. She returned the next day at 2pm sat with 200 other people waiting to be attended to. It was then she was told by others waiting that the ticket she received the previous day meant nothing. After waiting for an hour, people became restless and started shouting and screaming. At that point a Unisa worker came and fetched 50 people - the rest of the people were left to fate. The registration date was extended and when she went back on 9 February, she was informed of the staff strike. She sent an email which was then forwarded to another person who responded that she still has outstanding documents. This is not an isolated case because there are so many students wanting to register and given the same run-around.

It appeared the applicants got as far as being allocated student numbers but this was how they got and, in a nutshell, cannot register. The Department should please assist Unisa with its registration process because what is happening to these students is pathetic and cruel. The under registration figures hides a huge problem that needs urgent attention. She then asked for the SETA reported submitted to the DG – the report concerned unspent university funding to the amount of a whopping R3 billion by the end of Quarter Three. That means January to March (Fourth Quarter) those mentioned universities are due infrastructure grants from the historically disadvantaged university. For this underprivileged universities to have this money owed them by the end of the academic year is appalling when their needs are considered.  What is the Department doing to ensure that the R3 billion is properly spent? On the issues of the strike taking place in universities during registration, there must a briefing from the Department on what is happening in TVETs and universities in respect to fee-free high education, the state of affairs, challenges, the Department’s projected interventions and lessons learned.  

Ms S Mchunu (ANC) reiterated the Committee’s concern on the non-achievement of enrolment target - it is disappointing that almost 20 000 students were short of the set target. The Department has to explain reasons related to this under-performance. Has the Department transferred all NSFAS allocations to the universities and colleges that have outstanding payments for the 2017 academic year? It is commendable TVETs eradicated NCV certificate backlogs but disappointing they could not report on headcount enrolments due to inaccuracies in data files. What are the causes of these inaccuracies? In an oversight visit to the Eastern Cape, the Committee went to the KSD FET College - it was uncovered that the college had two CFOs. What criteria were used by the Department to appoint two CFOs? Is this not an anomaly?  Fort Hare said one of the reasons of meeting their target in science and agriculture is the low pass rate in maths and science. What engagement do the Department have with the Department of Basic Education (DBE) to ameliorate the situation? What happens in DBE has implications for higher education. The strike at the Durban University of Technology (DUT) is entering the seventh week - could the Department intervene?   

Responses

Mr Tredoux stated that in terms of total cost for examiners and moderators, the experience of the Department is that costs are always higher than was budgeted. This matter has been raised with National Treasury and they have agreed to provide the Department with an additional allocation in future to deal with this issue. There are two areas that impact on the costs for examiners and moderators one of which is student enrolment - numbers deviate every year and so it is difficult to cost. The other has to do with the bargaining council’s remuneration for examiners and moderators which increases on an annual basis and it has to be accommodated in the Department’s allocation. At the moment, that remains a challenge. There are specific areas on the R3 billion outstanding claims on university subsidies - the first is the infrastructure grant and the other is the historically disadvantaged institutions grants. For both grants, the norm is that the Department receives specific plans from both institutions as well as expenditure reports of the previous grants allocated to them. Based on the audited outcomes, as well as plans provided, institutions receive advances according to the plans submitted. All institutions are required to submit their plans at the end of December and the Department is in the process of evaluating those payments – this will be completed by the end of February/beginning of March 2018. About R130 million has been earmarked to pay for employee pension funds for the college lecturers that did not contribute in the past. This matter is correctly under audit and it has to be determined how much is payable. The Department has an arrangement with Treasury to utilise any current under-spent money for this year until the end of March. In terms of vacancies and disciplinary cases underway, the Department will provide the Committee with a written response.

On the NSFAS Act the plan is to table it in Parliament by 31 March along with the fee-free higher education Commission Report chaired by Justice Heher incorporated into the Act. The Department is aware of the complaints of students and comments about Unisa, It is difficult to give a clear answer at this time but the Department will take up this issue with Unisa management. The Department is already working with Unisa management on issues coming up and will incorporate issues raised by this Committee. The Department will provide the Committee with a written response on other universities not achieving targets on enrolments and graduates. Universities are autonomous and their councils determine and endorse salary scales without government intervention. On the targets set on graduates, targets are based on the averages on previous performances and social conditions, such as dropouts, and failure rates are not taken into account - neither does it factor in the student protests of 2015/16. That can be felt around 2020 and beyond because those were the students in the system at the time.  There are no numbers set on the NDP 2030 except for the PhDs and the Masters and the number of PhD academics in the system. The consultations for the National Plan for Post School Education and Training (NPP SET) were set for 1 March at the Cape Peninsula University of Technology Bellville campus in Cape Town.

The management information system has always been a problem and numbers have always been inputted manually - to get a system in place to deliver reliable data has always been difficult. The Department tried a system but it was very unstable. For the past two years the Department has begun a manual verification system because of the instability of the existing system. Colleges were asked to capture manually in 2016/17 and ensure that the original hard copy was readily available.  The Department undertook a verification process where it visited every college - sampling between the hard copy and the system the colleges used. Data was only uploaded after the verification, so in 2016 the Department had data signed-off using this methodology. 2017 data has not been signed-off yet because of configuration difficulties. By March the data would have been verified against the hard copy supplied by colleges. Lecturers’ development will form a critical component in 2018 and the colleges will form part of the solution using their skills levy. The universities form part of the framework by issuing bursaries to lecturers. The leaking of exam papers is a persistent problem but the Department has reduced it dramatically in 2017 to only two leakages. The problem is that the TVET examination system is the largest in the world comprising of five exam cycles every year. It is huge undertaking to deal with setting, moderating, release and conducting supplementary exams. Exam papers have to be set across the country and not at a centralised venue - leakages is inherent in this system. The Department is working hard to rationalise the exams. The government standards agency is about to submit documents and it will be provided to the Committee as soon as possible. It was important for Members to be aware that assessment is not based on all the standards. The CFO programme with the South African Institute of Chartered Accountants (SAICA) is still ongoing with a number of colleges - the two CFO issue might be that one CFO is a part of the SAICA program and not that they are employed by the college. In terms of the audit actions, there was a sitting of the audit committee of the Department with the AGSA on 2 February and they were happy with the audit action plans although there were some outstanding matters relating to the TVET branch such as in examination services and exam data.

Funding of students through NSFAS has been problematic because of the weak information system in the TVET sector. Funds that go to students through NSFAS system require proper verifiable data. TVET colleges should stop being treated as glorified colleges. That relates to management and the role the sector plays on the ground. There is also the need for dynamic leadership and this sector should already be playing an important role in terms of skills development and employment. The Department commiserates with the issues raised by the Committee as it relates to this sector. The Department will be dedicating most of its concerns and energy in the TVET sector.

Deputy Minister Manamela said the strike at DUT has no relationship to the fee-free higher education but was wage related. It is concerning that the strike has been going on for six months. The Department has met with the parties but could not impose a resolution - they were encouraged to continue to negotiate. The Department will have to give a comprehensive report to the Committee on the overall registration processes and lessons learned. Much effort will be dedicated to Unisa in this report. The Unisa issue is receiving attention from the Department and it will do everything in its power to help the institution. There is a career section in the Department where it goes out to enlighten the Matrics on what career choices they can make. There is a working group between DBE and DHET.  

The meeting was adjourned.