ATC110525: Report Budget & Strategic Plans 2011/12 of Department of Higher Education & Training (DHET), South African Qualifications Authority (SAQA), Council on Higher Education (CHE) & National Student Financial Aid Scheme (NSFAS)

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE BUDGET AND STRATEGIC PLANS 2011/12 OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING (DHET), SOUTH AFRICAN QUALIFICATIONS AUTHORITY (SAQA), COUNCIL ON HIGHER EDUCATION (CHE) AND NATIONAL STUDENT FINANCIAL AID SCHEME (NSFAS) DATED 25 MAY 2011

 

The Portfolio Committee on Higher Education and Training, having considered the Budget and Strategic Plans 2011/12 of the Department of Higher Education and Training, South African Qualifications Authority, Council on Higher Education and National Student Financial Aid Scheme reports as follows:

 

1. Introduction

 

The Portfolio Committee on Higher Education and Training considered the Budget and Strategic Plans 2011/12 of the Department and its three entities, namely; SAQA, CHE and NSFAS on 29 - 30 March 2011. This report gives a brief summary of the presentations made by the Department and its entities to the Committee, focusing mainly on the Department’s 2011 – 2014 Strategic Plans, the 2011 Medium Term Expenditure Framework (METF) allocations and an overview of allocations per programme In addition, the Department and its entities were requested to outline their key challenges and achievements for the previous strategic plan. The report also provides the Committee’s observations and recommendations

 

The Portfolio Committee on Higher Education & Training

Adv I Malale Chairperson (ANC), Ms N Gina (ANC), Ms N Magazi (ANC), Mr S Makhubele (ANC), Mr C Moni (ANC), Ms W Neslon (ANC), Mr S Radebe (ANC), Dr J Kloppers-Lourens (DA), Mr A van der Westhuizen (DA),Ms N Vukuza (COPE), Mr A Mpontshane (IFP) and Mr J Dikobo (AZAPO).

 

The Department of Higher Education and Training was represented by: Mr G Qonde: Acting Director General, Mr F Patel: Deputy Director-General Planning, Ms P Moleke: Deputy Director-General Skills Development, Mr M Macikama: Chief Director National Skills Fund, Mr C Mtshisa: Chief Director Indlela, Mr T Tredoux: Chief Financial Officer, Dr B Mahlobo: Deputy Director-General Further Education and Training, Ms L Mbobo: Deputy Director-General, Mr F Toefy: Chief Director Performance and Monitoring and Evaluation, Ms B Swart: Acting Chief Director Financial Planning, Mr J Cedras: Director University Education, Ms J Skene: Director Higher Education Management Information System, Mr S Mommen: Director Public FET colleges, Ms T Futshane: Director Youth Development and Mr Z Hlongwane: Director Office of the DG.

 

South African Qualifications Authority was represented by: Mr J Samuels: Acting Chief Executive Officer and Mr M Albertyn: Chief Financial Officer.

 

The Council on Higher Education was represented by: Mr A Essop: Chief Executive Officer

 

The National Student Financial Aid Scheme was represented by: Mr Z Sogayise: Chairperson, Mr U Naidoo: Manager Special Projects and Ms C Caine: Board Member.

 

2. Summary of presentations

 

2.1 Department of Higher Education and Training

Mr G Qonde: Acting Director-General led the presentation which highlighted the following key issues:

 

·         The revised strategic plan sets out the Department’s stated outcomes, targets and budget. It also addresses priorities in the New Growth Path, focuses on the Recognition of Prior Learning, the differentiation and articulation of the post-schooling system and aims to strengthen the relationship between institutions and the world of work.

·         Administration: This programme was allocated R161 million for the current financial year. This programme provides administrative support and corporate services to the Department.

·         Human Resource Development, Planning and Monitoring:  This programme was allocated R33.8 million. The key priorities for this programme include; to develop an integrated information system for the Department and to provide career guidance services for citizens.

·         University Education: This programme was allocated R23. 4 billion. It aims to ensure successful transformation in the university sector.

·         Vocational and Continuing Education and Training: This programme was allocated R4.4 billion. It is responsible for curricular transformation of the college sector and increasing access to the post school system.

·         Skills Development: This programme was allocated R128.3 million. It provides a dynamic interface between workplaces and learning institutions and promotes the alignment of skills development outputs with the needs of the workplace.

·         Finance: The Department received a total allocation of R37 billion for the current financial year. SETAs were allocated R7 billion, NSF R1.8 billion, Direct Charges amounted to R9 billion and total voted funds for the Department R28 billion.

·         Organogram: The total design will be finalized on 31 July 2011. The Department had 1114 approved posts, 895 funded posts, 699 permanently filled, 152 temporarily filled, 44 vacant and 80 advertised.

·         Regional Offices: The Department plans to have one office per province with three core staff during the course of the year. These offices will serve the public as career advice centres and will address service delivery queries.

·         New Universities: A Task Team was established by the Minister to oversee the process of building universities in Mpumalanga and the Northern Cape. A final report with recommendations was expected at the end of June 2011. The Mpumalanga Interim Report was received by the Department. This project was allocated R50 million for the current financial year.

Challenges

·         The finalisation of the Constitutional Amendment for the transfer of colleges from provincial to national level.

·         The filling of vacant posts to improve capacity.

·         The implementation of the Quality Council on Trades and Occupation.

·         The establishment of universities in Mpumalanga and the Northern Cape.

·         Limited funds available for the Department’s operations, which include the key roles of monitoring and support.

·         The review of the curriculum of FET colleges: NC(V) and N programmes.

 

Achievements

·         The FET college bursary scheme implemented at 50 colleges with 160 000 learner beneficiaries.

·         750 lecturers trained in 3 NC(V) targeted programmes.

·         Mathematics and language curriculum support in 20 FET colleges.

 

2.2 South African Qualifications Authority

Mr J Samuels: Acting Chief Executive Officer led the presentation which highlighted the following key issues:

·         SAQA, as the oversight body and custodian of the National Qualifications Framework (NQF) will continue to coordinate an effective public NQF advocacy and communication strategy.

·         A new board with fewer members was appointed at the end of 2010 and the first board meeting took place on 16 February 2011.

·         The Department of Public Service and Administration (DPSA) mandated government departments to use only the National Learner Records Database (NLRD) verification service for employees.

·         Finance: SAQA received a total budget of R103 million of which R41 million was a government grant, R32 million non-taxable revenue and R28 million from donor funding. Personnel costs would be adjusted to reflect at 6%. A total of 48 new and 7 contract positions would be created, resulting in a staff complement of 178.

Challenges

·         Insufficient resources to ensure business continuity of SAQA systems.

·         Human resource capacity (11 positions vacant).

·         Curbing the spread of illegal training providers and qualifications.

·         Full implementation of Recognition of Prior Learning (RPL).

Success

·         The hosting of the first annual RPL Conference on 23-25 February 2011.

·         The implementation of the career guidance helpline.

·         The appointment of the new board with fewer members.

2.3 Council on Higher Education

Mr A Essop: The Chief Executive Officer led the presentation which highlighted the following key issues:

·         CHE continued to advise the Minister on aspects of higher education. The CHE advised the Minister on the establishment of the Central Applications Service, the Community Service Scheme for Graduates and the Review of the Degree Structure.

·         The potential research projects include; governance of Student Representative Councils (SRCs), FET-HE interface, benchmark tests and the National Senior Certificate (NSC).

·         The Higher Education Qualifications Framework (HEQF) would be reviewed to address inconsistencies and gaps in vocational and professional qualifications. The timeframe for consultation will be conducted in April-May 2011 and recommendations to the Minister would be made available in July 2011.

·         The CHE anticipated the assessment of 400 programmes, most of which are from private providers. The Teacher Education and Master of Business Administration (MBA) programmes would be reviewed.

·         The second cycle of institutional audits would commence in 2013. Only two institutions that were not audited in the first cycle namely: Mangosuthu University of Technology and Walter Sisulu University. The University ofKwaZulu-Natal would be re-audited since its report was withdrawn due to the interference of the audit process by the audit panel Chairperson.

·         Finance: The CHE received R40 million for the current financial year, R36 million from the state (reduced by 10%), R2 million for standard setting, R1 million from private accreditation and the balance from interest.

 

Challenges

·         Filling of vacant posts.

·         The finalisation of the Institutional Audits in UKZN, MUT and WSU.

·         The lack of systematic monitoring, in particular, policy impact studies.

·         Gaps and inconsistencies in the application and implementation of policies in human resource and finance.

 

2.4 National Student Financial Aid Scheme

Mr Z Sogayise: The chairperson led the presentation which highlighted the following key issues:

·         NSFAS continued to expand the pool of funds available for disbursement as student loans and bursaries. A total budget of R5 billion was allocated to NSFAS for this function. Universities were allocated R1.8 billion with an additional funding of R751 million for the final year programme. FET colleges were allocated R1.2 billion of which R857 million is intended for full cost bursaries to benefit 100 000 students.

·         NSFAS has improved significantly in its spending of funds. Unspent funds amounted to R18 million in 2009 and R418.00 in 2010. This improvement was largely attributed to the fact that unutilized funds by universities were redistributed to other, more needy universities.

·         The new board approved the fraud prevention plan in October 2010.Full implementation of this plan would commence in the new financial.

·         A partnership was signed with Disabled People of South Africa (DPSA) last year. A budget of R35 million was allocated for this programme which benefited 1 040 students with disabilities.

·         The new funding model for FET colleges and universities would be developed in the coming financial year (2011/12). The implementation of the approved recommendations of the Ministerial Review Report was the major priority of NSFAS in the new financial year as part of the turnaround strategy.

 

Challenges

·         Filling board vacancies, establishing new board committees and appointing a Chief Executive Officer.

·         The implementation of the recommendations by the Ministerial Review Committee.

·         The advocacy campaign targeting particularly remote areas.

·         The efficient management of the loan book.

·         Tracing mechanisms and database for drop outs.

 

 

 

 

3. Committee Observations

3.1 Department of Higher Education and Training

• Administration: The Department had serious challenges in filling vacant posts since the organorgram of the Department is yet to be finalised. Lack of provincial presence remained a serious challenge to the delivery of some key outputs.
• University Education: The Northern Cape task team report has not yet been submitted to the Department. There were no clear timeframes for the finalisation of the process of building universities in Mpumalanga and theNorthern Cape. The funding formula for previously disadvantaged universities remained a concern. The lack of articulation between higher education and the FET sector delayed progress for many students who wished to further their education.
• Vocational and Continuing Education and Training: The curriculum of FET colleges required urgent review. The inadequate throughput rate of the NC(V) programme remained a challenge. The introduction of the N programmes to increase the number of artisans was welcomed by the Committee. The Department’s target for the certification rate in FET colleges was modest. Pass rates at Trade Test Centres were too low. The delay in the finalisation of the constitutional amendment for the transfer of FET colleges to national level remained a serious challenge.
• Skills Development: The Committee was extremely concerned with the delay in the implementation of the QCTO. Many students were struggling to obtain experiential learning in workplaces and the SETAs were not cooperating in this regard.

 

3.2 South African Qualifications Authority

• The Committee was concerned with the 11 vacant posts yet to be filled.
• SAQA was commended for hosting the first annual RPL Conference.
• The increase of illegal / foreign fraudulent qualifications remained a challenge and SAQA was requested to take a lead role in restricting this practice.
• The career advice service was said to be minimal in remote rural areas.
• The Committee was not satisfied with the employment equity targets of SAQA.

 

3.3 Council on Higher Education

• The Committee was concerned with the withdrawal of the UKZN Institutional Audit Report.
• The CHE was requested to address the challenge of higher education institutions offering unaccredited programmes.
• The conflict between academic leadership and the management of HEI’s remained a challenge.
• The capacity in the monitoring and evaluation function of the CHE remained a challenge.

 

3.4 National Student Financial Aid Scheme

• A high staff turnover and institutional memory loss remained a challenge.
• The finalisation of the appointment of new board members was incomplete.
• The turn around strategy was to be implemented in the beginning of the new financial year.
• Inadequate advocacy programmes of the NSFAS bursary in rural areas remained a concern.
• The capacity of Financial Aid Offices in universities was a challenge.
• Inadequate management of the loan book remained a concern.
• Inadequate systems to track NSFAS bursary beneficiaries and drop outs had not yet been addressed.

 

4. Recommendations

The Portfolio Committee on Higher Education and Training, having considered the Budget and Strategic Plans 2011/12 of the Department of Higher Education and Training, SAQA, CHE and NSFAS recommended the following:

• The filling of vacant posts should be given a priority within the new financial year (Department and its entities).
• The funding formula for previously disadvantaged higher education institutions should be reviewed.
• The infrastructure at FET colleges (Satellite Campuses) should be improved including the NC(V) throughput rate.
• NSFAS should urgently implement its turn-around strategy.
• The appointment of a full NSFAS board should be prioritised.

 

5. Conclusion

The Portfolio Committee on Higher Education and Training considered and accepted the Budget and Strategic Plans 2011/12 of the Department of Higher Education and Training, SAQA, CHE and NSFAS.

 

 

Report to be considered