ATC150508: Report of the Portfolio Committee on Higher Education and Training on consideration of Budget Vote 15: Higher Education and Training, dated 7 May 2015

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON CONSIDERATION OF BUDGET VOTE 15: HIGHER EDUCATION AND TRAINING, DATED 7 MAY 2015

The Portfolio Committee on Higher Education and Training (hereinafter referred to as the Committee) having considered the medium term estimates of Vote 15 of the Department of Higher Education and Training (hereinafter referred to as the Department), 2015/16 – 2019/20 Strategic Plans and 2015/16 Annual Performance Plans (APPs) of the National Student Financial Aid Scheme (NSFAS), South African Qualifications Authority (SAQA), Council on Higher Education (CHE) and Quality Council for Trades and Occupations (QCTO) reports as follows:

1. Introduction and mandate of the Committee

1.1. Introduction

The Constitution of the Republic of South Africa, Act 108 of 1996 Section 55(2) stipulates that the National Assembly (NA) must provide for mechanisms (a) to ensure that all executive organs of state in the national sphere of government are accountable to it; and (b) to maintain oversight of (i) the exercise of the national executive authority including the implementation of the legislation; and (ii) any organ of state. The Public Finance Management Act No 29 of 1999 (PFMA) Section 27 (1) states that the Minister must table the annual budget for a financial year in the National Assembly before the start of that financial year, it further provides in subsection Section 27 (4) that when annual budget is introduced in the National Assembly (NA) or at a provincial legislature, the accounting officer for each department must submit to Parliament or provincial legislature, as may be appropriate, measurable objectives for each main division within the department’s vote.

In terms of Section 10 (c) of the Money Bills Amendment Procedure and Related Matters Act (Act No 9 of 2009), Strategic Plans must be tabled in Parliament after the adoption of the fiscal framework. The Minister of Higher Education and Training tabled the Medium Term Strategic Plans and Annual Performance Plans (APPs) of the department and its entities on 11 March 2015 in accordance with the above legislative requirement. On the same day, the Speaker of the National Assembly referred these papers to the Committee for consideration and report.

In executing its oversight mandate, the Committee scheduled extended briefing sessions with the Department, SAQA, QCTO, NSFAS and CHE so as to present their Strategic Plan 2015/16 – 2019/20 and Annual Performance Plan 2015/16 and budget over the Medium Term Expenditure Framework (MTEF) period.

1.2. Mandate of the Committee

The Committee, considers legislation referred to it, facilitates public participation, monitors and exercises oversight function over the work of the executive organs of the state, considers international protocols and conventions relating to higher education and training, and considers all matters referred to it in terms of legislation, the Rules of Parliament and resolutions of the House.

1.3. Description of core mandate of the Department of Higher Education and Training

The mandate of the Department is derived from the Constitution of the Republic of South Africa, all post-school education and training related legislation passed by Parliament which are: the Higher Education Act, 1997 (act no. 101 of 1997), National Student Financial Act, 1999 (Act No. 56 of 1999), Continuing Education and Training Act, 2006 (Act No. 16 of 2006), National Qualifications Framework Act, 2008 (Act No. 16 of 2008), Skills Development Levies Act, 1999 (Act No. 9 of 1999), Skills Levies Act, 1998 (Act No.9 of 1998) and General and Further Education and Training Quality Assurance Act, 2001 (Act No. 58 of 2001); National Education Policy Act, 1996 (Act 27 of 1996), the Employment of Educators Act, 1998 (Act 76 of 1998), and the MTEF of government which requires post-school education and training to be transformed and democratised in accordance with the values of human dignity, equality, human rights and freedom, non-racism and non-sexism.

The vision of the Department as articulated in the 2015/16 – 2019/20 Strategic Plan is leading Post-School Education and Training for growth. Its mission is to provide national strategic leadership in support of an integrated Post-School Education and Training system towards improved quality of life of African citizenry.

1.4. Purpose Report

The purpose of this report is to account for work done by the Portfolio Committee on Higher Education and Training during assessment of the 2015/16 – 2019/20 Strategic Plans and 2015/16 APPs of the Department and the entities it oversees. The report further makes financial and non-financial recommendations for consideration by the Minister responsible for the Vote and the Minister of Finance.

1.5. Terms of Reference

The Committee’s terms of reference in so far as the process was concerned, were to:

Scrutinise the budgets and annual performance plans of the departments and its entities;
Ensure that policies announced by the government and authorised by Parliament will be delivered with the allocated resources, a function, which needs continuous monitoring through various ways of oversight;
To recommend where possible cost containment measures in terms of the National Treasury Instructions 01 of 2013/14 and reprioritisation of funds within the Department to augment budget shortfalls in certain programmes and sub-programmes, and
Report the conclusions and recommendations of the Committee to the National Assembly.

1.6. Method

In preparation for the review process the Committee considered key policy documents that inform the work of the Department, among others, the National Development Plan (NDP), the 2014-2019 Medium Term Strategic Framework (MTSF), White Paper for Post-School Education and Training (WPPSET), and the 2015 State of the Nation Address (SONA) pertaining to the sector priorities. In addition to the key policy documents, the Committee reviewed the 2015/16 Estimates of National Expenditure (ENE), 2014 Budgetary Review and Recommendations Report (BRRR) of the Committee and the National Treasury’s response to the 2014 BRRR recommendations. The Committee held briefings with the Financial and Fiscal Commission (FFC) on the analysis of the Department’s MTEF budget allocation and the Report by the Auditor-General of South Africa (AGSA) on the audit outcomes of the 2015/16 APPs of the Department and entities, 2015/16 – 2019/20 and Strategic Plan 2015/16 and Annual Performance Plans (APP) of the Department, NSFAS, SAQA, QCTO and CHE.

The limitation of the report is that it does not include inputs by civil society and other stakeholders since no public hearings were conducted.

2. Overview and assessment of the 2015/16 – 2019/10 Strategic Plans and 2015/16 Annual Performance Plans of the Department and entities in line with key government policy documents relevant to the post-school education and training sector

2.1. Department’s 2015/16 – 2019/20 Strategic Plan

The NDP identifies decent work, education and the capacity of the state as particularly important priorities. For the post-school education and training sector, the NDP envisages that by 2030, South Africans should have access to education and training of the highest quality. The education, training and innovation system should cater for different needs and produce highly skilled individuals; and graduates of the post-school system should have adequate skills and knowledge to meet the current and future needs of the economy and society.

The 2014-2019 MTSF which is a five year strategic plan of government forms the first five-year implementation phase of the NDP. Therefore, this requires that the work of all national and provincial departments, municipalities and public entities should be aligned with the NDP vision and goals. The aim of the Framework is to ensure policy coherence, alignment and coordination across government plans as well as alignment with budgeting process. The MTSF is structured around 14 priority outcomes which cover the focus areas identified in the NDP and Government’s electoral mandate. The Department is responsible for Outcome 5: A skilled and capable workforce to support an inclusive growth path.

The Framework sets out the following measurable targets for the post-school education and training aligned to the NDP:

Increased university enrolment from 950 000 to 1.07 million;
Increased TVET student enrolment from 650 000 to 1.2 million;
Increased number of artisans produced from 18 000 to 24 000 per annum;
Increased PhD graduates from 1 800 to 3 000 per annum;
Increased number of entry academic staff receiving teaching and research development opportunities from the Teaching and Research Development Grant from 50 academics in 2012 to 400 academics by 2019;
Increased number of black entrants by at least 100 per annum in order to transform the historical and social composition of the academic workforce
Increased number of engineering and science graduates;
Increased number of qualified TVET college lecturers, and
Reduced dropout rate.

The Department’s 2015/16 – 2019/20 Strategic Plan was the second plan since the Presidential Proclamation of the establishment of the Department in July 2009. The Presidential mandate, which assigned all laws previously administered by the Department of Education and Department of Labour, to the Department to create a single and coherent post-school education and training system that is structured to meet the aspirations of youth and adults.

The Department is committed to the implementation of the NDP goals, as these goals find expression in 2015/16 - 2019/20 Strategic Plan goals and focus areas for the five years as reflected below.

(i) Strategic Goal 1: to provide a sound post-school education and training legislative framework. The plan is to develop and review the legislative framework so as to steer the Post-School Education and Training system in line with the imperatives of the White Paper;

(ii) Strategic Goal 2: to provide post-school education and training services. The Department will 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;

(iii) Strategic Goal 3: to provide post-school education and training capacity. The focus will be to establish, develop, and expand a new institutional type – Community Colleges – primarily to promote education and training opportunities for those young and mature people who cannot access universities or TVET colleges. The Department will also focus on improving the capacity of the system through infrastructure development for technical and vocational education and training; and

(iv) Strategic Goal 4: to facilitate a strong stakeholder network. This will be done through maintaining good stakeholder relations in support of an effective post-school education and training system;

(v) Strategic Goal 5: to ensure continuous business excellence within the Department of Higher Education and Training. The focus would be to ensure good corporate governance including effective resource management within the Department and its entities.

These goals are an indication of a commitment to substantially expand access to post-school education and training for youth and adults, to create seamless articulation within the sector, to expand 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.

2.2. Overview and assessment of the Department’s 2015/16 Annual Performance Plan

The five year Strategic Goals as presented in the Strategic Plan are broadly operationalised in the APP through strategic objectives, performance indicators and targets of the five Departmental programmes, namely; Programme 1: Administration, Programme 2: Human Resource Development, Planning and Monitoring Coordination, Programme 3: University Education, Programme 4: Vocation and Continuing Education and Training and Programme 5: Skills Development. Some goals also find expression in the strategic plans of the entities that reports to the Department.

2.2.1. Programme 1: Administration

The purpose of the programme is to provide strategic leadership, management and support services to the Department. There are six sub-programmes under this programme, namely, sub-programme 1: Ministry, sub-programme 2: Department Management, sub-programme 3: Corporate Services, sub-programme 4: Office of the Chief Financial Officer, sub-programme 5: Internal Audit and sub-programme 6: Office Accommodation. The Department developed three five year strategic objectives under this programme which were: (i) Strategic Objective 1: to ensure effective human resource management within the Department by filling 90 per cent of vacant funded positions and implementation of an effective performance management system, (ii) Strategic Objective 2: to ensure effective financial management through the application of good financial management systems, including management accounting, financial accounting and supply chain management in line with the requirements of the Public Finance Management Act No 29 of 1999 (PFMA), and (iii) Strategic Objective 3: to improve efficiency through the development of approved annual ICT procurement plans for the implementation of the necessary information technology infrastructure and systems.

The targets for 2015/16 are to fill 90 per cent of the vacant funded posts; to take less than 90 days to resolve disciplinary cases, to receive an unqualified audit opinion, to attend to all audit issues and pay creditors in 30 days, and to approve one Information Communication Technology (ICT) procurement plan.

Since its inception, the Department received an unqualified audit opinion every year, but its audit so far have not been clean. Several matters of emphasis raised by the AG had been addressed over the years: irregular expenditure had significantly decreased and underspending decreased from R23.8 million in 2010/11 to R1.9 million in 2013/14. This showed that measures put in place to address these challenges were yielding positive results. The Department aimed to retain an unqualified audit outcome through the medium term until 2017/18 when it aims to obtain a clean audit. The Committee encouraged the department to obtain a clean audit in 2015/16.

The Department had long delayed filling the vacant positions of the Deputy Director-Generals of both of University Education and the Skills Development branches and the position of the Deputy Director-General for Vocational and Continuing Education and Training (VCET) also became vacant from February 2015. It was of great concern that critical senior management level positions were left vacant for long periods of time. In terms of section B.5.3 of the Public Service Regulations, an employee shall not act in a higher vacant post for an uninterrupted period exceeding 12 months. The Department had contravened the Public Service Regulations by having the DDG: University Branch act in the position for more than three years (since June 2011) and the DDG: Skills Branch act for more 12 months.

The Department committed in October 2014 that the positions would be filled by end of 2014 but that was not achieved. The Department assured the Committee that the process was underway to fill the positions by the end of April 2015.

2.2.2. Programme 2: Human Resource Development, Planning and Monitoring Coordination

The purpose of this programme is to provide strategic direction in the development, implementation and monitoring of departmental policies and the Human Resource Development (HRD) strategy of South Africa. The programme has six sub-programmes, namely, sub-programme 1: Programme management: Human Resource Development, Planning and Monitoring Coordination, sub-programme 2: Human Resource Development, Strategic Planning and Evaluation Coordination, sub-programme 3: Planning, Information, Monitoring and Evaluation Coordination, sub-programme 4: International Relations, sub-programme 5: Legal and Legislative Services, and sub-programme 6: Social Inclusion in Education.

The programme has 4 five year strategic objectives, namely, (i) Strategic Objective 1: to develop 8 new Post-School Education and Training (PSET) policies and 1 piece of legislation (Higher Education Amendment Bill, 2015) and to revise the National Qualifications Framework (NQF) Act and General and Further Education and Training Quality Assurance (GENFETQA) Act, in order to ensure a sound Post-School Education and Training system by 31 March 2020. (ii) Strategic Objective 2: to develop a Sector Monitoring and Evaluation Framework for effective implementation of oversight of the PSET system and produce annual monitoring reports by 31 March 2020. (iii) Strategic Objective 3: to develop and implement 3 teaching and learning support plans aimed at improving access to quality teaching and learning in the PSET system by 31 March 2020. (iv) Strategic Objective 4: to develop management information systems for colleges and Sector Education and Training Authorities (SETAs) and private post-school institutions by 31 March 2020.

The targets for 2015/16 are: to develop a policy framework on disability; develop policy and guidelines on Recognition of Prior Learning (RPL), to publish a policy framework on social inclusion, gazette a policy and guidelines on articulation, develop and approve the prototype of a learning management system for an open learning system, to develop and approve the “i WIL” registration system for learners seeking work-integrated learning opportunities and organisations wanting to provide work integrated learning, on the internet, and publish an Annual Report on Skills Supply and Demand and Annual Post-School Statistical Report.

The Industrial Policy Action Plan (IPAP) for 2014/15 – 2016/17 noted that one of the things that constrain and pose a risk to economic growth is the persistent skills deficit and the mismatch of skills taught versus skills needed, especially in critical sectors of the productive economy. The IPAP alludes to the fact that these factors continue to hamper industrial and technological development. There was an urgent need for further demand led skills interventions in several sectors of the economy which should include support for better demand-side planning. The Department planned to publish an annual report on skills supply and demand. This initiative would inform the providers of education and training which sectors of the economy experience a critical shortages of skills and encourage them to develop new programmes and to increase their intake of students, which will in turn contribute relevant skills for economic growth.

2.2.3. Programme 3: University Education

The purpose of this programme is to 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. The programme has six sub-programmes, namely, sub-programme 1: Programme Management - University Education, sub-programme 2: University – Academic Management, sub-programme 3: University – Financial Planning and Information Systems, sub-programme 4: University - Policy and Development, sub-programme 5: Teacher Education and sub-programme 6: University Subsidies.

There are seven five year Strategic Objectives in this programme derived from the broader strategic goals, namely, (i) Strategic Objective 1: to develop 13 new and review 6 policies / regulations / pieces of legislation to improve the sound provision of university education by 31 March 2020; (ii) Strategic Objective 2: to develop 2 integrated plans that would enable collaboration between university education and other PSET sectors by March 2020; (iii) Strategic Objective 3: to monitor and evaluate the higher education sector and produce 13 annual oversight reports on the financial health of the sector; governance; teaching development; research development and productivity; (iv) Strategic Objective 4: to develop and implement a Teaching and Learning Development Capacity Improvement Programme (TLDCIP) covering five plans to improve the capacity of universities in terms of teaching and research by March 2020, one each in the fields of; Early Childhood Development (ECD) educator development, primary teacher education, Technical and Vocational Education and Training (TVET) College lecturer education, Community College lecturer education and special needs teacher education; (v) Strategic Objective 5: to provide support to current and prospective students in Higher Education Institutions (HEIs) by March 2020 through the development and implementation of a concise capacity development strategy and programme as well as the Central Applications Services (CAS); (vi) Strategic Objective 6: to produce and publish an annual first time entering undergraduate cohort analysis report, and (vii) Strategic Objective 7: to facilitate stakeholder networking through the establishment of a BRICS think tank and participative academic forum, and to report progress on partnerships annually.

In line with the targets set in the MTSF, the Department planned to have 1.1 million students enrolled in public higher education studies at universities, produce 10 100 graduates in engineering sciences from universities, 9 000 graduates in Human Health and Animal Health from universities, 2 050 doctoral students, 80 per cent higher education undergraduate success rates, 35 per cent higher education throughput rate, three universities offering TVET College Qualifications, 42 per cent of university academic staff with PhDs, 100 first-time entrants (black and women) to the academic workforce in additional to normal replacement and plans, 23 902 first year students in foundation programmes, and 205 000 eligible university students obtaining financial aid.

(i) Service delivery achievements and challenges

There had been notable achievements in the previous year’s regarding some of the strategic priorities and targets set. The Department had made tremendous strides in addressing issues of equity in access to higher education in relation to gender, race and class as well as ensuring that persons living with disabilities have access to post-school education and training opportunities. It was commendable that the Department had exceeded its targets in the following areas: the number of female students enrolled at universities (at 2.8 per cent above the target), the number of students enrolled in higher education studies (at universities by 4.8 per cent), and the number of African students enrolled at universities (at 11.6 per cent above the target).

However, the participation rate of African students (total headcount enrolment by the national population of 20-24 year olds) though increasing steadily, it remains low compared to White students. The NDP proposes an increased participation rate of more than 30 per cent in higher education sector. This should be taken serious by the Department to set enrolment and graduation targets for female and African students in science, technology, engineering, health science and physical science programmes. This would help address issues of race and gender in scarce and critical skills programmes and assist in ensuring that the social composition of the labour market reflects national demographics. It is important to note that the Department, through NSFAS has set aside funding for students with disabilities to have access to and succeed in higher education. Besides funding their tuition fees, accommodation and other living expenses, there is also a provision for funding for specialist devices to assist them in teaching and learning.

The targets on the number of Initial Teacher Education graduates has been on the increase over the years. But their competency and adequacy of skills remains a challenge as evidenced by Annual National Assessments (ANA) results.

In 2014 the President, in his State of the Nation Address (SONA), announced that by January 2015, the first intake of medical students would be enrolled at the new Medical School of the University of Limpopo. This target was not achieved. It is included again in the 2015/16 APP where the Department indicates that it will oversee the development of a new Medical School at the University of Limpopo for the 2016 student intake. It is of concern that the President’s original pronouncement was not implemented accordingly.

2.2.4. Programme 4: Vocational and Continuing Education and Training

The purpose of this programme is to 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 (AET). The programme has four sub-programmes, namely: sub-programme 1: Programme Management – Vocational and Continuing Education and Training, sub-programme 2: Planning and Institutional Support, sub-programme 3: Programmes and Qualifications and sub-programme 4: National Examination and Assessment.

There are six five year strategic objectives developed under this programme which will be achieved by 31 March 2020. They are: (i) Strategic Objective 1: to develop 6 and revise 5 legislative and guiding frameworks aimed at steering the Vocational and Continuing Education and Training (VCET) (ii) Strategic Objective 2: to standardise the level of governance across VCET institutions and, monitor and take appropriate actions when deficiencies were detected, (iii) Strategic Objective 3: to develop and implement 6 teaching and learning support plans for VCET institutions, (iv) Strategic Objective 4: to improve success in programmes offered in VCET institutions by developing and implementing appropriate student support plans, (v) Strategic Objective 5: to ensure a geographic spread of VCET institutions through the establishment of 21 additional sites of delivery for VCET institutions (12 TVET College campuses and 9 Community Education and Training Colleges), and (vi) Strategic Objective 6: to establish a coordinating structure for support and research in the VCET.

Targets for the 2015/16 financial year for this programme include, among others; development of a macro infrastructure and maintenance plan for Community Education and Training Colleges (CETCs), develop the protocol on the secondment of sector specialists to work in TVET Colleges, develop and revise; governance and policies for TVET Colleges, policy for National Senior Certificate for Adults (NASCA), staffing norms and standards for Community Education and Training Colleges (CETCs) lecturers exposed to work place and development of the annual teaching and learning plan monitoring and evaluation report on VCET institutions produced, six new TVET College campuses built, development of governance and policies for TVET colleges, and governance policies of Community Colleges developed.

Among the goals of the Medium Term Strategic Framework (MTSF) is to improve the quality of TVET Colleges by ensuring that the number of qualified lecturers is increased and to improve their administration. To support the quality of lecturing, 10 universities will offer TVET College Lecturer Qualifications by 2017, and 30 per cent of TVET College lecturers should have work-place exposure every year by 2019. The Department also plans to standardise the level of governance across VCET institutions by 2020, and to develop and implement a teaching and learning support plan for VCET institutions by 2015/16.

It is commendable that the Department is committed to improve the quality of teaching and learning at TVET Colleges by professionalising TVET College lecturers and through improved governance and administration. Three universities are expected to offer TVET College Lecturer Qualifications in 2015/16.

(i) Service delivery achievements and challenges

Targets were exceeded in the following areas: the number of learners enrolled in Adult Education and Training (AET) (was exceeded by 12 106), the number of headcount enrolments in TVET Colleges (exceeded by 20 455), and the number of TVET College students awarded bursaries (exceeded by 50 862).

The NDP’s vision is to expand the geographical spread of TVET institutions to ensure that learners who choose to pursue a vocational career have proper access to them. The President announced, in his 2014 State of the Nation Address, the construction of 12 new TVET College campuses and the refurbishment of two TVET Colleges for 2014/15 financial year. The National Skills Fund (NSF) made available R199 million in 2013/14 financial year and a further commitment of R2.4 billion to that effect. The target was not achieved. In 2015, the President restated the goal for the current financial year. He further announced that 16 sites were identified. The reasons advanced by the Department for not achieving the 2014 target were delays in conducting environmental impact assessments, procurement processes, and limited funding. The Department in its 2015/16 APP said it plans to construct six new TVET College campuses (deviating from the President’s pronouncement). While the Department reported to the Committee that the construction of three TVET College campuses was underway, it could not provide time-frames for completion of the procurement processes for the other three. It was important to note that the deferred implementation of infrastructure development came with a cost and, the cost in the 2014/15 financial year will be even higher.

The Department previously informed the Committee about the planned review of the funding framework for TVET Colleges and Adult Education and Training (AET). However, targets and time-frames were not provided in the 2015/16 APP for this priority.

The programme failed to achieve 50 per cent of targets set for 2013/14 financial year. It is crucial that programme managers focus their energies on increasing throughput rates in all the National Certificate Vocational (NC(V)) and Report 191 programmes. This was important to increase the middle level skills required for stimulating economic growth.

2.2.5. Programme 5: Skills Development

This programme promotes and monitors the national skills development strategy, develops skills development policy and a regulatory framework for an effective skills development system. The programme has four budget sub-programmes namely: Programme Management, SETA Coordination, National Skills Development Services and Quality Development and Promotion.

There are four five year Strategic Objectives that are derived from the broader strategic goals, all to be achieved by 2020 (i) Strategic Objective 1: to steer and support skills development institutions to implement the National Skills Development Strategy (NSDS) III through the development of 4 new and 6 revised policies including legislation, regulations and guidelines, (ii) Strategic Objective 2: to standardise the level of governance across SETAs monitor and compile annual quarterly reports and take appropriate actions where deficiencies were detected, (iii) Strategic Objective 3: to effectively manage artisan development assessment services inclusive of RPL in order to produce 24 000 qualified artisans per annum, strategic objective, and (iv) Strategic Objective 4: to enhance the National Information System (NIS) in order to improve collation of artisan information and skills development levy information for monitoring and evaluation as well as reporting. This will be achieved by 31 March 2020.

The targets for 2015/16 are to design and approve a single national artisan development information management system, to develop and approve the workplace based learning policy by March 2016 and governance charter for SETA’s by March 2016, to table occupational team policy recommendations by December 2015 and to develop the SETAs governance standards and have them approved by the DG, to review SETA by March 2016, and review the National Skills Development Strategy (NSDS) by March 2016.

The licensing of the SETAs comes to an end at the end of March 2016 and it is commendable that there are plans in the APP to establish a process towards relicensing for another five years. The plans includes, new governance charter, a review of the current landscape and a review of the NSDS III. Through in-year monitoring, the Committee would monitor progress made.

2.2.6. Concluding remarks on the Strategic Plan and Annual Performance Plan of the Department

The Strategic Plan and Annual Performance Plan of the Department were developed in alignment with the NDP vision for 2030 and the 2014-2019 MTSF strategic priorities. Though the Department was still a work in progress and challenges still remained to be tackled, a lot had been achieved since its establishment. The plans showed commitment by the Department to improve the quality of life of South African citizens by expanding education and training opportunities for the young and old. The Department was moving towards ensuring that post-school education and training is regionally equitable. The establishment of the two new universities in Mpumalanga (University of Mpumalanga) and Northern Cape (Sol Plaatje University), the planned new Medical School of the University of Limpopo, the new TVET College campuses and nine Community Colleges that would be piloted in 2015/16 would increase opportunities for education and training.

The issue of equity, gender, race, in terms of student access and plans to transform the social profile of the sector workforce were also addressed in the plans. The Department had set a new target to produce the next generation of academics by increasing the pool of post-graduate students and by increasing research output as well as increasing the number of black and women first-time entrants to the academic workforce, funded through teaching and research development grants. The Department should intensify its support and monitoring of institutions that are expected to deliver on these targets.

The successful implementation of these plans will require adequate both human and financial resources especially because the Department depended on other institutions to implement most of the strategic objectives and targets.

3. OVERVIEW AND ASSESSMENT OF THE 2015/16 MTEF BUDGET

3.1. General overview and assessment

Table 1: 2015 MTEF budget

Programme	Budget				Nominal Rand change	Real Rand change	Nominal % change	Real % change
R million	2014/15	2015/16	2016/17	2017/18	2014/15-2015/16		2014/15-2015/16
Administration	285.7	318.3	331.0	347.5	32.6	18.0	11.41 %	6.31 %
Human Resource Development	54.7	54.8	57.8	60.7	0.1	- 2.4	0.18 %	-4.41 %
University Education	30 443.7	32 844.3	34 602.9	36 342.9	2 400.6	896.3	7.89 %	2.94 %
Vocational and Continuing Education and Training	8 098.0	8 515.8	8 985.9	9 439.3	417.8	27.8	5.16 %	0.34 %
Skills Training	106.3	110.7	116.7	126.6	4.4	- 0.7	4.14 %	-0.63 %
Subtotal	38 988.4	41 843.9	44 094.3	46 317.0	2 855.5	939.0	7.32 %	2.41 %

Source, National Treasury 2015 ENE

The Department received a total allocation of R41.8 billion excluding direct charges against the National Revenue Fund for the Sector Education and Training Authorities (SETAs) and the National Skills Fund (NSF). The budget increased by R2.9 billion in nominal rand value compared to the 2014/15 budget. For the 2015 MTEF, the budget excluding the direct charges increased at an average annual average rate of 5.9 per cent from R39 billion in 2014/15 to R46.3 billion in 2017/18 excluding the direct charges. Direct charges increased at an annual average of 9.6 per cent from R13.2 billion in 2014/15 to R17.4 billion in 2017/18. The 2014 Medium-Term Budget Policy Statement (MTBPS) had pointed to the fact that, the post-school education and training had the fastest-growing budget over the past three years, and it continues to grow.

From 01 April 2015 two functions performed by provinces, Technical and Vocational Education and Training and Adult Education and Training (AET), were transferred to national government, with funds shifted from the provincial equitable share and the further education and training colleges grant. As a result of this TVET and AET function shift, the Department received an additional allocation of R15.9 billion over the MTEF for the following purposes: R7 billion from the Provincial Education (provincial equitable share) for the Technical and Vocational Education and Training Colleges and the Adult Education and Training function shift (R2.2 billion in 2015/16, R2.3 billion in 2016/17 and R2.4 billion in 2017/18) and 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).

The Department’s budget was shared among the five programmes which were: Administration; Human Resource Development, Planning and Monitoring Coordination; University Education; Vocational and Continuing Education and Training; and Skills Development. The bulk was spent on Programme 3: University Education accounted for 78.5 per cent of the total Higher Education and Training budget followed by Programme 4: Vocational and Continuing Education and Training, accounting for a 20.4 per cent share of the total budget.

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 18.6 per cent of the budget. Compensation of employees amounts to R7.3 billion (17.5 per cent) for 2015/16. Remaining funds for operations amounts to R505 million in 2015/16 which represents 1.21 percent of the budget.

The analysis of the Financial and Fiscal Commission of the Department showed that over 2015 MTEF period, real annual average growth of the Department budget is 3.2 per cent while the share of national resources allocated to the Department was maintained at 4.2 per cent in 2015 and will drop marginally to 4.1 per cent in 2016/17. By the outer two years of 2015 MTEF period, growth in subsidies to universities would slow down significantly from 5.3 per cent to just over 2 per cent. The higher education share in budget as percentage of GDP was maintained at 1.4 per cent in the first two years (2015/16 and 2016/17) of the MTEF period and dropped marginally to 1.3 per cent in 2017/18.

3.2. Overview and assessment of budget per programme

3.2.1. Programme 1: Administration

This programme provides the overall management and administration of the Department. The programme received a total allocation of R318.3 million which accounted for 0.76 per cent of the total Higher Education and Training budget. The budget increased by R32.6 million which was an increase of 6.3 per cent in real terms as compared to 2014/15 allocation. The increase was mainly due to the provision for property payments within the various sub-programmes and on the compensation of employees. The programme has six sub-programmes: Sub-programme 1: Ministry, sub-programme 2: Departmental Management, sub-programme 3: Corporate Services, sub-programme 4: Office of the Chief Financial Officer, sub-programme 5: Internal Audit and sub-programme 6: Office Accommodation.

The programme’s budget is dominated by sub-programme 3: Corporate Services receiving R105 million, followed by sub-programme 4: Office of the Chief Financial Officer accounting for R86.2 million, sub-programme 6: Office Accommodation is allocated R52.4 million. Sub-programme 4: Office of Chief Financial Officer’s budget increased from R68.7 million in 2014/15 to R86.2 million, which represented an increase of 19.59 per cent, while sub-programme 3: Corporate Services, sub-programme 5: Internal Audit and sub-programme 6: Office Administration received moderate real increases 5.33 per cent, 6.25 per cent and 4.19 per cent respectively.

Sub-programme 1: Ministry received a decreased allocation from R29.4 million in 2014/15 to R28.8 million in 2015/16 which represent -6.38 per cent change to the sub-programme budget.

The Department adhered to the call made by the National Treasury in the 2014 Medium-Term Budget Policy Statement on reinforcing cost-containment measures by reducing spending on line items that were not critical for service delivery or that do not support MTSF objectives. Cost-containment measures were applied in the programme budget, spending had been reduced in non-essential line items for example, agency and support / outsourced services entertainment; travel and subsistence, training and development.

3.2.2. Programme 2: Human Resource Development, Planning and Monitoring Coordination

The programme had been allocated R54.8 million which represented 0.13 per cent of the total budget of Higher Education and Training. The allocation was to be shared among six sub-programmes (sub-programme 1: Programme management: Human Resource Development, Planning and Monitoring Coordination, sub-programme 2: Human Resource Development, strategic Planning and Evaluation Coordination, sub-programme 3: Planning, Information, Monitoring and Evaluation Coordination, sub-programme 4: International Relations, sub-programme 5: Legal and Legislative Services, and sub-programme 6: Social Inclusion in Education) according to the strategic objectives assigned to each. The overall budget had increased by 0.2 per cent in nominal terms but in real terms it declined by 4.4 per cent from the 2014/15. An amount of R51.1 million of the total budget had been allocated to current payments which consisted of compensation of employees which amounted to R41.4 million and goods and services amounting to R9.6 million. An amount of R3.2 million of the programme allocation went to the transfers and subsidies’ component to foreign governments and international organisations.

Sub-programme 2: Human Resource Development, Planning and Monitoring Coordination, the budget decreased from R12.7 million in 2014/15 to R11.4 million in 2015/16 which represented a real per cent decrease of -13.77 per cent; while sub-programme 3 budget decreased from R9.5 million in 2014/15 to R8.6 million in 2015/16 which represented a real per cent of -14.19 per cent.

Cost-containment measures were implemented in the budget and savings were realised in compensation of employees, catering, communication and agency and support/outsourced services.

3.2.3. Programme 3: University Education

The purpose of this programme is to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. It also provides financial support to universities, and the National Student Financial Aid Scheme (NSFAS). The programme had a budget of R32.8 billion for 2015/16. The budget had increased by 7.9 per cent in nominal terms or 2.9 per cent in real terms compared to 2014/15. The bulk of this budget would be spent on sub-programme 6: University Subsidies. This sub-programme accounted for 79.9 per cent of total the University Education programme budget, and the budget would be used for transfers to the universities and Department entities including the National Student Financial Aid Scheme, the Council on Higher Education and the South African Qualifications Authority. There were no budget cuts in all the sub-programmes.

Taking into consideration the budgetary constraints, the programme effected cost-containment measures for line-items that were not critical for service delivery or that did not support MTSF objectives. In reducing consumption in favour of service delivery, the Department significantly reduced spending in catering, communication, and computer services and operating payments.

3.2.4. Programme 4: Vocational and Continuing Education and Training

The programme has 4 sub-programmes namely: Programme Management: Vocational and Continuing Education and Training; Planning and Institutional Support; Programmes and Qualifications; and National Examinations and Assessments. The programme received an allocation of R8.5 billion which accounted for 20.4 per cent of the total Higher Education and Training budget. The programme budget increased by 5.2 per cent in nominal terms.

Sub-programme 1: Programme Management: Vocational and Continuing Education and Training received an increased allocation of R10.1 million in 2015/16 from R9.7 million in 2014/15. This programme coordinates all monitoring and evaluation functions of the branch.

Sub-programme 2: Planning and Institutional Support accounts for 74.3 per cent of the total programme budget. This sub-programme provides the framework, coordination and support to further education and training colleges for managing, governing and delivering vocational and occupational programmes; and manages the further education and training colleges’ conditional grant to all provinces. It also regulates the provision of education and training by private education institutions offering qualifications in the further education and training band of the qualifications framework.

Three sub-programmes, 1: Programme Management – Vocational and Continuing Education and Training, 3: Programmes and Qualifications and 4: National Examination and Assessment budgets decreased in real terms, with sub-programmes 4 receiving a budget cut of -9.57 per cent.

Underfunding of the National Examination and Assessment has been an ongoing challenge for the Department. The services had long depended on virements from other programmes. The Department managed nine examination cycles for the AET, TVET NC(V) annual examinations, Report 191 Business Studies semester examinations and Report 191 Engineering trimester examinations. The material and printing, packaging and distribution, administration and monitoring of the exam processes required adequate funding. The NDP and 2014 – 2019 MTSF proposes the expansion of the TVET sector and the establishment of Community Colleges with implementation of the National Senior Certificate for Adults. These would all require a significant injection of financial resources to the programme.

It should be noted that even within the currently constrained fiscus, critical programmes should not be compromised.

3.2.5. Programme 5: Skills Development

This programme promotes and monitors the National Skills Development Strategy (NSDS III). The objective of the NSDS is to develop a skills development policy and a regulatory framework for an effective skills development system. The total budget for this current financial year was R110.7 million which represented 0.3 per cent of the total Higher Education and Training budget. The budget was shared among the four sub-programmes namely: Programme Management: Skills Development, SETA Coordination, National Skills Development Services, and Quality Development and Promotion. The budget has increased by R4.7 million or 4.4 per cent in nominal terms.

Sub-programme 2 of the programme: Sector Education and Training Authority (SETA) Coordination continued to account for the biggest portion (70.9 per cent) of the total budget of the programme.

Sub-programme 1: Programme Management: Skills Development’s budget decreased from R1.1 million in 2014/15 to R750 000 in 2015/16, this represents a real per cent decrease of -35.47 per cent. Sub-programme 4: Quality Development and Promotion’s budget also decreased from R23.2 million in 2014/15 to R21.8 million in 2015/16. This represents a real per cent decrease of -10.01 per cent.

Cost-containment measures were implemented in the following line items: Catering, communication, consultants and professional services, operating leases, property payments and rental and hiring.

3.3. Evaluation of the response by the Minister of Finance on 2014 Budgetary Review and Recommendations Report (BRRR)

On the 25 March 2015, the Committee considered the response of the Minister of Finance to the 2014 BRRR as tabled to Parliament and referred by the Speaker of the National Assembly to the Committee. The Minister responded to three recommendations, namely, (i) notwithstanding the ring-fenced funding for Technical and Vocational Education and Training (TVET) function shift, the Minister of Finance should realistically increase the budget of the Department over the medium term to accommodate the expanded operations of the Department especially human resource needs and infrastructure that will come with the TVET function shift, (ii) the Minister of Finance should ensure that the unspent conditional grants by provinces are transferred to TVET Colleges in terms of the FET Act and the National Norms and Standards for funding TVET Colleges, and (iii) the Minister of Finance should consider making available bridging funds to the National Student Financial Aid Scheme (NSFAS) for allocations for tuition fees and other living expenses for students at the beginning of the year owing to the misalignment of academic year and financial year

The Committee noted a response by the Minister that the budget for the Department had increased relatively in real terms over the years. In addition, the constrained fiscal outlook had limited the scope to provide additional funding over the medium term. The Department would therefore need to reprioritise existing resources to ensure that its expanded mandate was fully operational. The Department’s baseline for operations increased from R578 million in 2013/14 to R679 million in 2016/17 at an average annual increase of 5.5 percent over the 2014 MTEF period. The Committee acknowledged the fiscal constraints but also noted that where there is a need to recommend for additional funds to the allocation in future, the Committee would do so.

The issue of unspent conditional grants by provinces will no longer be a challenge because since 01 April 2015 the TVET function has moved from provincial to national competency. Equitable share and conditional grants budgets have been shifted to the national Department of Higher Education and Training.

Allocations made at the beginning of the financial year were sufficient for the entire year. The Department determined its drawings schedule to accommodate the majority of funds spent at the beginning of the academic year, and should ensure that it aligns to both academic and financial year. The Committee resolved to monitor that NSFAS has funds at the beginning of an academic year so as to make payment for upfront payments to all universities and TVET Colleges. NSFAS was urged to embark on fundraising to mobilise additional funding from both the private and public sector to augment the current allocations.

3.4. Concluding remarks on the MTEF budget of the Department

There was a progressive growth of funding of post-school education and training. The MTEF budget of the Department is set to grow at an annual average nominal rate of 5.9 per cent from R39 billion in 2014/15 to R46.3 billion in 2017/18, the Department received a total allocation of R41.8 billion excluding direct charges against the National Revenue Fund for the Sector Education and Training Authorities (SETAs) and the National Skills Fund (NSF). Real annual average growth in allocations to SETAs and National Skills Fund showed stronger growth relative to the Department programme based expenditure. It was important to note that though the budget has been increasing, it still did not match the mandate of the Department. There were functions that were still not funded from the fiscus, like the National Artisan Moderation Body (NAMB), South African Institute for Vocational and Continuing Education and Training (SAIVCET), and some projects of the National Institute for Humanities. The inadequacy of the budget would have an adverse impact on Department’s ability to attain the growth requirements within the post-school education and training sector in terms of enrolments, infrastructure development, increased operations and student support. Institutional monitoring and evaluation would be limited to reports submitted by the institutions to the Department while monitoring visits would be very limited. There was also immediate pressure in the management of the TVET and AET function shift. Funding of the TVET College sector had no earmarked grants for infrastructure development.

4. OVERVIEW AND ASSESSMENT OF ENTITIES’ 2015/16 – 2019/20 STRATEGIC PLAN AND 2015/16 ANNUAL PERFORMANCE PLAN

4.1 South African Qualifications Authority (SAQA)

4.1.1. Mandate of SAQA

The objectives of the National Qualifications Framework (NQF) and SAQA are to; create a single integrated framework for learning achievements, to facilitate access, mobility and progression within education, training and career paths, to enhance equality of education and training, accelerate redress of past unfair discrimination in education, training and employment opportunities, and to contribute to the full personal development of each learner and the social and economic development of the nation at large.

4.1.2. Governance

In relation to governance, the board comprised 12 members nominated from the Education, Training and Development Sector and appointed by the Minister in their personal capacities; and the 4 CEO’s of SAQA and the QCs by virtue of their Offices. The board had of 10 sub-committees comprised at least 2 board members and other experts. The current board’s term of office ends in December 2015.

4.1.3. Overview and assessment of the 2015/16 – 2019/20 Strategic Plan and 2015/16 Annual Performance Plan

The five year Strategic Imperatives of SAQA includes; Decisive and coherent leadership, staff development, public positioning and implementation of NQF policies. The focus areas included; Recognition of Prior Learning (RPL) NQF Advisory Service, Simplification and Articulation. The additional focus areas from the Ministerial Guidelines include; fraud detection and prevention, overseeing quality in the system, monitoring and evaluation, contributing to implementation of RPL and working with QCs to ensure articulation between sub-frameworks.

4.1.4. Overview and assessment of the budget

Table 2: 2015 MTEF budget

Programme	Budget		Nominal Increase / Decrease in 2015/16	Real Increase / Decrease in 2015/16	Nominal Percent change in 2015/16	Real Percent change in 2015/16
R Thousands	2014/15	2015/16	Nominal Increase / Decrease in 2015/16	Real Increase / Decrease in 2015/16	Nominal Percent change in 2015/16	Real Percent change in 2015/16

Administration and support	46 882.0	48 750.0	1 868.0	- 364.8	3.98 %t	-0.78 %
Recognition and Registration	11 130.0	9 111.0	- 2 019.0	- 2 436.3	-18.14 %	-21.89 %
National Learners Records Database	11 990.0	12 677.0	687.0	106.4	5.73 %	0.89 %
Foreign Qualifications Evaluations and Advisory Services	20 937.0	24 123.0	3 186.0	2 081.1	15.22 %	9.94 %
Career Advice Services	22 267.0	0.0	- 22 267.0	- 22 267.0	-100.00 %	-100.00 %
Research	6 411.0	5 511.0	- 900.0	- 1 152.4	-14.04 %	-17.98 %
International Liaison	2 340.0	2 135.0	- 205.0	- 302.8	-8.76 %	-12.94 %
Verification	0.0	0.0	0.0	0.0	-	-
TOTAL	121 957.0	102 307.0	- 19 650.0	- 24 335.8	-16.1 %	-19.95%

Source, SAQA 2015

SAQA had a total budget of R102.3 million for 2015/16. Of this compensation of employees took R71 million, goods and services R28.8 million and capital assets R1.8 million. An additional amount of R5.5 million in 2015/16 was received for the verification function. Of the R102 million budget for 2015/16, R54.7 million was from the government grant. In 2015/16, personnel costs comprised 70 percent of the total budget. The increase in the government grant was 5.57 percent over the years as compared to a 12.98 percent increase in personnel costs. By implication therefore, SAQA’s own revenue generated the funds for its operations. The accumulated surplus funds from prior years was used to supplement SAQA’s income and once surplus funds have been used, SAQA will have a huge challenge to balance its budget. Personnel costs as a percentage of total costs were rising to a figure that would not be sustainable in the future. Nevertheless, SAQA implemented cost cutting measures and would be able to achieve all its outputs of the 2015/16 APP with the resources granted.

4.2 Quality Council for Trades and Occupations

4.2.1. Mandate of the QCTO

The QCTO was established as a juristic person in 2010 in terms of the Skills Development Act (SDA), 97 of 1998 as amended in 2008. The QCTO is one of three Quality Councils (QCs) each responsible for a part of the National Qualifications Framework (NQF). The entity was listed on 31 December 2010 as a Schedule 3A Public Entity under the Public Finance Management Act, effective and retrospectively from 1 April 2010.

The main functions of the QCTO are to; develop and quality assure qualifications, manage the Occupational Qualifications Sub-Framework (OQSF) and to certify successful learners. The QCTO develops occupational qualifications, which include the trades.

4.2.2. Overview and assessment of the 2015/16 – 2019/20 Strategic Plan and 2015/16 Annual Performance Plan

The Council’s work over the five years is encapsulated in two strategic outcomes oriented goals for 2015/16 – 2019/20. Strategic outcome oriented goal 1: Competent people in priority trades and occupations. This strategic outcomes’ goal statement is to contribute to the creation of a skilled and capable workforce in priority trades and occupations for employment opportunities that are available in the labour market. The strategic outcome oriented goal 2: to create a sustainable organisation and the goal statement is to create a sustainable organisation to deliver on the QCTO’s mandate.

a) Programme 1: Administration

The purpose of the programme is to enable QCTO performance through strategic leadership and reliable delivery of management support services. The strategic objective is Management Support Services. Institutional capability in place to enable QCTO to deliver its product and services. There is one indicator planned for the year.

b) Programme 2: Occupational Qualifications

The purpose of the programme is to ensure that occupational qualifications registered on the Occupation Qualifications Sub-Framework are available and Skills Development Providers (SDPs) that offer occupational qualifications are accredited within reasonable period and ensure credibility of providers. This Programme is fundamental in delivering on the mandate of the organisations as stipulated in the SDA. Unlike the previous APPs, there are no sub-programmes under this Programme. The strategic objective is occupational qualifications management, ensure prioritised occupation qualifications recommended to SAQA for registration on the Occupational Qualifications Sub-Framework (OQSF), which are utilised and effectively managed.

The number of prioritised occupational qualifications recommended to SAQA for registration on the OQSF would be 30 for the 2015/16. The maximum turn-around time from date of receipt of duly completed accreditation application to date of issuance of accreditation letter to skills development providers was 40 working days for 2015/16. The number of Learner Qualifications Development Facilitators trained to facilitate the development of occupational qualifications was 40 for 2015/16. The number of reports on reconstruction of N4-N6 qualifications submitted for consideration to the Qualifications Council was 4 for 2015/16.

c) Quality Assurance

The purpose of this programme is to establish and maintain standards for Quality Assurance of Assessments and Certification for Occupational Qualifications on the Occupational Qualifications Sub-Framework. There are two strategic objectives under this programmes which are; Quality Assurance: to ensure that the Quality Assurance System for the implementation of registered occupational qualifications is functional, effective and efficient; and Certification: Learners achievements for qualifications on the OQSF quality assured and certified as prescribed in QCTO policies. Six indicators are planned for 2015/16 with quarterly and one annual targets.

The QCTO would commence its plans to take back the quality assurance delegations it gave to SETAs to simplify the system as the quality assurance services would be performed by one body (QCTO) rather than 21 distinct bodies (SETAs). The QCTO had initiated its provider accreditation system, where all providers apply to the QCTO for accreditation. This gave the QCTO direct oversight of the quality of provisioning. The QCTO commenced establishing its certification system, where at present all trade certificates were issued by QCTO and look the same containing the familiar red seal that stakeholders prefer. The QCTO had started the re-engineering of the NATED Programmes (N4 – N6) with the goal to finish the conversion of all business Studies curricula by end 2016.

With regard to certification matters, for the period 2014/15 period approximately 22600 trade certificates were issued. Currently, there was no trade certification backlogs on the side of the QCTO. Approximately 25680 certificates were outstanding and in the same period approximately 90000 certificates were issued by SETAs.

4.2.3. Overview and assessment of the budget

The Council’s budget for 2015/16 is R61. 8 million inclusive of the Department of Higher Education and Training Grant Allocation, SETA Grant Allocation and approved rollovers. DHET grant allocation has decreased from R23.1 million to R21. 8 million as a result of Cabinet approved budget reductions of R2.5 million in 2015/16. The funds are meant to assist the Department in overcoming its budget constraints and would be channelled towards improving the monitoring and evaluation of public entities, TVET Colleges and Universities.

It was envisaged that the Council’s intensified focus on oversight and monitoring would have an impact on expenditure on compensation of employees, which was expected to increase from R32.7 million in 2014/15 to R68.8 million in 2017/18. An increase in the monitoring activities was also expected to result in an increase in expenditure on travel and subsistence, from R4.7 million in 2014/15 to R7.2 million in 2017/18

4.3 National Student Financial Aid Scheme (NSFAS)

4.3.1. Mandate of NSFAS

NSFAS was established in terms of the National Student Financial Aid Scheme Act, No 56 of 1999. Its main mandate is to provide loans and bursaries to eligible students, developing criteria and conditions for the granting of loans and bursaries to eligible students in consultation with the Minister of Higher Education and Training, raising funds, recovering loans, maintaining and analysing a database, undertaking research for the better utilisation of financial resources, and advising the Minister on matters relating to financial aid for students.

4.3.2. Overview and assessment of the 2015/16 – 2019/20 Strategic Plan and 2015/16 Annual Performance Plan in line with key policy documents

The NDP proposes an increased participation rates in further education and training colleges to 25 percent of 20 to 24 year olds and more than 30 percent participation rate in the higher education sector. As well the White Paper on Post-School Education and Training supports the goals and proposals of the NDP for the sector in terms of headcount enrolment at TVET Colleges and universities. The 2014 -2019 MTSF targets for the sector are: increased student enrolment at universities from 950 000 in 2013 to 1.7 million in 2018, and the number enrolled in TVET Colleges to increase from 670 455 in 2013 to 1.238 million in 2018. All these three key policy document identify the NSFAS as the steering mechanisms to enable achievement of these proposals. The MTSF states that government will continue to support poor students in TVET Colleges with full tuition fees, and assistance with accommodation and transport allowances and government remains committed to progressively extend this to university students as resources become available.

NSFAS’s vision for the next five year period is a model public entity that provides financial aid to all eligible public university and Technical and Vocational Education and Training (TVET) College students from poor and working class families. Its mission is to transform NSFAS into an efficient and effective provider of financial aid to students from poor and working class families in a sustainable manner that promotes access to, and success in, higher education and further education and training, in pursuit of South Africa’s national and human resource development goals.

The strategic plan took into account the policy mandates of the NDP, White Paper on Post-School Education and Training and 2014 – 2019 MTSF priorities. The Plan has two strategic oriented goals, namely: Goal 1: An efficient and effective public entity in student financial aid, and Goal 2: Access to higher education and improved student financial aid environment. These two broad goals are operationalised under two programmes namely, Student Centred Financial Aid and Administration.

4.3.3. Overview and assessment of the 2015/16 Annual Performance Plan

a) Programme 1: Programme 1: Student Centred Financial Aid

The aim of this Programme is to improve the provision of financial aid to an increasing number of eligible students by designated and implementing a new student centred operating model and enhancing the financial aid environment with policy recommendations for new financial aid programmes. There are five strategic objectives under this programme which are: (i) Strategic Objective 1: Improve disbursement of funds and allowances to students. The 2015/16 targets are increased in percentage of students in the student centred model paid tuition and residence fees on due date, upfront payment made to institutions outside of the student-centred model on the date due date. (ii) Strategic Objective 2: Provide policy inputs on student financial aid. NSFAS targets to produce five research reports and publish 1. (iii) Strategic Objective 3: Improve external stakeholder satisfaction, the target is 60 per cent stakeholder satisfaction. (iv) Strategic Objective 4: Improve loan collection, the target is to recover R373 million. (v) Strategic Objective 5: Increase funding raised and the target is to secure five new funders and increase funding from the current funders by R106 million.

NSFAS has proven that it has capacity to recover more funds from the previous beneficiaries of the Scheme. In 2014/15 NSFAS was able to recover R467 million but in the 2015/16 the target is revised downward. The target should be revised upward given that the Scheme does not have adequate budget to fund all eligible students. The target to pay 30 per cent upfront payment to universities in January of every academic year is only paid to the universities on request while all TVET Colleges are paid 10 per cent without requests. The payment provision should be extended to all universities. NSFAS should also make follow-ups to institutions to monitor that funds transferred to institutions are disbursed to students accordingly. The APP does not have targets on the number of TVET and university students to be funded in 2015/16.

b) Programme 2: Administration

The programme has three strategic objectives, namely, (i) Strategic Objective 6: to roll-out the new student-centred model and the target for 2015/16 was to increase the percentage of students migrated to new student-centred model by 30 percent. (ii) Strategic Objective 7: to improve governance and NSFAS aimed to have an unqualified audit with zero material misstatements in 2015/16. (iii) Strategic Objective 8: to strive for a high performance culture and improve working environment and the target for 2015/15 was to have 60 percent of employees with ratings of 3 and above. Strategic objective 9 is to ensure information technology (IT) and organizational strategic alignment.

4.3.4. Overview and assessment of the budget

Table 3: MTEF Allocation and annual budget

Programme	2014/15	2015/16	2016/17	2017/18
	R’000	R’000	R’000	R’000
1. Administration	151.379	65.658	82.209	80.332
2. Student-Centred Financial Aid	7.871.141	8.891.494	9.365.708	9.835.350
2.1. Student-Centred Financial Aid Operations	35.460	115.220	129.796	137.642
2.2. Loans and bursaries	7.835.681	8.776.274	9.235.912	9.697.708
Total	8.022.520	8.957.152	9.447.917	9.917.682

Source, NSFAS 2015

Over the MTEF period, NSFAS will receive R19.9 billion to be spent on loans and bursaries to support students at TVET colleges and universities. The total budget for NSFAS inclusive of funds from funders, loan recoveries and transfer from the Department amounts to R8.9 billion in 2015/16. The transfer to NSFAS from the Department’s subsidy has increased from R6.1 billion in 2014/15 to R6.4 billion in 2015/16. From 2016/17, the Department’s subsidy increased from R6.8 billion to R7.1 billion in 2017/18.

The budget was shared between two Programmes namely, Administration and Student-Centred Financial Aid. Student-Centred Financial Aid Programme took almost 98 percent of the total budget. Spending on computer services was expected to grow in the medium term by 21 percent, from R9.2 million in 201/15 to R16.4 million in 2017/18, due to the acquisition of new software and computer equipment for the planned recruitment of new employees. Compensation of employees was expected to increase over the MTEF period from R79 million in 2014/15 to R115.3 million in 2017/18, mainly due to the expected filling of vacancies, which would increase the number of personnel from 263 in 2014/15 to 281 in 2017/18.

Allocation for consultants, contractors and special services in Programme: 1 Student-Centred Financial Aid would increase from R884 000 in 2014/15 to R15.6 million in 2015/16, as well as expenditure on outsourced services would increase from R10.2 million in 2014/15 to R24.5 million in 2017/18. This was necessitated by the fact that the new Student-Centred Model would require more documents to be scanned due to the expected increase in the volume of applications, and this service would be outsourced as the Scheme did not have the operational capacity to undertake the substantial additional workload. This was expected to result in an increase in expenditure on outsourced services. The spending on consultants was expected to decline when the new student-centred stabilised and all institutions were on the model.

The FFC raised a concern regarding the slow growth of the budget in 2015/16 noting that the average household income for Black Africans was R69 000 and number of learners qualifying for higher education and TVET College’s acceptance was increasing. Universities were receiving a large number of applications from qualifying students but could only manage to fund a smaller number of students. Some universities still applied top-slicing policies to facilitate access for as many students as possible though it had its own disadvantages of reducing the funding to individual students and contributing to student historic debt and increasing institutional debt. Top-slicing was applied to prevent student protests. The 2015/16 NSFAS maximum award to student was R67 000, however, Tshwane University of Technology (TUT) allocated a maximum of R32 000 per students. This was still inadequate to fund all eligible students who applied.

The strategic risks of NSFAS included; number of students far exceeded available funding which lead to student protests, low recoveries, data challenges, fund raising, attracting and retaining key ICT skills and timely disbursement of funds to students and institutions.

4.4 Council on Higher Education (CHE)

4.4.1. Mandate of the CHE

The CHE’s vision and mission derived from its legislative mandate as outlined in the Higher Education Act of 1997 and the National Qualifications Framework Act of 2008. In terms of the Higher Education Act, the mandate of the CHE is to provide advice to the Minister of Higher Education and Training on all higher education matters on request and on its own initiative, promote quality assurance in higher education and monitor the state of higher education and publish information regarding development in higher education.

4.4.2. Overview and analysis of the 2015/16 – 2019/20 Strategic Plan and 2015/16 Annual Performance Plan

The CHE has adopted four strategic imperatives to frame the development of the strategic goals and objectives. These are:

(i) Strategic Goal 1: To contribute to informing and influencing the public debate on the policy framework for the transformation of the higher education system and to become a recognised centre for information and policy analysis on higher education. There are two strategic objectives: to provide advice to the Minister on all higher education matters on request and on CHE’s own initiative, and to monitor the state of higher education, including publishing information and convening conferences, seminars and workshops on development in higher education. 2015/16 targets include advising the Minister on governance and management challenges in higher education and key challenges facing higher education based on the outcome of the 20 year-review, the state of the academic profession in South Africa, student funding, in particular, the impact of funding on throughput and graduation rates, including the role of NSFAS.

(ii) Strategic Goal 2: To contribute to the development of qualification standards to ensure the relevance, comparability and currency of qualification. There are three strategic objectives: to develop and manage the Higher Education Qualification Sub-Framework (HEQSF); to develop and implement policy, criteria and standards for higher education qualifications to inform and guide the development, registration and publication of qualifications, and to maintain a database of learner achievements in higher education and to submit to the National Learners’ Records Database (NLRD), which is maintained by SAQA. Deliverables for 2015/16 include finalisation of the alignment of Category B programmes and credit accumulation and transfer, Recognition of Prior Learning and Assessment policies for higher education.

(iii) Strategic Goal 3: To promote quality and conduct quality assurance in higher education, including enhancing the quality of higher education. There are four strategic objectives developed: to audit the quality assurance mechanisms of higher education institutions; to accredit new programmes submitted by public and private higher education institutions and to re-accredit existing programmes offered by private higher education institutions; undertake national reviews of existing programmes in specific fields and qualification levels offered by public higher education institutions and to promote quality and develop capacity and understanding of the role of quality assurance in improving quality provision in higher education at both the systemic and institutional levels. Targets for 2015/16 are implementation of quality enhancement programme, following up on institutional audits that remain to be closed, continuing the routine of accreditation and re-accreditation, finalising preparatory work and initiating national review for the Bachelor of Law (LLB) and to convene one quality assurance forum.

(iv) Strategic Goal 4: To ensure the efficient and effective provision of corporate services – administration, financial, technical and professional, to support the discharge of the core mandate of the CHE. There are three strategic objectives: to ensure the development of human resources management environment that enables staff to develop their full potential; to ensure that financial, administration and supply chain management is compliant with the requirements of the Public Finance Management Act and relevant Treasury regulations and laws, and to ensure effective governance and compliance of ICT with statutory requirements.

4.4.3. Overview and assessment of the budget

Table 4: 2015 MTEF budget

Income	Adjusted Appropriation	Medium-Term Expenditure Estimates
	2014/15	2015/16	2016/17	2017/18
Private Accreditation – Cost Recovery	1.530	4.000	4.000	4.000
Realisation of Deferred Transfer- New Mandates Standards Development	2.547	2.177	508
Other Income (interest, rental income; etc.)	249	850	850	850
Subtotal	4.26	7.027	5.727	4.850
Transfer from DHET	42.689	40.819	40.928	47.946
Rollover of funds	12.971
Total	59.986	47.846	46.285	52.796

Source, CHE 2015

With regard to the budget for the MTEF period, CHE’s total budget inclusive of funds from other sources and transfer from the Department amounted to R47.8 million for 2015/16. The Minister of Finance made a determination in the 2014 MTBPS that there would be a reduced rate of growth of transfers to public entities, particularly those with cash reserves. CHE was also affected by this determination. The allocation from Department transfer had decreased from R42.6 million in 2014/15 to R40.8 million in 2015/16. Cabinet approved budget reductions of R3.2 million in 2015/16 R2.7 million in 2016/17. It was expected that these budget reductions would be accommodated since the Council would implement costs saving measures on range of goods and services items. For 2015/16, the budget for compensation of employees was R30.1 million, consultants, contractors and special services R2.4 million, travel and subsistence R3.2 million, staff development R1.3 million, maintenance repair and running costs R1 million, administration R5 million, computer services R2.8 million and payment for capital assets R841000.

4.5. Concluding remarks on the entities’ strategic plans and annual performance plans and budget

The strategic plans and annual performance plans of SAQA, QCTO, NSFAS and CHE gave expression to the key policy priorities of government over the MTSF period. The plans should be properly implemented to support the vision of the NDP that South Africans should have access to education and training of the highest quality. The education, training and innovation system should cater for different needs and produce highly skilled individuals; and that the graduates of the post-school system should have adequate skills and knowledge to meet the current and future needs of the economy and society.

4.6. Technical issues

Of all the strategic plans and annual performance plans considered, the Committee found that they were compliant with the National Treasury SMART criteria as audited by the Auditor-General South Africa (AGSA). The information presented was of good quality and user friendly. The Committee noted in particular that some of NSFAS targets were moderate despite having proven the ability to achieve more than the targets in the previous years.

5. Observations

5.1 Department of Higher Education and Training

a) Programme 1: Administration

The Committee was concerned with vacant funded posts in particular the two Deputy Director-Generals (DDGs) for Programme 3 University Education and Programme 5 Skills Development who had been acting in the positions for an uninterrupted period exceeding 12 months, which contravened section B.5.3 of the Public Service Regulations.
The Department was commended for achieving its target of paying service providers within the stipulated time of 30 days.
The Department was requested to enhance its human resource capacity to effectively monitor and evaluate all the entities in the post-school education and training sector.

b) Programme 2: Human Resource Development, Planning and Monitoring Coordination

The Committee was concerned with the delays by the Department in tabling the Higher Education Bill which was scheduled to be tabled in Parliament by March 2015.
The Department was commended for having targets and indicators in the Strategic Plan 2015/16 – 2019/20 and Annual Performance Plan 2015/16 which met the specific, measurable, attainable, relevant and time-bound (SMART) criteria as assessed by the Auditor-General South Africa (AGSA).
The Committee was concerned with the delays by the Department in developing the National Plan for Post-School Education and Training which was meant to implement the objectives of the White for Post-School Education and Training.

c) Programme 3: University Education

The Department was cautioned on developing many regulations which might impact on institutional autonomy of higher education institutions.
The Committee was concerned that the Department did not implement the pronouncement by the President for the establishment of the new Medical School of the University of Limpopo which was earmarked for first intake in January 2015.
The delays in the implementation of the National Digital Library was noted as a concern since this service would be of good use to students in higher education and training institutions.
It was noted that the target of funding 205000 students from 1.1 million student enrolment planned for 2015/16 in higher education was inadequate to expand access of poor students and redressing the legacies of the past.
The Committee was concerned with low graduation and throughput rates in higher education institutions.

d) Programme 4: Vocational and Continuing Education and Training

The Committee was concerned with delays in the construction of 12 TVET College campuses which were aimed at increasing access to training and skills development opportunities particularly in remote rural areas.
The delays in the establishment of the South African Institute for Vocational and Continuing Education and Training (SAIVCET) was noted as concern since this body would play a critical role in professionalising the TVET sector.
The Committee was concerned with under-funding of the examination services of Adult Education and Training (AET) and TVET functions in the Department which would have a negative impact on funding for remuneration of examiners and moderators and related functions within the services.
The Committee commended the establishment of a Task Team by the Minister to review funding of AET and TVET sectors.
The delays in issuing of outstanding NC(V) certificates for TVET college students was noted as a serious concern which affected the students progression to the next level or opportunities to seek for employment.

e) Skills Development

The Committee was concerned with the performance of SETAs particularly on governance and administration.
The Committee also noted a concern that was raised by the AG that there are currently no mechanisms put in place to regulate the utilisation of funds donated by government departments to the SETAs. Therefore, SETAs use their own discretion in utilising these funds.
The failure rate of candidates in trade tests and artisan assessment services was noted as a serious concern which might impact on the Department targets of producing 24000 qualified artisans per annum by 2020.

5.2 South African Qualifications Authority

The Committee noted with concern the decrease in SAQA funding of 7 percent for 2015/16 and 9 percent for 2017/18 fiscal years. It was argued that the decrease in government grant would impact on the ability of the entity to effectively deliver on its mandate and unfunded additional functions from Ministerial Guidelines such as; overseeing quality in the system, establishment of a fraud detection and prevention unit, monitoring and evaluation, contributing to the implementation of Recognition of Prior Learning (RPL) and working with other Quality Councils (QCs) to ensure articulation between sub-frameworks.
It emerged that SAQA had a budget shortfall of R20 million to its baseline funding and this would negatively impact on advocacy of the National Qualifications Framework (NQF) and employment of additional staff for the additional functions.
The Committee commended the entity particularly on its good management and governance and, clear targets and indicators in its Strategic Plan 2015 - 2020 and APP 2015/16. Furthermore, the entity received a clean audit for the 2013/14 financial year an accolade which should be sustained onwards.
The increase in the number of private education and training providers which offered unaccredited qualifications in the post-school education and training system was noted as a serious concern which the Department and SAQA should closely monitor. Furthermore, it was noted with concern that these institutions exploited people who were desperate for education and training qualifications and, in most instances they were not reimbursed their monies by these institutions when they were exposed.
The reported increase of 1 percent in the number of both foreign and national fraudulent qualifications assessed by SAQA in 2014 was noted as serious concern which impacted on the integrity of post-school education and training sector.

5.3 Quality Council for Trades and Occupations

The Committee was concerned with the human resource capacity of the entity given the slow ratio of review and accreditation of qualifications.
It was noted with concern that though the term of the current Council expired on 31 March 2015, the handover report to the incoming Council was not yet completed and submitted to the Department.
The delays in shifting of quality assurance function from SETAs to the QCTO was noted as a serious concern since the QCTO received SETA grants. Furthermore. SETAs did not have adequate capacity to manage this function hence there was a backlog of outstanding certificates.
The Committee noted with concern the SETA’s certification backlog as a result of delays in the submission of duly completed external moderator or verification reports which had endorsement of learner achievements which was a prerequisite for certification.
The re-engineering of NATED 191 N4 – N6 part qualifications was commended since it would increase access to education and training opportunities in the TVET sector particularly for young people who completed Grade 12.
The new systems in place such as provider accreditation system and certification system where all providers would apply directly to the QCTO and all trades certificates issued would look the same was commended by the Committee.

5.4 National Student Financial Aid Scheme

The Committee was concerned with the moderate targets set by the entity for instance, the entity recovered R467 million in 2014/15, however, the target for loan recoveries for 2015/16 was revised to R373 million. Furthermore, NSFAS was owed an estimated R8 billion from beneficiaries who were defaulting on their student loans and, this money could assist in supporting almost double the number of students benefiting from the scheme at present.
The R500 million contributed by SETAs for bursaries in 2015/16 was commended by the Committee although SETAs could contribute more given the huge amount of value of their combined surplus funds.
The Committee noted with serious concern the increase in spending on consultants, contractors and special services from R10.2 million in 2014/15 to R24.9 million in 2017/18 though the President urged government departments, municipalities and entities to reduce spending on consultants which cost the government R30 billion in 2014.
The Committee noted with concern the decline in the targets and indicators for 2015/16 particularly on stakeholder satisfaction, expansion of the new student centred model and number of new funders.
The slow roll-out of NSFAS new student-centred model to other public higher education and training institutions and TVET colleges was noted with concern since the old model had many challenges.
The notable increase in compensation of employees was noted as a concern given the huge demand for financial aid in higher education and training institutions. The Committee urged NSFAS to implement the fiscal policy which placed more emphasis on spending in core service delivery functions.
It was noted with concern that universities were only paid upfront payment based on request while colleges were allocated without any request. Furthermore, universities enrolled more students than colleges and the demand for financial aid in universities was much higher compared to colleges. Therefore, compulsory upfront payment would assist universities to minimise disruptions and student protests during registration period which seemed to be norm.

5.5 Council on Higher Education

The Committee was concerned with the quality of Bachelor of Education (B.Ed.) graduates given the poor results in the Annual Assessments (ANA) and inadequate quality of basic education.
The slow pace of transformation in academia was noted as a concern by the Committee.
The quality assurance and accreditation function of the CHE was commended although the Committee was concerned about its contribution in stimulating economic growth.
The decline of 7 percent in the Department subsidy to the entity for 2015/16 and 10 percent for 2016/17 were noted as serious concerns which would impact on the entity’s ability to effectively implement its functions. The Committee welcomed the efforts of the entity in re-prioritisation of funds to priority projects and other cost curtailment measures.
It was noted with concern that more than 70 percent of the entity’s budget was allocated for compensation of employees while a small portion of the budget was for key service delivery functions owing to Cabinet approved budget cuts on voted funds. Furthermore, the entity would not be able to find any savings in this regard but in goods and services.
The Committee was informed that the offering of the Bachelor of Technology (B.Tech) programme in Universities of Technology (UOTs) would be phased out by December 2017 and development of the new qualification to replace the B.Tech was underway.

5.6 General observations on the MTEF budget

The Committee noted the increase in the MTEF budget of the Department. However, it was still inadequate and not proportional to student’s enrolment growth in both the Technical and Vocational Education and Training (TVET) and universities. In particular, the Committee noted the following concerns:

The Post-School Education and Training share in the budget as a percentage of the Gross Domestic Product (GDP) in the medium term is maintained at 1.4 percent in 2015/16 to 2016/17 but decreases by 0.1 percent in 2017/18. Though 0.1 percent marginal drop may look small it is in fact a lot of money as a percentage of GDP;
Government spending on higher education as a proportion of the GDP was very low comparable to Organisation for Economic Co-operation and Development (OECD) and also to other African countries;
In the outer two years of the 2015 MTEF period, growth in subsidies to universities would slow down significantly, from 5.3 percent to just over 2 percent. This drop would compel universities to increase student fees to offset budget shortfalls and thereby making higher education unaffordable, especially to the poor.

6. Summary

The Committee commended the Department and its entities for having targets and indicators in the Strategic Plan 2015/16 – 2019/20 and Annual Performance Plan 2015/16 which met the Treasury specific, measurable, attainable, relevant and time-bound (SMART) principle as reviewed by the Auditor-General South Africa (AGSA). Nonetheless, the Committee was concerned that out of the 21 SETAs assessed by the AGSA, 8 had significant findings on their targets and indicators namely; Agriculture SETA, Safety and Security SETA, Fibre Processing & Manufacturing SETA, Local Government SETA, Manufacturing Engineering and other Related Services SETA, Public Service SETA, Culture Arts Tourism Hospitality and Sport SETA and Education and Training Development Practices SETA. The Committee was concerned that these SETAs were tasked with the function of enhancing skills development in various sectors of the economy and yet they did not plan adequately. The Department promised that these SETAs would submit addendum to the APP 2015/16 which would have revised targets and indicators which met the Treasury SMART principles.

The Committee was concerned with the decline in subsidies to some of the entities which received their budget from the voted funds owing to Cabinet approved budget cuts. The decline in funding had serious implications for service delivery in the post school education and training sector which was expected to respond to the needs of people who had never been in school, people who did not complete basic and secondary education and those who sought further education and training. Nonetheless, the Committee urged the entities to implement cost containment measures to meet the funding shortfall and reprioritise their projects. The Committee commended the overall improvement in governance and administration in the entities which received their budget from voted funds. However, it was concerned with poor governance and administration that persisted in some SETAs.

7. Recommendations

The Committee recommends that the minister considers the following:

7.1 Department of Higher Education and Training

a) Programme 1: Administration and Programme 2: Human Resource Development, Planning and Monitoring Coordination

The Department should prioritise the filling of outstanding vacant funded posts especially at senior management level;
The human resource capacity of the Department should be increased to improve the monitoring and evaluation function over all entities reporting to the Department and especially that Adult Education and Training (AET) and Technical and Vocational Education and Training (TVET) sectors are now the competency of the Department;
The Department should prioritise the tabling of the Higher Education Amendment Bill since the targeted date of March 2015 has already passed and there are legislative gaps that need to be amended in the Higher Education Act as amended, and
The Department should submit a bid to National Treasury for recurrent additional funding particularly for underfunded and unfunded programmes of its entities so that they can effectively deliver on their core objectives;

b) University Education

The establishment of a Medical School at the University of Limpopo should be expedited since the Department did not achieve its target for the first intake of medical students in January 2015 as pronounced by the President in his State of the Nation Address (SONA) 2014;
The Department should expedite the process of establishment of the National Digital Library in line with international best practices so that there can be affordable and equitable access of students and staff to research materials across all university sector to enhance knowledge production;
The Department should closely monitor teaching and learning in higher education institutions with a view to improve graduation rates of students which was 15 percent at present. Furthermore, student support services should be improved to reduce the drop-out rate of students particularly for first year undergraduates which was estimated at 40 percent; and
The Department should expedite the New Generation of Academics Programme (NGAP) to promote equity and transformation in higher education institutions.

c) Programme 4: Vocational and Continuing Education and Training (VCET) and Programme 5: Skills Development

The Department should prioritise the establishment of the South African Institute for Vocational and Continuing Education and Training (SAIVCET) to improve the quality of teaching and learning at TVET Colleges;
The Department should source additional funding for the examination functions of Adult Education and Training (AET) and TVET Colleges which was seriously underfunded at present;
The Department should prioritise the issuing of outstanding National Certificate Vocational NC(V) certificates to assist with student progression and for graduates to access employment opportunities;
The Department should prioritise the construction of the 12 new TVET College campuses which will increase access for young and mature people to education and training particularly of people from rural communities;
The Department should assist TVET Colleges to produce sufficient quality in the management and delivery of teaching and learning to improve graduate outputs and access of students to workplace learning opportunities;
The Department should develop mechanisms to regulate the utilisation of funds donated by government departments to the SETAs, and
The Department should work closely with SETAs in assisting them with governance and administration which was a serious challenge at present.

d) Budget

Given the magnitude of the work and the staff required to implement programmes, operate, monitor and evaluate the post-school education and training sector, the Committee recommends that the National Treasury and the Financial and Fiscal Commission undertake a review of the ability of the Department to survive for example undertaking a benchmarking exercise with other departments to determine what a reasonable administrative cost is;
While noting the constrained fiscal outlook and its adverse impact on scope of the National Treasury to provide additional funding to the Department, consideration should be made for substantial increase in NSFAS allocation over the medium term to make provision for the envisaged increase of students in the post-school sector as a result of intake of students in the new Medical School of the University of Limpopo and 12 TVET College campuses that are under construction as pronounced by the President;
Additional funding for the TVET College sector should be secured to increase participation rates in the sector and achieve the National Development Plan (NDP) targets of 3 TVET College students to 1 university student by 2030;
The Department should explore the possibility of requesting additional funding from Treasury for the roll out of the new staff establishment and regional offices to effectively support Adult Education and Training and TVET sectors; and
The Department should be assisted with additional funding for institutional monitoring and evaluation which is critical to improve the performance of entities in the post-school education and training sector.

7.2 South African Qualifications Authority

The Minister should start with the process of appointing new board members of SAQA in time to enable ease of transition and handover process;
The Department should allocate additional funding to SAQA particularly for the additional functions from the Ministerial Guidelines;
The Department in collaboration with SAQA should prioritise articulation across the General and Further Education and Training Qualifications Sub-Framework (GFETQSF), Higher Education Qualifications Sub-Framework (HEQSF) and Occupational Qualifications Sub-Framework (OQSF) as envisioned by the White Paper for Post-School Education and Training;
SAQA should prioritise the digitisation of pre-1992 qualifications so that they can be easily accessible in the National Learner Records Database (NLRD); and
SAQA should improve its verification function and expedite the development of the national fraud register to combat qualifications fraud. Furthermore, SAQA should explore the possibility of creating a collaborative inter-country network so that fraud practices can be easily identified and countered.

7.3 Quality Council for Trades and Occupations

The Department should strengthen its oversight and monitoring function over the QCTO to ensure that the entity performs its mandate efficiently;
The QCTO should increase its human resource capacity to improve its quality assurance function;
The Department should assist the QCTO in taking over the Education and Training Quality Assurance (ETQA) function which was previously managed by SETAs; and
The Department in collaboration with the QCTO should assist SETAs to resolve the backlog of trade test certificates.

7.4 National Student Financial Aid Scheme

NSFAS should effectively implement its loan recovery strategy and recently developed fund raising strategy to recoup funds from beneficiaries who are defaulting on paying their loans to assist more eligible students. Furthermore, the fund raising strategy should be utilised to obtain more sources of funding to supplement the budget shortfall from the Department;
The new student-centred model should be piloted to more universities and TVET Colleges given its efficiency compared to the old model which has many challenges;
NSFAS should review its criteria especially for upfront payment since universities have to submit requests for funding while TVET Colleges receive compulsory upfront payments; and
The Department and NSFAS should consider assisting students whose parents earn just above the threshold limit of R122 000 (missing middle) and they cannot afford expensive university fees since their children do not qualify for the means test. This threshold is an obstacle to the families of these students since they do not even qualify for commercial loans to finance their children’s education.

7.5 Council on Higher Education

The Department should assist the CHE with additional funding given the 7 percent cut in its budget for 2015/16. Furthermore, the budget cuts in the MTEF period would have a negative impact on some key projects planned by the entity;
The CHE should promote ground breaking research innovations in higher education to attract investment for further development for socio-economic benefits; and
The CHE should prioritise the development of the new qualification expected to replace the Bachelor of Technology (B.Tech) programme which will be phased out in 2017.

Report to be considered.

Documents

No related documents

ATC150508: Report of the Portfolio Committee on Higher Education and Training on consideration of Budget Vote 15: Higher Education and Training, dated 7 May 2015

Higher Education, Science and Innovation

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