ATC160824: Report of the Portfolio Committee on Higher Education and Training on the Second and Third Quarter Performance Report of the Department of Higher Education and Training for the 2015/16 Financial Year, dated 24 August 2016

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE SECOND AND THIRD QUARTER PERFORMANCE REPORT OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING FOR THE 2015/16 FINANCIAL YEAR, DATED 24 AUGUST 2016

The Portfolio Committee on Higher Education and Training having considered the 2015/16 second and third quarter performance report of the Department of Higher Education and Training (DHET) on 25 May 2016 reports as follows:

1. Introduction and background

Section 55 (2) of the Constitution of the Republic of South Africa, 1996 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; (b) to maintain oversight of the exercise of national executive authority, including the implementation of legislation, and any organ of state.

Consideration of quarterly reports is one of the tools that ensures that organs of the state are accountable to Parliament. These reports are critical for in-year monitoring as they provide information on pre-determined objectives which are reflected in the strategic and annual performance plans, progress against objectives and identifying gaps in implementation. This is to ensure that policies announced by government and authorised by Parliament are actually delivered.

As part of its in-year monitoring, the Committee convened a meeting with the Department to consider its second and third quarter performance report of the 2015/16 financial year. This report accounts for work undertaken by the Committee during the assessment of the second and third quarter performance report of the Department for the 2015/16 financial year. The report further makes recommendations for consideration by the Minister of Higher Education and Training.

 

 

 

2. Overview and assessment of performance information on the predetermined objectives for the second and third quarter of 2015/16

2.1. Programme 1: Administration

The purpose of this programme is to conduct the overall management of the Department and provide centralised support services. There were no targets planned for this programme during the two quarters under review.

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 the department policies and Human Resource Development Strategy for South Africa.

For the quarter ending 30 September 2015, the programme had one target. The Department planned to develop the “iWIL”, which is a registration system for learners seeking work integrated learning opportunities and for firms wanting to provide work integrated learning and have it approved. This target was achieved as planned. The Department reported that the iWIL system was operational and had registered 248 students and six firms.

For the quarter ending 31 December 2015, the programme had one delivery target, which was to gazette an approved Policy and Guidelines on Recognition of Prior Learning (RPL). This target was not achieved within the set time frame. The policy was subsequently approved by the Minister and gazetted in March 2016.

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 and provide financial support to universities, the National Student Financial Aid Scheme (NSFAS) and the National Institutes for Higher Education (NIHE).

For the quarter ending 30 September 2015, the programme had four delivery targets and two were achieved as planned, namely, the Policy on the Minimum Norms and Standards for Student Housing at Public Universities was published in a gazette on 29 September 2015, and the report on the effective use of the foundation provision grant for 23 universities was approved by the DG on 4 September 2015.

The other two targets, namely, to have a report on the analysis of university annual reports in terms of financial indicators produced and approved by the DG and to have the Revised Regulations for Private Higher Education Institutions published in a gazette could not be achieved within the set timeframe. However, they were subsequently achieved by 31 March 2016.

For the quarter ending 31 December 2015, the programme had three delivery targets, and all were achieved as planned, namely: the report on the effective use of the 2014/15 teaching development grant was approved by the DG by end December 2015, an evaluation report on the effective use of the Research Development Grant in 2014/15 was approved by the DG by end December 2015, and the student leadership capacity development strategy and programme was developed and implemented by October 2015.

During the third quarter, this branch also reported on the performance of the system with respect to universities during the 2014 academic year. The system had seventeen targets that were aligned to the Medium-Term Strategic Framework (MTSF) 2014-2019. Of the seventeen targets, ten were achieved, namely: 10 100 graduates in Engineering Sciences (achievement 12 058), 6 600 graduates in Natural and Physical Sciences (achievement 7 295), 17 500 graduates in Teacher Education from universities (achievement 19 124), 2 050 Doctoral graduates from universities (achievement 2 258), 6 200  Research Masters graduates  (achievement 7 229), 76 percent success rate at universities (achievement 77 percent), 35 percent higher education throughput rate (achievement 35 percent), 80 percent higher education under graduate success rate for contact students (achievement 82 percent), and 42 percent percentage of university academic staff with Doctoral qualifications / PHDs (achievement 43 percent).

The system underperformed in the following targets, namely: 1 000 100 students enrolled in public higher education studies at universities (achievement 969 154), 9 000 graduates in Human Health and Animal Health from universities (achievement 8 982), 71 percent higher education undergraduate success rate in distance learning (achievement  68 percent),  100 additional first time entrants (black and women) to academic workforce in addition to normal replacement and plans (achievement  99), 23 902 first year students in foundation programmes (achievement 19 212), 205 000 eligible university students obtaining financial aid (achievement 186 150). The target of 100 percent proportion of universities meeting standards of good governance could not be achieved, because the process of finalising the new governance standards was underway.

2.4. Programme 4: Vocational and Continuing Education and Training (VCET)

The purpose of this programme is to plan, develop, evaluate, monitor and maintain national policy, programmes, assessment practices and systems for vocational and continuing education and training, including technical and vocational education and training colleges and post-literacy adult education and training.

For the quarter ending 30 September 2015, the programme had four delivery targets and three targets were achieved, namely: the annual teaching and learning support plan for the Vocational and Continuing Education and Training (VCET) system was approved by the DG on 21 September 2015, a Monitoring and Evaluation report on VCET institutions was approved by the DG on 29 September 2015, and a strategy on strategic partnerships with key stakeholders was approved by the DG on 14 September 2015. The target that could not be achieved within the set timeframe was the policy for the National Senior Certificate for Adults (NASCA), which was approved by the Minister on 30 March 2016.

For the quarter ending 31 December 2015, the programme had three delivery targets and it achieved one, namely, the policy directives for TVET College Information Technology (IT) systems were approved by the DG. The two targets that could not be achieved within the set timeframe were the guidelines for standardised implementation of Occupational Programmes (subsequently achieved), and the building of six TVET College campuses. There were two campuses (Nkandla A and Bhambanana in KwaZulu-Natal) at 50 percent completion and one (Thabazimbi in Limpopo) at 99 percent completion. The Department reported that the Thabazimbi Campus would be officially handed over to the Waterberg TVET College at the end of May 2016.

 

 

 

2.5. Programme 5: Skills Development

The purpose of this programme is to promote and monitor the national skills development strategy and to develop a skills development policy and regulatory framework for an effective skills development system.

For the quarter ending 30 September 2015, the programme had five delivery targets and it achieved four, namely: the Sector Education and Training Authority (SETA) monitoring report on skills development was approved by the DG, 7 526 new artisan learners were registered nationally, exceeding the target of 5000 by 2 526, 4 773 new artisan learners were qualified, exceeding the target of 3000 by 1 773, and the national artisan learners trade test pass rate at  the Institute for the Development of Learnerships and Employment Skills and Labour Assessments (INDLELA) was 52 percent, exceeding the target by 2 percent. The one target which was not achieved in the second quarter was the average lead time from trade test application received until trade test conducted was 170 days, 70 days more than targeted.

For the quarter ending 31 December 2015, the programme had six delivery targets and it achieved four, namely: the SETA monitoring report on skills development was approved by the DG, 6 334 new artisan learners were registered nationally, exceeding the target of 5 000 by 1 334; 3 182 new artisans were qualified, exceeding the target of 3 000 by 182; and the national artisan learners trade test pass rate at INDLELA was 54 percent, 4 percent above the target. The two targets that were not achieved were, the workplace based learning policy (draft policy had since been developed and submitted to the Minister for approval and, the Minister recommended for further consultation with Cabinet) and the average lead time from trade test application received until trade test conducted was 157 days, 57 days more than targeted.

2.6. Overview and assessment of financial performance

The overall spending rate at the end of the second quarter was 65.4 percent (including Direct Charges), 26.3 percent more as compared to the first quarter. The reasons for this high spending rate was due to the uneven transfers made to universities and TVET Colleges as well as to the National Student Financial Aid Scheme (NSFAS). The average spending for normal operational activities including compensation of employees was 44 percent. The lower than projected spending on compensation of employees was caused by the delay in transfer of TVET and Community Education and Training (CET) functions from the Eastern Cape Department of Education (ECDoE) which took place in June 2015. The spending on Examiners and Moderators was 120.6 percent.

The overall spending rate of the third quarter was 82.5 percent (including Direct Charges), 17.1 percent more as compared to the second quarter. The average spending for normal operational activities including compensation of employees was 69.3 percent. The lower than projected spending on compensation of employees was due to the same circumstances reported at the end of the second quarter. The spending on Examiners and Moderators was 121.8 percent. The high rate of expenditure on this item was of concern and since it could impact negatively on the November 2015 examinations, and supplementary examinations during the first quarter of 2016. Increased enrolment in TVET Colleges may further compound the situation.

3. Committee observations

The Committee, having assessed the second and third quarter performance report of the Department for 2015/16, made the following observations:

• The Committee commended the overall performance of the Department for the two quarters under review.
• The construction project of the twelve new TVET College campuses in the rural areas of the country’s poorest provinces commenced in 2014 at three sites (Thabazimbi, Nkandla A and Bhambanana). However, at the end of 2016, the Department had managed to complete one college campus (Thabazimbi) and the other two were at 50 percent completion. The Committee was concerned about the delay in the construction of the other two campuses, and the finalisation of the procurement processess for the other nine. The Committee urged the Department to resolve the supply chain management challenges associated with the project.
• The decline in the number of eligible university students obtaining financial aid was highlighted as a concern given the ever increasing demand for financial aid in higher education institutions. It was noted that this decline had a negative impact on the enrolment growth of universities.
• The Committee welcomed the Department’s role of analysing the university annual reports in terms of financial indicators as this would enhance public accountability on the utilisation of subsidies by the institutions. The Department was requested to make this report available to the Committee.
• The Committee expressed concern about the continuous overspending on Examiners and Moderators, which was mainly caused by the delay in the submission of claim forms at the end of examination cycles, as reported by the Department.
• The Committee urged the Department to expand the training and development of female artisans, particularly in the trades and occupations that are in demand.
• The utilisation of the former teacher training colleges by the Department for teaching and learning was commended by the Committee.

 

4. Conclusion

For the second and third quarter of 2015/16, the Department had 27 targets, of which 18 (67 percent) were achieved as planned and nine (33 percent) were not achieved within the set timeframe. The five targets that were not achieved within the set timeframe, were subsequently achieved. The Department reported that the transfer payments to public entities, including subsidies to public higher education and training institutions were on schedule by the end of December 2015. It was commendable that the Department had exceeded its targets in the most critical areas including the number of graduates in Engineering Sciences, Natural Sciences, Teacher Education, Doctoral graduates, and Research and Masters. The success rate at universities and the higher education undergraduate success rate of contact students also increased, exceeding the targets by one percent and two percent respectively.

The Department reported that the expenditure rates of all programmes were closely monitored, and it did not anticipate overspending for the 2015/16 financial year. The effective implementation of cost saving measures within the Department was commendable given its limited resources to fulfil its mandate effectively.

 

 

5. Recommendations

The Committee having assessed the second and third quarter performance of the Department for the 2015/16 financial year, recommends that the Minister of Higher Education and Training consider the following:

• The construction of the remaining TVET College campuses should be fast tracked to expand the geographical spread of these institutions as pronounced by the President in his 2014 State of the Nation Address (SONA);
• Allocation of funding to eligible university students at universities should be monitored to ensure that the targeted number is achieved;
• Effective systems should be put in place to resolve the delay in the submission of claim forms for payment of Examiners and Moderators; and
• The Department should increase the intake of female artisans in the top ten trades and occupations that are in demand.

 

Report to be considered.