1. Umalusi’s budget review presentation to the Portfolio Committee on Basic Education 17 April 2013 Cape Town 1

2. Umalusi mandate Vision, mission, goals and KRA’s 2012/13 Revenue & Expenditure 2013/14 Budget Three Year Budget Forecast Conclusion Overview 2

3. As a Quality Council to develop and manage a sub- framework of qualifications for general and further education and training; To develop and quality assure qualifications and curriculum; To quality assure assessments at exit points; To certificate learner achievements; To quality assure provision and accredit private providers of education and training, and assessment; To conduct research related to the sub-framework; and To advise the Minister Umalusi Mandate 2012/13 3

4. Umalusi Council is the cornerstone on which the country’s educational aspirations and standards are anchored and built; and as such the Council and staff are committed to ongoing improvement in standards and quality in general and further education and training. In order to issue learners with credible certificates, Umalusi, through its leadership and expert knowledge, develops and secures standards through: quality assuring qualifications and curricula, confirming that assessment is fair, valid and reliable, quality assuring the provision of education and training, and assessment providers, and grounding its work in research to ensure informed positions and approaches Vision & Mission 4

5. Promote quality and internationally comparative standards in GFET Maintain and improve educational standards through development and evaluation of qualifications and curriculum, quality assurance of assessment, and accreditation of providers of education, training and assessment, Continuously develop in-depth knowledge and expertise in mandated areas through rigorous research, Report on the quality of education and training in GFET within the mandate, Issue appropriate and credible certificates of learner achievement in terms of specific qualifications on the GFET Framework of Qualifications, Provide reliable and credible leadership and guidance in standard setting and quality assurance, Ensure the financial efficiency and sustainability of the organisation, and Determine expectations and appropriately respond to these within the parameters of Umalusi’s mandate. Goals 5

6. 1.Establishing and maintaining a system to develop, evaluate and certify qualifications (and curriculum) 2.Improving and maintaining the system for quality assuring assessment for certification 3.Establishing and implementing a system for evaluation and accreditation of private providers 4. Research, matters related to the Sub-framework of qualifications and report on quality in general and further education and training supported by statistical analysis 5.Developing and ensuring good corporate governance and management of the office of the Chief executive Officer 6.Ensuring that Information Technology systems are established, maintained and improved 7.Ensuring that finance, human resources and administrative support systems are maintained and improved 7 Key Result Areas 6

7. Unaudited Statement of Financial Performance as at 31 March 2013  Net deficit of R 6 369 609  87% of Budgeted Revenue from operations recognized with 16% realized in previous year  101% Grant from the Department of Basic Education received with thanks  93% of the budgeted expenses incurred with vacancy rate at 10% EXECUTIVE SUMMARY 7

8. Unaudited Statement of Financial Position, Cash flow, Debtors and Investments  Total Assets valued at R 66 090 656  147% of invoiced debts collected to date  Cash available at the end of the period amounted to R 2 032 563  Investments R 33 268 454, attracting net interest of 5% p.a. EXECUTIVE SUMMARY ( 2) 8

9. Comparative total expenditure vs 3 year average 9

10. 2012/13 Revenue Budget vs Actual Revenue StreamsBudgetActual%Comment Accreditation Fees1 649 7401 659 045101 As institutions request accreditation – cannot predict number of applications Certification Fees42 358 26027 469 761-35 Early requests for certification of 2011 candidates to the value of R 20m was recognized in previous year (2011/12) thus accounting for the shortfall for this year Department of Basic Education Grant 41 844 00042 330 000101 Grant payment transfer on schedule Interest1 600 0001 927 030120 Due to non-use of surpluses Reserve Funds000 Verification Fees5 500 0005 763 817105 DPSA circular requiring all government departments to verify staff qualifications via SAQA Other02 175 204100 ETDP seta refund, provider conference fees, Cathsseta project, private telephone, etc R 92 952 000R 81 324 85713Below budget 10

11. 2012/13 Expenditure Budget vs Actual (Current) ExpenditureBudgetActual%Comment National Operations 34 694 53935 974 715104 Increased scope of mandate Corporate Services58 257 46150 470 24287 Maintenance unspent due to renovation programme and the few vacant posts currently being filled R 92 952 000R 86 444 957 93 7 % unspent Net deficit as at 31 March 2013 is therefore R 6 369 609 11

12. Statement of Financial Position as at 31 March 2013 Mar 2013Mar 2012 Assets 26 953 642 21 402 262 Investments @ CPD 33 268 454 27 446 983 Current assets 5 826 730 21 373 260 R 66 090 656 R 70 222 505 Capital and Reserves 47 032 633 61 617 213 Current Liabilities 10 861 4008 605 292 R 66 090 656R 70 222 505 12

13. Budget for 2012/13 2012/13 Budget…Received further approval of revised budget including the R 27m in reserve, for: Renovations- R 6,4m (done) Adult Matric project- R 2m (under discussion) Other premises- R 15m (in progress) Unforeseen expenses- R 4m (reserved based on outcome of additional premises) 13

14. Budget for 2013/14 The revised budget for 2013/14 for R 110 704 500 was granted by the Minister of Basic Education in a letter dated 10 April 2013. The grant approved is R 97 662 000. 14

15. Qualifications, Curriculum & Certification OUTCOMESPrevious Budget Current Budget 2013/14 Motivation Qualifications sub-framework developed and maintained Standards for new qualifications developed Curricula evaluated and/or developed Policy developed and implemented Learner achievements certificated Verification processes maintained and improved R 3 605 234R 4 900 00036% increase due to the development of: NASCA ;GETCA ; NIC ; The Level 5 qualification (post matric); and Advocacy Ongoing review of the CAPS curriculum for all phases Development of certification systems for new qualifications 15

16. Quality Assurance of Assessments OUTCOMES Previous Budget Current Budget 2013/14 Motivation Question papers moderated Marking standardized CASS moderated Exams monitored Standards for assessment articulated and maintained Stakeholder relations established and managed Management, support and governance structures maintained and improved R 20 850 000R 24 100 00016% increase due to scope of work 16

17. Evaluation and Accreditation OUTCOMES Previous Budget Current Budget 2013/14 Motivation Accreditation and monitoring system for providers of education and training reviewed, maintained and extended Accreditation and monitoring system for assessment bodies maintained Provider site visits conducted Policy developed and implemented Stakeholder relationships developed and maintained Data management systems developed and maintained Reports developed Administrative systems maintained and improved R 5 739 305R 9 900 000 72% increase due to the implementation of full accreditation processes for private providers: Initially 500 schools, 240 Colleges and 60 AET Centres plus silent new applications. Staffing and structures Advocacy New assessment bodies monitored and quality assured (2) Provider conferences (Schools and AVET) Reporting system (data management system developed) 17

18. Statistical Information and Research OUTCOMESPrevious Budget Current Budget 2013/14 Motivation Reporting (Research reports and quality reports per qualifications) Research is planned, managed and implemented Statistical supports provided to other units Research forum/committee maintained Strategic support provided Stakeholders consulted on strategic research Stakeholders engaged with through conferences and published documents Resource centre maintained /improved R 4 500 000R 4 800 0007% increase due to increase in research projects namely: 8 new projects and 8 reports for printing including 3 seminars 18

19. Governance and Office of the Chief Executive Officer OUTCOMESPrevious Budget Current Budget 2013/14 Motivation Organisational planning and implementation reviewed Organizational governance maintained Stakeholder relations established and managed Public relations programme implemented R 3 268 030R 3 758 23615% increase due to administrative costs for travel, accommodation and flights 19

20. Corporate Services: Information Technology OUTCOMES Previous Budget Current Budget 2013/14 Motivation Information technology systems established, maintained and improved Certification IT program effectively implemented Adequate computer hardware and software installed and maintained to support operations R 6 047 383R 7 132 86118% increase required due to increase in computer costs mainly for replacement of hardware and software 20

21. Corporate Services: Finance and Supply Chain Management OUTCOMES Previous Budget Current Budget 2013/14 Motivation Finance and Accounting systems maintained and improved including payroll payments Supply Chain Management system maintained and improved Building and security systems maintained and improved R 45 504 887R 52 314 57015 % increase due to additional posts approved by Council, as per the HR review and approximately 6.6% towards cost of inflation linked salary increments 21

22. Corporate Services: Human Resource Management and Development OUTCOMESPrevious Budget Current Budget 2013/14 Motivation Administration of Human resources carried out HR development plans implemented General services provided Records Management Services provided R 3 437 161R 3 798 83311% increase due to HR development strategies with staff workshops and implementation of records management services GRAND TOTALR 92 952 000R 110 704 500 19% increase in the budget for 2013/14 excluding the additional budget for 2012/13 for capex etc. 22

23. Total Income 2000/1 (actual) to 2015/16 (budget) YEARINCOMEBUDGETDBE GRANTGRANT % 2000/01R 6 150 78600 2001/02R 7 027 94800 2002/03R 13 757 861R 1 513 00011 2003/04R 18 076 902R 3 050 00017 2004/05R 23 547 626R 12 869 00055 2005/06R 28 603 979R 7 690 00027 2006/07R 32 972 345R 10 286 00031 2007/08 R 36 013 566R 12 652 00035 2008/09 R 46 434 369R 16 044 00035 2009/10R 52 442 731R 16 494 00031 2010/11R 59 464 754R 17 350 00029 2011/12R 93 219 718R 18 391 00020 2012/13R 92 952 000 R 42 330 00046 2013/14R 110 704 500R 97 662 00088 2014/15R 118 919 797R 106 488 29790 2015/16R 135 240 416R 120 944 19189 23

24. 3 Year Budget Forecast 24

25. Umalusi future as published in the Higher Education and Training Green paper: Umalusi Position Umalusi recommendations Umalusi Strategic and Annual Performance Plans submitted Challenges 25

26. Thanks to Ms H Malgas, Chairperson of the Portfolio Committee, and Honorable members for this opportunity to present Umalusi’s budget review. We would like to express our sincere gratitude to this committee, the Minister of Basic Education and the Department for its support in ensuring that the grant awarded to Umalusi is improved so that our mandate of quality assuring standards is achieved in South Africa. Dr Mafu S Rakometsi THANK YOU 26