1. DEPARTMENT HIGHER EDUCATION AND TRAINING Presentation to the Standing Committee on Appropriations 2016 Appropriations Bill 11 May 2016

2. From 2016/17, the budget for the Department is distributed into Six Programmes (During the 2015 MTEF the programme structure still consisted of Five Programmes) Treasury approval was obtained to split the former Programme 4: Vocational and Continuing Education and Training into the new Programme 4: Technical and Vocational Education and Training and a new Programme 6: Community Education and Training in line with the restructuring of the Department after the function shift The budget also includes “direct charges” namely the skills levy revenue collected by SARS for the SETAs and the NSF For the 2016 MTEF the Department’s budget (excluding direct charges) increases from R42.0 billion in 2015/16 to R55.3 billion in 2018/19 and amounts to R49.2 billion for 2016/17 This increase is mainly for: o The zero per cent increase in university fees (R300 million/ R2.6 billion/ R2.8 billion) o NSFAS: Historic debt relief (R2.5 billion – once-off in 2016/17) o NSFAS: Unfunded continuing and new students (R2 billion/ R2.9 billion/ R3 billion) Structure, budget and expenditure trends 2

3. The Department managed to remain within its budget since being in operation from 1 April 2010 Underspending was mainly limited to vacant posts that could not be filled on time, outstanding examiner claims and operational commitments as follows: 2010/11: R 23.848 million 2011/12: R 17.817 million 2012/13: R 3.751 million 2013/14: R 1.931 million 2014/15: R1.160 million 2015/16: Preliminary outcome R84.584 million (Impact of function shift) 3 Structure, budget and expenditure trends

4. Programme purpose: 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 to national institutes for higher education The key deliverables of the Programme are as follows: o To develop and review policies/regulations/pieces of legislation to ensure sound provision of university education o To develop an integrated plan that will enable collaboration between university education and other PSET sectors o Monitor and evaluate the higher education sector and produce annual oversight reports o To develop and implement a Teaching and Learning Development Capacity Improvement Programme o Develop and implement a student leadership capacity development strategy and Central Application Services o Publish an annual first-time entering undergraduate cohort analyses report o Facilitate stakeholder networks through the establishment of a BRICS Think Tank and participative academic forum 4 Information on Key Programmes University Education

5. Programme purpose: Plan, develop, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for Technical and Vocational Education and Training The key deliverables of the Programme are as follows: o National admission and promotion guidelines for NC(V) o Revised current costing model for TVET college programmes o Revised conduct policy for NC(V) o Monitoring and Evaluation report on TVET institutions o Implementation report on teaching and learning support plans in TVET colleges o Annual teaching and learning support plans for TVET colleges o Student support services plan o Implementation report on the student support services plan o TVET colleges infrastructure maintenance report o Establishment of Coordinating structure for stakeholder engagement (SAIVCET) 5 Information on Key Programmes Technical and Vocational Education and Training (TVET)

6. Funding Pressures The TVET Programme is unable to attain the growth requirements within the post-school education and training system in terms of enrolments, infrastructure development, increased operations and student support Serious funding pressures in TVET Colleges in regard to textbooks, materials and protective clothing as well considerable reductions in travelling and accommodation allowances. Colleges had to use their reserves in 2015/16 to deal with reduced allocations in their subsidies due to the function shift Already we are seeing mobilization by students in the sector, with some campuses affected by damage The MTEF enrolments targets are not going to be met and will be reviewed as no additional funds were made available for TVET in the MTEF Increased enrolments places additional pressures on the Examination System regarding Administration and appointment of Examiners and moderators 6 Information on Key Programmes Technical and Vocational Education and Training (TVET)

7. Programme purpose: Promote and monitor the national skills development strategy. Develop a skills development policy and regulatory framework for an effective skills development system The key deliverables of the Programme are as follows: o To steer and support skills development institutions to implement the National Skills Development Strategy o To standardise the level of governance across Sector Education and Training Authorities o To effectively manage artisan development assessment services inclusive of RPL 7 Information on Key Programmes Skills Development

8. Artisan Development The National Development Plan sets a target of 30 000 artisans produced per annum by 2030 The challenge remains that artisan development is mainly funded through a grant from the National Skills Fund and not Voted funds Sector Education and Training Authorities (SETAs) All the SETAs and other Schedule 3A public entities report to the Department in terms of the provisions in the PFMA and Treasury Regulations. This includes the following: Strategic Plans Annual Performance Plans and Service Level Agreements (for SETAs) Quarterly Reports Annual Reports 8 Information on Key Programmes Skills Development

9. Programme purpose: Plan, develop, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for Community Education and Training The key deliverables of the Programme are as follows: o To expand access of the youth and adults to diversified second chance education and training opportunities (1 million by 2030) o To plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for community education and training o To develop guiding frameworks, policies and regulations aimed at steering the CET system o To develop and implement teaching and learning support plan for CET colleges o To forge links with strategic partners and stakeholders in the community education and training sector by developing and approving a strategy on strategic partnerships with key strategic partners 9 Information on Key Programmes Community Education and Training (CET)

10. Funding Pressures Imminent closure of the Khari Gude Project with result of the DHET taking fully responsibility for numeracy and literacy Standardisation of disparate conditions of service inherited from Provincial Education Departments Underfunded examination system of the community colleges Rollout of the matric-equivalent qualification for youth and adults, as required by the MTSF Infrastructure development/refurbishment for the rollout of the community college system, as a third-tier institution Such funding pressures militate against the gradual achievement of the MTSF and NDP targets 10 Information on Key Programmes Community Education and Training (CET)

11. Actions on key recommendations by SCOA on the funding for higher education The leveraging of funds within the post-school system including re- examining the efficacy of SETAs receives attention through increased monitoring, the implementation of the revised Grant Regulations and the development of the new SETA landscape Key partnerships with the financial sector is in process through the draft plan for funding the “missing middle” higher education students A comprehensive communication strategy is in process to target students and parents on all aspects pertaining to student funding and possible financing options NSFAS is positioned to manage additional resources envisaged for the medium term NSFAS has an agreement with SARS to assist with the repayments of loans 11 SCOA Recommendations

12. The Department acknowledges the current fiscal constraints of Government, but it must be noted that it has an impact on service delivery SYSTEM PRESSURES: o The Department is unable to attain the growth requirements within the post- school education and training system in terms of enrolments, infrastructure development, increased operations and student support. This is linked to the implementation of the White Paper and is receiving attention through an initiative with National Treasury o Key risks associated with student fee increases and the operational staff costs at institutions OPERATIONAL PRESSURES: o The capping of compensation of employees is still placing a burden on the ability to roll out the new staff establishment and regional presence o Institutional monitoring and evaluation remains limited o The department is still relying on NSF project support such as the funding of the National Artisan Moderation Body o Cost implications for examination services remains a concern Summary 12

13. Thank You 13