1. Department of Higher Education and Training Second and Third Quarter Performance Report (2015/16) Presentation to the Portfolio Committee on Higher Education and Training 25 May 2016

2. Presentation Outline 2 1. Background 2.Performance per Programme (2015/16: 2 nd and 3 rd quarter) Administration Human Resource Development, Planning and Monitoring Coordination University Education Vocational and Continuing Education and Training Skills Development 3. Budget Performance

3. Background 3 For the 2015/16 financial year, the Annual Performance Plan (APP) had 33 performance indicators encompassing 61 targets which are direct outputs of the Department. The APP also had 30 system performance targets which were monitored and reported by the core delivery programmes of the Department. For the two quarters under review, the Department had 27 targets, of which 18 (67%) were achieved as planned and 9 (33%) were not achieved. 5 of the targets that were not achieved within the timeframe, were subsequently achieved. The slides that follow will present further details of the targets mentioned.

4. Purpose: Provide strategic direction in the development, implementation and monitoring of departmental policies and Human Resource Development Strategy for South Africa For the 2015/16 financial year, Programme 2 planned to deliver 9 targets For the two quarters under review, there were 2 targets (one in each) ―The target in the 2 nd quarter was to produce “i WIL” which is a registration system for learners seeking work integrated learning opportunities and firms wanting to provide work integrated. This was achieved as planned ―The target in the 3 rd quarter was to gazette an approved Policy and Guidelines on Recognition of Prior Learning (RPL). This was not achieved as planned. However the Policy was subsequently approved by Minister and gazetted in March 2016 Programme 1: Administration 4 Programme 2: HRD, Planning and Monitoring Coordination

5. Purpose: Develop and coordinate policy and regulatory frameworks for an effective and efficient university education system and provides financial support to universities, National Student Financial Aid Scheme and National Institutes for Higher Education For the 2015/16 financial year, Programme 3 planned to deliver a total of 20 targets and monitor the performance of the system (universities in particular) against 17 delivery targets For the two quarters under review, there were 7 targets (4 in Q2 and 3 in Q3). Two (2) of the four (4) targets in the 2 nd Quarter were achieved as follows: –Policy on the Minimum Norms and Standards for Student Housing at Public Universities was published in a gazette on 29 September 2015: Gazette No. 39238 –Report on the effective use of the foundation provision grant for 23 universities was approved by Director-General on 4 September 2015 5 Programme 3: University Education

6. The other two (2) targets could not be achieved as planned. However, they were subsequently achieved as follows: –Report on the analysis of university annual reports in terms of financial indicators was produced and approved by the Director-General on 31 March 2016 –Revised Regulations for Private Higher Education Institutions were published in a gazette on 31 March 2016: Government Gazette No. 39882 (Regulation Gazette No. 10582). There were three (3) targets in the 3 rd Quarter and all were achieved as planned, as follows: –Report on the effective use of the 2014/15 teaching development grant was approved by the Director-General by end December 2015 –Evaluation report on effective use of the Research Development Grant in 2014/15, was approved by the Director-General by end December 2015 –Student Leadership capacity development strategy and programme was developed and implemented by October 2015 6 Programme 3: University Education

7. 7 PERFORMANCE INDICATORSYSTEM TARGET ACHIEVEMENT 1Number of graduates in Engineering Sciences10 10012 058 2Number of graduates in Natural and Physical Sciences 6 6007 295 3Number of graduates in Teacher Education from universities 17 50019 124 4Number of Doctoral graduates from universities2 0502 258 5Number of Research Masters graduates6 2007 229 6Higher education throughput rate35% 7Number of universities offering accredited TVET college qualification 33 8Success rate at universities76%77% During the 3 rd quarter, the branch also reported on the performance of the system in respect to universities during the 2014 academic year. 10 of the 17 targets were achieved as follows:

8. Programme 3: University Education 8 PERFORMANCE INDICATORSYSTEM TARGET ACHIEVEMENT 9 Higher education under graduate success rate (Contact) 80%82% 10Percentage of university academic staff with PHDs 42%43%

9. Programme 3: University Education 9 PERFORMANCE INDICATORTARGETACHIEVEMENT 1Number of students enrolled in public higher education studies at universities 1 000 100969 154 2Number of graduates in Human Health and Animal Health from universities 9 0008 982 3Higher education under graduate success rate (Distance) 71%68% 4Number of additional first time entrants (black and women) to academic workforce in addition to normal replacement and plans 10099 5Number of first year students in foundation programmes 23 90219 212 6Number of eligible university students obtaining financial aid 205 000186 150 7Proportion of universities meeting standards of good governance 100%This was not evaluated as new governance standards are being finalised The system underperformed in respect to the following:

10. Purpose: 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 2015/16 financial year Programme 4 planned to deliver a total of 8 targets and monitor the performance of the system (TVET colleges in particular) against 10 delivery targets For the two quarters under review, there were 7 targets (4 in Q2 and 3 in Q3) Three (3) of the four (4) targets in the 2 nd Quarter were achieved as follows –Annual teaching and learning support plan for the VCET system was approved by Director-General on 21 September 2015 –Monitoring and Evaluation report on VCET institutions was approved by Director-General on 29 September 2015 10 Programme 4: VCET

11. –Strategy on strategic partnerships with key stakeholders was approved by the Director-General on 14 September 2015 The target that could not be achieved as planned but was subsequently achieved as follows: −Conduct policy for NASCA was approved by the Minister on 30 March 2016 One of the three (3) targets in the 3 rd Quarter was achieved as planned, namely, Policy directives for TVET College Information Technology systems were approved by the Director- General The following two (2) targets could not be achieved as planned: –Guidelines for standardised implementation of Occupational Programmes which was subsequently achieved –The building of 6 TVET College campuses remain unachieved. Only 2 campuses were at 50% completion and 1 at 99% completion 11 Programme 4: VCET

12. Purpose: Promote and monitor the national skills development strategy. Develop a skills development policy and regulatory framework for an effective skills development system For the 2015/16 financial year Programme 5 planned to deliver a total of 15 targets and monitor the performance of the system (SETAs in particular) against 4 delivery targets For the two quarters under review, there were 11 targets (5 in Q2 and 6 in Q3) Four (4) of the five (5) targets in the 2 nd Quarter were achieved as follows: –SETA monitoring report on skills development was approved by the Director-General –7 526 new artisan leaners were registered nationally, exceeding the target of 5000 by 2 526 –4 773 new artisans were qualified, exceeding the target of 3000 by 1 773 –The national artisan learners trade test pass rate at INDLELA was 52%, above target of 50% by 2 % 12 Programme 5: Skills Development

13. One (1) target was not achieved in the 2 nd Quarter as follows: –The average lead time from trade test application received until trade test conducted was 170 days, 70 days more than targeted Four (4) of the six (6) targets in the 3 rd Quarter were achieved as follows: –SETA monitoring report on skills development was approved by the Director-General –6 334 new artisan leaners were registered nationally, exceeding the target of 5000 by 1 334 –3 182 new artisans were qualified, exceeding the target of 3000 by 182 –The national artisan learners trade test pass rate at INDLELA was 54%, above target of 50% by 4 % 13 Programme 5: Skills Development

14. Two (2) targets were not achieved in the 3 rd Quarter as follows: –Workplace based learning policy – Draft policy has since been developed and submitted to Minister for approval. Minister recommended further consultation with Cabinet –The average lead time from trade test application received until trade test conducted was 157 days, 57 days more than targeted 14 Programme 5: Skills Development

15. 15 The overall spending rate by the second quarter was 65.4% (including Direct Charges) The spending rate for the first quarter was 39.1% The reasons for this high spending trend is due to the uneven transfers made to universities and TVET Colleges as well as to NSFAS Average spending for normal operational activities including compensation of employees was 44% The spending rate on compensation of employees is 44.3% as follows: Personnel Expenditure: 43.4% Spending on this item is lower than projected due to transfers in respect of TVET and CET from the Eastern Cape Provincial Education Department that could only take place in June 2015 and funded vacancies for support functions to the TVET and CET function shift that was in the process of being filled at that stage Examiners and Moderators: 120.6% Spending on this item is at a high risk and will further be influenced by examinations later in the year This item is also directly influenced by the number of enrolments in TVET Colleges 2015/16: Second Quarterly Report

16. 16 Programme Allocation R’000 Actual Expenditure R’000 Variance R’000 % Spent 1: Administration 318 175 200 143 11855.0 2: Human Resource Development, Planning and Monitoring Coordination 54 84327 662 27 18150.4 3: University Education 32 844 325 25 497 8947 346 43177.6 4: Vocational and Continuing Education and Training 8 515 770 3 531 1554 984 61541.5 5: Skills Development 110 699 259 512(148 813)234.4 6: Direct Charges (SETAs and NSF) 14 690 0007 502 166 7 187 83451.1 Total 56 533 95536 993 589 19 540 36665.4 2015/16: Second Quarter

17. 17 Economic Classification Allocation R’000 Actual Expenditure R’000 Deviation R’000 % Spent Compensation of Employees Personnel Expenditure Examiners and Moderators 7 308 192 7 225 194 82 998 3 238 601 3 138 713 100 097 4 069 391 4 086 481 (17 099) 44.3% 43.48% 120.6% Goods and Services 492 984157 560335 42432.0% Transfer Payments Skills Levy and Public Entities 21 269 95612 608 4798 661 47759.3% Universities 26 243 22720 391 7955 851 43277.7% Commonwealth of Learning/IBSA 3 1562 58856882.0% TVET and CET Colleges as well as HEAids 1 204 114590 113614 00149.0% Leave Gratuities 581(581)- Capital Expenditure Machinery and equipment 12 3263 8488 67829.6% Intangible assets -24(24)- Total 56 533 95536 993 58919 540 36665.4% 2015/16: Spending Trends per Economic Classification

18. 18 The overall spending rate by the third quarter was 82.5% (including Direct Charges) The spending rate for the second quarter was 65.4% Average spending for normal operational activities including compensation of employees was 69.3% The spending rate on compensation of employees is 69.3% as follows: Personnel Expenditure: 68.4% Spending on this item is lower than projected due to the same circumstances as at the end of the second quarter Examiners and Moderators: 121.8% Spending on this item is at a high risk and will further be influenced by claims for the November 2015 examinations and supplementary examinations during the first quarter of 2016 This item is also directly impacted by the number of enrolments in TVET Colleges 2015/16: Third Quarterly Report

19. 19 Programme Allocation R’000 Adjusted Allocation R’000 Actual Expenditur e R’000 Variance R’000 % Spent 1: Administration 318 359 519246 383113 13668.5 2: Human Resource Development, Planning and Monitoring Coordination 54 843 58 25340 88317 37070.2 3: University Education 32 844 325 32 847 44530 096 1102 751 33591.6 4: Vocational and Continuing Education and Training 8 515 770 8 502 2905 868 2872 634 00369.0 5: Skills Development 110 699 112 631121 688(9 057)108.0 6: Direct Charges (SETAs and NSF) 14 690 000 15 800 00011 203 5164 596 48470.9 Total 56 533 955 57 680 13847 576 86710 103 27182.5 2015/16: Third Quarter

20. 20 Economic Classification Allocation R’000 Adjusted Allocation R’000 Actual Expenditur e R’000 Deviatio n R’000 % Spent Compensation of Employees Personnel expenditure Examiners and moderators 7 308 192 7 225 194 82 998 7 317 155 7 194 122 123 033 5 071 125 4 921 314 149 810 2 246 030 2 272 808 (26 777) 69.3% 68.4% 121.8% Goods and Services 492 984379 028235 770143 25862.2% Transfer Payments Departmental agencies and accounts 21 269 95622 411 84917 753 8044 658 04579.2% Universities and Technikons (current) 26 243 227 23 531 6572 711 57089.7% Foreign governments and international organisations 3 156 2 58856882.0% Non-profit institutions 1 204 1141 314 971973 316341 65574.0% Households 3972 165(1 768)545.3% Capital Expenditure Machinery and equipment 12 32610 3555 7654 59055.7% Intangible assets--677(677)- Total 56 533 95557 680 13847 576 86710 103 27182.5% 2015/16: Spending Trends per Economic Classification

21. 21 By 31 December 2015, all transfer payments to institutions including subsidies were on schedule Problems experienced with PERSAL interfaces from the various PEDs due to incorrect link codes resulted in expenditure allocated against wrong programmes and consequently reflects an overspending on Programme 5 – the sources for the incorrect link codes and a process for correction were under investigation (and were corrected during the fourth quarter) Expenditure trends are monitored closely within the Department and cost saving measures were effectively implemented At this stage the Department does not foresee overspending of the Vote for the 2015/16 financial year Limited underspending is projected for normal operational activities (goods and services) A larger underspending outcome could be possible under compensation of employees All spending are monitored carefully to ensure that there is no overspending and that underspending is kept to a minimum 2015/16: Summary as at 31 December 2015

22. Thank You 22