1. Click to edit Master subtitle style Umalusi’s budget review presentation to the Portfolio Committee on Basic Education 18 April 2012 Cape Town

2.  Umalusi mandate  Vision, mission, goals and KRA’s  2011/12 Revenue & Expenditure (Current)  2012/13 Budget (Forecast)  Three Year Budget Forecast  Conclusion Overview

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 2011/12

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

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

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 providers 4. Research, diagnose and report on quality in general and further education and training supported by statistical analysis 5. Developing and maintaining management support structures and governance 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

7. Statement of Financial Performance as at 31 March 2012  Net surplus of R 19,9m  117% of Budgeted Revenue from operations recognised  100% Grant from the Department of Basic Education received with thanks  92% of the budgeted expenses incurred EXECUTIVE SUMMARY

8. Statement of Financial Position, Cash flow, Debtors and Investments  Total Assets valued at R 63,3m subject to revaluation of buildings which could increase by approximately R 8m  105% of invoiced debts collected to date  Cash available at the end of the period amounted to R1,1m  Investments R 26,3m, attracting net interest of 5,49% p.a of which R 6,4m has been set aside / reserved (through National Treasury) for internal renovations to create open plan offices to accommodate staff EXECUTIVE SUMMARY (2)

9. Comparative total expenditure vs 3 year average

10. 2011/12 Revenue Budget vs Actual Revenue Streams BudgetActual%Comment Accreditation Fees3 000 0001 877 304-37% As institutions request accreditation – cannot enforce applications Certification Fees36 470 40064 220 564176% Early requests for certification of 2011 candidates to the value of R 20m as budgeted for the 2012/13 financial year….this should be rolled over. Extra R 8 m received due to increase in pass rates and certification tariff Department of Basic Education Grant 18 391 000 100% Grant payment transfer on schedule Interest1 000 0001 733 130173% Due to non-use of surpluses Reserve Funds15 000 00000% +R 8m extra income and R 6,6m under spending…excluding the R 20m certification fee for the next year Verification Fees5 000 0005 931 101119% DPSA circular requiring all government departments to verify staff qualifications via SAQA Other0631 133100% ETDP seta refund, provider conference fees, private telephone, etc R 78 861 40092 784 23218%Above budget As approved by the Minister of Basic Education on 24 March 2011

11. 2011/12 Expenditure Budget vs Actual (Current) ExpenditureBudgetActual%Comment National Operations 32 710 96829 564 97190 Human resource capacity requirements to fully expend budget. Council approved additional posts for 2012/13. Corporate Services46 150 43242 643 94392 Maintenance and replacement of assets unspent due to renovation programme started March 2012 R 78 861 400R 72 208 913 92 8% unspent Net surplus as at 31 March 2012 is therefore R 19 929 154 due to certification fees which should have been accounted for in the next financial year only. Revenue of R 92,7m ( if R20 m certification removed then R 72,7m …balances actual budgeted income to actual budgeted expenditure for 2011/12)

12. Statement of Financial Position as at 31 March 2012 Mar 2012Mar 2011 Assets 13 199 79613 845 961 Investments @ CPD 26 344 40822 113 489 Current assets 23 833 9386 856 299 R 63 378 142R 42 815 749 Capital and Reserves 55 390 76135 673 114 Current Liabilities 7 987 3817 142 635 R 63 378 142R 42 815 749

13. Qualifications, Curriculum & Certification OUTCOMESPrevious Budget Current Budget 2012/13 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 2 146 000R 4 205 234 96% increase in budget due to some functions in previous year being done together with the Statistical Information and Research unit, thus not a true indication of actual expenses.

14. Quality Assurance of Assessments OUTCOMES Previous Budget Current Budget 2012/13 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 18 373 953R 20 850 000 13% increase due to increase in Moderator costs as per Ministerial approval and also increase in moderation/ monitoring sample sizes

15. Evaluation and Accreditation OUTCOMES Previous Budget Current Budget 2012/13 Motivation Accreditation and monitoring system for providers of education and training maintained and extended Provisional accreditation and monitoring maintained Provider site visits conducted Monitoring reports developed Policy developed and implemented Stakeholder relationships Accreditation and monitoring system for assessment bodies maintained and extended New and existing assessment bodies monitored and reported on R 4 508 000R 5 184 200 15 % increase due to increase in the number of institutional site visits.

16. Statistical Information and Research OUTCOMESPrevious Budget Current Budget 2012/13 Motivation Reporting (Printing of Reports) 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 4 306 250R 3 900 000 9% decrease in budget due to work done with QCC in previous financial year.

17. Management Support Structures OUTCOMESPrevious Budget Current Budget 2012/13 Motivation Organisational planning and implementation reviewed Organizational governance maintained Stakeholder relations established and managed Public relations programme implemented R 2 841 765R 3 268 030 15% increase due to administrative costs for travel, accommodation and flights of all governance structures

18. Corporate Services: Information Technology OUTCOMES Previous Budget Current Budget 2012/13 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 5 178 616R 6 602 488 27 % increase required due to increase in computer costs mainly for replacement of hardware and software., including the development of an electronic document management system

19. Corporate Services: Finance and Supply Chain Management OUTCOMES Previous Budget Current Budget 2012/13 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 38 868 736R 45 504 887 17 % increase due to additional posts approved by Council, as per the HR review and approximately 5% towards cost of inflation increases

20. Corporate Services: Human Resource Management and Development OUTCOMES Previous Budget Current Budget 2012/13 Motivation Administration of Human resources carried out HR development plans implemented General services provided Records Management Services provided R 2 138 080R 3 437 161 61 % increase due to HR development strategies with staff workshops and implementation of records management services GRAND TOTALR 78 861 400R 92 952 000 18% increase in the budget for 2012/13

21. Total Income 2000/1 (actual) to 2014/15 (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 78 861 400R 18 391 00023 2012/13R 92 952 000 R 44 207 00048 2013/14R 105 893 081Possible move to fully fund certification 90 2014/15R 118 831 138Possible move to fully fund certification 90

22. 3 Year Budget Forecast 2011/122012/132013/142014/15 R 78 861 400R 92 952 000R 105 893 081R 118 831 138 2012/13 Budget approved by the Minister of Basic Education on 8 February 2012. Grant improved from R 18,3m to R 44m including improvement in conditions of service (R 859K) Y/Y Percentage Increase 15%18%14%12%

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

24. 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 MS Rakometsi THANK YOU