Department of Higher Education and Training 3rd Quarter (2017/18) Performance Report Presentation to the Portfolio Committee on Higher Education and Training 21 February 2017

Presentation Outline 1. Background Performance per Programme Programme 3: University Education Programme 4: Technical and Vocational Education and Training Programme 5: Skills Development Programme 6: Community Education and Training Programme 2: Planning, Policy and Strategy Programme 1: Administration 3. Budget Performance

Background The Department’s Annual Performance Plan for the 2017/18 financial year has 86 targets, covering the direct outputs of the budget programmes of the Department The focus of these targets is mainly on the Department's interventions in the PSET system (these include the development of steering mechanisms, teaching and learning support, student support services, implementation and oversight, etc.) Moreover, the Department monitors the performance of its delivery institutions in terms of the Medium Term Strategic Framework targets. These are targets implemented by universities, SETAs, TVET and CET colleges The presentation will provide the status of the Department’s performance as at 31 December 2017

Background Reflections on the 1st, 2nd and 3rd quarter performance On 23 August 2017, the Department reported that 8 of the 33 planned targets/outputs could not be achieved in the 1st quarter Status: The 8 targets/outputs have since been completed On the 8 November 2017, the 2nd quarter performance was presented and we report that 93% (37) of the 40 planned targets/outputs were achieved and that 3 were not achieved Status: The 3 targets/outputs have since been completed For the quarter under review (3rd Quarter), 32 (89%) of 36 planned targets/outputs have been achieved Overall, this is a significant progress towards the attainment of the annual targets The presentation will provide details of achievements per programme beginning with core delivery programmes followed by support programmes

Programme 3: University Education The purpose of the programme is to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system and it provides financial support to universities, NSFAS and NIHE 2017/18 Strategic Objectives To develop appropriate steering mechanisms for university education To ensure integrated planning within PSET subsystems To ensure effective monitoring and evaluation of the university education sector To provide management information and statistics on the performance of higher education institutions Targets for the 2017/18 financial year: 20 Targets in the 3rd quarter: 7 Targets achieved in the 3rd quarter: 6 (86%)

Programme 3: University Education Achievements: The draft policy framework on collaboration between professional bodies, Government departments and quality councils has been developed and consultations completed Final draft on the amendments to the NSFAS Act has been developed and consultations completed A report on the financial health of universities in the 2015 academic year was approved on 15 December 2017 Report on the implementation of the Teaching and Learning Development Programme was approved on 11 December 2017 A report on the effective use of the 2016/17 Foundation Provision Grant was developed and approved on 5 December 2017 Cohort study report: data verification and generation of cohort table commenced as planned

Programme 3: University Education Target not achieved: Developing the final draft National Plan for PSET The plan has not been developed, as consultations were not completed as expected by December 2017

Programme 3: University Education Performance Indicator 2017/18 Target 2017/18 Actual* 1 Students enrolled in public higher education studies (n) 995 000 975 387 2 Graduates in Engineering Sciences from universities (n) 13 000 12 386 3 Graduates in Human Health and Animal Health from universities (n) 10 400 10 087 4 Graduates in Natural and Physical Sciences from 8 300 8 093 5 Graduates in Initial Teacher Education from 20 800 22 123 6 Doctoral graduates from universities (n) 2 700 2 797 7 Research Masters graduates (n) 7 600 7 968 *Notes: 1. 2016 Academic year verified in October 2017

Programme 3: University Education Performance Indicator 2017/18 Target 2017/18 Actual* 8 Success rate at universities (%) 78% 9 Higher education undergraduate success rate (contact) (%) 83% 10 (distance) (%) 68% 11 University academic staff with PHDs (%) 45% 12 Students in foundation programmes (n) 18 500 20 942 13 Eligible university students obtaining financial aid (n) (NSFAS) 205 000 225 950 *Notes: 1. 2016 Academic year verified in October 2017

Programme 4: TVET The purpose of the programme is to plan, develop, implement, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for TVET 2017/18 Strategic Objectives To develop and review TVET steering mechanisms To ensure effective monitoring and evaluation of the TVET sector To provide TVET teaching and learning support plans To develop infrastructure for TVET colleges To ensure a strong TVET stakeholder network Targets for the 2017/18 financial year: 28 Targets/outputs in the 3rd quarter: 12 Targets/outputs achieved in the 3rd quarter: 9 (75%) (2 of the remaining 3 have subsequently achieved)

Programme 4: TVET Achievements: Reporting policy on the performance of TVET colleges has been developed and approved on 11 December 2017 Draft policy for TVET College finance management was consulted with TVET Colleges and final draft prepared for approval as planned Draft policy for SAIVCET was developed . The policy seeks to define the roles and functions of the SAIVCET in coordinating, professionalising the TVET system, developing and reviewing the curriculum A draft policy for administration/management of student admission for TVET colleges has been developed and consulted The draft Departmental policy framework on TVET qualifications was consulted

Programme 4: TVET Draft roll-out plan for the construction of 9 TVET college campuses was developed Draft infrastructure maintenance funding framework for the TVET college sector was developed Draft infrastructure maintenance plan for the TVET college sector was developed The development of a national infrastructure asset management system for TVET colleges is in progress. A draft document has been developed as planned

Programme 4: TVET Targets not achieved A report on the conduct of public TVET college examination centres during national examinations and assessments - subsequently achieved (approved outside timeframe) A report on the certificate backlog eradication - subsequently achieved (approved outside timeframe) Draft plan for TVET college lecturer development consulted with individual colleges and finalised The draft plan was sent to colleges, however only a few colleges have commented on the plan The Branch is planning a workshop in March 2018 where certain areas of the plan will be discussed in detail

Performance Indicator Programme 4: TVET   Performance Indicator 2017/18 Target Actual* 1 NC(V) L4: Certification rate (%) 30% 41.7% 2 N3: Certification rate (%) 55% 65.8% 3 N6: Certification rate (%) 40% 66.1% 4 Certificates issued to qualifying candidates within three months of publication of results (number of months) * Notes: 2016 academic year data. Data on headcount enrolment was not readily available due to inaccuracies in the data files. Validated date will be reported at the end of the 4th quarter.

Programme 5: Skills Development The purpose of the programme is to promote and monitor the national skills development strategy. Develop a skills development policy and regulatory framework for an effective skills development system 2017/18 Strategic Objectives To develop and review steering mechanisms for artisan development To ensure effective artisan development and assessment services To ensure effective monitoring and evaluation of artisan development To develop infrastructure/facilities for artisan development Targets for the 2017/18 financial year: 8 Targets in the 3rd quarter: 5 Targets achieved in the 3rd quarter: 5 (100%)

Programme 5: Skills Development Achievements: Developed the second draft National Skills Development Plan following consultation with NEDLAC and the National Skills Authority Report on the implementation of the National Skills Development Strategy by SETAs was approved on 11 December 2017. The report provides progress status on the implementation of SETAs strategic and annual performance plans in terms of the signed Service Level Agreements Report on the governance of SETAs was approved on 5 December 2017 The process of conducting trade tests for qualifying applications received until trade tests are conducted was 100 days during the quarter under review The implementation of the security infrastructure development plan at INDLELA progressed well during the quarter under review. Quarterly meetings and progress reports are being compiled as planned

Programme 5: Skills Development Performance Indicator   Performance Indicator 2017/18 Target Actual 3rd quarter* 1 National artisan learners trade test pass rate (including INDLELA) (%) 58% 52% 2 Proportion of SETAs meeting standards of good governance (%) 60% 100% 3 New artisan learners qualified (n) 21 110 9 787 4 New artisan learners registered (n) 27 750 20 276 *Note: Performance status as at 31 December 2017

Programme 6: CET The purpose of the programme is to plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for community education and training 2017/18 Strategic Objectives To develop and review CET steering mechanisms To ensure effective monitoring and evaluation of the CET sector Targets for the 2017/18 financial year: 6 Targets/outputs in the 3rd quarter: 1 Targets achieved: 1 (100%) Achievements: Public comments on the draft reporting policy for CET colleges have been received and incorporated into the final draft policy for submission to the Minister for approval

Performance Indicator Programme 6: CET   Performance Indicator 2017/18 Target Actual* 1 Headcount enrolments in CET Colleges (n) 310 000 273 431 2 Certification rate in CE formal qualification 38% 36% * Notes: 2016 academic year data

Programme 2: Planning, Policy and Strategy The purpose of the programme is to provide strategic direction in the development, implementation and monitoring of Departmental policies and the human resource development strategy for South Africa 2017/18 Strategic Objectives: To develop appropriate steering mechanisms for PSET system To ensure effective oversight of PSET system To develop and implement teaching and learning support plan To provide student support services To provide management information statistics Targets for the 2017/18 financial year: 12 Targets/outputs in the 3rd quarter: 8 Targets/outputs achieved in the 3rd quarter: 8 (100%)

Programme 2: Planning, Policy and Strategy Achievements: 1st draft list of occupations in high demand has been developed as planned. Once finalised, the list will inform skills planning in the country to support the Department’s planning processes with respect to enrolment planning, resource allocations, career advice and qualifications development Final policy document on disability has been completed as planned. It was presented to Cabinet for approval on 06 December 2017 Quarterly oversight reports on the implementation of Social Inclusion, Open Learning, Career Development Services and investment trends in PSET were compiled as planned The development of MIS for CET colleges is at an advanced stage. The data load specification document has been consulted with relevant stakeholders Draft statistics report was compiled and consulted with data managers

Programme 1: Administration The purpose of the Programme is to provide overall management and administration of the Department 2017/18 Strategic Objectives: To ensure effective human resources management within the Department To ensure effective financial management practices To improve ICT services Targets for 2017/18 financial year: 12 Targets in the 3rd quarter: 3 Targets achieved in the quarter: 3 (100%)

Programme 1: Administration Achievements: A plan to reduce the number of days to resolve disciplinary cases was developed and approved on 29 September 2017 Data centre infrastructure has been established - The establishment of the data centre infrastructure is informed by the Corporate Governance of ICT Policy Framework (CGICTPF) developed by DPSA, which states that departments must develop their own CGICTP to ensure proper governance of ICT and address effective use of IT resources Implementation of an ICT governance framework was approved on 11 January 2018. The framework serves as a guide for implementing corporate governance of ICT in the Department

Financial Information The overall spending rate by the third quarter was 85.3% (including Direct Charges) Average spending for normal operational activities including compensation of employees was 72.6% The spending rate on compensation of employees is 72.1% as follows: Personnel Expenditure: 71.6% Examiners and Moderators: 99.6% Cost containment measures are implemented in the Department and expenditure is monitored on a monthly basis to ensure that the Department stays within the budget allocation Transfer payments and subsidies were processed as planned and in accordance with payment schedules The highest spending trends are experienced by Programme 3 due to the subsidy payments to Universities and NSFAS Consequently transfer payments comprises the spending item that reflects the highest trend The financial data per programme and economic classification are reflected in the following two slides

3rd Quarter Spending per Programme Adjusted Appropriation Main Appropriation R’000 Adjusted Appropriation Actual Expenditure Variance % Spent 1: Administration 403 356 400 356 302 285 98 071 75.5 2: Planning, Policy and Strategy 73 298 68 298 51 792 16 506 75.8 3: University Education 41 943 533 41 931 721 38 742 570 3 189 151 92.4 4: Technical and Vocational Education and Training 7 408 249 7 460 198 5 264 310 2 195 888 70.6 5: Skills Development 244 293 249 357 181 981 67 376 73.0 6: Community Education and Training 2 234 910 2 197 709 1 641 894 555 815 74.7 7: Direct Charges (SETAs and NSF) 16 641 456 15 770 554 11 899 914 3 870 640 Total 68 949 095 68 078 193 58 084 746 9 993 447 85.3

3rd Quarter Spending per Economic Classification Main Appropriation R’000 Adjusted Appropriation Actual Expenditure Deviation % Spent Compensation of Employees Personnel Expenditure Examiners and Moderators 8 425 378 8 287 824 137 554 8 282 307 8 134 404 147 903 5 969 072 5 821 710 147 362 2 313 235 2 312 694 541 72.1 71.6 99.6 Goods and Services 420 402 387 337 330 235 57 102 85.3 Transfer Payments 60 094 176 59 398 998 51 779 829 7 619 169 87.2 Universities 31 606 841 31 580 518 28 431 470 3 149 048 90.0 Public Entities NSFAS Other 10 143 091 258 724 209 913 - 48 811 100.0 81 .1 Commonwealth of Learning/ IBSA/USAf 12 070 38 393 31 068 7 325 80.9 TVET Colleges 1 328 096 1 495 749 946 531 549 218 63.3 CET Colleges 103 898 Skills levy 16 641 456 15 770 554 11 899 914 3 870 640 75.5 Leave gratuities 8 071 13 944 (5 873) 172.8 Capital Expenditure 9 139 9 551 5 610 3 941 58.7 Total 68 949 095 68 078 193 58 084 746 9 993 447

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