18 th November 2009

1. PROGRESS WITH ESTABLISHING THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING 2. TRANSFER OF COLLEGE FUNCTION 3. TOWARDS THE 2010/11 BUDGET

 The establishment of two new Departments  Basic Education  Department of Higher and Training  The shift of major functions from the Department of the Labour to the Department of Higher and Training.  Organizational Scoping and Design  The identification of posts, staff, funding and assets to the move.  Logistical arrangements regarding accommodations and IT  Consultations with Unions and Staff  Change Management processes  Impact on the concurrent educations functions  All of this had to be effected within the current funding envelope for all three departments.

The purpose of the NMOS Organizational Report is to finalize the organizational design and processes in order to conclude: – Consultation with labour in departmental chambers. – Approval by the relevant Executive Authorities for the identified functions, staff identified for transfer and organisational structure of affected departments. – A determination by the Minister for the Public Service and Administration on the transfer of functions and concomitant staff.

 Staffing and Organisational Structure  Assignment of legislation determines functional split (distributed)  Agreement re quantum of split across functions ready for Ministerial approval ▪ Intact Functions (e.g. Branch Higher Education) ▪ Split Functions (e.g. Finance, Communication, Exams, Teacher Education)  Organogram ready for sign-off ▪ Interim organogram is a duplication of DoE Organogram for purpose of receiving staff into DHET ▪ New Organizational structure to be developed and approved as next step

 Decisions still to be made about which staff to be moved ▪ Principles follow the logic of the split and individual will be consulted  Recruitment  Other matters: see Project Template (distributed)  Budget  Accommodation  Logistics  Assets  IT

8 Functions Higher Education BranchIntact FET Colleges Chief DirectorateIntact ABET DirectorateIntact NHRDS support unit DirectorateIntact System Planning and MonitoringDuplicated Auxiliary Services (Office of DG)Duplicated FET ExaminationsSplit Social Cohesion Duplicated Teacher Education Duplicated. split Corporate Services Duplicated

9 Number of staff and post (salary level )for transferDBEDHET TOTAL

10  LEGAL INSTRUMENTS  Legal amendments have taken place and this is finalised.  A Memorandum of Understanding between the Departments of Basic Education and Higher Education and Training still to be finalised: ▪ an agency service around the Examination function ▪ the corporate services function  Section 10 PSAA authority to MBE to sign variation order for new building.  Tenders between two departments identified for sign off.  Legislation needs cleaning up.  Appointment of Minister over DoE urgent awaiting DPSA  Draft MoU with DHET-DoL, DHET-PEDs, DBE-DHET  CHANGE MANAGEMENT AND COMMUNICATIONS  DoE Transitions Bulletin published

11  Consultation with Unions and Staff.  DBE,DHET and DoE consultations started 7 th Oct 09  DoE broad management consultation started 16 Oct 09  Union membership briefed on 15 Oct 09.  Macro organogram and project plan shared.  The Departmental Chamber established a Task team of members to deal with the day to day matters on NMOS.  Task Team to meet on18 November 2009 to consult on criteria for split and selections of persons,  Minister and DG - DHET have met relevant SDS Staff on 30 Oct 09

 Staffing and Organisation Structure  Assignment of legislation determines functional split  Agreement re quantum of split across functions not yet agreed. Unresolved: ▪ Split Functions (e.g. Finance, HR) ▪ Regional Staff

 Unresolved matters:  DHET and DoL are still trying to achieve consensus in organization scoping, finalizing staff audits and completing organizational structures.  DGs have as yet not signed MOU/Protocol as there is a dispute on the whether DHET can be the accounting officer for vote 15 in 2009/10. DoL awaiting legal advice from State Attorney. Agreed that  DHET protected by a letter of ‘expectation’ sent to DG Labour  NSF accountability will be with DHETNSF transferred. CFO to be appointed/ assigned

14 Description of Functions Identified for TransferNo. SMS PostsNo. Posts Below SMS Office of the DDG12 2. CD: NSF (Office of SEM)11 SKILLS SUPPORT PROGRAMMES129 STRATEGIC PROJECTS115 CD: SETA Coordination (Office of SEM)11 SETA SUPPORT 133 SETA PERFORMANCE128 INDLELA1238 Strategic Management Unit118 National Skills Authority (Secretariat)15 Total Corporate Support Staff Identified For TransferEstimated 2% = 10 posts

 p. 53: The funding of further education and training (FET) colleges is shifting to national government. Government will continue to provide resources for both quality improvements and higher enrolment. However, closer alignment with the funding arrangements contained under the skills development levy is required so that FET colleges can access more of these funds and business can make greater use of the colleges.  p. 60: The funding of FET colleges is shifting from provinces to national government. The equitable share baseline is adjusted by about R3.4 billion a year to reflect this shift. A new conditional grant is created through which funds will flow to FET colleges.

 Legislative Work  Cabinet memo requesting permission to proceed with Constitutional amendment  Administrative Work:  Functional Split with provinces to be managed after legal work done.  Conditional grant the instrument to assert leadership

 Operational expenses to follow Functional Split of DoE  Strategic Planning Underway – Portfolio Committee should become involved as soon as possible  Maximum alignment sought with Policy, Monitoring and Evaluation framework and Cluster Programme of Action

 Programme 1: Administration  Programme 2: Human Resource Development, Planning and Monitoring Co- ordination  Programme 3: University Education  Programme 4: Vocational and Continuing Education and Training  Programme 5: Skills Development

 Subprogrammes  Minister  Management  Corporate Services  Property Management

 Subprogrammes  Human Resource Development, Strategic Planning and Co-ordination  Planning, Information, Monitoring and Evaluation Co-ordination  International Relations  Legal and Legislative Services

 Subprogrammes  University - Academic Planning and Management  University - Financial Planning and Information Systems  University – Policy and Development  University - Subsidies

 Subprogrammes  Planning and Institutional Support  Programmes and Qualifications  Social Inclusion in Higher Education and Training  Teacher Education

 Subprogrammes  SETA Co-ordination  National Skills Development Services  Quality Development and Promotion

 SETAS  India-Brazil-South Africa Trilateral Commission  NSFAS  CHE  NIHE  SAQA  National Skills Fund