2. PRESENTATION OUTLINE BACKGROUND Disclosure Audit report
PART A: performance information
PART B: human resources
PART C: financial matters

3. Background: Role of Umalusi
Umalusi is the Quality Council responsible for qualifications registered on the general and further education and training qualification sub- framework (GFETQSF) on the National Qualifications Framework (NQF).
The Council ensures that the providers of education and training have the capacity to deliver and assess qualifications and learning programmes and are doing so to expected standards of quality.

4. Background: Mandate summarised
Umalusi’s mandate is determined by two Acts namely:
The National Qualifications Framework Act of (NQF) ; and
The General and Further Education and Training Quality Assurance (GENFETQA) Act of amended in 2008.

5. Mandate summarised…
Develop and manage a sub-framework of qualifications in collaboration with SAQA and the other two QCs supported by the necessary quality assurance policies and processes.
Develop and implement the necessary quality assurance policies in respect of quality assurance of provision.
Maintain a database of learner achievements and related matters; and submit such data in a format determined in consultation with the SAQA for recording on the national learners’ records database.

6. Mandate summarised…
Commission and publish research related to the development and implementation of the sub- framework of qualification.
Formalisation of relationships which include:
advice to the relevant Minister on matters relating to the GFET sub-framework of qualifications;
collaboration with the SAQA and other QCs in terms of the NQF; and
advocacy of the sub-framework and its qualifications.

7. Disclosure note Page 17 of our annual report.
The 2015/16 annual report is based on a revised strategic plan 2015/ /20 and an annual performance plan 2015/16.
In July 2015, the entity submitted its first quarterly report to DBE for analysis and the feedback from the Minister indicated that the entity did not comply with the requirements of the National Treasury and the Department of Performance Monitoring and Evaluation.

8. Disclosure note…
Umalusi then revised its plans based on the National Treasury Framework for strategic plans. The revised strategic plan and APP were submitted to DBE in November 2015.
Umalusi then started to report according to this revised APP in quarter 2, hence, this report is also based on the same document.

9. Report of the external auditor Page 60 & 61 of annual report
Audit report
Report of the external auditor
Page 60 & 61 of annual report
Achieved 15th unqualified opinion since 2001
Pre-determined objectives:
usefulness of indicators; and
changes to indicators and targets not approved.

10. Part A: Performance Information
Vision & mission
Values
Summary of performance
Program 1 – Administration
Program 2 – Qualifications and Research
Program 3 – Quality Assurance and Monitoring
Concluding Statements

11. Vision and mission VISION
A trusted authority in quality assurance of education provision recognised locally and internationally.
MISSION
To meet educational and societal needs, we shall provide valid, reliable and equitable examinations and a range of assessment services in a professional, innovative, efficient and effective manner.
This will be done through:
developing and managing a framework of qualifications for general and further education and training that is benchmarked internationally;
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 Umalusi work in research to ensure informed positions and approaches.

12. Values Value Behaviour Leadership
Umalusi values leadership in directing performance of others in the sector and leading the way.
Decisiveness
Umalusi is decisive in making decisions that are firm and beyond doubt, leading to conclusiveness.
Diversity
Umalusi embraces difference, variety or multi-format within the various services in the sector.
Transparency/
Fairness
Umalusi programmes and services are easy to access and understand.
Our decisions and actions are clear, reasonable and open to examination.
Professionalism
Umalusi employees are professionals, well trained in our specialties, committed to service excellence, and dedicated to the successful accomplishment of our mission.
Quality
Umalusi constantly seeks opportunities to improve our services and products. Quality and continuous improvements are an integral part of our daily operations.
Teamwork
Employees work as a team and value the contributions of each individual.
We know that our people are our most important resource.
Integrity
Umalusi strives for honesty in operations, conduct and discipline that ensures integrity in the organisations’ actions.
Equity
Umalusi commits to treat all its stakeholders equally and in an equitable way.

13. Overall status of performance

14. Status of achievement per programme

15. Programme 1: Administration
Programme 1 covers the following sub-programmes:
Governance and Office of the Chief Executive Officer (GOCEO)
Public Relations and Communications (PR and Comms.)
Information and Communication Technology (ICT)
Finance and Supply Chain Management (F&SCM)
Human Resource Management and Development (HRM&D)

16. Programme 1 - Analysis of target vs actual

17. Programme 1 - Analysis of performance
Indicators under-achieved
Indicators achieved or over- achieved
2: Stakeholders receiving information
4: ICT systems implemented
5: Alignment of financial information in annual report
6: Audit status: Unqualified
9: Performance of staff above level 3
11: Monitoring, evaluation and reporting
1: Compliance to legal and regulatory requirements timeously
3: Alignment with ICT governance roadmap
7: Addressing of audit findings
8: Payment of service providers within 30 days
12: Percentage of APP targets achieved

18. Programme 1: Future strategies
Indicator
Reasons for under-performance
Future Strategies 1
Lack of internal capacity to manage compliance issues
Appointment of senior managers who will oversee the enforcement of compliance 3
Lack of capacity internally
Appointment of senior manager – ICT to ensure implementation of the ICT governance framework 7
Capacity constraints
Policies will be reviewed to address audit findings and overall good corporate governance 8
Queries regarding payments are raised due to outstanding information
Improving internal processes 12
There was no diligent monitoring of performance against set targets
Quarterly performance reviews and monitoring of remedial action plans

19. Programme 2: Qualifications and research
Programme 2 covers the following sub-programmes:
A. Qualifications, Curriculum and Certification
The role of QCC is to ensure and enhance the status and quality of the sub-framework of qualifications which Umalusi develops, manages, reviews and certifies.
Quality assuring/benchmarking the qualifications and their related curricula is QCC’s contribution to the overall quality of the certificate which Umalusi issues. This function also oversees the issuing and verification of certificates.

20. Programme 2: Qualifications and research…
B. Statistical Information and Research
Umalusi conducts research and analysis and reports on quality within the general and further education and training sub-framework. The mandate is to:
conduct research that is informed by the emerging needs of the education system to engage stakeholders towards innovative thinking;
report on the key indicators of quality and standards in general and further education and training; and
establish and maintain certification databases.

21. Programme 2 - Analysis of target vs actual

22. Programme 2 - Analysis of performance
Indicators under-achieved
Indicators achieved or over- achieved
14: Registration of new qualifications
15: Review of existing qualifications
16: Certification of learner records
17: Verification of learner achievement
18: Publication of research reports

23. Programme 2: Future strategies
Indicator
Reasons for under-performance
Future Strategies 18
For one of the research projects, the lead researcher got hospitalised; causing delays in visitations to the selected adult learning centres to collect data.
In the second project on the moderation instrument, the targeted group of moderators and examiners were not yet trained on the tool.
Strengthening existing research teams and encouraging greater cross-unit collocation;
Organizing progress report back meetings on a more regular basis than has been the case previously; and
Developing the research capacity through targeted recruitment of researchers / consultants.

24. Programme 3: Quality assurance and monitoring
Programme 3 comprises of the following sub-programmes
A. Quality assurance of assessment
This function entails:
external moderation of question papers;
external moderation of continuous assessment;
verification of monitoring of the conduct administration and management of assessment and examinations processes;
management of concessions and examination irregularities;
external moderation of marking; and
moderation of assessment results. :

25. Programme 3: Quality assurance and monitoring…
B. Evaluation and accreditation
Standards for provision determined, maintained and strengthened.
Public and Private assessment bodies will be monitored.
Quality assurance of provision, through an accreditation and monitoring process of private institutions offering the qualifications Umalusi certifies.
Evaluates the capacity of private education and training providers to implement registered qualifications for which they seek accreditation.
Monitors and evaluates the capacity of private providers and assessment bodies to conduct practical, internal and external assessment of learner achievements that lead to the issuing of registered qualifications by Umalusi.

26. Programme 3 - Analysis of target vs actual

27. Programme 3 - Analysis of performance
Indicators under-achieved
Indicators achieved or over- achieved
20: Compliance by assessment bodies
21: Institutions that met accreditation requirements
22: Assessment bodies that met the accreditation requirements
19: Examination question papers meeting the quality assurance requirements

28. Programme 3: Future strategies
Indicator
Reasons for under-performance
Future Strategies 19
Assessment bodies’ late submission of question papers that were included in the target
Umalusi will ensure that all assessment bodies submit a complete list of question papers intended for moderation by November each year for inclusion in the second draft annual performance plan of the ensuing year.
Internally, controls will be strengthened where all approved question papers will be classified according to qualification per assessment body and stored appropriately on a quarterly basis.

29. Concluding statements
Umalusi has strengthened its capacity on the management of performance information;
Council has approved a policy on performance information;
Any changes in indicators will be reported accordingly;
Planning and reporting is done using National Treasury and DPME templates;
Performance outputs are verified on a quarterly basis;
All indicators have technical indicator descriptions;
Standard operating procedures are in place; and
An audit tracking register has been developed for findings raised by internal and external auditors.

30. Part B : Human Resources
Employment and vacancy
Employment changes
All figures as at 31 March 2016

31. Employment and vacancies
Salary level
14/15 No. of employees
15/16 approved posts
15/16 No. of employees
15/16 vacancies
% of vacancies
Top management 4 2
50%
Senior management 5 9
44%
Professional qualified 56 71 53 15
21%
Skilled 13 17
24%
Semi-skilled 33 38 32 7
18%
Unskilled 3
40%
Total
114
144
110 34
Page 55
During the year under review there were 5 newly created positions on senior management level and the process of filling 4 of the 5 positions has already been finalised.
8 staff members were promoted.

32. Employment changes Salary level Employment 1 April 15 Appointments
Terminations
Employment 31 March 16
Top management 4 2
Senior management 5 1
Professional qualified 56 16 19 53
Skilled 13 15
Semi-skilled 33 3 32
Unskilled
Total
114 21 25
110
Page 55
Resignations (17) 67%
Retirement (5) %
Dismissal (2) 13%
Death (1) %

33. Part C : Financial Matters
Statement of financial position
Statement of financial performance
Material items:
Accumulated surplus
Irregular expenditure
Related parties
2016 – 2015/2016
2015 – 2014/2015

34. Statement of financial position
Assets
Current Assets
Cash and cash equivalents 4
56,040,887
50,832,675
Receivables from exchange transactions 5
5,700,417
7,716,370
61,741,304
58,549,045
Non-Current Assets
Property, plant and equipment 6
35,475,312
37,313,877
Intangible assets 7
43,117
87,817
Operating lease asset 8
98,821
30,173
35,617,250
37,431,867
Total Assets
97,358,554
95,980,912
Page 66

35. Assets
Page 66

36. Statement of financial position
Liabilities
Current Liabilities
Payables from exchange transactions 9
12,894,012
16,538,054
Total Liabilities
Net Assets
84,464,542
79,442,858
Reserves
Revaluation reserve 10
8,484,261
8,196,622
Accumulated surplus
75,980,281
71,246,236
Total Net Assets
Page 66

37. Assets – Liabilities = Net Assets
Page 66

38. Statement of financial performance
Revenue 11
140,199,305
132,452,948
Revenue from exchange transactions
27,494,305
25,098,948
Revenue from non- exchange transactions
112,705,000
107,354,000
Other income 12
2,072,145
2,066,382
Investment income 15
3,764,206
3,411,036
Total revenue
146,035,656
137,930,366
Page 66 & 90

39. Revenue
Page 66 & 90

40. Revenue
Page 70

41. Statement of financial performance
Expenditure
Operating expenditure
83,866,144
79,215,233
Depreciation and amortisation
3,487,175
3,012,171
Personnel costs
53,948,292
49,949,940
Total expenditure
141,301,611
132,177,344
Page 67

42. Expenditure – Annual report
Page 67

43. Expenditure – National Treasury
Page 69

44. Expenditure
Page 70

45. Accumulated surplus
DBE assisted with the request to retain surpluses and has been granted by National Treasury.
A revised budget for 2016/17 was submitted to DBE.
Page 66

46. Irregular expenditure
Current year:
Non-compliance with SCM regulations R81,709
Investigated and found no official liable in terms of law for the irregular expenditure.
Condonation to proceed as per National Treasury Guideline on Irregular Expenditure issued April
SCM improvement plans.
Page 94 note 24

47. Related parties Related party transactions
State Information Technology Agency – SITA
5,505,711
4,426,320
Associated Institutions Pension Fund – AIPF
6,281,479
5,587,709
Non – executive members remuneration – Council
545,886
461,708
Executive management remuneration
9,385,641
9,493,195
Page 92 note 19

48. Related parties
Page 67

49. Expenditure – Top 10 Expenditure Personnel costs 53,948,292 49,949,940
Moderator and verifier cost
28,779,095
23,726,586
Travel and accommodation – local
19,779,294
20,512,086
Consulting and professional fees
5,361,277
1,978,570
Certification expenses
5,001,706
3,630,872
Communication expenses
4,056,277
3,169,289
Conference and workshops
3,708,629
6,708,723
Depreciation, amortisation and impairments
3,487,175
3,012,171
Computer expenses
2,690,146
1,584,478
Printing and stationary
2,529,693
3,567,351
Page 95

50. Expenditure – Top 10 38% 20% 18% 14% 16% 4% 1% 3% 2% 5% 8% 11%
Personnel costs
38%
Moderator and verifier cost
20%
18%
Travel and accommodation – local
14%
16%
Consulting and professional fees 4% 1%
Certification expenses 3%
Communication expenses 2%
Conference and workshops 5%
Depreciation, amortisation and impairments
Computer expenses
Printing and stationary
Other expenditure 8%
11%
Page 95

51. Current issues and the way forward
Governance of Umalusi:
“The accounting authority did not ensure that an adequately skilled and dedicated resource was in place to manage performance reporting and related internal controls.”
This statement was true for the 2015/2016 financial year, but with the appointment of the senior manager: strategic planning and reporting, a lot of progress has been made in this area, and a lot more will be done in the months to come.
Page 66

52. Current issues and the way forward…
Governance of Umalusi:
The external auditors raised the following findings, amongst others, in the management report:
assets with a netbook value of zero and subsequently updated asset register;
accreditation incomes recognition;
supply chain management policy issues; and
internal controls regarding the management of performance reporting.
Management is already in the process of addressing these findings in the current financial year.
Page 66

53. Current issues and the way forward…
Hosting of the IAEA Conference:
Approximately 400 delegates from about 41 countries attended the conference held in Cape Town from 21 – 26 August 2016.
The hosting of the IAEA conference enhanced the standing of Umalusi in the community of assessors and also enhanced our brand as Umalusi.
Umalusi received letters of appreciation from various attendees, assessment bodies and assessment associations.
Page 66

54. Thank you
We would like to convey our sincere appreciation to our Council for their support.
Thank you very much to the Chairperson of the Portfolio Committee, Ms N Gina, and the Honourable members for this opportunity to present Umalusi’s 2015/16 annual report.
Dr MS Rakometsi