1. Department of Higher Education and Training
Performance Report on Predetermined Objectives and Budget
(2017/18 Financial Year)
1st Quarter
Presentation to the Portfolio Committee on Higher Education and Training
23 August 2017

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

3. Background
In February this year, the Minister of Higher Education and Training approved the Department's revised Strategic Plan for the 5 years ending March 2020 and Annual Performance Plan for 2017/18.
Both documents were tabled in Parliament as required in March 2017
For the 2017/18 financial year the Department has 86 Targets (covering the direct outputs of the budget programmes of the Department e.g Steering mechanisms development, Student support services etc.)
In addition, there are 34 systemic targets encompassing Universities, TVET colleges, CET colleges, as well as SETAs

4. Background
These are monitored by the respective budget programmes of the Department and reported periodically (mainly during the 3rd quarter)
This presentation focuses on progress on the direct outputs of the Department
For the quarter under review, there were 33 planned targets/outputs shared amongst budget programmes of the Department.
25 (76%) of the outputs have been achieved

5. Programme 1: Administration
The purpose of the programme is to provide overall management and administration of the Department.
Strategic Objectives
To ensure effective human resources within the Department
To ensure effective financial management practices
To improve ICT services
Targets for 2017/18: 12
Progress status on 5 outputs that were due for completion in the 1st Quarter:
Development of a revised Human Resource Plan for approval by the Director General - Completed
The revised HR plan had to be aligned to the revised Strategic Plan 2015/ /20).

6. Programme 1: Administration
Development of a plan to improve Human Resource Recruitment and selection processes for approval by the DG by 30 September 2017
A draft plan has been developed as planned during the quarter - Completed
The aim is to improve the efficiency on recruitment and selection processes.
It will enable the Department:
to fill advertised positions within 180 days (from recruitment requisition received until appointment is made)
to fill 90% of approved funded positions

7. Programme 1: Administration
Development of a plan to reduce the number of days to resolve disciplinary cases for approval by DG by December 2017
A draft plan has been developed as planned - Completed
Once finalised, the plan will enable the Department to resolve disciplinary cases within 90 days
Development of a system for tracking invoices from creditor in order to pay them within 30 Days
The aim is to improve efficiency in the processing (receiving and tracking) of invoices through an automated solution.
This was not completed as planned
The approval for the appointment of the service provider could not be finalised in time.

8. Programme 1: Administration
Development of an improvement plan for ICT support
The ICT Plan has been developed and approved by the Deputy-Director General responsible for Corporate Services - Completed
It contains ICT improvement interventions for implementation in the next three years.
The interventions are part of ICT strategy of the Department.
4 of 5 planned outputs have been achieved (80%)

9. 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.
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
Target for 2017/18 financial year: 12

10. Programme 2: Planning, Policy and Strategy
Progress status on 7 outputs that were due in the 1st Quarter:
The development of a list of occupations in high demand which is due by 31 March 2018
The list of occupations in high demand has been produced by the Department since It is produced every two years.
A concept note on Occupations in High Demand has been developed and completed as planned
The draft concept note outlines the methodology to be followed in identifying occupations in high demand.
The fist draft list of occupations will be ready by the 1st week of December 2017
Once finalised, the list will inform skills planning in the country to support the DHET’s planning processes with respect to, Enrolment planning, Resource allocations, Career advice and qualifications development

11. Programme 2: Planning, Policy and Strategy
The development of a Policy Framework on Disability is due for completion and approval by the Minister by 31 March 2018
A draft Disability Policy Framework has been developed with an implementation plan as planned
The draft Framework aims to mainstream and standardise disability policies in the sector.
A four year phased implementation strategy has been developed.

12. Programme 2: Planning, Policy and Strategy
The annual report on the implementation of Social Inclusion in PSET due for completion and approval by 31 March 2018
The Policy Framework for Social Inclusion within the PSET system was published in December 2016
The 1st quarterly report on implementation has been compiled as planned covering one university (University of Pretoria).
The University undertakes activities meant to bring about social cohesion within the institution

13. Programme 2: Planning, Policy and Strategy
The annual report on Open Learning Policy in PSET due for completion and approval by 31 March 2018
The Open learning Policy Framework was published in March 2017 (for public comment)
To create an enabling environment for open learning within PSET - it’s a framework for the implementation, monitoring and evaluation of open learning across the PSET system
A high level implementation strategy was developed as part of the policy
The 1st quarterly report on the implementation of the Framework has been compiled as planned.

14. Programme 2: Planning, Policy and Strategy
The National Occupation Certificate: Electrician- Domestic Installation learning module has been developed and uploaded on a prototype National Open Learning System (NOLS) platform for piloting
Development of curriculum content, Teaching/learning resources, assessment tasks is in process
Development of materials for a full Electrician Learning Programme is also in process
Will be engaging TVET colleges through a diagnostic test/interest questionnaire for the identification of areas of interest

15. Programme 2: Planning, Policy and Strategy
The annual report on Career Development Services due for completion and approval by the Director-General by 31 March 2018
Cabinet approved the National Policy on Integrated Career Development Services for South Africa during March 2017
Department is making progress in coordinating career development in the country
Quality career information
Advice and counselling services to the PSET system
The 1st quarterly report on implementation has been compiled as planned
Over members of the public have visited and used the Department’s career development online platforms

16. Programme 2: Planning, Policy and Strategy
Annual Statistics on Post-School Education and Training report due by 31 March 2018
A report that is produced annually
Reflects student enrolment, graduation, and staffing levels in PSET institutions and other relevant information e.g financial information pertaining NSFAS, the skills development levy system
A resource to reflect the achievements of the goals of the PSET system
Project plan on data collection for Annual Statistics on Post-School Education and Training has been developed as planned
Data gathering will only start in the next quarter
The first draft will be ready by the middle of December 2017
All 7 planned outputs have been achieved (100%)

17. Programme 2: Planning, Policy and Strategy
The design of the Management Information System for Public Community Colleges due for finalisation by 31 March 2018
Draft data-load including database specifications have been developed and consulted with CET colleges as planned
Awaiting feedback from CET colleges

18. 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, the NSFAS and the NIHE
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

19. Programme 3: University Education
Progress status on 4 outputs that were due in the 1st Quarter:
Development of a Central Application Services Policy for approval by the Minister by 30 September 2017
The policy has been developed and approved by the Minister for publication as planned - Completed
It provides a single, affordable, easy to understand application process
It provides student application processes to multiple institutions covering the entire PSET system

20. Programme 3: University Education
To develop a Policy framework on Collaboration between professional bodies, Government departments and quality councils for approval by Minister by 31 March 2018.
The process for drafting the policy framework has been initiated
A report with guiding principles for the collaboration has been developed for further consultation
The Project plan for the development of the policy could not be finalised during the quarter under review - Not completed

21. Programme 3: University Education
Amendment of NSFAS Act due for approval by the Minister by 31 March 2018
The review of the NSFAS Act has been initiated.
The Task Team has been constituted and has met once in the quarter under review – Completed
Draft amendments will be discussed at the next meeting at the end of August
The development of a National Plan for PSET for approval by the Minister by 31 March 2018
A draft National Plan for PSET has been developed for internal consultation as planned - Completed
3 of 4 planned outputs have been achieved (75%)

22. 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.
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

23. Programme 4: TVET
Progress status on 11 outputs that were due in the 1st Quarter:
Development of performance reporting Policy for TVET Colleges for approval by the Minister by 31 March 2018
The policy will outline reporting processes to be followed by all TVET colleges when reporting performance to the Department.
The draft policy on performance reporting for TVET Colleges has not been completed as planned

24. Programme 4: TVET
Policy for SAIVCET due for approval by the Director-General by 31 March 2018
The development of a draft policy for SAIVCET was not completed as planned
A meeting with an expert to provide best practices on the policy for similar institutions from other countries could not be held.
Policy for administration/management of student admission for TVET Colleges due for approval by the Minister by 31 March 2018
The policy will standardise student admission practices/approaches for different programmes, and for students with disability.
An assessment on the administration and admission of students by TVET colleges has been done (report available).

25. Programme 4: TVET
Different colleges use different admission approaches and policies, including policies for student with disability
The development of a draft policy for administration/ management of student admission for TVET Colleges has not been completed as planned
The review of the funding framework for TVET Colleges due for approval by the Director- General by 30 September 2017
A Ministerial Committee report on the TVET funding framework has been developed with recommendations and submitted for Ministerial approval.
Ministerial approval will include a Gazette for Public Comment.
Once the Public Comment has been received, the funding norms will be amended.

26. Programme 4: TVET
The draft revised funding framework (based on the Ministerial Committee report) is currently being developed. The target of a draft framework as at June 2017 was still work-in-progress (could not be completed as planned).
The review of the departmental policy framework on TVET qualifications due for approval by the Director-General by March 2018
A draft departmental policy framework on TVET qualifications has been prepared but could not be consulted as planned – first consultation will be done at the research colloquium planned for 12 September 2017
The draft policy seeks to review the TVET qualifications/ programmes to align them with the emerging labour market demands

27. Programme 4: TVET
Three oversight reports were due for this quarter, namely:
A report on the conduct of public TVET College examination centres during national examinations and assessments for the 2016 academic year
The report was not completed within the planned timeframe – however the report has since been completed and approved by the Director-General
The report provides progress on TVET Colleges examination centres’ level of technical compliance with the requirements of the National Conduct Policy.
Out of 1,263 public TVET centres that participated in the 7 national examination cycles, only 161 were reported for not complying with the technical requirements, and the remainder 1,102 ( 87.3%) were reported to have been compliant.

28. Programme 4: TVET
Three oversight reports were due for this quarter, namely:
A report on certification backlog eradication
The report was not completed within the planned timeframe – however the report has since been completed and approved by the Director-General
It provides progress on the eradication of the certifications that were outstanding after the prescribed 3 months of the release. This report is provided on a quarterly basis.
Substantial progress has been made in the certification blockage for NC(V) 
The 3-month lead time of issuing of certificates after publication of results has yet to be achieved in both NC(V) and report 190/1 qualifications.
All processes are on track however, to ensure certificates are timeously issued for all exams cycles taking place during 2017

29. Programme 4: TVET Oversight reports
A report on the implementation of the IT examination services system
The implementation of the IT examination services system is a project that seeks to improve processes for examination services to avoid certification backlog
The report on implementation was not completed within the planned timeframe – however the report has since been completed and approved by the Director-General
It provides progress on the implementation of the project
Hardware specifications were still under review at the end of the quarter and the software certificates were put on hold pending the finalisation of the hardware certification.

30. Programme 4: TVET Teaching and learning support
Development of a revised plan for the review of curricular within the TVET system for the 2018 academic year for approval by the Director-General by 30 June 2017 –Completed
The review of the TVET qualifications/ programmes seeks alignment with emerging labour market demands.
This plan identifies qualifications/ programmes that should be reviewed henceforth.

31. Programme 4: TVET Teaching and learning support
Development of a Plan for TVET College lecturer development for approval by the Director-General by 31 March 2018
Consultations and engagement with TVET Colleges have been completed as planned
College specific lecturer development plans have been received and assessed
The step is to develop a draft plan for lecturer development for consultation with colleges during the 3rd quarter.

32. Programme 4: TVET TVET college infrastructure maintenance
The development of a national infrastructure asset management framework for TVET Colleges due for completion by 31 March 2018
A draft national infrastructure asset management framework for TVET Colleges has been completed as planned
The Framework will standardise the planning and maintenance of assets for all 50 TVET colleges (including 264 campuses).
Consultations with colleges will start on 12 September 2017
6 of 11 planned outputs have been achieved (55%), 3 of which were completed after the planned timeframe

33. 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.
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

34. Programme 5: Skills Development
Progress status on 3 outputs that were due in the 1st Quarter:
The review of the Skills Development Plan due for completion and approval by the Director-General by 31 March 2018
The draft revised National Skills Development Plan has been developed and consulted at NEDLAC as planned (Completed)
The draft reflects the new institutional mechanism for the implementation of National Skills Development Strategy by redefining the scope of SETA’s.
The draft is being consulted with NSA before the second draft is compiled

35. Programme 5: Skills Development
Oversight reports
A report on the implementation of the National Skills Development Strategy (NSDS) by SETAs has been completed and approved by the Director-General.
The report provides progress status on the implementation of SETAs strategic and annual performance plans in terms of the signed Service Level Agreements with the Director- General.

36. Programme 5: Skills Development
Artisan assessment
The planned average lead time from qualifying trade test applications received until trade test is conducted is 100 days
currently it takes 71 days (target achieved)
All 3 planned outputs have been achieved (100%)

37. 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.
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

38. Programme 6: CET
Progress status on 3 outputs that were due in the 1st Quarter:
Development of the CET service delivery model for approval by the Director-General by 30 September 2018
A draft CET service delivery model has been developed and as planned (Completed)
The final model will be completed by 30 September 2017
The model will effectively describe CET programmes and beneficiaries and the funding model for the infrastructure
Development of the reporting policy for CET colleges for approval by Minister by 31 March 2018
1st draft reporting policy for CET Colleges has been completed as planned - describes performance reporting procedures and requirements

39. Programme 6: CET
The review of the funding framework for CET Colleges for completion and approval by the Minister by 30 September 2017
The framework will identify the cost drivers and sources of funding for CET infrastructure and educational programmes.
A Ministerial Committee report on the CET funding framework has been developed with recommendations.
The development of the draft funding framework for CET Colleges could not be completed as planned (see slide 25)
2 of the 3 planned outputs have been achieved (67%)

40. Financial Information

41. 2017/18: First Quarterly Report
The overall spending rate by the first quarter was 41.30% (including Direct Charges)
Average spending for normal operational activities including compensation of employees was 22.63%
The spending rate on compensation of employees is 22.83% as follows:
Personnel Expenditure: 22.68%
Examiners and Moderators: 31.89%
Cost containment measures are implemented in the Department
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

42. 2017/18: First Quarterly Report
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
One incidence of irregular expenditure has been identified and is under investigation.
The financial data per programme and economic classification are reflected in the following two slides

43. 2017/18: First Quarter – Spending per programme
Main Appropriation
R’000
Actual Expenditure
Variance
% Spent
1: Administration
86 177
21.37%
2: Planning, Policy and Strategy
73 298
13 560
59 738
18.50%
3: University Education
52.35%
4: Technical and Vocational Education and Training
25.90%
5: Skills Development
59 527
24.37%
6: Community Education and Training
23.56%
7: Direct Charges (SETAs and NSF)
23.53%
Total
41.30%

44. Spending per Economic Classification Economic Classification
2017/18 First Quarter:
Spending per Economic Classification
Economic Classification
Main Appropriation
R’000
Actual Expenditure
Deviation
% Spent
Compensation of Employees
Personnel Expenditure
Examiners and Moderators
43 872
93 682
22.83%
22.68%
31.89%
Goods and Services
78 758
18.73%
Transfer Payments
44.05%
Universities
50.18%
Public Entities
NSFAS
Other
72 879
59.51%
28.17%
Commonwealth of Learning/ IBSA/USAf
12 070 -
0.0%
TVET Colleges
40.0%
CET Colleges
51 949
50.0%
Skills levy
23.50%
Leave gratuities
5 054
(5 054)
Capital Expenditure
9 139
1 414
7 725
15.47%
Total
41.30%

45. Thank You