1. Revised Strategic Plan 2011 MTEF Budget Allocations
2010/ /15
&
2011 MTEF Budget Allocations
Portfolio Committee
23 March 2011

2. Introduction First Strategic Plan was presented in 2010
Newly constituted department which brought together two disparate streams of education and training into one department
Past 2 years have seen intense activity
Conceptualising the post-schooling landscape
Moving of Skills from Department of Labour
Legislative Amendments
Commenced with the Green Paper
Revised Strategic Plan sets out our stated outcomes, targets and budget

3. Revised Strategic Plan
Alignment with Outcome 5
Address priorities in the New Growth Path
Focus on Recognition of Prior Learning
Differentiation and articulation of post-schooling system
Curricular transformation including artisan training
and second chance opportunities
Improve funding for students
Strengthen the relationships between institutions
and the world of work
Total expansion of the system to include more citizens
in universities, colleges, adult training centres, learnerships, apprenticeships and other skills based courses

4. Vision
Differentiated and fully inclusive post-school system that allows all South Africans to access relevant post-school education and training, in order to fulfill the economic and social goals of participation in an inclusive economy and society.
Mission
To develop capable, well educated and skilled citizens that are able to compete in a sustainable, diversified and knowledge-intensive international economy, which meets the developmental goals of our country.

5. Approach
Reducing skills bottlenecks especially in priority and scarce skills areas
Improving low participation rates in the post-school system
Correcting distortions in the shape, size and distribution of access to post-school education and training
Improving the quality and efficiency in the system, sub-systems and institutions
Refocussing of SETAs

6. Structure of Strategic Plan
Over-arching framework is the Human Resource Development Strategy for South Africa (HRDSA) led by the Deputy President and managed by DHET
Long term strategic plan: years
Medium term strategic objectives: 5 years
Short term operational plans: 1 year
Performance Agreement of Minister

7. 5 Programmes Administration
Human Resource Development, Planning and Monitoring Coordination
University Education
Vocational and Continuing Education and Training
Skills Development

8. ADMINISTRATION PROGRAMME 1
Programme 1 provides the support and corporate services for the DHET and includes the offices of the Minister and Deputy Minister.
OBJECTIVES FOR PROGRAMME 1 A
To establish a functional department with the requisite capacity to deliver on its strategic objectives B
To establish the regional/provincial presence of DHET

9. To establish a credible institutional mechanism for skills planning.
HUMAN RESOURCE DEVELOPMENT, PLANNING AND MONITORING COORDINATION
PROGRAMME 2
Programme 2 is currently misnamed as the HRD function has been moved to Programme 5.
Programme 2 provides key transversal services for the DHET in the following areas to support the work of the line functions:
Planning, Information, Monitoring and Evaluation Coordination;
International Relations;
Legal and Legislative Services;
Social Inclusion and Equity in Higher Education and Training
The Chief Directorate: Planning, Information, Monitoring and Evaluation Coordination is responsible for the implementation of Output 5.1 of the Delivery Agreement for Outcome 5, namely:
To establish a credible institutional mechanism for skills planning.

10. PROGRAMME 2 KEY PRIORITIES FOR PROGRAMME 2 A
To develop an integrated information system for the DHET and to build a credible institutional mechanism for skills planning B
To ensure credible planning processes in the DHET, supported by quality data and well developed monitoring and evaluation indicators C
To ensure international cooperation in education and training matters D
To provide effective and efficient legal and legislative services to all branches and functions of the DHET E
To pursue an education and training system that includes all citizens of the country without exclusion caused by race, disability, gender, class or age F
To provide career guidance services for the citizens of the country, again ensuring the full inclusion of all citizens without regard to race, disability, gender, class or age

11. PROGRAMME 3 UNIVERSITY EDUCATION
Programme 3 provides University Education services in the following areas:
Academic Planning and Management;
Financial Planning and Information Systems;
Policy and Development;
Teaching Development
The University Education branch is responsible for the implementation of Output 5.4 and Output 5.5 of the Delivery Agreement for Outcome 5, namely: Increase access to high level occupationally-directed programmes in needed areas and Increase research, development and innovation in human development for a growing knowledge economy.

12. PROGRAMME 3 KEY PRIORITIES FOR PROGRAMME 3 A
To ensure successful transformation in the university sector B
To increase the number of graduates in needed areas including teacher education C
To provide a transformative funding model for the sector to ensure that historically disadvantaged institutions are able to “catch up” to well resourced institutions D
To improve student funding via the National Student Financial Aid Scheme E
To improve access to the university sector via a Central Application Service and the development of universities in Mpumalanga and Northern Cape F
To improve innovation and research in the country at post-graduate level

13. Vocational and Continuing Education and Training PROGRAMME 4
Programme 4 provides Vocational and Continuing Education and Training services in the following areas:
Planning and Institutional support;
Programmes and Qualifications;
National Examinations and Assessment
The VCET branch is the lead branch for the implementation of Output 5.2 of the Delivery Agreement, namely;
Increase access to programmes leading to intermediate and high level learning.

14. PROGRAMME 4 KEY PRIORITIES FOR PROGRAMME 4 A
To manage the curricular transformation of the college sector including provision for artisan training B
To expand and increase access to the post-school system by offering additional qualifications for youths and adults who do not meet the requirements for entrance into post-secondary college or university courses C
To provide a credible examination system for the college and adult education sectors D
To ensure that colleges become institutions of choice by:
eradicating inefficiencies in the college system through the provision of support to the management and governance functions of colleges
improving articulation between the college and university sectors E
To strengthen the relationship between colleges and employers F
To improve student funding at colleges via the National Student Financial Aid Scheme

15. Skills Development PROGRAMME 5
Programme 5 provides services related to the development of skills for the country in the following areas:
SETA coordination;
The National Skills Fund;
The Secretariat for the National Skills Authority;
Human Resource Development for South Africa
The Institute for the National Development of Learnerships, Employment skills and Labour Assessment (INDLELA)
The Skills branch is the lead branch for the implementation of Output 5.3 of the Delivery Agreement, namely;
Increase access to occupationally directed programmes in needed areas and thereby expand the availability of intermediate level skills (with a special focus on artisan skills)

16. PROGRAMME 5 KEY PRIORITIES FOR PROGRAMME 5 A
To provide a dynamic interface between workplaces and learning institutions and to promote quality learning at work and for work B
To advance the Human Resource Development Strategy of South Africa through funding of relevant priorities via the National Skills Fund C
To ensure the successful implementation of the National Skills Development Strategy 3 via the SETA’s D
To actively promote the alignment of skills development outputs with the needs of the workplace and with the broader growth needs of the country’s economy E
To secure an increased number of workplace learning opportunities in both the public and the private sector (learnerships, apprenticeships, skills courses) F
To ensure coordination, integration, alignment and facilitation with relevant policies, strategies and stakeholders with regard to the Human Resource Development Strategy for South Africa (HRDSA)

17. 5-year Objectives and 1-year Operational Plans
Strategic Objectives
For each of the Programmes 2 to 5, the above mentioned priority areas are translated into specified strategic objectives per sub-programme and per directorate.
(page 68 to 79 of the strategic plan)
Targets and Outputs
The 1-year operational plan for each directorate and chief directorate provides the detailed performance measures, activities, targets and outputs to be met for each objective for the 2011/12 year.
(page 82 to 130 of the strategic plan)
The budgets for each sub-programme are also indicated.

18. Year-on-Year Increase Annual Average Growth over the MTEF
FINANCE
2011 MTEF Allocations
2010/11
2011/12
Year-on-Year Increase
2012/13
2013/14
Annual Average Growth over the MTEF
R'million %
Total Allocation
16.28%
10.88%
Less: Direct Charges
8.60%
6.35%
SETAs
NSF
6.36%
Voted for Department
19.00%
12.40%

19. Year-on-Year Increase Annual Average Growth over the MTEF
FINANCE
2011 MTEF Allocations
2010/11
2011/12
Year-on-Year Increase
2012/13
2013/14
Annual Average Growth over the MTEF
R'million %
Distribution per Programme
1. Administration
100.5
161.6
60.80%
174.7
185.9
22.75%
HRD, Planning and Monitoring Coordination
26.0
33.8
30.00%
35.2
37.2
12.68%
3. University Education
19.94%
12.54%
4. Vocational and Continuing Education and Training
15.01%
11.97%
5. Skills Development
168.3
128.3
-23.77%
142.9
157.7
-2.15%
Total
19.00%
12.40%

20. Year-on-Year Increase Annual Average Growth over the MTEF
FINANCE
2011 MTEF Allocations
2010/11
2011/12
Year-on-Year Increase
2012/13
2013/14
Annual Average Growth over the MTEF
R'million %
Distribution per Economic Classification
Compensation of Employees
228.9
301.5
31.72%
334.1
359.7
16.26%
Salary Bill
208.2
249.4
19.79%
264.5
279.1
10.26%
Examiners and Moderators
20.7
52.1
151.69%
69.6
80.6
57.32%
Goods and Services
153.5
154.3
0.52%
180.3
194.9
8.28%
Transfers
19.02%
12.40%
Capital
9.8
8.1
-17.35%
8.0
6.9
-11.04%
Total
19.00%

21. 2011 MTEF
FINANCE
Programme 3 (83%) and Programme 4 (15.9%) are the biggest portions of the budget due to the transfers to Universities, public entities and FET Colleges
Programme 1: Administration remains at a level of around 0.56% of the total budget
Transfers remain the biggest item and account for approximately 98.3 of the budget over the MTEF
The Department’s budget increases at an annual average rate of 12.4% from R23.7 billion in 2010/11 to R33.7 billion in 2013/14
The Department’s total budget for 2011/12 grows with 19% from 2010/11
The growth in the budget is mainly due to the additional funding on transfer items as well as compensation of employees including the provision for examiners and moderators

22. Key budget increases: 2011 MTEF
FINANCE
Key budget increases: 2011 MTEF
2011/12
2012/13
2013/14
R'million
NSFAS Bursaries
University Education
751.8
FET College Education
898.2
Establishment of Universities in Mpumalanga and Northern Cape
50.0
100.0
150.0
Examination Services
39.0
61.9
71.2
Municipal and accommodation charges
17.0
20.0
22.0
FET Colleges Conditional Grant
354.0
536.0
864.0
Increased student enrolment
250.0
427.0
749.0
Conditions of service
104.0
109.0
115.0
Total

23. Allocations to Institutions
2011 MTEF
FINANCE
Allocations to Institutions
2011/12
2012/13
2013/14
R'million
Universities
FET Colleges (Conditional Grant)
Public Entities
NSFAS Bursaries
Administration
77.4
82.0
86.6
University Education
FET College Education
Council on Higher Education
36.8
39.2
40.8
SAQA
41.4
43.6
46.1
QCTO
18.4
20.0
21.0
Other
SETAs (Skills Levy)
National Skills Fund
Skills Levy
Exchequer Contribution
29.9 
37.9 
46.4 
Total

24. 2011 MTEF FINANCE R’million
Based on the above, limited funds are available for the Department’s operations, including the key roles of monitoring and support
Furthermore, the Department were required to implement efficiency savings to the amounts of R93.3 million, R100.1 million and R105.9 million over the three MTEF years
The Department’s operational costs for 2011/12 as indicated below amount to R162.5 million compared to R163 million for 2010/11
Taking into account the increases for the newly established Deputy Ministry, Examination Services as well as municipal and accommodation charges, the Department’s operational costs decline
R’million
Total voted funds
Less: Direct charges (SETA funding and NSF)
Balance of voted funds
Less Transfers: Universities
NSF (Contribution by Exchequer)
Public Entities
FET Conditional Grant
Other ( such as SETA)
Less Compensation of Employees
Balance available for operational/project costs

25. Thank You