1. Umalusi’s budget review presentation to the Portfolio Committee on Basic Education
22 March 2011
Cape Town

2. Overview Umalusi mandate Vision, mission, goals and KRA’s
2010/11 Revenue & Expenditure (Current)
2011/12 Budget (Forecast)
Three Year Budget Forecast
Conclusion

3. Umalusi Mandate 2010/11
As a new Quality Council to develop and manage a sub- framework of qualifications for general and further education and training framework;
To develop and quality assure qualifications and curriculum;
To quality assure assessments at exit points;
To certificate learner achievements;
To quality assure provision and accredit private providers of education and training, and assessment;
To conduct research related to the sub-framework; and
To advise the Minister

4. Vision & Mission
Umalusi Council is the cornerstone on which the country’s educational aspirations and standards are anchored and built; and as such the Council and staff are committed to ongoing improvement in standards and quality in general and further education and training.
In order to issue learners with credible certificates, Umalusi, through its leadership and expert knowledge, develops and secures standards through:
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 its work in research to ensure informed positions and approaches

5. Goals
Promote quality and internationally comparative standards in GFET
Maintain and improve educational standards through development and evaluation of qualifications and curriculum, quality assurance of assessment, and accreditation of providers of education, training and assessment,
Continuously develop in-depth knowledge and expertise in mandated areas through rigorous research,
Report on the quality of education and training in GFET within the mandate,
Issue appropriate and credible certificates of learner achievement in terms of specific qualifications on the GFET Framework of Qualifications,
Provide reliable and credible leadership and guidance in standard setting and quality assurance,
Ensure the financial efficiency and sustainability of the organisation, and
Determine expectations and appropriately respond to these within the parameters of Umalusi’s mandate.

6. 7 Key Result Areas
Improving and maintaining the system for quality assuring assessment for certification
Establishing and implementing a system for evaluation and accreditation of providers
Establishing and maintaining a system to certify and quality assuring qualifications and curriculum
Research, diagnose and report on quality in general and further education and training supported by statistical analysis.
Developing and maintaining management support structures and governance
Ensuring that Information Technology systems are established, maintained and improved
Ensuring that finance, human resources and administrative support systems are maintained and improved

7. EXECUTIVE SUMMARY ON FINANCES
Statement of Financial Performance as at 28 Feb 2011
Net surplus of R 4,531,759
110% of Budgeted Revenue from operations recognised
100% of the Grant from the Department of Basic Education received
76% of the budgeted expenses incurred to date

8. EXECUTIVE SUMMARY ON FINANCES (2)
Statement of Financial Position ,Cashflow, Debtors and Investments
Total Assets R 47,397,032
93% of invoiced debts collected to date
Cash available at the end of the period amounted to R688,018
Investments R 26,392,075, attracting interest of 5.50% p.a
Note:
Management agreed to proceed with caution for the remaining month in order to increase the reserves to roll over into 2011/12 financial year due to the shortfall not being provided by the Department of Basic Education

9. Comparative total expenditure to date vs 3 year average

10. 2010/11 Revenue Budget vs Actual (Current)
Revenue Streams
Budget
Actual %
Comment
Accreditation Fees 56
As per institution requests
Certification Fees
131
Increase in certification fees levied in June 2010 and supplementary of previous 2009/10 candidates
Department of Basic Education Grant
100
Grant payment transfer on schedule as agreed
Interest
144
Due to non use of surpluses more interest was received than planned
Reserve Funds
Due to requiring additional finds for 2011/12 minimal usage of reserves was introduced
Verification Fees 76
Employment trends affect verification fees
Other
ETDP seta refund, provider conference fees, private telephone, ERCO fees, etc R R
83%
As approved by the Minister of Basic Education on 27 April 2010

11. 2010/11 Expenditure Budget vs Actual (Current)%
Comment
National Operations
65%
Expect between 5-7% under spending due to nature of research / qualifications projects
Corporate Services
84%
Expect budget to be expended fully R R
76%
Net surplus as at 28 February 2011 is therefore R

12. Statement of Financial Position as at 28 February 2011
Assets
CPD
Current assets R R
Capital and Reserves
Current Liabilities

13. 2011/12 Budget (Forecast) Quality Assurance of Assessments
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Question papers moderated
Marking standardized
Moderation of CASS
Monitoring of exams
Standards for assessment articulated and maintained
Stakeholder relations established and managed
Management, support and governance structures maintained and improved R R
13% increase due to increase in Moderator costs as per Ministerial approval and also increase in moderation/
monitoring sample sizes

14. 2011/12 Budget (Forecast) Evaluation and Accreditation
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Accreditation and monitoring system for providers of education and training maintained and extended
Provisional accreditation and monitoring
Provider site
Monitoring reports
Policy development
Stakeholder relationships
Accreditation and monitoring system for assessment bodies maintained and extended
Monitoring of new and existing assessment bodies R R
19 % increase due to increase in the number of institutional site visits, etc

15. 2011/12 Budget (Forecast) Qualifications, Curriculum & Certification
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Develop and maintain qualifications sub-framework
Develop standards for new qualifications
Curricula are evaluated and/or developed.
Certification of learner achievement
Maintain and improve verification processes R R
Decrease of 4% due to the need to capacitate the unit before the role out of qualifications and curriculum work is increased. This will be done in 2011/12 and additional budget for human resources instead

16. 2011/12 Budget (Forecast) Statistical Information and Research
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Reporting (Printing of Reports)
Sales of the Reports
Research is planned, managed and implemented
Provide statistical supports to other units
Research forum/committee maintained
Strategic support is provided to the organization
Collaboration with stakeholders on strategic research
Stakeholders are engaged with through conferences and published documents
Resource centre R R
16% increase budgeted to give effect to the formal mandate of research as a QC and which now also includes extension of the research work i.r.o standard setting and qualifications development

17. 2011/12 Budget (Forecast) Management Support Structures
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Organisational planning and implementation and review of plans
Organizational governance is maintained
Stakeholder relations established and managed
Public relations programme implemented R R
A decrease of 2% in budget is proposed as most Council members are office bearers and require less allowances. More capacity is required in PR thus a look at increasing the HR budget

18. 2011/12 Budget (Forecast) Corporate Services: Information Technology
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Information technology systems established, maintained and improved
Certification IT program effectively implemented
Adequate computer hardware and software installed and maintained to support operations R R
9 % increase required due to increase in computer costs mainly for replacement of hardware and software. No increase in SITA costs were effected over the last two years

19. 2011/12 Budget (Forecast) Corporate Services: Finance
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Finance and Accounting systems maintained and improved
Supply Chain Management system maintained and improved
Building and security systems maintained and improved R R
8 % increase forecasted for building which is more maintenance orientated and supply chain costs for purchases like stationery, etc

20. 2011/12 Budget (Forecast) Corporate Services: Human Resource Management and Development
OUTCOMES
Current Budget
Forecast
2011/12
Motivation
Administration of Human resources
HR development plans implemented
General services provided
Records Management Services R R
21 % increase due to additional posts required as per the HR review done and approximately 5% towards cost of inflation increases
GRAND TOTAL R R
Overall a 15% increase forecasted as the minimum budget required for 2011/12

21. Total Income 2000/1 (actual) to 2013/14 (budget)
YEAR
INCOME
BUDGET
DBE GRANT
GRANT %
2000/01 R
2001/02 R
2002/03 R R 11
2003/04 R R 17
2004/05 R R 55
2005/06 R R 27
2006/07 R R 31
2007/08 R R 35
2008/09 R R
2009/10 R R
2010/11 R R 25
2011/12 R R 23
2012/13 R R 21
2013/14 R R 20

22. Y/Y Percentage Increase
3 Year Budget Forecast
2010/11
2011/12
2012/13
2013/14 R R R R
2011/12 Budget was submitted in September 2010 and a response received in January Thus a revised budget was submitted on 18 January 2011 and the Ministry of Basic Education approval is awaited
Y/Y Percentage Increase
28%
15%
16%
11%

23. Challenges
The financial sustainability of the organisation through increased funding :
Move from certificate fee structure to a QA levy, and/or
Increase baseline allocation of the grant
Umalusi mandate contestations
Reputational risk as addressed through media

24. Your support is highly appreciated.
THANK YOU
Thanks to the Portfolio Committee Chairperson Ms H Malgas and Honorable members for this opportunity to present Umalusi’s budget review.
Your support is highly appreciated.