1. VOTE 16: HIGHER EDUCATION AND TRAINING
Presentation to Portfolio Committee on the 2010 ENE
10 March 2010

2. Presentation Structure
Background to the establishment of the Department and distribution of the budget
2010 MTEF Allocations
Departmental Programmes and Objectives

3. Part 1
Background to the establishment of the Department and distribution of the budget

4. The Department was established in May 2009 through proclamation as part of the restructuring of Government
Legal functions were transferred from the Departments of Education in July 2009 and Labour in November 2009
Department receives staff associated with these functions, and its first budget on 1st April
The Department aims to develop and support a quality post-school education and training education sector, and to promote access to higher and vocational education and skills development training opportunities.
The budget consists of funds based on the split of the Department of Education as well as the transfer of functions from the Department of Labour

5. The splitting of funds from the Department of Education was done on agreed framework in line with the allocation of functions as well as the distribution of the staff compliment
(Next slide is an extract from the Distribution Framework)
The shifting of funds from the Department of Labour was done by the National Treasury based on the functions allocated to the Department
A service level agreement as required by Adjustments Appropriation Act was signed with the DG Labour on 3rd February and matters such as the budget, assets, accommodation and staffing are currently being verified
When the splitting of functions is complete, adjustments may be necessary in the Adjustments Estimates Bill

6. Budget Distribution Framework: Education
Budget was split according to agreed framework based on functionality between the DGs of Education, Basic Education and Higher Education and Training
Compensation of employees were distributed according to agreed ratios for each directorate
Earmarked Funds were allocated based on final Treasury allocations
Commitments such as audit fees, rental machines, computer services, bank charges, etc. were determined for both departments and allocated to the respective directorates
Funds for operational and projects were dealt with as follows:
MTEF amounts for all components were split in agreed ratios between the two Departments.
Operational costs of Directorates/components were allocated based on needs, but limited to an allowed average fixed amount.
The balance was reserved for projects.

7. PART 2
2010 MTEF ALLOCATIONS

8. TREASURY ALLOCATIONS 2010/11 2011/12 2012/13 R'000 Baseline allocation
2010/11
2011/12
2012/13
R'000
Baseline allocation
Additions to baseline:
Higher Education Subsidies -
Student Loans: Inflation adjustment
57 600
Funding for newly established department
20 000
30 000
40 000
Compensation of Employees adjustment
1 117
1 301
1 410
Further Education and Training (Shift from Provinces)*
Further Education and Training (College educators)
Adjustments to Baseline
Skills Function Shift from Department of Labour
Skills Function Shift: Compensation of Employees adjustment from Department of Labour
2 201
2 568
2 787
Function Shift: Direct Charges
Sector Education and Training Authorities
National Skills Fund
Less:
( 1 246)
( 1 563)
Baseline Efficiency Savings
2010 ENE ALLOCATIONS
* National Treasury included this amount as part of the baseline in the ENE Chapter. However, in the allocation letter this is reflected as additional

9. The Department’s total budget of R32
The Department’s total budget of R billion includes a large amount of direct charges and transfers as follows in R’000:
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
The remaining slides focus on the amount of R23.7 billion, which is the actual voted funds excluding direct charges

10. 2010 MTEF ALLOCATIONS AS IN ENE (EXCLUDING DIRECT CHARGES)
Total per programme
 2010/11
(R’000)
2011/12
(R’000) 
2012/13
P1: Administration
P2: Human Resource Development, Planning and Monitoring Coordination
26 004
28 794
31 874
P3: University Education
P4: Vocational and Continuing Education and Training
P5: Skills Development
Total Allocation

11. 2010 MTEF ALLOCATION SUMMARY
2010/11
R’000
2011/12
2012/13
Compensation of Employees
Examiners and Moderators
20 745
21 990
23 090
Transfers to Universities
Transfers to Public Entities
Other Transfers
52 300
60 505
63 531
Conditional Grants
Earmarked Funds
25 551
27 116
28 472
Departmental Operations
Projects
10 819
15 243
18 139
Total

12. Detail of earmarked allocations/transfers (R’000)
2010/11
(R’000)
2011/12
2012/13
Transfers to Universities
Transfers to Public Entities
NSFAS
CHE
36 046
39 619
43 450
SAQA
41 335
43 815
46 006
Other Transfers
SETA
141
150
158
India-Brazil-South Africa Trilateral Commission
428
454
477
National Skills Fund
51 731
59 901
62 896
FET Conditional Grant
Earmarked Funds
25 551
27 116
28 472
Office Accommodation

13. Departmental Programmes and Objectives

14. The Department is organised into five budget programmes as follows:
1. Administration
2. Human Resource Development, Planning and Monitoring Coordination
3. University Education
4. Vocational and Continuing Education and Training
5. Skills Development
2. Detail of the functions performed in each Programme is summarised in the following slides

15. Programme 1: Administration (R100,545 million) Overall management and administration of the Department
Minister, Management, Corporate Services and Office Accommodation
The budget for the Programme increases at an annual average rate of 4,0 per cent over the 2010 MTEF period from R  million in 2009/10 to R  million in 2012/13
The increase over the medium term is due mainly to inflation related adjustments as well as additional allocations for required computer services for the Department

16. Programme 2: Human Resource Development, Planning and Monitoring Coordination
(R million)
Provide strategic direction in the development, implementation and monitoring of departmental policies. Coordinate activities regarding HRDS-SA
Functions
Human Resource Development, Strategic Planning and Coordination
Planning, Information, Monitoring and Evaluation Coordination
International Relations
Legal and Legislative Services
Social Inclusion in Higher Education and Training
The budget for Programme 2 increases at an annual average nominal rate of 5,0 per cent over the 2010 MTEF period from R27.832 million in 2009/10 to R31.874 million in 2012/13.

17. Key Strategic Objectives
Programme 2: Human Resource Development, Planning and Monitoring Coordination
Key Strategic Objectives
Ensure coordination, integration and facilitation amongst stakeholders, role-players and authorities with regard to the HRDS-SA
Establish HRD Council and support its workplan
Develop an integrated operational management information system and decision support system
Identify and monitor curriculum innovations in citizenship and values education in the higher education and training system

18. Programme 3: University Education (R19 534
Programme 3: University Education (R million) Develop and coordinate policy and regulatory frameworks for an effective and efficient university education system
Functions
University: Academic Planning and Management
University: Financial Planning and Information Systems
University: Policy and Development
Teacher Education
University: Subsidies
Programme 3 includes the subsidies to universities, the National Institutes for Higher Education as well as the NSFAS, CHE and SAQA.
The budget increases substantially at an annual average rate of 10,7 per cent over the 2010 MTEF period from R billion in 2009/10 to R billion in 2012/13.
The increase is mainly due to increased block grants for universities and an increase in the funding of student loans through NSFAS.

19. Programme 3: University Education
Key performance measures
Improve enrolment planning so as to produce quality graduates
Provide financial management support to universities, NIHEs and public entities
Provide appropriate policy frameworks for improvement of teaching and learning
Ensure that HEMIS meets the needs for management information across the sector and is properly maintained with the required data
Provide regulatory support to universities and support them in improving governance
Ensure the appropriate registration of private higher education institutions
Ensure an adequate supply of quality teachers for the Basic Education System

20. Programme 4: Vocational and Continuing Education and Training
(R million)
Plan, develop, evaluate, monitor and maintain national policy, programmes and systems for vocational and continuing education and training
Functions
Planning and Institutional Support
Programmes and Qualifications
The budget for the Programme increases at an annual average rate of 10,75 per cent over the 2010 MTEF period from R3.256 billion in 2009/10 to R3.856 billion in 2012/13.
The biggest portion of the budget is for the conditional grant
The increase is mainly due to increased subsidies to FET Colleges including salary increases at college level in line with the central bargaining process.

21. Programme 4: Vocational and Continuing Education and Training
Key performance measures
Support the development of college institutional capacity in order to achieve transparency, enhanced performance, accountability and efficiency
Develop and maintain a diverse range of high quality responsive vocational programmes for colleges
Review Adult Education and Training to ensure that responsive and enabling policies and programmes can be put in place

22. Programme 5: Skills Development (R168
Programme 5: Skills Development (R million) Promote and monitor the national skills development strategy
Functions
SETA Coordination
National Skills Development Services
Quality Development and Promotion
Artisan Development
The budget for Programme 5 increases at an annual average rate of 9,0 per cent over the 2010 MTEF period from R  million in 2009/10 to R million in 2012/13.
The above average increase is mainly to the additional allocation for the National Skills Fund as well as general inflationary increases.

23. Programme 5: Skills Development
Key performance measures
Promote the alignment of skills development outputs with the needs of the workplace and with the broader growth needs of the country’s economy
Provide funds to support projects identified as national priorities in the context of the NSDS II and III
Develop the first draft of the National Skills Development Strategy III (2011/12 – 2014/15)
Ensure quality learning at and for the workplace

24. THANK YOU