Department of Higher Education & Training: Revised 2011 Strategic Plan & Budget, National Student Financial Aid Scheme 2011 Strategic Plan & Budget

Meeting report

Department of Higher Education and Training (DHET) Revised Strategic Plan and Budget Allocations 2010/11 – 2014/15
Mr Feizal Toefy, Chief Director:Performance, Monitoring and Evaluation, Department of Higher Education and Training, presented the Department’s Revised Strategic Plan, which had been prepared to accommodate the Committee’s concerns and to give, in particular, a more thorough breakdown of the targets.

Mr Toefy firstly presented the draft organogram of the Department, noting that it would be finalised by 31 July 2011.

Mr Toefy briefed the Committee on the Department’s Regional Offices, stating that in all provinces the office infrastructure would be established by December 2011. There would be one office per province, each manned by three members of staff, which would facilitate the Department’s work. These regional offices would also provide links to various related institutions including Universities, Sector Education and Training Authorities (SETAs) and Provincial Departments of Education.

Mr Toefy raised the issue of new universities being established in South Africa in the Northern Cape and Mpumalanga. It was noted that a Task Team had been established by the Minister and that a final report with recommendations was expected at the end of June 2011. Mr Toefy noted that the Mpumalanga Interim Report had been received and was being analysed by the Department. The Northern Cape report would be handed in on at the end of June. These reports would facilitate the establishment of new universities by 2014.

Mr Toefy indicated that student enrolment and financial aid beneficiaries would increase by 229 932 in 2011/12.

Mr Toefy identified the Department’s goal to create a single reporting system for Higher Education, Further Education and Training and Adult Education and Training data. It was also noted that three bills, the Higher Education and Training Laws Amendment Bill of 2010, the Higher Education Laws Amendment Bill of 2011 and the Skills Development Bill of 2011, should be finalised within the Medium Term Expenditure Framework (MTEF) period.

Mr Toefy then briefed the Committee on the Department’s goals for intermediate and high level learning, as well as the Department’s goals for occupationally directed programmes. He drew attention to the exact targets that the Department had laid out for enrolment. This included having 15 737 engineering first time undergraduate students, 9 656 animal and human sciences first time undergraduate students, 7010 natural sciences and physical sciences first time under graduate students, and 49 081 teacher education first time under graduate enrolments. The Department was also hoping to achieve 52 922 honours enrolments, 51 104 research masters enrolments, 11 028 doctoral enrolments, and finally 577 post-doctoral enrolments.

Discussion
Mr A van der Westhuizen (DA) commented that it seemed that the Department’s targets were extremely modest, and asked for clarification.

A Departmental official clarified that the improvement in certification rate for matric, by passing all seven subjects, would rise from 38% to 48%, which was a significant improvement.

Mr van der Westhuizen asked when the Department would bring stability to the Further Education and Training (FET) Colleges sector, especially with regard to funding, and by making sure that all posts were filled.

Mr Gwebinkundla Qonde, Acting Director General, Department of Higher Education and Training, replied that the conditions of services had been rationalised across the board. In addition to this, the curriculum was being reviewed. There was a review being done on the 191 courses stated in the Report, and this had created a greater sense of stability in a sector as a whole. He also noted that workplace exposure was being emphasised at FET Colleges.

Mr van der Westhuizen asked whether the Department intended to propose a Constitutional amendment to bring the control of the FET Colleges under the Department, as opposed to the control of the provinces.

Mr Qonde responded that this issue was being investigated by the Department of Justice and Constitutional Development, and a draft had been published for public comment.

Mr van der Westhuizen asked for clarification on the revision of programmes, especially the report on the 191 courses that were very outdated.

A Departmental official responded that the Minister had put in place a task team to look at these issues. It was noted that some of the courses had not been reviewed for over 40 years.

Mr van der Westhuizen requested enrollment figures for the FET Colleges and expressed the hope that the Department’s IT problems that had prevented it from producing the figures previously would soon be solved.

Mr van der Westhuizen asked for clarification on the Amendment bills, and asked what the Department planned on changing, by way of these bills.

A Departmental official answered that, in relation to the FET colleges, the amendments would substitute the words “MEC” with the word “Minister” and the reporting lines, by replacing references to the “Provincial Head of Department” with the term “Director General of the Department of Higher Education and Training”. These related to the Constitutional amendments. Other more technical amendments were being considered, in addition to these policy amendments.

Mr van der Westhuizen asked about the Sector Education and Training Authorities (SETAs), who had apparently been given a month in which to approve a model constitution.

Mr Qonde replied that these issues were being looked at on an ongoing basis with the SETAs.

Mr van der Westhuizen asked whether it was true that the SETAS would have to submit their choice of Chief Executive Officers to the Department.

Mr Qonde replied that the appointment and selection of Chief Executive Officers was done by following a process where the SETAs put forward their preferences to the Department, and the Department would make the final selection. Mr Qonde noted that this sector provided a lot of opportunities for training, but that over 70% of the courses currently offered were short courses, and this needed to be investigated to build on their potential.

Dr J Lourens-Kloppers (DA) asked for elaboration of the Department’s plan to assess 40 000 first year students.

Mr Toefy replied that a screening tool would be used to assess whether students had been placed correctly, and also to assess what support those students would require to pass their respective courses.

Dr Lourens-Kloppers asked whether the 160 000 learner beneficiaries mentioned in the Department’s plan was linked to the announcement of the free undergraduate education initiative, recently made by the President.

A Departmental official answered that this figure related to all levels of study, not just final year students.

Dr Lourens-Kloppers asked how the Department’s targets were reached.

Mr Qonde noted that targets were based on research and collaboration with various bodies, and were not merely based on uninformed estimates.

Dr Lourens-Kloppers asked the Department to comment on the recent problems with administration at the University of South Africa (UNISA) campus in Parrow.

Mr Qonde noted that the Department was aware of the challenges and was currently attending to them.

Mr Z Makhubele (ANC) asked when the 15 000 workbooks and tutorial material mentioned in the Department’s presentation would be delivered to students.

A Departmental official answered that these workbooks and tutorial material had already been delivered.

Mr Makhubele asked the Department to comment on the perception that black Africans from outside South Africa were favoured for teaching positions over black South Africans.

Mr Qonde replied that all universities had progressive policies in place, but in practice their appointments did not always follow the policies exactly. He noted that this issue was being investigated, at all the country’s universities.

The Chairperson cautioned the Department that when statements are made to the Committee, proof of those statements should be provided. He stated that evidence of the performance of the Department would be required on a monthly and quarterly basis, especially in regard to the financial statements.

Mr van der Westhuizen asked whether audits would be provided.

A Departmental official replied that data was available and would be provided to the Committee after November.

Mr van der Westhuizen requested clarity on the placement rate of 35%.

A Departmental official answered that the three year target was a 70% placement rate, which represented approximately 35% for the 2011 year. It was also noted that placement rates were very dependent on industry.

Mr van der Weszhuizen asked when a permanent Director General would be appointed.

Mr Qonde answered that this position had been advertised.

Mr A Mpontshane (IFP) commented on satellite colleges, noting that while the main campuses of higher education institutions were often well equipped, the satellite colleges of learning were not functioning so well, and experienced many problems in infrastructure and facilities.

An ANC Member asked how merged institutions were funded, and whether these mergers were meeting their objectives. If not, then he asked what remedial action was being taken.

A Departmental official noted that provinces ran in different ways and the situation was currently being standardized to reach normal procedures. He added that budgets were allocated for this funding, but that colleges themselves were managing these amounts.

Mr Qonde added that the only merger that seemed to be experiencing difficulties was that of Medunsa and Limpopo University.

National Student Financial Aid Scheme (NSFAS): 2011/12 Strategic Plan and Budget briefing
Mr Zamayedwa Sogayise, Chairperson, National Student Financial Aid Scheme, presented the Strategic Plan and Budget for 2011/12. The Committee was reminded that the board of the National Student Financial Aid Scheme (NSFAS) was not yet fully constituted, but that the new board would be in place by the end of April.

Mr Sogayise outlined the strategic objectives for 2011/12, and noted that these included a new sixth objective, namely, effecting the turnaround strategy and implementing recommendations. The total NSFAS budget for 2011/12 was R5.527 billion. The presentation focused on achieving the six strategic objectives, as well as the funds allocated to those specific objectives.

Mr Sogayise noted that the achievements in the past year had included holding training workshops with Financial Aid Officers from 23 universities, a steady reduction in underspending of funding, and the publication of the NSFAS Financial Office Handbook, which had been distributed to all 23 universities. NSFAS had also achieved a 40 day turnaround time for claims, and intended to improve that to 30 days. NSFAS had also been involved in raising awareness of NSFAS at schools and other institutions, especially for students with disabilities.

Mr Sogayise noted that there was a pilot IT project to enable communication with all stakeholders. He then outlined that there were challenges with regard to formerly disadvantaged universities. He stated that NSFAS would concentrate on using cellular phone technology further in the future.

Mr Sogayise elaborated on NSFAS’s turnaround strategy. This had encompassed steps to establish good governance, and the review and development of policies. NSAFAS had  addressed the 2010 findings of the Auditor-General (AG), had acquired the appropriate IT infrastructure and improved stakeholder relations and awareness, and for this an amount of R19.741 million had been allocated.

Mr Sogayise also noted that the means test for financial aid was being reviewed.

Discussion
The Chairperson warned that the word ‘ongoing’ should be used sparingly in prsentations.  In future, the Committee wanted to see that definite dates were being set for NSFAS targets and objectives. There were challenges, but he was particularly concerned that the board was not fully constituted as yet.

Mr van der Westhuizen requested clarification on the previous Chairperson of the Board, and asked what NSFAS was doing about the high staff turnover at NSFAS, especially at board level.

Mr Sogayise responded that the former Chairperson remained currently suspended and was challenging that suspension. Because these proceedings were ongoing, he could not comment further.

Mr van der Westhuizen asked for further information about NSFAS’s efforts to safeguard against fraud.

A NSFAS official replied that the Financial Aid Handbook contained details of the safeguards and controls. Internal control procedures also included an internal audit process, based on visits to university campuses and offices.

Mr van der Westhuizen asked whether NSFAS’s debtors’ book was being well managed and whether its relationship with South African Revenue Services (SARS), and the repayment of amounts, was being well managed.

Ms Collette Caine, Board Member, NSFAS, answered that the problems with the debtors’ book had not been fully solved, but a solution was being expedited by the board. A new system was being procured to manage the financial aspects of NSFAS. Ms Caine noted that the system with SARS was working well.

Mr van der Westhuizen commented that he had the impression was that the communication between NSFAS and clients was not as efficient as it could be.

Ms Caine replied that this was one of the areas in which NSFAS must improve. It also needed to improve in tracking drop outs, and establishing a direct relationship with students.

Mr van der Westhuizen commented that he had received complaints from students who had been funded for an initial portion of their study, but their funding had dried up half way through their course, for some unknown reason.

Mr van der Westhuizen asked why the National Skills Fund (NSF) did not use NSFAS to administer the NSF bursaries, instead of using a private company.

Ms Caine replied that NSFAS was also surprised by the NSF’s decision to engage private sector providers. It was noted that there was a fractious relationship between NSFAS and the Department of Labour. Ms Caine affirmed categorically that NSFAS would be interested in providing those services.

Mr Makhubele asked whether there were any disciplinary processes against any debtors who were not repaying their loans.

Ms Caine noted that all disciplinary matters were properly and fully reported on from 2011, and that NSFAS would provide a written response on this issue to the Committee.

Mr Makhubele commented on the high turnover of staff, which had the effect of loss of institutional memory in NSFAS.

Ms Caine echoed Mr Makhubele’s and Mr van der Westhuizen’s concerns about staff turnover, and expressed the Board’s desire to manage this better.

Dr Kloppers-Lourens asked how NSFAS was going to be involved in the free education for undergraduate education, as announced by the President

Ms Caine stated that this programme stated that if a student graduated in 2011, the amount loaned to the student would be converted to a bursary. However some students would not be willing or able to achieve this. About 27 500 students would be affected by this programme. 2011 was being used as a test year, to look at the feasibility of making free education a possibility in years one and two of study.

Dr Kloppers-Lourens also presented a document to the Committee and NSFAS regarding the previous Chairperson’s suspension, and asked for further clarification on his position.

The Chairperson commented that, quite apart from any issues of matters being sub judice, the NSFAS was expected to give full and frank answes to the Committee. Matters of public accountability superceded concerns about ongoing legal matters.

The meeting was adjourned.