Department of Higher Education 4th quarter 2012 Performance Report, in presence of Deputy Minister

Meeting report

Department of Higher Education and Training Fourth Quarter 2012/13 Performance Report briefing
The Chairperson noted the presence of the Deputy Minister of Higher Education and Training, Mr Mduduzi Manana, and welcomed the Director General and other officials from the Department of Higher Education and Training (DHET or the Department) who would brief the Committee on the 4^th quarter 2012/13 performance of the Department.

Mr Gwebinkundla Qonde, Director General, Department of Higher Education and Training, noted that this report would detail the targets and what had been achieved by the programmes. He said that in the fourth quarter, there were 97 pre-determined targets, of which 64% were achieved, 31% partially achieved, and 5% were not achieved. Areas partially and not achieved were being given the necessary attention. The reasons for not meeting targets ranged from delays in internal implementation processes, to capacity constraints. The strategies to mitigate this would in each case be presented by the branches.

Programme 1: Administration
Ms Lulama Mbobo, Deputy Director General, Department of Higher Education and Training, outlined the performance of Programme 1: Administration and Corporate Services. The purpose of the administration programmes was to provide overall management and administration for the Department. Of the 20 targets, 10 were achieved, 9 were partially achieved and one was not achieved. The Department had, however, done better than anticipated in filling funded posts, and had an 11%, instead of the projected 15% vacancy rate at the end of this period, and would continue to fill vacancies, which it aimed to do within an average of four months.  instead of the 15% target by the end of the period under review. Moreover, the Department had started the alignment of the Departmental IT Governance Framework process with the policy for  Governance of ICT, developed by the Department of Public Service and Administration (DPSA). It had achieved Level 1 IT governance maturity.

She noted that the Department’s Call Centre had received 8 867 (website and Toll free) queries, of which 8 751 (99%) were resolved.  28 calls were also received from the Presidential Hotline and all were resolved.

Ms Mbobo noted the other figures for achievement of targets for the Administration programme, detailing (see attached slides for full figures) the compliance with senior management service (SMS) policies, public relations events, processing transfers and payments and tabling policies. It had advertised 100 vacancies for the internship programme, and had received and processed 6 943 applications. To date, 251 unemployed graduates had participated, since 2011, in the Department’s Internship programme. In 2012, 36 of the 100 employed were graduates of Further Education and Training (FET) Colleges, and of these, 51 secured permanent employment, 60 interns were absorbed into the Department through contract posts, and 20 FET N6 Engineering learners were placed at INDLELA.

Ms Mbobo noted some deviations from targets. Disciplinary cases were taking more than 90 days to conclude, because of difficulties with other stakeholders, such as witnesses and requests to the hearings. However, DHET was striving to conclude cases within 90 days, and measures were being explored to speed up cases.

The Quarterly Newsletter and on-line internal bulletin could not be published as planned, as they were deferred to effect a new publications approach. An editorial board had been established to oversee the content.Consultation on  the Departmental policy on Occupational Health and Safety could not be finalised and implemented as planned, impacting on compliance with all Occupational Health and Safety measures. Also, security upgrades were not finalised as planned.

Discussion
Prof A Lotriet (DA) questioned why there was not full compliance with occupational health and safety, and what caused the delay.

Ms Mbobo responded that the Department was guided by the relevant legislation, and had its own policies that helped its officials to implement the Act. A draft policy had been tabled, and was at the Departmental Bargaining Chamber for approval. However, she stressed that the DHET was not sitting back whilst waiting for this to be approved as there had been policies in place already for matters such as security upgrades. Some of the buildings inherited by the Department hampered the implementation of some safety policies.

Mr S Radebe (ANC) questioned what the implications and challenges were in aligning the budgets of the universities and the DHET, and what was impeding such alignment.

Mr Radebe questioned how many posts were represented by the 11% vacancy rate.

Mr Radebe asked how many of those employed by the DHET had been from the FET colleges.

Ms Mbobo stated that the main problem the Department lay with a budget allocation to fill all vacancies, as not all were funded. Some of the vacancies resulted from retirement, resignations and natural attrition, and this would always be the case.

The Chairperson commented that the Department had been able to achieve 100% Senior Management Service (SMS) policies, and assumed that all senior managers had signed their performance agreement contracts. He asked for an assurance that all those who had personal business interests had made clear declarations so that the auditors would report full compliance on this point.

Ms Mbobo said that the presentation showed all SMS matters that were responded to. She noted that all SMS managers had signed declarations within the given time frames. 

Mr S Makhubele (ANC) asked how far the maturity levels on the ICT could rise.

Ms Mbobo answered that the levels ran from level 1 to level 5. The reason the Department rated its maturity level as 1 was entirely based on the fact that the Department was new and still in the formation stage. Structures were in place and once the structures were aligned then the maturity rate would increase.

Mr Makhubele asked for more clarity on the disciplinary cases at INDLELA under the control of Mr Qonde.

The Chairperson reminded the Committee members that the issues that occurred at INDLELA happened a while ago, but the Committee’s concern was that the Labour Relations matters should have been resolved immediately. If any employee was “under a cloud of suspicion”, the DHET had a responsibility to resolve the matter without delay, and should not unduly delay any legal or disciplinary issues.

Continuation of briefing: Programme 2
Mr R Magida, Director: Planning, presented on Programme 2: Human Resource Development, Planning, Monitoring and Coordination. This programme was to provide strategic direction in the development, implementation and monitoring of developmental policies and Human Resource Development (HRD) strategy. There were 18 targets, of which 16 were achieved and 2 were partially achieved.

He then outlined some key achievements. The targets for users reached by career guidance services were exceeded, except that Radio 1 had reached 1.991 million people instead of the target of 2.7 million. He outlined the numbers reached (see attached presentation) at exhibitions, the helpline, the web portal and the mobi-site.

He set out how the bilateral relations had been implemented and developed, and noted that DHET had developed such plans with priority countries and multilateral agencies, and produced a publication on international cooperation. The Legal Services programmes instituted provided the necessary support and advice in dealing with litigation, drafting of legislation and regulations and legal opinions.

Mr Magida then noted that the National Qualifications Framework (NQF) programmes put into place provided an instrument for the monitoring of actions needed to implement the statutory functions assigned to the Minister, Director-General, South African Qualifications Authority (SAQA), Council for Higher Education (CHE), Umalusi and Quality Council for Trades and Occupations (QCTO) in terms of the National Qualifications Framework Act. Moreover, annual Ministerial policy guidelines were developed.

He lastly described the deviations from targets. The international relations operational framework strategy was developed, and but still needed to be approved for implementation. The draft Education and Training Investment Report was developed, but could not be finalised at the time of reporting, because this report had still to be quality assured before being submitted for approval and dissemination.

Discussion
Prof Lotriet commented, in relation to slide 8 on the Integrated Education and Training Management System, that the achievement was around 80%, which she thought was excellent, given the previous problems with the Sector Education and Training Authorities (SETAs). However, she wanted to know what comprised the 20% that still needed to be done.

Mr Firoz Patel, Deputy Director General: Planning, DHET, responded that the 80% figure listed represented the Universities, the FET colleges and the SETAs. The missing 20% was from the Adult Education and Training units, which were still a provincial competence. Once these centres were managed directly by the Department, there would be better quality control and reliability.

The Chairperson commended the Department on its work in career guidance and stated that this was a portal that should be continued.

Mr Makhubele noted the figures on slide 9, which noted that the DHET had achieved its targets for career guidance, but asked how the DHET determined these targets, because he thought that perhaps the DHET needed to extend itself more and continuously up the targets and strive to achieve them.

The Chairperson agreed with this point.

Mr Patel noted that the Department was specifically using radio as a tool to reach the learners, and had identified the best radio stations. The figures on listeners were given by the radio stations themselves. He noted the comments on pushing the targets higher, and said that he would take heed of these comments, generally, but the DHET was mindful that when drawing targets, it was a requirement of the Auditor-General that the targets should be carefully selected as being achievable.

The Chairperson asked when the international relations operational framework strategy would be ready as he had expected it to be approved before the end of the fourth quarter.

Mr Patel noted that the international relations operational framework strategy was completed and would be implemented in the Department and institutions, but the implementation plan was not finally ready, as there was still some consultation needed on the resourcing of funds.

Mr Makhubele asked how many South African students there were in foreign institutions.

Mr Patel stated that there was a team within the Department who were working on that figure, which had not yet been adequately determined. However, this work would continue.

Continuation of briefing: Programme 3: University Education
Dr Diane Parker, Acting Deputy Director General: Universities, DHET, presented on Programme 3: Universities. The purpose of this programme was to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. This programme would provide financial support to universities, the National Student Financial Aid Scheme (NSFAS) and the National Institutes for Higher Education (NIHE). There were 26 targets, of which 15 were achieved and 11 were partially achieved.

She outlined the key achievements. 952 495 students were enrolled in higher education studies in Universities (exceeding the target by 42 779 students). There were 661 695 African students at universities (this target was exceeded by 68 435). Lastly 554 301 female students were currently at universities instead of 539 596 (14 705 more female students enrolled than the target). The Headcount enrolment, for the population aged 20 to 24 years, was 17.9%, as planned.

In line with the targets, 20 public universities were involved in Foundation Phase Teacher Education.

Dr Parker noted that 16 275 students in foundation provisioning programs were at universities (and noted again that 1 675 more students were enrolled than targeted). 6 444 graduates were produced in Natural and Physical Sciences from universities (here, the target was exceeded by 1 392 graduates). There were 12 194 graduates in Initial Teacher Education programmes at universities (this target was exceeded by 2 494 graduates).

78% of public higher institutions had good governance and management, as planned. 5 337 Research Masters graduates were produced (the target exceeded by 359). 11 191 Publication units were produced (the target exceeded by 384). Dr Parker noted in addition there was one update for each of the 23 institutions’ student and staff data, which was loaded into the National Database, as planned. Moreover there was one Annual update for each of the 23 institutions and the building space data had been loaded to the National database as planned.

Dr Parker then noted the deviations from the targets. There were 178 568 first time enrolments at universities (which was 1 225 less than the targeted 179 793). Success rates at universities was at 75% instead of the planned 76%.There were 158 170 graduates from universities (9 637 less graduates than the 2012 target). In particular, there were less graduates in engineering sciences, and human health and animal health (see attached presentation for full figures. This year 1 717 Doctoral graduates graduated instead of the targeted 1 785. Lastly there were only 43 003 postgraduate graduates, an undercount of 1 517 against targets.

Dr Parker emphasised that the underperformance in scarce skills graduates, particularly engineering and health sciences, was a concern to the Department, and it would make the necessary interventions, although these could take some time to take effect. The targets were based on the Minister’s Performance Monitoring and Evaluation (PME) targets, which were ambitious and did not sufficiently take into account the data in the system. These targets were currently being reviewed as they were unlikely to be met.

There had been general compliance in so far as administration of entity institutions was concerned, but those who did not comply with the regulatory criteria were deregistered. Insofar as the universities were concerned, 18, and not 23, had their five Ministerial appointees duly appointed. The Department had written to all institutions requesting their cooperation. Some institutions had indicated their willingness to comply, but the process to change their statutes took time. No strategy was required to deal with compliance for PHEIs, because those who did not comply were simply de-registered. 

A policy document on FET lecturer qualifications was not gazetted, as planned. She noted, however, that the FET lecturer qualifications policy had been prepared for publication and would be published once final comments from the Council on Higher Education (CHE) were received, and the Minister has approved the policy. The DHET had implemented new criteria for the use of teaching development funds to assist with programmes to improve the quality of teaching and support learning. A new teaching development policy would be produced during the 2013/14 financial year, to guide the system and the more effective utilisation of funds. This would assist with improving success rates over time.

Discussion
Prof Lotriet commented that in regard to the Ministerial appointees, this Committee had previously received feedback that it was usually the Ministerial appointees who did not attend the meetings.

Mr Radebe added that previously, the DHET had been asked to establish a private monitoring system, he wanted to know how far it was in creating this system.

Dr Parker commented that there were some ministerial appointees who were not attending consecutively, but Dr Parker noted that there were key members within the Council. The Department had maintained that if there were appointees who were not attending, they would be removed.

Prof Lotriet commented that in the Foundation Provisioning Programmes, 16 000 students was not that many, and she had expected that the problems experienced in Basic Education would give rise to a higher figure. She enquired as to exactly what interaction took place between the Department and the local universities, in trying to address the figure. She noted that the teacher training provision target was exceeded overall, but wanted to know if the universities would provide teachers for the different phases, such as Foundation Phase and others.

Dr Parker noted that some institutions provided foundation provisioning programmes, but others did not. The Department was trying consistently and constantly to ensure that local institutions were introducing these programmes as this had a huge implication in helping people from rural areas reach tertiary education. She agreed that the DHET was reaching the overall numbers, but not the specific  types of teachers that were required.

Mr Makhubele pointed out that slide 16 listed strategies that were supposed to be achieved by May 2013, and asked why they were yet to be implemented.

Mr C Moni (ANC) noted that the target for Research Masters graduates was exceeded by 359. He wanted to know how many of these graduates were from South Africa.

Dr Parker said she did not have this information with her, but at postgraduate levels generally there was a trend of more foreign than local students.

Dr L Bosman (DA) asked for a separation of the figures on slide 15, for those who were graduating in human health sciences, and animal health sciences.

Dr Parker noted that the Department would disaggregate these figures.

Dr Bosman asked why the policy on good governance in FET Colleges was not gazetted.

Dr Parker responded that the policy was gazetted and would be published by the end of the year.

Mr Makhubele then asked which Universities specifically were producing the bulk of these graduates, to determine whether the public or private institutions were producing graduates at the same level.

Mr Gwebinkundla Qonde, Director General, Department of Higher Education and Training, said that when research was done by DHET into the local universities there was quite a high degree found of maladministration, and consequently a poor turnout of graduates and the quality of graduates. The Department was currently working very hard to address this problem. He specifically mentioned the Universities of Limpopo and of Fort Hare and said that the DHET was quite emphatic that it must address the problem squarely.

Continuation of presentation: Programme 4: Vocational and Continuing Education and Training
Dr Maboreng Maharaswa, Deputy Director General: Vocational and Continuing Education and Training (VCET), Department of Higher Education and Training, outlined that the purpose of this branch was to provide a plan, to develop, evaluate, monitor and maintain national policy, programmes, assessment practices and systems for vocational and continuing education and training, including further education and training colleges and post-literacy adult education and training. There were 19 targets, of which 9 were achieved, 8 were partially achieved and 2 were not achieved.

She noted that 657 690 students were enrolled in public FET College programmes (this target was exceeded by 107 690). 187 497 college students had been awarded bursaries (7 211 more students than anticipated). Nine Colleges offered higher education programmes (NQF level 5 to 6) instead of the planned eight. Pass rates in Mathematics and Mathematics Literacy increased.

The number of colleges implementing Business Management System standards increased from seven to eight in the quarter under review. 80, instead of the targeted 30, Student Support Services Managers were trained on selection, placement test and capacity building. 410 lecturers were trained to support the new curriculum. Lastly a model for FET College expansion had been developed as planned.

She then described the instances where targets were not met. There were 250 738 learners enrolled in Adult Education and Training (AET Level 1 to 4, which was below the target of 255 000). Certification rates in this branch were below target. Bursary recipients were also lower than anticipated.

Dr Maharaswa also noted that 23, instead of 30, Provincial Education Department (PED) officials were trained to support new curriculum delivery. A generic Human Resource Management and Planning (HRM&P) framework for FET Colleges was in a draft form and could not be finalised during the quarter. No certificates for National Certificate (Vocational) graduates were issued during the quarter under review. 87% of institutions were assessed as conducting national examinations in a credible manner, instead of the targeted 100%.

Only 31 Colleges had fully constituted councils instead of 50. Financial training of personnel could not take place as planned. Lastly training of personnel to support curriculum delivery in AET and Colleges could not take place as planned.

Dr Maharaswa then outlined the strategy to deal with each of the these issues. Firstly, DHET would be engaging with the National Treasury and PEDs to convert the Provincial Programme 6 allocations into a Schedule 4 Conditional Grant, until the AET function was shifted to the competence of the Department. The Department would in addition submit a budget bid for the 2014 Medium Term Expenditure Framework (MTEF), for the expansion of enrolments.

A main priority was improvement of pass and certification rates. To do this, the Department would adopt a multi-pronged approach, targeting different aspects of teaching and learning, as well as student support environments. Placement tests would be implemented, to ensure a match between aptitude and field of study. There would be implementation of Academic Support programmes, counselling, guidance and student mentoring. Lastly there would be additional remedial interventions based on needs and additional opportunities for earning through extra classes.

Discussion
The Chairperson commented that Dr Maharaswa should look at two vitally important issues. The first related to policy, and he maintained that this Committee expected that particular FET institutions would advance a suite of programmes to SAQA for approval. Secondly, he said that there was a problem around certification and he urged that there must be capacity to deal with the students, to avoid any violent protest.

Mr Radebe also wanted to know exactly why the students had not received their certificates.

Dr Maharaswa noted that the Department would keep an eye on the submissions to the SAQA.

Mr Radebe reiterated earlier concerns around targets, wondering if the DHET had been keeping its targets deliberately low to make it seem as if it was making huge strides.

Mr K Dikobo (AZAPO) shared Mr Radebe’s concerns about targets, and wondered if the inaccuracy in creating targets would affect the budget and institutions. He also questioned why so many deviations were below targets.

Dr Maharaswa noted that there were indeed variations, but it was difficult to accurately gauge how drastically either exceeding or being below targets would affect the budget.

Dr Bosman wanted to know how the Department would address the leakage of term papers, which had specifically resulted in various engineering student’s results being withheld.

Mr Makhubele asked what was happening to institutions that were not conducting credible examinations.

Dr Maharaswa noted that the Department was working with institutions to ensure that they met the quality management tests and were credible. DHET had also had various meetings with the leadership of the institutions to identify exactly what issues were hampering the credibility of the institution. Various reasons would be detailed and explained in a later meeting with this Committee.

Mr Moni wanted the Department to address the difference between a certification and a certificate rate.

Dr Maharaswa stated that she would not address the issues around certification at the moment, since the topic would be addressed in the next meeting, in the following week. A detailed report would be presented in this meeting.

The Chairperson asked why the financial training of personnel had not taken place.

Dr Maharaswa explained that this was a huge issue and required a financial team to be set up, which had been done, so now the team would go to different institutions and provide the tools required to teach the financial skills to personnel.

Continuation of presentation: Programme 5: Skills Development
Mr Clive Mtisha, Acting Deputy Director General: Skills Development, DHET, set out that the purpose of the programme was to promote and monitor the National Skills Development Strategy (NSDS) and to develop skills development policies and a regulatory framework. There were 14 targets within this branch of the Department, of which 12 were achieved and 2 were not achieved.

He set out some key achievements. 2 880 Artisan candidates were found competent nationally against the target of 2 000.  14 961 graduates received Work Integrated Learning (WIL) against the target of 8 500. All SETA Strategic Plans and Annual Performance Plans were analysed and approved by the Minister, and two SETA Forums were held during the quarter as planned. Eleven, instead of the five targeted audits were conducted at SETA accredited trade centres.

Mr Mtisha noted that R7.88 billion was earmarked to support projects of national priority, in excess of the target of R2.3 billion. 17 383 Learners were in training in National Skills Foundation (NSF) projects, and 3 294 more learners were trained than the target. 100% of SETAs were implementing NSDS III with approved Service Level Agreements, and NSDS quarterly implementation report was compiled.

The national artisan trade testing regulations were completed for final submission to the Minister. The service level agreements of the SETAs had vastly improved, with much tighter and specific performance objectives and quantitative targets, especially in relation to FET Colleges and artisan development.

Mr Mtisha set out the deviations from the targets. The development and piloting of a secure trade testing system at five test centres could not be achieved. The tender for the system was issued in February 2013, but withdrawn. A new tender process was being undertaken. The NSDS Annual Review Report was not produced, due to the misalignment of timelines with audited information from stakeholders. 

Discussion
Mr Radebe reiterated that this report again showed that the Department’s targets were inaccurate. He stressed that the Department needed to address all inaccuracies and assess the impact of these inaccuracies on the budget.

Mr Dikobo wanted to know how many more than 2 880 people might have qualified as artisans but were not yet registered. He enquired whether the people of South Africa were truly taking advantage of the opportunities provided by government.

Mr Mtisha noted that at INDLELA, in 2012, 9 063 candidates arranged to be tested but that 1 430 did not arrive for the testing. Only 7 633 got tested, of whom 3 067 passed and 4 000 failed. These were the annual figures.

Continuation of presentation: Finances
Mr Omega, Chief Director: Finance, DHET, noted that the DHET had managed to comply with all National Treasury requirements during the current financial period. All deadlines were all adhered to and the budget was appropriately managed to avoid unauthorised expenditure. The total payments on the final quarter of the year were drastically reduced when compared to other quarters, but this was due to the fact that major transfers to Universities and Universities of Technology that constituted the biggest portion of the Departmental expenditure were mostly completed in the third quarter of the year. Overall spending of the Department, excluding direct charges, was at 99.9%, and with the direct charges added, the expenditure was 2.6% over for the year. Savings were realised on Compensation of Employees, which was later shifted to offset projected over-expenditure on Examiners and Moderators, as well as on goods and services.

Mr Shelembe then stated that a roll over request would be submitted to National Treasury for the unspent portion of remuneration on Examiners and Moderators, in order to avoid using the 2013/14 budget to pay current claims that could not be processed timeously. The projected roll over request amounted to R2.8 million.

He assured the Committee that all programmes would be individually managed to remain within the approved budget, with a spending rate of between 90% and 99.9%, after a re-prioritisation process.

Mr Shelembe noted that for Programme 1: Administration, the spending pressures on the programme due to increased costs relating to Ministerial campaigns, personnel administration, audit fees and property management necessitated the shifting of about R8 million from other programmes to avoid over spending. The virement was done within the rules.

In relation to Programme 2: Human Resource Development, Planning and Monitoring Coordination, despite spending pressures on the programme due to high legal costs, a reprioritisation exercise led to an overall saving of about R1 million.

He noted that under Programme 3: University Education, all transfers to Universities and Universities of Technology were timeously effected. Savings on compensation of employees, totalling R3 million, was shifted from the programme to defray over expenditure on other programmes.

In Programme 4: Vocational and Continuing Education and Training, he reiterated that high spending on examiners and moderators, partly because of an increased rate effected during the period under review, meant that a sum of R4 million had to be shifted from other programmes to offset an anticipated shortfall.

In Programme 5: Skills Development, a total of R7.4 million was shifted through the virement process, because there had been savings made through low spending of the funds set aside for the security system at INDLELA, and savings on compensation of employees.

Discussion
Mr Dikobo was worried to hear about “savings” on compensation of employees, and asked at what cost these savings were achieved, and whether this affected a service that ended up not being rendered, such as examiners or moderators.

Mr Theuns Tredoux, Chief Financial Officer, DHET, stated that “savings” were often actually under expenditure. However, where the vacancies could not be filled due to a myriad of reasons, then this money was used as a genuine saving, and could be used elsewhere when it was clear that the vacancy could not be filled.

Mr Tredoux noted that the DHET had placed a large amount of funding aside for examiners and moderators. However, because of the increased enrolment at the universities, the correct ratio was not achieved. These individuals bore the responsibility of claiming from the Department, but where they failed to do so, the DHET could be left with an excess, which may account for the R2.7 million that was left at the end of this financial year.

The Deputy Minister, Mr Mduduzi Manana, was pleased to see transparency and a progressive nature of deliberations, between the Committee and Department. He assured the Committee that he would make a point of meeting all Ministerial appointees on councils to discuss the concerns raised as this meeting.

The meeting was adjourned.