Department of Higher Education and Training Quarter 2 performance
Meeting Summary
The Department of Higher Education and Training briefed the Committee on its Quarter 2 Performance Report for the 2017/18 Financial Year. The Department reported on what it had been asked to provide inputs on by the Committee. For this period, the 2017/18 financial year, there were 86 targets. In addition, there were 34 system targets that encompassed Universities, Technical and Vocational Education and Training Colleges, Community Education and Training Colleges, as well as Skills Education Training Authorities. In the 2nd Quarter there were 40 planned targets or outputs from all the branches. 37 out of the 40 targets had been achieved and that constituted 93%, with improved performance by 17% in the quarter under review.
Members were particularly concerned about the high percentage of outputs being measured by whether a report had been finalised or not, without any qualitative indicators; they asked if this was the best way to indicate success or failure. Members had also been approached by colleges who were really being suffocated financially. This brought into question the role of the National Student Financial Aid Scheme and whether it was fulfilling its mandate given that colleges had only received 40% of their annual funding. The availability of the Judicial Commission’s Report was also called into question because Members felt that they would be better able to assist institutions with management if the report was available.
The Committee questioned the 46% spending pattern on the compensation of staff; if fee adjustments had anything to do with free education; if the Department’s improvement in Human Resources had met the target of filling vacancies within the required time frame; for a detailed progress report on the construction of 12 new Technical and Vocational Education and Training college campuses; certification and available data; how many officials were involved in the irregular expenditure of R228 000 incurred in the 1st quarter 2017/18 and the incumbent disciplinary process; how much irregular expenditure had been incurred during the 2nd quarter and Technical and Vocational Education and Training colleges and universities with outstanding financial statements for 2016. Members were concerned about the consistent absence of relevant DDGs, why vacancies were not filled even though they were funded and if the Department had been able to fully integrate the Adult Basic Education and Training into the National Department.
Members heard that the National Students Financial Aid Scheme Bill would be going to the Minister for approval. It was decided that the Committee would make an urgent application to go to the University of Cape Town the following day to find out what the difficulties there were.
Meeting report
The Chairperson said as there was not a quorum in the meeting decisions could not be taken until there was a quorum. However, the meeting would proceed with a briefing by the Department of their 2nd Quarter Report. Ms M Nkadimeng (ANC)would no longer be part of this Committee. A new Member, Mr R Mavunda (ANC) was introduced to the Committee.
Briefing by the Director-General (DG)
The Director-General, Mr Gwebinkundla Felix Qonde, said the presentation would be done per programme as well as some of the critical areas, including what had been asked of the Department to make inputs on.
For this period, the 2017/18 financial year, there were 86 targets. In addition, there were 34 system targets that encompassed Universities, TVET (Technical and Vocational Education and Training) Colleges, Community Education and Training Colleges, as well as Skills Education and Training Authorities (SETA). These were always monitored by the respective delivery programmes of the Department and responded to mainly during the third quarter of the Financial Year. In the First Quarter the Department achieved 25 targets out of 33, which constituted 76% against the planned targets. There were about eight targets that were outstanding, and therefore not achieved. These targets have subsequently been achieved.
In the 2nd Quarter there were 40 planned targets or outputs from all the branches. 37 out of the 40 targets had been achieved and that constituted 93%, with improved performance by 17% in the quarter under review. The Department was at 93% achievement.
Briefing by the Department of Higher Education and Training (DHET) on its Second Quarter Report.
Ms Gladys Maphetho, Chief Director Human Resources, DHET, said in Programme 1: Administration, the status of targets not achieved during the 1st quarter was as follows: Development of a system for tracking invoices from creditors in order to pay them within 30 days had as current status: The Director-General approved the appointment of a service provider for the development of the system on 24 August 2017.
Mr Reineth Mgiba, Director, and DHET on Programme 2: Planning, Policy and Strategy, said there were 11 targets for the quarter and all of the targets were achieved.
Dr Diane Parker, Deputy Director-General (DDG), DHE on Programme 3: University Education, said there were six targets for the 2nd quarter. Five targets were achieved for the quarter. One target was not achieved. The target not achieved was: Development of a Policy Framework on Collaboration between professional bodies, Government departments, and quality councils that was due for approval by the Minister by 31 March 2018.
Mr Firoz Patel, DDG TVET (Technical and Vocational Education and Training), DHET, said in Programme 4 there were 11 targets for the quarter, and 11 targets were achieved. The target not achieved during the 1st quarter was: Reviewed Departmental policy framework on TVET qualifications developed and approved by the Director-General. A revised draft has subsequently been sent to the SA Qualifications Authority (SAQA) and Umalusi for comments.
Mr Mabuza Ngubane, Director, DHET, said in Programme 5: Skills Development, there were four targets for the quarter and four were achieved. Quarterly meetings on the implementation of security infrastructure development plan were held and progress reports were being compiled as planned.
Mr David Diale, Director: Community Education and Training (CET), said in Programme 6: Community Education and Training, there were four targets for the 2nd quarter and three targets were achieved. One of the targets not achieved was: Development of the Reviewed Funding Framework for CET Colleges for approval by the Minister by 30 September 2017. This has subsequently been completed and submitted to the Minister for approval.
Mr Theuns Tredoux, Chief Financial Officer (CFO), said the overall spending rate by the second quarter was 67.11%, and average spending for normal operational activities including compensation of employees was 46.87%. Programme 3 remained the programme with the highest spending trend, due to the subsidy payments to Universities and NSFAS (National Student Financial Aid Scheme).
Mr Tredoux said that the Department’s Adjusted Estimates amounted to R68,078 billion, which reflected a decrease of R870,902 million. The decrease resulted from the downward adjustment of the estimated skills levy collections by SARS by National Treasury. Post-School Education and Training remained the function with the highest average nominal growth (8.2%) within Government over the period 2017/18 to 2020/21 (after debt service costs).
Professor D P van der Nest, Audit Committee Chair, DHET said there was going to be a special Audit Committee meeting just to look at progress before closing for the year as certain areas were still being monitored.
(See DHET Second Quarter Report)
Discussion
Mr A Van der Westhuizen (DA) said he was particularly concerned about the high percentage of outputs that were being measured by whether a report had been finalised or not, without any qualitative indicators. Like for example whether the report was implementable or if it was a positive report. Was this the best way to indicate success?
Mr Qonde, with regard to targets under review at the present moment, said there was a need to provide more meat in the Annual Performance Plans because the targets reported on presently were not developed and were formulated in this quarter. The Department was reporting on what was enshrined in its Annual Performance Plan, that was why in reporting achievements it thought of putting a bit of substance in respect to what the targets were about and what its intentions were with regard to the system to give a bit more clarity. It acknowledged the points of the Committee, and when developing Annual Performance Plans, it had to engage with the Committee.
Mr Van der Westhuizen said he had been approached by colleges who were really being suffocated financially. He asked if he was reading the Report correctly where it was stated that NSFAS had already received 100% of its annual budget. This was strange because TVET Colleges had only received 40% of their annual NSFAS funding?
Mr Qonde said the Department was aware of the challenges and there had been many meetings between the two parties on an operational level in trying to put it quite forthrightly to the attention of officials of NSFAS that it was their obligation that the funds that had been transferred them was their responsibility to transfer to institutions.
Mr Patel replied that the DG had already indicated in the last report the Department had of 3 November where the NSFAS had paid out 60% of the money that was due. This was unacceptable by all standards and NSFAS had to fulfil their legislative mandate. It cannot be that the constitutional rights of young people were violated both in terms of access to food and access to shelter. Hence the Department hoped that the new CEO would be able to deal with that particular issue. The Department had worked with the new CEO and things were looking positive. There seemed to be a problem with entities where they took the autonomy but were unable to deliver and the Department was blamed.
Mr van Der Westhuizen referred to the spending pattern on staff at 46%. Was this 46% of the annual budget for staff?
Mr Tredoux confirmed the 46% on spending of compensation of staff and it had to be considered that that 135 had to be shifted away from compensation of employees, also it had to be taken into account that specifically performance awards and not adjustments in terms of the various staff throughout the Department still had to be processed, and therefore that accounted for the below average percentage.
Mr Van der Westhuizen thanked the Department for the table regarding the shortfall should free education be the aim.
Mr Qonde replied that the question of fee adjustments had nothing to do with who would be paid fees. Whether education was free or not fees would be adjusted because that was an economic imperative. The purpose of a fee adjustment was to try to align the demand and supply with respect to the operation of the entities, institutions as well as colleges, and this was an economic imperative. Even if education was free there would be adjustments.
Mr Van der Westhuizen said he was still waiting for the Judicial Commission’s Report. He asked what message could be given to those people who had to manage the situation on the ground and if some financial relief was coming their way. What was the extent of the financial relief? The Committee had to help them, to give them information to manage their institutions.
Mr Qonde said it was not in the Department’s purview to speak on this matter, but the President had assured the Department that he was giving it some attention, and pronouncements were going to be made. This report was about 749 pages that had to be gone through in order to come up with some proposals. The approach to this report had always been to not deal with ad hoc arrangements that cropped up all the time, but to work towards finding a more lasting solution to the system. This required consideration and the processing of issues in as detailed a way as possible, so that when policy pronouncements were put to the public, they would have received adequate consideration as well as mechanisms for funding for sustainability in the system. One was not just talking about fees or fee adjustments; one was talking about funding the entire system as a whole. There was a whole lot that the President had to consider before making pronouncements. He (the President) had given his assurance that this matter was receiving attention.
The Chairperson interjected and said that the DG would make a good politician.
Ms S Mchunu (ANC) said a plan to include HR selection was developed and approved. She asked if implementation of the plan was currently underway, and if their improvement in Human Resources [HR] had met the target of filling vacancies within the required time frame.
Ms Maphetho said that the Department did not really have vacancies. There was a situation in the Department where another vacancy was created when one person was promoted. This was a continuous process which kept the Department busy throughout the year.
On the plan developed, it would assist the Department in terms of the turnaround time being reduced. It had inherited different policies and procedures from all the provinces, and part of the plan was to develop a standardised procedure manual for all the colleges. Workshops had already been conducted in 59 colleges. The delay in this whole process was receiving applications. It was in the process of finalising the electronic recruitment process which would reduce time spent on manual applications substantially. Vacancies would always be there. When a post was filled, a vacancy was created.
Ms Mchunu said the Committee requested the Department to give a detailed report on the construction of 12 new TVET college campuses. She asked what was happening in this regard because there was a target of three new TVET college campuses by 31 March this year which was not achieved. She asked for progress in this regard.
Mr Patel replied that out of the 12 colleges three of them were already in the construction phase; one was completed and two were 95% completed. There were issues with the service provider in terms of a dispute which has subsequently been resolved. With regard to the other nine, the Department was at a very advanced stage in terms of the bidding process, adjudication process and the finalisation of that particular process.
Ms Mchunu said the Department could not report on the target to have a 310 000 headcount in enrolment in all CET colleges and a 35% certification rate in formal CET colleges due to the unavailability of data. This was reported during the previous quarter. The Department had said that data would be available October 2017. She asked if the State Technology Agency had provided data on TVET and CET targets that could not be reported in the 2016/17 Annual Report. If not, she asked the Department to explain why. If the required data was provided what were the outcomes?
Mr Patel replied that the expectation was that the information in 2016 would have been cleaned and verified by the end of October. The Department had issued preliminary information and the matter was resolved. There was a serious problem with the TVET submission of that particular data. The Department hoped to get a resubmission of data by the end of November. This would confirm and verify the 2016 information.
Ms Mchunu asked how many officials were involved in the irregular expenditure of R228 000 incurred in the 1st quarter 2017/18. The Internal Audit had recommended that disciplinary action should be taken against officials involved because they had by-passed the supply chain management processes. She asked further at what level the officials were who were involved in the previous irregular expenditure incidents. She basically wanted progress with regard to the disciplinary process.
Mr Patel said there were almost a quarter of a million out of the papers that were written. This was marked as an irregularity in order not to halt the examination. An irregularity referred to for example someone who has copied, or an invigilation problem, then it was marked as an irregularity and here was an investigation. Every examination had these kinds of irregularities, and then there was a period within which to deal with it. So, the results were blocked from going out.
Mr Tredoux replied that the DG had approved the submission and it has been handed over to labour relations. He asked HR to provide an updated report on where the process was currently. The report had not been received as yet.
Ms Mchunu asked how much irregular expenditure had been incurred during the 2nd quarter. She asked further how much and in which programmes; and if investigations where conducted and consequence management implemented against the officials involved.
Mr Tredoux replied that as of the state of reporting today, not one irregular expenditure matter was identified or reported for the 2nd quarter.
Ms Mchunu said the Office of the Auditor General (AG) reported that there were TVET colleges and universities with outstanding financial statements for 2016. She asked if the Department had followed up with institutions to ensure compliance. If yes, were reports submitted to the Auditor-General for auditing.
Mr Patel replied on the outstanding financial statements of 5 colleges: were East Cape Midlands; Northern Cape Rural; Tshwane North; Tshwane South and Sedibeng. Agreements that the financial statements for East Cape Midlands, Northern Cape Rural, Tshwane South and Sedibeng would be submitted by the November 30 2017. Tshwane North on 15 April 2018. There had been discussions with the AG on this.
Ms Mchunu expressed concern with the consistent absence of relevant DDGs
Mr Qonde said the Department always tried to ensure that DDGs were present. He shared with the Committee that the Department’s intention was to build accountability in and infuse institutional memory to as many staff members as was possible. This would allow for any manager in any branch to be able to talk to any issue. Capacity in every official had to be built.
Mr C Kekana (ANC) asked why the vacancies were not filled if they were funded.
Mr Qonde said their reporting was on the basis of the process and turnaround time with regard to filling vacancies. On average with every post that was advertised, one often received up to 500 applications which had to be processed.
Mr Kekana asked if it were possible to get information on how SETAs were performing when reporting on performance.
Mr Qonde said it should be understood that the SETAs were independent entities and there were service level agreements between them and the Department. The Department was at present negotiating a performance strategy with SETAs for the new financial year.
Mr M Wolmarans (ANC) said he took solace in the meeting of targets. Referring to Programme 2, the development of communication strategies for student support services, he asked the Department to talk about student support services that dealt with an occurrence of students committing suicide.
Mr Mgiba replied that this particular communication strategy was mainly focused on the provision of career information to students, and also to those coming into the system.
Dr Parker said with regard to student support that was provided from within the Department, it developed policies and regulatory frameworks and supported universities. However, each university and college had their own support services and it was the Department’s duty to see that they had them in place. In general, this always happened in the institution rather than the Department. The Framework for Collaboration report had been completed and the Committee would be provided with a copy of that.
Mr Patel replied that at institutional level, the Higher Education Aids Programme also assisted with some of the counselling.
Chairperson said the NSFAS Bill was somewhere in process. She asked if the Committee could be informed on whether the NSFAS Bill and Central Application Service Bill could be passaged to Parliament next year as it helped with the Committee’s programming. She encouraged the Department not to bring any Bills to Parliament in August.
Dr Parker said that the NSFAS Bill would be going to the Minister for approval. The Central Application Service Bill was in the stage of finalisation at the moment.
Chairperson said there was a colloquium and workshop planned with TVET colleges. She asked if the Committee could be informed on proposals or decisions made there.
The Chairperson asked the Department to elaborate on the TVET situation and elaborate on the 275 irregular issues – what were the possibilities and steps taken?
Mr Tredoux said that those were managed by the colleges themselves. There was a monitoring process in place by the financial planning component within the TVET branch which dealt with finances of TVET colleges specifically. If the Committee so desired they could be asked to submit a report to the Committee.
The Chairperson, on the CET, said it was noted what National Treasury had done in the Adjustment Budget and noted the compensation of debits and seen some progress. She asked if the Department had been able to fully integrate the ABET people in so far as their conditions of employment were concerned, and all other relevant things to allow them to properly be part of the National Department. There were problems related to different payment structures and conditions of employment because they were all in the provinces.
Mr Qonde said at some stage the Department had inherited ABET. It was in the process of trying to rationalise conditions of service and this required a lot of money. The initial estimation in terms of cost was about R1.3 million, which the Department did not have. There had to be rationalisation because employment in each and every province was different. This was a tricky situation because some colleges were functioning under the auspices of NGOs.
The Chairperson thanked the Department for responding to the Committee’s questions and updating it on its current status. She commended the Department for its good work in learning and teaching. She asked the Department if it was in line with the three-month’s provision of Certificates.
Mr Patel replied that on the three-month issuing of Certificates, that was the target that was set. With the latest examination starting in 2016, that period had been significantly reduced. Progress has continued in this regard as the Database was being cleaned up.
The Chairperson said that given the disturbing situation at the University of Cape Town, the Committee should make an urgent application to go there the following day. There was a problem with the academic year not being taken care of at the moment and it was the duty of the Committee to be there as these problems continued, on its own fact-finding mission to find out what the difficulties were. The university had gone to court and the problems still persisted.
Question asked but not answered in this meeting
The Chairperson said that she had attended a joint meeting with the Department of Basic Education where they spoke about programmes they were doing with disabled persons. She asked for more information on this.
The meeting was adjourned
Documents
Present
-
September, Ms CC Chairperson
ANC -
Kekana, Mr CD
ANC -
Mavunda, Mr RT
ANC -
Mchunu, Ms S
ANC -
Van der Westhuizen, Mr AP
DA -
Wolmarans, Mr M
ANC
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