ATC120420: Report on The Annual Performance Plan & Budget 2012/13

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE ANNUAL PERFORMANCE PLAN AND BUDGET 2012/13 OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING DATED 20 APRIL 2012

 

The Portfolio Committee on Higher Education and Training, having considered the Annual Performance Plan and Budget 2012/13 of the Department of Higher Education and Training reports as follows:

 

1. Introduction

 

The Portfolio Committee on Higher Education and Training considered the Annual Performance Plan and Budget 2012/13 of the Department of Higher Education and Training on 17 April 2012 in preparation for the Budget Vote 17 scheduled to take place on 24 April 2012. This report gives a brief summary of the presentation made by the Department to the Committee, focusing mainly on the 2012/13 Annual Performance Plan and Budget including an overview of allocations per programme. The Deputy Minister of Higher Education and Training, Prof H Mkhize was present with her senior officials from the Department in the meeting.  The report also provides the Committee’s observations and recommendations.

 

Portfolio Committee on Higher Education & Training:

Present: Ms N Gina (ANC), Adv I Malale (ANC) (Chairperson), Mr S Makhubele (ANC), Prof S Mayatula (ANC), Mr C Moni (ANC), Mr S Radebe (ANC), Dr L Bosman (DA), Prof A Lotriet (DA), and Mr A Mpontshane (IFP).

 

Department of Higher Education and Training:

Prof H Mkhize: Deputy Minister, Mr G Qonde: Director-General, Dr B Mahlobo: Acting Deputy Director-General Vocational and Continuing Education and Training, Dr D Parker: Acting Deputy Director-General University Education, Mr T Tredoux: Chief Financial Officer, Mr F Patel: Deputy Director-General Planning, Ms L Mbobo: Deputy Director-General Corporate Services, Mr C Mtshisa: Acting Deputy Director-General Skills, Mr F Toefy: Chief Director Planning Monitoring and Evaluation, Ms T Futshane: Acting Chief Director Vocational and Continuing Education and Training, Mr M Macikama: Chief Director National Skills Fund, Ms B Ntombela: Chief Director Human Resource Development Council, Mr MLumka: Acting Chief Director SETA Coordination, Mr N Nqandela: Chief of Staff Ministry, Mr K Mgiba: Director Strategic Planning, Mr Z Hlongwane: Director DG’s Office and Mr W Tabata: Acting Director Ministry.

2. Summary of Presentation on the Annual Performance Plan 2012/13

Mr G Qonde, Director-General, led the presentation which highlighted the following key issues:

·         The mandate of the Department was to ensure that the skills needed to drive the country’s economic growth and social development weredelivered at an increasing rate. On the supply side, the Department must serve a growing number of young people and adults and provide different entry points into the learning system.

·         The strategic objectives of the Department included: expanding access to education and training for the youth; increasing the number of students successfully entering the labour market upon completion of training; and, expanding research development and innovation capacity for economic growth and social development.

a) Programme 1: Administration

Ms L Mbobo, Deputy Director-General Corporate Services, led this part of the presentation which highlighted the following key issues:

·         This programme provided the overall management and administration of the Department. The programme received a total allocation of R175.5 million which is 0.6% of the total higher education and training budget for the current financial year, representing an increase of R17 million compared to the previous financial year. The Department filled all the vacant funded posts during the previous financial year and aimed to reduce the vacancy rate to 15% in the current financial year. The Department maintained a good record in terms of asset management and developed an anti-corruption policy. Information Communication Technology (ICT) governance remained a serious concern for the Department since the maturity level was 0.

b) Programme 2: Human Resource Development, Planning and Monitoring Coordination

Mr F Patel: Deputy Director-General Planning Services led this part of the presentation which highlighted the following key issues:

·         This programme provided strategic direction in the development, implementation and monitoring of Departmental policies and the human resource development strategy for South Africa. The programme was allocated R40.7 million which is 0.1% of the total budget of higher education and training. The allocation would be shared among six sub-programmes according to the strategic objectives assigned to each. The Department aimed to integrate 80% of public institutional data into the Higher Education Management Information System (HEMIS) and the National Skills Fund (NSF) has allocated funding for this project. An academic journal for Higher Education and Training would be published in the current financial year. An international relations operational framework strategy would be developed in the current financial year to bring into collaboration all the agreements made by the Department and its entities.

c) Programme 3: University Education

Dr D Parker, Acting Deputy Director-General University Education, led this part of presentation which highlighted the following key issues:

·         The aim of this programme was to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. This programme consisted of six sub-programmes, namely; Programme Management: University Education; University – Academic Planning and Management; University – Financial Planning and Information Systems; University – Policy Development; and Teacher Education and University- Subsidies. The programme had a budget of R26.2 billion, which represents an increase of 5.7% from the previous financial year. The increase in the funding for this programme is in line with the mandate of the Department to increase access to higher education especially for poor academically serving students. The Department targeted 179 793 first time enrolments at universities in the current financial year. There was a steady increase of African students in universities and 57% of the student population were females. Good governance in higher education institutions remained a serious concern for the Department. Only 74% HEI’s had good governance in the past financial year. A total of three universities have been put under administration owing to inadequate governance and maladministration. The proposal for the development of the next generation of academics was being reviewed by the Department. The Teaching Development grant was R500 million which has been allocated to universities to develop their academic staff.

d) Vocational and Continuing Education and Training

Ms T Futshane: Acting Chief Director Vocational and Continuing Education and Training led this part of the presentation which highlighted the following key issues:

·         The purpose of this programme was to plan, develop, evaluate, monitor and maintain national policy, assessment practices and systems for vocational and continuing education and training, including further education and training colleges and post-literacy adult education and training. The VCET consisted of the following programmes, namely: Programme Management: Vocational and Continuing Education, Planning and Institutional Support and Programme and Qualifications. The programme received an allocation of R4.9 million being a 2.6% increase from the previous financial year. The Adult Education and Training (AET) programme targeted 255 000 learners from level 1 – 4 in this financial year. There has been a steady increase in headcount enrolments in FET colleges from 355 000 in 2011 to 555 000 in 2012. The Department published the National Senior Certificate for Adults (NASCA) qualification in the government gazette and curriculum support programmes for NASCA have been developed. Inadequate governance remained a concern for the Department in FET colleges and those who failed to govern were put under administration. The Department would train 60 Provincial Education Departments officials to support new curriculum delivery.

e) Skills Development

Mr C Mtshisa: Acting Deputy Director-General Skills led this part of the presentation which highlighted the following key issues:

·         This programme promoted and monitored the National Skills Development Strategy (NSDS III); developed a skills development policy and a regulatory framework for an effective skills development system. The total budget for this current financial year was R100.1 million which is 0.4 per cent of the total higher education and training budget and would be shared among the following four programmes: Programme Management: Skills Development, SETA Coordination, National Skills Development Services and Quality Development and Promotion. The budget for this programme decreased by 28% in the current financial year owing to the prioritisation of other programmes within the Department. The Department targeted 10 000 Artisans produced per annum in the current financial year. Approximately 32 179 learners would be trained within NSF projects in the current financial year. A total number of 4 forum meetings with the SETAs will be conducted in this financial year.

d) 2012/13 Medium Term Expenditure Framework (MTEF) Budget Information

PROGRAMME

MEDIUM-TERM EXPENDITURE ESTIMATE

2012/13

R’ thousand

2013/14

R’ thousand

2014/15

R’ thousand

Administration

175 453

192 702

205 999

Human Resource Development, Planning and Monitoring Coordination

40 671

45 989

49 049

University Education

26 233 965

28 155 459

29 926 929

Vocational and Continuing Education and Training

4 950 200

5 528 440

5 837 899

Skills Development

100 068

107 436

114 356

Subtotal

31 500 357

34 030 026

36 134 232

Direct charge against the National Revenue Fund

9 606 148

10 134 486

10 742 555

Total

41 106 505

44 164 512

46 876 787

 

For the 2012/13 MTEF period, the Department’s budget increased from R28.2 billion in 2011/12 to R31.5 billion for 2012/13 an annual average increase of 8.7%. The Department received additional allocations to the amount of R183 million, R345 million and R449 million over the MTEF period which included funding for tertiary institutions infrastructure. Programme 3: University Education dominated expenditure on the budget of the Department mainly as a result of the transfer to universities and the NSFAS. These expenditure items represented 83% of the total budget of the Department for 2012/13.

 

3. Observations

3.1 The delays in the filling of vacant posts, especially in senior management positions remained a serious concern for the Department. The vacancy rate target for the current financial year was only 15%. It was observed that a number of senior managers had been acting for a period exceeding 12 months in one position and the Department was requested to appoint suitably qualified candidates for those posts.

3.2 The ICT governance maturity of the Department was level 0 and the target for the current financial year was only 1. This was a serious concern for the Committee as ICT played a critical role in the operations of the Department.

3.3 The utilisation of consultants to assist in policy development and NSF accrual system remained a concern for the Committee. The Department was encouraged to improve its internal capacity to minimize the use of consultants.

3.4 The proposals of the Department to develop an Academic Journal for Higher Education and a Newsletter for the public at large were commended by the Committee.

3.5 It was raised with concern that only 74% of public higher education institutions had good governance and management and the Department was requested to develop plans to alleviate this challenge as it was affecting the delivery of quality education.

3.6 The Annual Performance Plan of the Department was not articulate on the process of the establishment of universities in Mpumalanga and theNorthern Cape. It was emphasized that this process should be given priority as the demand for higher education was expanding.

3.7 The Committee expressed a serious concern regarding the unfunded mandate of the Council for Quality Assurance in General and Further Education and Training (Umalusi). The Department was requested to resolve this matter with the Department of Basic Education.

3.8 The proposal for the regulation of fee increment by public higher education institution was commended by the Committee.

3.9 Inadequate success and retention rate in HEI’s especially among black students remained a concern for the Committee. The National Skills Fund (NSF) was requested to allocate more funding for the development of future academics projects.

3.10 It was raised with concern that FET colleges experienced high failure rates and there were constant delays in the release of results.

 

4. Resolutions

The following formed part of key resolutions:

·         It was resolved that all international agreements undertook by the Department should be submitted to the Committee for its own consideration,

·         A comprehensive progress report in the work of Administrators appointed in FET colleges and higher education institutions should be submitted the Committee, and

·         The NSF should submit a comprehensive report on its spending pattern.

 

5. Conclusion

The Department’s Annual Performance Plan 2012/13 presented to the Committee was a key platform for implementing the vision and mandate of the Department. The vision was derived from the current administration contained in the Strategic Plan 2010/11 – 2014/15 of the Department and the Green Paper for Post School Education and Training. A total of five programmes, namely; Administration, HRM and Planning, University Education, VCET and Skills Development remained the key delivery vehicles for the realisation of a successful post-school education and training sector.

The Annual Performance Plan 2012/13 presented to the Committee reflected an improvement compared to the previous plans which did not show clear targets and time frames for the implementation of key deliverables. The Department was committed to increased access and improved opportunities for young people in the post school education and training sector. The annual average increase of 8.7% in the budget allocation of the Department bears testimony to the Department’s strategic objective of ensuring that the skills needed to drive the country’s economic growth and social development are delivered at an increasing rate.

The filling of vacant posts in senior management positions and the demand for financial assistance in higher education and training remained major concerns for the Department. On the positive side, the Department continued to support FET colleges and some of the major highlights included: a steady increase in the national pass rate from below 30% to 40% in 2011, full bursaries for academically deserving learners, placements of 11 000 FET graduates to industries and the proposed appointment of Chief Financial Officers for all FET colleges in the country.

6. Recommendations

The following formed part of the recommendations:

·         The NSF should allocate a special funding for the development of future academics projects aimed at improving the quality of higher education,

·         A tracking system for FET colleges graduates should be implemented in order to monitor their progress upon completion of their studies,

·         The Recognition of Prior Learning (RPL) and HIV programme in higher education should be given priority by the Department, and

·         The filling of vacant posts, especially in senior management positions should take top priority for the Department.

 

Report to be considered.

 

 

 

 

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