ATC130502: Report of the Portfolio Committee on Higher Education and Training on the Annual Performance Plan and Budget 2013/14 of the Department of Higher Education and Training, dated 30 April 2013

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE ANNUAL PERFORMANCE PLAN AND BUDGET 2013/14 OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING, DATED 30 APRIL 2013

The Portfolio Committee on Higher Education and Training, having considered the Annual Performance Plan (APP) and Budget 2013/14 of the Department of Higher Education and Training reports as follows:

1. Introduction

The Portfolio Committee on Higher Education and Training considered the APP and Budget 2013/14 of the Department of Higher Education and Training on 17 April 2012 in preparation for the Budget Vote 17 scheduled to take place on 08 May 2013. This report provides a brief summary of the presentation made by the Department to the Committee, focusing mainly on the 2013/14 Annual Performance Plan and Budget including an overview of allocations per programme. The Deputy Minister of Higher Education and Training, Mr M Manana , MP was present with his 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 D Chili (ANC), Ms N Gina (ANC), Mr S Makhubele (ANC), Adv I Malale (Chairperson), Prof S Mayatula (ANC), Mr C Moni (ANC), Mr S Radebe (ANC), Dr L Bosman (DA), Prof A Lotriet (DA), Mr N Bhanga (COPE) and Mr A Mpontshane (IFP).

Apologies: Ms D Sibiya (ANC).

Support Staff: Mr A Kabingesi (Committee Secretary), Ms M Modiba (Content Adviser), Mr L Komle (Researcher), and Ms T Majone (Committee Assistant).

Department of Higher Education and Training:

Mr M Manana : Deputy Minister, Mr G Qonde : Director-General, Mr F Patel: Deputy Director-General Planning, Mr C Mtshisa : Acting Deputy Director-General Skills Development, Dr D Parker: Acting Deputy Director-General University Education, Dr M Maharaswa : Deputy Director-General Vocational and Continuing Education and Training, Ms L Mbobo : Deputy Director-General Corporate Services, Dr B Mahlobo : Chief Director Vocational and Continuing Education and Training (VCET), Mr M Lumka : Chief Director Sector Education and Training Authority (SETA) Coordination, Mr F Toefy : Chief Director Strategic Planning, Mr R Mgiba : Director Strategic Planning, Ms S Dlamini : Chief Director Communications & Media Liaison, Mr S Ngcobo : Director Information Technology, Ms P Whittle: Director, Mr E Mashabane : Director, Ms L Mokwena : Director Youth Development Programmes, Ms H van Rensburg : Director University Academic Planning Monitoring & Evaluation, Ms N Pote : Director Examinations, Ms G Magnus: Project Manager VCET, Mr J Slater: Acting Chief Director Further Education and Training (FET) Colleges, Ms B Ntombela : Head of Secretariat Human Resource Development Council, Ms P Sekgobela : Parliamentary Liaison Officer Office of the DG, Ms N Nqaba : Parliamentary Liaison Officer Ministry, Ms G Umeh : Deputy Director and Mr S Zondi : Parliamentary Liaison Officer Deputy Minister’s Office.

2. Summary of presentation

The DG presented the progress report of the Department since its inception in 2009 which included the following successes; student headcount enrolment at universities increased by 12% from 837 779 to 937 45, student awarded bursaries at FET colleges increased by 183%, establishment of the Quality Council for Trades and Occupations (QCTO) and National Artisan Moderation Body (NAMB) and other similar successes.

a) Programme 1: Administration

Mr S Ngcobo : Director Information Technology (IT) led the presentation which highlighted the following key issues:

This programme provided the overall management and administration of the Department. The vacancy rate of the Department had been reduced from 15% in 2012/13 to 10% in 2013/14. Budget constraints remained a serious challenge in filling of all vacant posts. An external service provider was appointed to improve Information Technology (IT) network for a period of three years. Non compliance with supply management policies owing to lack of training remained a serious concern for the Department.

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

Mr R Mgiba : Director Strategic Planning led the presentation which highlighted the following key issues:

This programme provided strategic direction in the development, implementation and monitoring of Departmental policies and Human Resource Development Strategy for South Africa (HRDSA). The Department targeted 100% integration of all public higher education and training institution’s data into the education and training management information system in the year under review. The career guidance service had improved and expected to reach more learners. Policies and procedures to deal with social inclusion framework had been developed.

c) Programme 3: University Education

Dr D Parker: Acting Director-General University Education led the presentation which highlighted the following key issues:

This programme developed and coordinated policy and regulatory frameworks for an effective and efficient university education system. It also provided financial support to universities, the National Student Financial Aid Scheme (NSFAS) and the National Institutes for Higher Education (NIHE). Increase in the number of enrolled students in higher education institutions continued to grow and required more resources from the Department to support this growth. Approximately, 20 public higher education institutions would be involved in foundation phase teacher education. The Department targeted growth in number of African students (610 357) and female students (563 509) in the year under review. There would be 10 universities that would offer programmes for FET College lecturers and a policy document for Adult Educator Qualifications would be developed. The Department continued to provide support to higher education institutions in terms of institutional governance and the target was 83% of public higher institutions with good governance and management in 2013/14. The graduation and throughput rate in institutions of higher learning remained a serious challenge to the Department and it would continue intervening where required.

d) Programme 4: Vocational and Continuing Education and Training

Ms L Mokwena : Director Youth Development Programmes led the presentation which highlighted the following key issues:

This programme planned, developed, evaluated, monitored and maintained 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. The Department targeted an increase in number of learners enrolled in Adult Education and Training Centres (from 255 000 in 2012/13 – 278 00 in 2013/14) and 100 000 growth in headcount enrolments in FET colleges. The number of FET colleges offering NQF level 5-6 programmes would be increased from 8 to 10 in 2013/14. The delivery of the National Senior Certificate for Adults (NASCA) would be supported by 60 Provincial Education Department officials. The Department aimed at increasing certification rate and pass rates of National Certificate Vocational NC( V) programmes in FET colleges through strengthening of student support services. New indicators for 2013/14 included: 9 public institutions identified for declaration as community colleges, 6 new FET college campuses to be built and 50 College Councils to be trained.

e) Skills Development

Mr M Lumka : Chief Director SETA Coordination led the presentation which highlighted the following key issues:

This programme promoted and monitored the National Skills Development Strategy (NSDS III), developed skills development policy and a regulatory framework. It also provided a dynamic interface between the workplace and learning institutions and to promote quality learning at work and for work by 2016. Artisan training would be prioritised and 27 279 graduates would receive Work Integrated Learning (WIL) compared to 8500 graduates in 2012/13. All Sector Education and Training ( SETAs ) Strategic Plans for 2013/14 were approved by the Minister (in relation to Sector Skills Plan).

f) Financial Information

Mr T Tredoux : Chief Financial Officer led the presentation which highlighted the following key issues:

Programme	Adjusted Appropriation	Medium-Term Expenditure Estimate R thousand
	2012/13	2013/14	2014/15	2015/16
Administration	164 166	200 621	211 335	221 288
Human Resource Development, Planning and Monitoring Coordination	44 342	48 066	52 822	55 762
University Education	26 232 692	28 303 661	30 426 038	32 803 475
Vocational and Continuing Education and Training	5 044 252	5 664 457	6 012 464	6 342 409
Skills Development	100 699	105 596	112 672	118 873
Subtotal	31 586 151	34 322 391	36 815 331	39 541 807
Direct charges against the National Revenue Fund	11 400 000	12 403 000	13 544 000	14 817 000
Total	42 986 151	46 725 391	50 359 331	54 358 807

The Department’s budget for the 2013 Medium Term Expenditure Framework (MTEF) (excluding direct charges) increased at an annual average rate of 7.8% from R31.6 billion in 2012/13 to R39 billion in 2015/16. The Department received additional allocations to the amount of R300.5 million, R693.4 million and R1.8 billion over the MTEF period which included amount for capital expenditure on the two new universities. Programme 3: University Education received 82.5% of the total budget. For 2013/14 transfers to NSFAS were expected to be R5.8 billion.

2. Observations

The Committee made the following observations to the APP 2013/14 presented by the Department:

a) Programme 1: Administration

· The Department struggled to fill all the outstanding vacancies (vacancy rate 15%) owing to 162 unfunded posts.

· It emerged that an external service provider was appointed to provide network and desktop support for a period of 3 years and the Committee was concerned with the cost implication of this contract.

· The Committee advised the Department to follow correct supply chain management procedures in its process of acquiring new offices.

· The Department was informed that non compliance to legal and regulatory measures should be a risk and processing of invoices should be improved.

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

· The Committee advised the Department to focus on qualitative measures in improving career guidance instead of aiming to reach more numbers with inadequate career guidance service.

· It was noted that compilation of a report on international agreements should not be a target rather, the implementation of the agreements should be.

· The Department was requested to implement the social inclusion framework targets instead of identifying it as a risk description.

c) Programme 3: University Education

· The Department was requested to prioritise the establishment of the envisaged universities in Mpumalanga and Northern Cape and ensure that construction indeed commenced in September 2013.

· The Committee advised that initial teacher education training should be implemented at contact universities as opposed distance learning institutions.

· The Department was requested to include the next generation of academics programme as part of its APP 2013/14 to cater for the needs of the envisaged new institutions.

· The Department was commended for the FET College lecturer training that would be offered at 10 public higher education institutions.

· The Department was requested to prioritise placement of Funza Lushaka graduates in schools as the demand for teachers was very high especially in rural areas.

· The Committee advised that the Department implement a policy on student housing. The Committee was concerned that only Ministerial Appointees would attend governance training workshop while other Council members would not. It was noted that absenteeism of Ministerial Appointees at council meetings remained a serious concern and the Department should resolve this matter.

d) Programme 4: Vocational and Continuing Education and Training

· Issuing of certificates to FET college students / graduates remained a serious concern for the Committee and it was not pleased with the delays in this process.

· Inadequate targets of certification rates of NC( V) programmes remained a serious concern for the Committee and the Department should increase these targets.

· The Department was requested to prioritise implementation of AET Educator’s conditions of service as they were non-existent currently.

· The Committee advised that the infrastructure grant for FET colleges should prioritise satellite campuses in disadvantaged areas as they were in poor state.

e) Skills Development

· Inadequate implementation of RPL and poor pass rate of trade test (45% nationally) remained a serious concern for the Committee.

· The Department was commended for an improved Work Integrated Learning (WIL) targets (5 500 in 2012/113 to 27 279 in 2013/14).

3. Conclusion

The Department’s Annual Performance Plan 2013/14 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 2013/14 presented to the Committee reflected an improvement in terms of performance indicators and targets compared to the previous annual performance plans which had low targets. The main challenges that the Department was requested to prioritise included; the filling of vacant posts, improvement in supply chain management regulations, improvement in the quality of the career guidance service, issuing of outstanding certificates, implementation of RPL and improvement of NC(V) pass rate. The Committee supported the new indicators which included; FET college lecturer qualification, policy document on Adult Educator Qualifications, National Senior Certificate for Adults (NASCA), 6 new FET college campuses to be built and construction of the envisaged universities in September 2013.

4. Committee Resolutions

· The Committee should convene a meeting with the Department to engage on the progress regarding the establishment of the new two universities.

· The Committee should convene a meeting with the Department to engage on the model of Community Colleges.

5. Recommendations

The following formed part of the key recommendations:

· Filling of vacant post: The Department should prioritise the filling of all the funded posts during the 2013/14 MTEF period.

· Report on the Ministerial Committee Review on Funding of Universities : The Minister should forward to the Committee the Ministerial Committee Review Report on Funding of Universities after considering it.

· Stakeholder engagement : Stakeholders and the communities where the envisaged universities would be built should be consulted on latest developments in this process.

· Outstanding certificates : Outstanding certificates and continuous shifting of cut-off dates in issuing of certificates remained a concern. The Department should ensure that issuing of outstanding certificates to FET College graduates is prioritised.

· FET Colleges’ infrastructure grants : The Minister should ensure that FET Colleges’ infrastructure grants should prioritise disadvantaged rural FET campuses.

· The workshop on governance training should include all Council members.

“The Committee approved the Annual Performance Plan 2013/14 of the Department with inclusion of its contributions”.

Report to be considered.