ATC140711: Report of the Portfolio Committee on Basic Education on Budget Vote 15: Basic Education, dated 10 July 2014.

Report of the Portfolio Committee on Basic Education on Budget Vote 15: Basic Education, dated 10 July 2014 .

The Portfolio Committee on Basic Education having considered Budget Vote 15: Basic Education, together with the Annual Performance Plan and Strategic Plan of the Department of Basic Education and its Statutory Bodies, reports as follows:

1. Introduction

1.1 The Portfolio Committee on Basic Education considered the Strategic Plan, Annual Performance Plan and Budget 2014/15 of the Department of Basic Education and its three Statutory Bodies, namely, the Education Labour Relations Council (ELRC), the Council for Quality Assurance in General and Further Education and Training (Umalusi) and the South African Council for Educators (SACE). The budget review process was undertaken on the following dates:

· The Department of Basic Education (DBE) – 1 July 2014; and

· The South African Council for Educators (SACE), the Education Labour Relations Council (ELRC) and the Council for Quality Assurance in General and Further Education and Training (Umalusi) – 8 July 2014.

1.2 The budget briefings served to acquaint the Fifth Parliament Portfolio Committee with the mandates and programmes of the Department and the named statutory bodies.

1.3 Those that appeared before the Portfolio Committee during the Budget Review sessions included the following:

1.3.1 Department of Basic Education (DBE) : Hon A Motshekga: Minister for Basic Education, Hon E Surty: Deputy Minister for Basic Education, Mr S G Padayachee: Acting Director-General, Mr A Schoeman: Deputy Director-General, Mr H M Mweli: Acting Deputy Director-General, Ms V Carelse: Deputy Director-General, Mr Kojana: Deputy Director-General, Ms N Molalekoa: Chief Finance Officer, Mr S Govender: Chief Director, Dr F Kumalo: Chief Director, Dr R Poliah: Chief Director, Ms C Nuga: Chief Director, Mr N Maluleka: Director, Ms S Mosimege: Director, Mr A W Kutumela: Director, Ms T Martins: Ministerial Liaison Officer, Ms E Mbatha: Personal Assistant, Ms C Van Wyk: Parliamentary Liaison Officer, Mr L Mahada: Parliamentary Liaison Officer (Office of the Director-General) and Mr R Van Den Heever: Parliamentary Liaison Officer (Office of the Minister).

1.3.2 South African Council for Educators (SACE) : Mr R Brijraj: Chief Executive Officer, Mr M Mapindani: Chief Finance Officer and Mr E Rabotapi: Councillor.

1.3.3 Education Labour Relations Council (ELRC) : Ms C Foca: General Secretary, Mr M Mahlangu: Senior Manager and Mr J Galorale: Executive Member.

1.3.4 Council for Quality Assurance in General and Further Education and Training (Umalusi) : Dr M S Rakometsi: Chief Executive Officer, Mr J Thomas: Chief Financial Officer, Mrs E Rabe: Chief Operating Officer and Prof J Volmink: Chairperson of the Council.

1.4 The fourth Parliament Portfolio Committee engaged with the Department and its Statutory Bodies on their performance for the previous financial year and the funding needs for the current financial year, in October 2013, as part of the Budgetary Review and Recommendation Report (BRRR) process. The observations made in this report should be read in conjunction with those made in the BRRR report.

1.5 Copies of all presentations on the Budget Review of DBE, SACE, Umalusi and ELRC are available from the Committee Secretary.

2. Overview of Strategic Priorities

2.1 Address by the Minister for Basic Education, Hon A Motshekga and Deputy Minister for Basic Education, Hon E Surty

Hon A Motshekga, in her address to the Portfolio Committee gave a brief political input in respect of the Budget Vote 15: Basic Education. The Minister thanked the Portfolio Committee for the valuable inputs during the last term and looked forward to increased productive engagements with the newly formed Portfolio Committee. She indicated that they had extensive discussions at a Ministerial level after re-appointment to their positions. With the knowledge of the past five-years, the Department was well aware of areas that worked well and those that needed urgent attention and improvement. It was important that the Department translated identified challenges into positive action. The Department had a wealth of information on schools through the extensive assessment processes of the past which needed to be unpacked into action plans. The Minister alluded to interventions that improved quality education efficiently and speedily which the Department would focus its attention on as a means to moving forward. It was important that the Department structured itself to deliver on the commitments made by the President. Key focus areas for the Department, amongst others, would include dealing with the high drop-out rate; the repetition rate of learners; the recruitment of qualified principals and improving systems of matching teacher supply and demand. The Minister was keen to arrange a follow-up engagement with the Portfolio Committee on many aspects of the Department’s plan of action for the future.

Hon E Surty echoed the sentiments of the Minister in recognising the support from the Portfolio Committee in the past five-year term. He further recognised the challenges faced by the Department in creating stability in the sector. He indicated that the Department relied on the provinces for the necessary support in creating symbiotic relations between the Department and provincial departments. A good indication of this was the ongoing interaction between the Minister and District Directors in all nine provinces to share information and best-practices. The Deputy Minister touched on a few priorities which were receiving special focussed attention by the Department. These included:

· The provision of Learning and Teaching Support Materials (LTSM)

· School infrastructure development

· District Performance

· Collaboration with the private sector to improve education

· Professional Development

· The provision of ICT

· Rural Focus

· The implementation of the curriculum

· Education as a social issue

· The implementation of the Norms and Standards for school infrastructure

· Expansion of Early Childhood Development (ECD)

· The need for the rationalisation of schools.

2.2 Overview by the Department of Basic Education

The Department reported that the Strategic Plan 2011 – 2014 addressed key issues contained in the Action Plan to 2014 and the Delivery Agreement. The Strategic Plan was anchored on the Action Plan to 2014 which spelled out the long term basic education sector plan. The Department touched on some of the key challenges outlined in the Strategic Plan and summarised the previous Delivery Agreement. The Department was developing the new five-year Strategic Plan to be tabled in March 2015 which would include priorities highlighted in the Medium Term Strategic Framework (MTSF) 2014 - 2019 and the new Delivery Agreement. The education long term sector plan had been revised to ensure further alignment with the National Development Plan (NDP). The Department reported that the Action Plan to 2019 had been finalised and would inform all Department’s medium and short term plans.

2.2.1 Overview of the Department’s Draft Medium Term Strategic Framework (MTSF) and 2014/15 Strategic Priorities

Following the National Development Plan and building on key sector plans, critical activities were focussed on the following outputs for the next five years:

• Improved quality of teaching and learning through development, supply and effective utilisation of teachers;

• Improved quality of teaching and learning through provision of adequate, quality infrastructure and Learning and Teaching Support Materials (LTSM);

• Improving assessment for learning to ensure quality and efficiency in academic achievement;

• Expanded access to Early Childhood Development and improvement of the quality of Grade R, with support for pre-Grade R provision;

• Strengthening, accountability and improving management at the school, community and district level; and

• Partnerships for education reform and improved quality.

Key Strategic Priorities for 2014 included the following:

2.2.1.1 Curriculum

· The 2014 school year was the final year of the phasing in of the Curriculum and Assessment Policy Statements (CAPS) into the system, in the Senior Phase and Grade 12;

· Focusing on monitoring the maximum utilisation of teaching time;

· Curriculum planning, management, oversight ,coverage and delivery by teachers;

· Responding to content gaps;

· Continuing with teacher development initiatives based on identified gaps in the Annual National Assessment(ANA) and National Senior Certificate (NSC); and

· Monitoring training on curriculum differentiation to ensure inclusivity.

2.2.1.2 Assessments

· Further consolidation of the assessment systems;

· Strengthening quality assurance processes of the NSC through Umalusi; and

· International benchmarking of critical question papers in order to improve their credibility.

2.2.1.3 Learning and Teacher Support Materials

· The Department would monitor access to textbooks and workbooks by learners;

· Working with districts to monitor the extent to which resources were utilised at classroom level; and

· Continuing the provision of high quality workbooks and other supplementary resources.

2.2.1.4 Infrastructure

• Continuing to monitor provincial spending on infrastructure;
• Replacing of mud and unsafe school structures through the Accelerated School Infrastructure Development Initiative (ASIDI) was still on course; and
• Ensuring that targets for provision of water, electricity and sanitation facilities were met as per the National Norms and Standards.

2.2.1.5 Accountability

· The emphasis was still on teacher time-on-task, teachers’ attendance and content knowledge;

· Improving the frequency and quality of monitoring and support services provided by district offices;

· Analysing District Improvement Plans (DIPs) and providing feedback as part of the Department monitoring and oversight function;

· Developing and mediating the South African Standards for the appointment of principals, circuit managers and subject advisors;

· A comprehensive plan to improve conditions of services for Grade R practitioners; and

· Preparing for the 2015 SGB elections.

2.2.2 Annual Performance Plan 2014/15 – Performance Indicators and Targets

The 2014/15 Annual Performance Plan summarises the priorities of the Department as aligned to the Delivery Agreement of Outcome 1 : Improving the quality of Basic Education and the sector-wide Action Plan to 2014: Towards the Realisation of Schooling 2025 . The activities of the Department remain structured into five programmes, namely, Administration; Curriculum Policy, Support and Monitoring; Teachers, Education Human Resources and Institutional Development; Planning, Information and Assessment; and Educational Enrichment Services.

2.2.2.1 Programme 1: Administration

The purpose of this programme is to manage the Department and provide strategic and administrative support services. The strategic objectives of the Programme are as follows:

· To ensure the provision of suitable human resource capacity to support a high performing organisation;

· To ensure that the basic education sector and the country benefit from targeted support to the education department; and

· To improve inter-governmental planning, communication, education policy and legislative development.

The following targets were set for the Annual Performance Plan for 2014/15:

· Staff Development: The number of officials participating in staff development activities for 2014/15 is 315, an increase from a target of 300 in 2013/14;

· Internships: The number of internships implemented for unemployed graduates in the Department stands at 65 against a baseline of 60 (2013/14);

· Financial Disclosures: All Senior Management Services (SMS) members to submit signed financial disclosure forms by 31 May 2014;

· Performance Agreements: All SMS members to sign Performance Agreements by 31 May 2014;

· The Management Performance Assessment Tool (MPAT) process results should be available and self-assessment scores submitted to the Department of Performance Monitoring and Evaluation (DPME) on time, and

· The number of audit reports to be signed off is 29.

2.2.2.2 Programme 2: Curriculum Policy, Support and Monitoring

The purpose of Programme two is to develop curriculum and assessment policies and monitor and support their implementation. The strategic objectives of the Programme include:

· To increase the availability of e-Education of learning and teaching resources amongst teachers;

· To bring about stability and coherence with respect to the national school curriculum;

· To pay special attention to improvements in mathematics, physical science and technical subjects;

· To promote adequate access to quality learning materials by means of better national specifications on what every learner requires and a more proactive approach towards the cost-effective development, reproduction and distribution of materials such as workbooks and textbooks;

· To establish national norms for school libraries;

· To create a sound basis for quality pre-Grade 1 education through the promotion of quality learning and teaching materials at this level; and

· To finalise and promote national screening guidelines that provide for an equitable system of access to special needs support amongst learners.

The indicators in this programme are directed towards improving learner performance as captured in the sector-wide Action Plan: Towards the realization of schooling 2025 . The Programme contributes to the following sector goals on learner performance:

· Goals 1; 2 & 3 : Increase the number of learners in Grade 3; 6 & 9 who, by the end of the year, have mastered the minimum language and Numeracy/Mathematics competencies for Grade 3;

· Goal 4 : Increase the number of Grade 12 learners who become eligible for a Bachelors programme at a university;

· Goals 5 & 6 : Increase the number of Grade 12 learners who pass Mathematics & Physical Science;

· Goals 7 & 8 : Improve the average performance of Grade 6 learners in Languages & Mathematics;

· Goal 9 : Improve the average performance of Grade 8 learners in Mathematics; and

· Goal 12 : Improve the grade promotion of learners through Grades 1 to 9.

The following targets are set for the Annual Performance Plan for 2014/15:

· The Department targets the development of 10 interactive workbooks;

· The target for the percentage of learners who obtain a National Senior Certificate is 75 percent;

· The percentage of Grade R workbooks developed, printed and delivered to learners in public primary schools is 97 – 100 percent as per data sets form provinces;

· The percentage of Grade 9 Mathematics workbooks developed, printed and delivered to learners in public schools was 97 – 100 percent as per data sets from provinces; and

· The target for the number of learners completing the Kha Ri Gude programme per year is 545 386.

2.2.2.3 Programme 3: Teachers, Education Human Resources and Institutional Development

The purpose of Programme Three is to promote quality teaching and institutional performance through the effective supply, development and utilisation of human resources. The overall strategic objectives for this Branch include:

· To ensure the new teacher development plan is translated into a wide range of teacher training materials, collaborative professional development activities within the schooling system and agreements with the relevant service providers;

· To establish the National Institute for Curriculum and Professional Development (NICPD) in order to promote best practices in classroom teaching and teacher development;

· To establish an ongoing national campaign for choosing teaching as a career, based on research into who became a good teacher and focusing on giving the necessary information and bursaries to interested youths;

· To bring about a set of planning, management and accountability tools at the school level that catered for South African needs and made quality education more realisable;

· To develop training strategies and materials aimed at parents that could bring parents more integrally into the new accountability mechanisms being established for schools; and

· To establish better and evidence-based practices and procedures for the country’s 82 education district offices, including models for school interventions designed to tackle specific school shortcomings.

Programme Three outputs and targets for 2014/15 include the following:

· The n umber of qualified teachers aged 30 and below entering the profession for the first time during the financial year is 8000;

· A report on the number of qualified teachers aged 30 and below exiting the system during the past year – a report on termination of qualified educators aged 30 and below; and

· The number of Funza Lushaka bursaries awarded to students enrolled for initial teacher education during the past year is 13 500.

2.2.2.4 Programme 4: Planning, Information and Assessment

The purpose of Programme Four is to promote quality and effective service delivery in the basic education system through planning, implementation and assessment. The overall strategic objectives for the Programme are to:

· Establish a quality system of standardised and benchmarked learner assessments;

· Ensure that all children completed a quality readiness programme in Grade R before they entered formal education in Grade 1;

· Put into place support systems for provinces and schools to improve the physical environs of the school and create enabling conditions for successful teaching and learning;

· Ensure that districts could use quality information and data regarding the level and quality of learning in schools to plan and implement school-based improvement programmes.

The Programme also contributes to the following sector goals:

· Goal 23 : Ensuring that all schools are funded at least at the minimum per learner levels determined nationally and that funds are utilised transparently and effectively; and

· Goal 24 : Ensuring that the physical infrastructure and environment of every school inspire learners to be motivated to come to school and learn, and for teachers to come and teach.

The main performance targets for Programme 4 in 2014/15 include amongst others:

· The provision of valid and reliable data on learner performance in Mathematics and languages in Grade 1 to 9;

· The number of schools to complete through ASIDI is 150;

· The percentage of Grade 1 learners who have received formal Grade R is 94 percent;

· The percentage of 7 to 15-year-olds attending education institutions is 99 percent;

· The percentage of children who turn 9 in the previous year who are currently enrolled in Grade 4 is 65 percent; and

· The number of officials from districts that achieve less than 65 percent in the NSC participating in a mentoring programme is 30.

2.2.2.5 Programme 5: Educational Enrichment Services

The purpose of Programme Five is to develop policies and programmes to improve the quality of learning in schools. The strategic objectives are:

· To enhance the current basket of education support services to learners from poor communities; and

· To ensure the involvement of stakeholders in exercising involvement in schools in a manner that added value to the attainment of the core outcomes.

The Programme contributes to the following sector goal on learner well-being:

Goal 25: Use schools as vehicles for promoting access to a range of public services amongst learners in areas such as health, poverty alleviation, sport and culture.

The main performance targets for Programme 5 in 2014/15 include amongst others:

· The target for the number of schools providing learners with nutritious meals is 19 800; and

· The number of learners participating in the DBE organized activities on citizenship, rights and responsibilities and constitutional values is 2 500.

2.2.3 Expenditure trends for 2010 - 2014

Table 1: Actual Expenditure per Programme for 2010 – 2014:

PROGRAMMES	2010/11	2011/12	2012/13	2013/14
	R’000	R’000	R’000	R’000
Administration	252 103	287 734	317 328	366 500
Curriculum Policy, Support and Monitoring (1)	737 336	1 700 304	1 398 906	1 469 873
Teachers, Education Human Resources and Institutional Development	486 642	537 568	820 577	1 010 828
Planning, Information and Assessment (2)	152 622	5 563 859	6 897 873	8 435 610
Educational Enrichment Services (3)	3 886 374	4 811 449	5 451 200	5 728 564
Total	5 515 077	12 900 914	14 885 884	17 011 375

Table 1 shows that expenditure increased from R5.5 billion in 2010/11 to R17 billion in 2013/14. Major increases in spending occurred in programmes 2, 3 and 5. The Department attributes the deviation to the following:

1. The increase spending in this programme was in respect of Grade R 9 workbooks printed and distribution to schools in all provinces as well as Kha Ri Gude Mass Literacy Campaign.

2. The increased spending on this programme was due to the introduction of the Education Infrastructure Conditional Grant School and the Infrastructure Backlogs Indirect Grant.

3. The bulk of the allocation on this programme was in respect of transfers of the conditional grant. The NSNP transfer increased due to the expansion of feeding to secondary schools in Q1 to Q3.

In terms of economic classification, the Department reported deviation on travel and subsistence, transfers and subsidies and payments for capital assets. In terms of travel and subsistence, the increased spending from R47 million in 2010 to R141 million in 2014 was mainly due to the Department’s intensive monitoring of implementation of policies in provinces. The increase spending on transfers from R4 billion in 2010 to R14 billion was in respect of Conditional grants. With regard to payments for capital assets, the Increase in spending was due to the Infrastructure Backlog grant for the provision of basic services to schools in the form of water and sanitation as well as eradication of inappropriate school infrastructure including mud schools.

2.2.4 O verview of the Budget for 2014/15 and the Medium Term Expenditure Framework (MTEF)

Table 2: 2014 ENE Allocations

	2014/15	2015/16	2016/17
	R'000	R'000	R'000
2014 MTEF Allocations	19 941 287	23 023 550	24 249 489
Less:	(242 350)	(610 420)	(597 490)
Baseline Reduction:	(231 000)	(479 000)	(456 000)
School Infrastructure Backlog Grant
Kha Ri Gude	(10 000)	(130 000)	(140 000)
Goods and Services	(1 350)	(1 420)	(1 490)
Adjustments to conditional grants:	(18 791)	(522 912)	(554 503)
Occupation Specific Dispensation for Therapist in the Education Sector Grant	231 000	67 000
Education Infrastructure Grant	(231 791)	(589 912)	(554 503)
2014 ENE ALLOCATIONS	19 680 146	21 890 218	23 097 496

Table 3: Allocation per Programme for 2014/15 compared to 2013/14

PROGRAMMES	2013/14	2014/15	Percentage
	R’000	R’000	increase/ (decrease)
Administration	335 580	347 448	3.5%
Curriculum Policy, Support and Monitoring (1)	1 523 621	1 954 927	28.3%
Teachers, Education Human Resources and Institutional Development (2)	984 697	1 268 247	28.8%
Planning, Information and Assessment (3)	8 988 995	10 379 369	15.5%
Educational Enrichment Services	5 759 012	5 730 155	(0.5)%
Total	17 591 905	19 680 146

The budget for the Department increased from R17.6 billion in 2013/14 to R19.7 billion in the 2014/15 financial year. This represents an increase of 5.2 per cent in real terms and 11.7 per cent in nominal terms. At programme level, the Administration (Programme 1) and Educational Enrichment Services (Programme 5) programmes show little growth from 2013/14 of 3.5 per cent and 0.5 per cent respectively. Programme 2 (Curriculum Policy, Support and Monitoring) and Programme 3 (The Teachers, Education Human Resources and Institutional Development) show large growth of 28.3 per cent and 28.8 per cent respectively. Programme 4, which receives the largest allocation of R10.4 billion, grows by 15.5 per cent from the 2013/14 allocation of R9 billion.

The Department attributes the deviation as follows:

(1) The increase in Programme 2 is due to project allocation towards the Expanded Public Works Incentive grant and the establishment of the e-learning unit and development of e-learning resources in the Mathematics and Sciences which are expected to promote and increase the participation of learners in these subjects .

(2) In Programme 3, the increase is due to the transfer to National Student Financial Aid Scheme for the Funza Lushaka bursaries which aims to address the shortage of teachers in specific areas/subjects such as Mathematics, Science and Technology.

(3) The increase in Programme 4 is due to the School Infrastructure Backlog Grant which aims to eradicate schools built with inappropriate material, provide water, sanitation and electricity to schools.

Table 4: Allocation Summary per Service for 2014/15 compared to 2013/14

SERVICE	2013/4	2014/15	Percentage
	R’000	R’000	increase/ (decrease)
Compensation of Employees (1)	292 253	311 436	6.6%
Examiners and Moderators	18 440	19 546	6.0%
Transfers to Public Entities	991 529	1 054 853	6.4%
Other Transfers (2)	37 250	42 985	15.4%
Conditional Grants	12 343 272	13 169 549	6.7%
Specially and exclusively appropriated (3)	1 955 981	2 938 504	50.2%
Earmarked Funds (4)	1 634 671	1 781 945	9.0%
Departmental Operations	254 007	269 669	6.2%
Projects	64 502	91 659	42.3%
Total	17 591 905	19 680 146

Notes:

(1) Excludes the compensation of employee’s payments in respect of earmarked funds, examiners and moderators as well as compensation related to School Backlog Indirect Grant.

(2) The increase is due to the allocation for the National Initiative to improve learning outcomes.

(3) The increase as a result of the additional allocation received in respect of the School Infrastructure Backlog Indirect Grant.

(4) The increase is due to additional allocation for the Annual National Assessment in order to improve literacy and numeracy levels.

2.2.5 Non-Negotiables and the Draft Medium Term Strategic Framework (MTSF) 2014 Priorities

The Department explained the plans for the MTSF 2014 – 2019 and the basis for action in the new administration. It was reported that the Framework outlined was the NDP-aligned updated Action Plan 2019: Towards the realisation of Schooling 2030. Key themes for Basic Education were as follows:

• Focusing on the quality and efficiency in education;

• Communicating with communities at all levels;

• Emphasising teaching and learning;

• Strengthening the role of all players including entities, unions, parents, partners;

• Strengthening provincial and national mechanisms including intergovernmental mechanisms, and interdepartmental mechanisms;

• The National Education Policy Act (NEPA) – Monitoring and Evaluation, norms and standards, impact thereof; and

• Provincial, district, school realities factored in non-negotiables for the sector.

The non-negotiables for joint sectoral planning and monitoring included a range of priorities related to:

• Learning and Teaching Support Materials

• Infrastructure

• Districts

• Teachers Placement/Deployment/Development

• ICT

• Kha Ri Gude

• Library Services

• Rural Focus

• Curriculum

• Partnerships and Social Mobilisation

• Norms and Standards

Some of the sub-outputs, activities and indicators included:

• Improved quality of teaching and learning through development, supply and effective utilisation of teachers

• The provision of adequate, quality infrastructure and LTSM

• Improving assessment for learning to ensure quality and efficiency in academic achievement

• Expanded access to Early Childhood Development and improvement to the quality of Grade R

• Strengthening accountability and improving management at the school, community and district level

• Partnerships for education system strengthening

• Impact on learning as in NDP, the sector plan and targets

The Department would give further details on the non-negotiables as contained in the Medium Term Strategic Framework after adoption of the Framework.

2.2.5 Committee Observations

The Portfolio Committee made the following observations regarding the Department’s plans and budget allocation for 2014/15:

2.2.5.1 Policy and strategic direction :

• Strategic priorities: The Portfolio Committee welcomed the key strategic priorities identified for 2014/15. The Committee noted that the Department will table its Strategic Plan in March 2015. It is important that the Committee engages with the Department on its performance targets as contained in the strategic plan.

• Improvement of efficiency: The Committee is pleased that the Department is committed to prioritise the improvement of efficiency in the system over the MTEF period. This is vital to improve service delivery and achieve value for money. There are concerns over reports of excess books stored in warehouses across the country, which should be addressed as part of efforts to improve efficiency. The Committee further urges the Department to pay special attention to the maintenance of school facilities to prevent their rapid run-down.

• Districts engagement : The Committee supports the Minister’s ongoing engagement with district directors and is encouraged by reports that curriculum coverage features strongly in these meetings.

• Performance indicators : The Committee is concerned that some crucial quality performance indicators/targets have been excluded in the 2014 Annual Performance Plan. These include the number of Grade 12 learners passing the key subjects of Mathematics and Physical Science and who become eligible for entrance to a Bachelors programme at university. Members feel that there should be clear measures to track progress of these indicators since they both feature in the National Development Plan. The Committee is further concerned that some targets have not been revised. For example, the target on the percentage of learners who obtain a National Senior Certificate in 2014/15 remains 75 per cent despite the 2013 pass rate of 78 per cent. The Committee believes that retaining the target of 75 per cent may give the wrong message that it is acceptable to achieve lower than the 2013 performance.

2.2.5.2 Programmes

Programme 1: Administration

· The Committee is concerned about the impact that increased litigation has on the budget of the education sector.

Programme 2: Curriculum Policy, Monitoring and Support

• As with the Fourth Parliament Committee, the Committee reiterates that the Department should ensure the effective monitoring and enforcement of book retrieval policy.

• There is concern over the implementation and introduction of African Languages in schools. This should be fast-tracked by the Department.

Programme 3: Teachers, Education Human Resources and Institutional Development

• The Committee welcomed the move to revisit the placement of teachers as teachers were being placed randomly in any Grade irrespective of their expertise.

• There are questions around the adherence of the Department to the Employment of Educators Act (no. 76 of 1998) in respect of the transfer or resignation of educators.

• The Committee is concerned regarding the slow progress in the review of teacher salaries to enhance accountability and performance in line with the proposal of the National Development Plan.

• The Committee queried the effectiveness of the IQMS tool and urged the Department to fast-track its revision. The Department reported that the process of revision of the IQMS tool has been finalised and was awaiting approval from relevant stakeholders for implementation.

Programme 4: Planning, Information and Assessment

• It is important that the Department gives special attention to the prioritising of Grade R in terms of teacher qualification and development as well as infrastructure.

• It is important that the Department ensures the strengthening of accountability and management at schools across the country.

• Committee Members are delighted that the Department intends to re-establish the rural directorate to provide focussed attention on rural and farm schools. Members further believe that it is important that the Department revisits its Incentive policy to ensure that it is uniformly implemented across provinces, particularly with a view to attract qualified teachers to rural areas.

• It is important that the Department deal decisively with schools that falsify enrolment figures as part of measures to ensure that its data is accurate.

• Challenges are being faced with the policy of the rationalisation of schools. It is important that the Department continues to carefully plan and implement this policy circumspectly.

Programme 5: Educational Enrichment Services

• There were queries in respect of how provinces account to the Department on the various conditional grants they received and measures to ensure adequate kitchen-facilities were provided to needy schools.

2.2.6 Committee Requests

• The Committee requests that the Department s ubmit the following documents to the Portfolio Committee: A Basic Resource Pack for Grade R and The Action Plan to 2019 to enable its oversight;
• The Department should submit to the Committee a full report regarding the investigations into the falsifying of enrolment figures; and
• The Department needs to ensure that the good work of the Department was adequately conveyed, show-cased and communicated to the general public.

2.2.7 Committee Resolution

• The Portfolio Committee resolves to schedule a two-day workshop/engagement with the Department of Basic Education on concurrent functions.

3. Overview of Strategic Imperatives and Budget Allocations of the Department’s Statutory Bodies

3.1 The Council for Quality Assurance in General and Further Education and Training (Umalusi)

The seven key result areas for Umalusi over the period 2009 to 2014 remained as follows:

· Establishing and maintaining a system to develop, evaluate and certify qualifications (and curriculum);

· Improving and maintaining the system for quality assuring assessment for certification;

· Establishing and implementing a system for the evaluation and accreditation of private providers;

· Researching matters related to the sub-framework of qualifications and report on quality in general and further education and training supported by statistical analysis;

· Developing and ensuring good corporate governance and management of the Office of the Chief Executive Officer;

· Ensuring that Information Technology systems were established, maintained and improved; and

· Ensuring that finance, human resources and administrative support systems were maintained and improved.

3.1.1 Unaudited Statement of Financial Performance as at 31 March 2014 – The Council had a net surplus of R 19 099 301. At least 109 percent of the Budgeted Revenue from operations was recognised due to certification income from the previous year and the increase in interest on income. In the 2013/14 financial year, Umalusi received a 100 percent grant of R97.7 million from the Department of Basic Education. The Council incurred 92 percent of its budgeted expenses with a vacancy rate of 9 percent.

3.1.2 Unaudited Statement of Financial Position, Cash Flow, Debtors and Investments – The Council’s total assets were valued at R 88 959 125. Invoiced debts collected to date stood at 94 percent with cash available amounting to R 5 130 374. The Council’s investments of R 41 604 663 were attracting a net interest of 5.71 percent per annum.

The Committee received a detailed breakdown of comparative total expenditure versus a three-year average with detailed tables indicating the following:

· 2013/14 Revenue Budget versus Actual (revenue streams indicated);

· 2013/14 Expenditure Budget versus Actual (current); and

· Statement of Financial Position as at 31 March 2014.

3.1.3 Overview of the 2014/15 METF budget

The MTEF Budget forecast for Umalusi is as follows:

	2013/14	Original Budget 2014/15	Revised budget 2014/15	Forecast 2015/16	Forecast 2016/17
Budget	R110 704 500	R127 327 758	R134 808 098	R148 972 637	R167 949 880
DBE Grant	R97 662 000	R107 354 000	R107 354 000	R112 705 000	R118 678 000

The overall budget (revised) for Umalusi has increased from R110.7 million in 2013/14 to R134.8 million in the 2014/15 financial year, which translates into an increase of 22 per cent in nominal terms. The Department’s grant approved was R 107 354 000 and includes a R 10 854 098 to be utilized from the Umalusi reserves to fund operations. The DBE grant to Umalusi increased from R18.4 million (20 per cent) in 2011/12 to R42.3 million (46 per cent) in 2012/13 and to R97.7 million (88 per cent) in 2013/14. Notably, 2012/13 was the first year that the DBE grant to Umalusi increased substantially thus resulting in the phasing out of the collection of revenue for certification from the Provincial Departments of Education and public FET colleges. The Fourth Parliament Portfolio Committee supported the Council’s bid for the additional funding to effectively carry out its mandate and had expressed satisfaction when the funding was granted.

The Portfolio Committee received a detailed presentation on the Budget Allocations for the various Key Result Areas (KRAs) which included:

· Qualifications, Curriculum and Certification

- 2014/15 Budget: R 7 890 000 (previous budget was R 7 700 000)

- 2.5 percent increase due to development of NASCA, GETCA, NIC; and Advocacy

· Quality Assurance of Assessment

- 2014/15 Budget: R 34 700 000 (previous budget was R 24 100 000)

- 44 percent increase due to increase in the scope of work

· Evaluation and Accreditation

- 2014/15 Budget: R 10 890 000 (previous budget was R 7 900 000)

- 38 percent increase due to the implementation of new accreditation processes

· Statistical Information and Research

- 2014/15 Budget: R 4 908 840 (previous budget was R 3 800 000)

- 29 percent increase due to increase in research projects

· Public Relations and Communications

- 2014/15 Budget: R 2 300 000 (previous budget was R 2 052 486)

- 12 percent increase due to administrative costs for travel, accommodation and flights

· Governance and Office of the Chief Executive Officer

- 2014/15 Budget: R 1 961 311 (previous budget was R 1 705 749)

- 15 percent increase due to administrative costs for travel, accommodation and flights

· Corporate Services (Information Technology)

- 2014/15 Budget: R 8 170 091 (previous budget was R 7 332 861)

- 11 percent increase due to increase in computer costs

· Corporate Services (Finance and Supply Chain Management)

- 2014/15 Budget: R 59 779 911 (previous budget was R 52 314 571)

- 14 percent increase due to additional posts approved by Council

· Corporate Services (Human Resource Management and Development)

- 2014/15 Budget: R 4 207 945 (previous budget was R 3 798 833)

- 11 percent increase due to HR development programmes and staff workshops

The Committee was informed that Umalusi had challenges in respect of the following:

• White paper on post school education and its implications on Umalusi;

• Strengthening of the marking process;

• The proposed amendments and extension of the Senior Certificate; and

• Development of certification systems for new qualifications.

3.1.3 Committee Observations

The Portfolio Committee raised the following in respect of the Umalusi Budget Review:

· Overall, the Committee was appreciative of the valuable work of Umalusi in carrying out its mandate.

· There was concern over the lack of standardisation in respect of marking.

· The Portfolio Committee was excited with the idea of e-marking that was on the cards to improving the process.

· The Committee awaited the overdue Report by the Ministerial Task Team investigating the current promotion requirements and other related matters impacting on the standard of the National Senior Certificate.

· The Committee felt that there could not be quality assurance of qualifications without the quality assurance of the curriculum.

· The Portfolio Committee raised concern over the possibility of an extension of the Senior Certificate.

· There was a concern that there was too much focus on the improvement of standards and quality of assessment at exit points of schooling and rather than in the early grades.

· The Committee was concerned over the Introduction of the African Languages Initiative at schools and what type of research and studies Umalusi had conducted in this regard.

· The Committee was concerned about fraudulent certification/qualification and how this was dealt with.

· The Committee questioned whether there would be a point when the Senior Certificate was completely phased out.

· The Committee further questioned Umalusi’s relationship with NEEDU and other statutory bodies.

· The Committee enquired whether Umalusi had a role to play in respect of quality assurance of the ANA.

3.2 The South African Council for Educators (SACE)

SACE was governed by a new Council which was inaugurated on 15 August 2013. SACE operated under the auspices of the SACE Act (No 31 of 2000) and had jurisdiction over approximately 450 000 teachers. The Council reported that it had functioned less than optimally due to the austere budget caused by savings for the building reserve fund. The Council had saved enough to purchase the building it currently occupied. The budget for the current year therefore had eased by about 25 percent.

SACE’s total revenue had been made up mainly by levies from educators amounting to R55m (approximately) and a special Government Grant of R10m (approximately). The grant had been utilised for expenses related to the Continuing Professional Teacher Development (CPTD) system, as per agreement.

In spite of the budget constraints SACE reported delivery on the following:

· The Council registered 25314 educators (4682 full registrations and 20632 provisional registrations; 1630 provisional registrations were for foreign educators).

· The Council employed a stricter vetting regime for incumbents to prevent the usage of fraudulent documents. This process would be strengthened further by operationalising protocols with AFTRA (African Forum for Teaching Regulatory Councils). Current projects included initiation of on-line registration, validation, rapid response systems, categorisation of registration and tracking of levies due.

· The Council received 582 complaints for the current year on top of a backlog of 180 from the previous year. At least 343 cases had been finalised leaving a balance of 419 cases to be carried over. The low turnover was due to budget constraints.

· The current budget and a newly adopted methodology for case management would eliminate backlogs and ensure that cases were resolved within a four month cycle.

· The Professional Development division had signed up over 40 000 school managers for participation in the Continuing Professional Teacher Development (CPTD) system.

· The Council’s next challenge was to mobilise the classroom practitioners to engage in more professional development programmes and activities.

· The Research section had been involved in the following areas:

- International migration of Teachers in South Africa;

- Principal’s and Deputy Principal’s needs identification;

- Teacher demand and supply;

- Analysis of misconduct cases; and

- Resource Centre and virtual library.

The operational areas of SACE had been supported by sound Administration and Financial Management. SACE’s finances were in good order with spending within budget. Requests for roll-over was adequately motivated with procurement effected as per legislative requirements. All audit findings and recommendations had been followed-up.

3.2.1 MTEF Projections:

Revenue:

• The Council increased monthly subscription fees from R6 to R10 with effect from 1 July 2010;

• The Council received funds from DBE to subsidise the administration of Professional Development. To date there was no written commitment for the subsidy amount - hence zero budget;

• He Registration fee was expected to remain high due to increasing fees to R400 for foreigners, R200 for South Africans and R50 for renewals; and

• The building reserve fund contributed to interest receivable.

Expenditure:

• The Council occupied a rented office while in the process of purchasing its own premises;

• Funds were available to purchase their own premises (R61 million). Approval to proceed with the process had been given. The Council would conclude the purchase process in this financial year. The building in Visagie Street was sold at auction for R9 million and the proceeds were transferred to the building reserve fund; and

• The Council would direct the projected surplus towards the expansion of its provincial presence (first provinces were: KwaZulu-Natal, Eastern Cape, Western Cape and Free State).

3.2.2 SACE Programmes

3.2.2.1 Registration - The purpose is to register all educators who satisfied registration requirements and to maintain and sustain the credibility of the educator database. The Council would enhance the quality of the registration of teachers by introducing standards of entry into the profession. Key functions included:

• Determining minimum criteria and standards;

• Deciding on any application for registration;

• Keeping names of all registered educators; and

• Determining the period of validity of registration.

The strategic objective for this Programme is to register all qualified educators in the country.

The baseline was to register 26000 educators in the reporting period. SACE aimed to also update 25000 educator documents in the reporting period.

Financial Implications for Registration:

	2010/11	2011/12	2012/13	2013/14	2014/15	2015/16	2016/17
Financial Performance Data	Audit Outcome	Audit Outcome	Audit Outcome	Revised Budget	Budget Estimate	Budget Estimate	Budget Estimate
R Thousand Registration of Educators	179	969	303	230	800	1500	1500

3.2.2.2 Legal and Ethics - The purpose of this programme is to promote ethical conduct among educators and to facilitate interventions and support for schools and educators on ethical matters. Key functions include:

• Upholding the image of the teaching profession;

• Investigating complaints of improper conduct; and

• Instituting disciplinary hearings.

The strategic objective for this Programme is to maintain the ethical standards of the teaching profession and reduce the number of violations of the code of good practice.

The baseline for the year was to process 650 complaints of violation of the code with 10 000 educators and stakeholders’ workshopped on the code of ethics. SACE would ensure that the number of concluded cases as measured against the number of cases received to be set at 69 percent.

Financial Implications for Legal and Ethics:

	2010/11	2011/12	2012/13	2013/14	2014/15	2015/16	2016/17
Financial Performance Data	Audit Outcome	Audit Outcome	Audit Outcome	Revised Budget	Budget Estimate	Budget Estimate	Budget Estimate
R Thousand Ethics and Code of Conduct	768	1624	1382	400	2800	4000	4000

3.2.2.3 Professional Development – The purpose of the Programme is to enhance the quality of the practicing educators through the management of the CPTD system and development of strategies and processes to assist and support educators. The Programme also assists in improving and maintaining the status and image of the profession and the development of professional standards. Key functions include:

· Managing and implementation of the CPTD System;

· Developing and monitoring standards for pre-service and in-service teacher education;

· Promoting the image of the teaching profession; and

· Promoting programmes that focused on teacher appreciation and celebrating the profession.

The strategic objective is the enhancement of the status of the teaching profession and delivering programmes aimed at improving professionalism amongst educators.

The baseline for the Programme was to support 40747 principals and deputy principals in their 1 ^st -Year Cycle. SACE aimed to register 55800 HOD’s for the CPTD management system with 550 endorsed CPTD educator activities. SACE further aimed to successfully resolve 20 queries and ensure 250 providers approved for CPTD.

Financial Implications for Professional Development:

	2010/11	2011/12	2012/13	2013/14	2014/15	2015/16	2016/17
Financial Performance Data	Audit Outcome	Audit Outcome	Audit Outcome	Revised Budget	Budget Estimate	Budget Estimate	Budget Estimate
R Thousand Professional Development	4363	5532	2279	15073	0	7200	7200

3.2.2.4 Policy and Research – The purpose of the Programme is to enhance policy and research coordination and strengthen the SACE advisory role and services. To promote research on professional matters and other educational matters relevant to SACE. Key functions include:

· Advising the Ministers of Basic Education and Higher Education and Training;

· Undertaking research on professional matters for purpose of informing the advisory role of the Council; and

· Producing policy and research publications/reports and disseminating research findings

The 2014/15 Policy and Research focus areas were as follows:

· Undertaking research in the areas around Internal Teacher Migration, Demand and Supply, Professional Standards, Needs Identification for Principals and Deputy Principals, Review of Educator Misconduct and School-based Violence with a focus on Teachers; and

· Producing two professional magazines.

Financial Implications for Policy and Research:

	2010/11	2011/12	2012/13	2013/14	2014/15	2015/16	2016/17
Financial Performance Data	Audit Outcome	Audit Outcome	Audit Outcome	Revised Budget	Budget Estimate	Budget Estimate	Budget Estimate
R Thousand Policy and Research	249	422	308	200	1000	1500	500

3.2.3 2014/15 Focus Areas

SACE was phasing-in the implementation of the CPTD Management System

- 1 ^st Cohort: Principals and Deputy Principals (from 2014 onwards)

- 2 ^nd Cohort – HODs (from 2015 onwards)

- 3 ^rd Cohort – PL1 Teachers (from 2016 onwards)

Every cohort needed to undergo CPTD orientation and sign-up process a year before the actual three-year CPTD cycle. The first cohort of 27000 principals and deputy principals went through the process in 2013 and would start with their 1 ^st year of the three year CPTD cycle from 2014-2015.

SACE aimed to strengthen its presence and coordination of the CPTD Management System at national and provincial levels through the newly appointed SACE CPTD provincial coordinators. SACE plans to broaden and strengthen CPTD advocacy and communication at National, Provincial, District and School levels.

3.2.4 Portfolio Committee Observations

The Portfolio Committee made the following observations in respect of the SACE Budget Review:

· The Portfolio Committee queried the timelines in the acquisition of the SACE premises/building and rental figures currently paid.

· The Portfolio Committee welcomed the planned publication of a professional magazine by SACE.

· There was concern over the participation of all teachers across the country in the World Teacher Day celebrations.

· The Portfolio Committee observed that there were unregistered teachers within the system. SACE needed to deal with these cases.

· The Portfolio Committee was concerned about the veracity of the information from the SACE database and statistics.

· The Portfolio Committee was concerned that the roll-out of the Continuing Professional Teacher Development (CPTD) system appeared very slow. There were queries in respect of the challenges faced by SACE in the roll-out. There was further concern over the courses to be offered and how they were identified by SACE.

· It seemed as if SACE was budgeting for a backlog/deficit in respect of the cases referred to it.

· It was important that SACE did a needs analysis in respect of training needs for teachers.

· The Portfolio Committee requested timelines for the de-registration of teachers and how these where monitored by SACE.

· There was also concern over the increased use of consultants by SACE. and

· The Portfolio Committee was concerned over delays in the guaranteed funds for SACE and the amount involved as these delays negatively impacted on the plans and programmes of SACE.

3.2.5 Portfolio Committee Recommendations

The Portfolio Committee recommended that S ACE engage with the Department of Basic Education in respect of the delays in its guaranteed funds and the amounts involved to minimise any negative impact on its plans and programmes.

3.3 The Education Labour Relations Council (ELRC)

The ELRC reported that their Annual Performance Plan (APP) and Budget were developed in line with the current Strategic Plan and accurately reflected the performance targets which the ELRC intended to achieve given the resources allocated in the budget for 2014/15. The Council was confident that the strategic vision and the Annual Performance Plan would deliver improved services in the financial year 2014/15. The strategic outcome oriented goals of the ELRC were as follows:

· Proactive dispute prevention and resolution;

· Collective bargaining processes that maximised the scope of the Parties’ shared interest;

· Appropriate support and training for all involved in dispute resolution and collective bargaining;

· Sound communication strategies that supported and complemented the core activities of the Council; and

· Research, monitoring and evaluation activities that provided an evidence base for improved policies and policy implementation in basic education

3.3.1 Situational Analysis

The factors that influenced the plans and activities of Council included the use of legal representatives that influenced dispute resolution process as well as the unavailability of children’s courts.

Performance Delivery Environment – Focus ar eas to be addressed by the ELTRC in 2014/15 included:

(i) Dispute Management Services:

§ Dispute Prevention (Dispute Prevention Committees);

§ Facilitation and Intervention (minimise and resolve issues to circumvent potential conflict); and

§ Dispute Resolution (venues for special cases, settling cases at conciliation).

(ii) Collective Bargaining Services:

§ Temporary educators (monitor impact of proposed amendments to LRA);

§ Incentives for educators (monitor implementation on current policy on incentives); and

§ Research (ECD).

(iii) Organisational Environment:

§ Establishment of Supply Chain Management (SCM) Unit;

§ Human Resource Management;

§ FETC Bargaining Unit;

§ Funding Model; and

§ Status of ELRC as Bargaining Council and Schedule 3A Public Entity

3.3.2 ELRC Programmes

3.3.2.1 Programme 1: Administration Services – The purpose of the programme is to provide support services to the core operational functions of the Council and ensure that it delivered an efficient and effective service on its mandate. The strategic objectives for this Programme include:

§ Minimising fruitless and wasteful expenditure;

§ Eliminating irregular expenditure;

§ Establishing a Supply Chain Management (SCM) unit and providing training;

§ Training and developing staff (WSP);

§ Introducing employee wellness programmes;

§ Implementing the Council’s marketing strategy to promote the image of the ELRC; and

§ Managing the property and assets of the Council with focus on increasing effectiveness, economical practices, transparency and integrity.

Annual Targets for 2014/15 (Administration Services):

§ Minimising fruitless and wasteful expenditure be reduced by 100 percent;

§ No irregular expenditure;

§ Supply Chain Management (SCM) officials trained and developed;

§ Training and developing 30 of the 52 staff members ;

§ Introducing four wellness days;

§ Conducting a survey and research to measure how the Council was perceived by educators; and

§ Regular maintenance of property.

Quarterly Targets for 2014/15 (Administration Services):

§ Fruitless and wasteful expenditure to be reduced by 50 percent (in the 1 ^st Quarter), 70 percent (in the 2 ^nd Quarter), 90 percent (in the 3 ^rd Quarter) and 100 percent (in the 4 ^th Quarter);

§ No irregular expenditure in any Quarter;

§ Recruitment processes for appointment of SCM official in the 1 ^st Quarter, appointment of SCM official in the 2 ^nd quarter, training of SCM official in the 3 ^rd Quarter and evaluation and assessment of SCM officials in the 4 ^th Quarter;

§ Training and development of eight staff members each in the 1 ^st , 2 ^nd and 3 ^rd Quarters respectively; with six staff members in the 4 ^th Quarter;

§ At least one employee wellness programme conducted per Quarter;

§ Research surveys completed by educators: 1400 (1 ^st Quarter), 1400 (2 ^nd Quarter), 1200 (3 ^rd Quarter) with a research report compiled and findings presented to management in the 4 ^th Quarter; and

§ The Project manager appointed for property refurbishment and maintenance in the 1 ^st Quarter, the tender awarded in the 2 ^nd Quarter, building refurbishments commencement in the 3 ^rd Quarter and 80 percent of refurbishment completed in the 4 ^th Quarter.

3.3.2.2 Programme 2: Dispute Management Services – The purpose of the programme was to manage disputes proactively. The strategic objective for the programme included:

§ The provision of dispute resolution services – To conciliate disputes within 30 days;

§ Training of Dispute Resolution Practitioners – To provide training to practitioners; and

§ Professional Development Services – To provide professional development to panelists on special disputes.

Annual Targets for 2014/15 (Dispute Management Services):

Key annual targets included the following:

§ The provision of dispute resolution services was set at 428 cases (100 percent);

§ The training of dispute resolution practitioners was set at 240 practitioners; and

§ Professional development services was set at 80 panellists.

Quarterly Targets for 2014/15 (Dispute Management Services):

§ The provision of dispute resolution services: 107 cases (100 percent) for each of the four Quarters;

§ Training of Dispute Resolution Practitioners: 60 Practitioners trained for each of the four Quarters; and

§ Panelists professionally developed: 20 Panelists developed for each of the four Quarters.

3.3.2.3 Programme 3: Collective Bargaining Services – The purpose of the programme was to promote collective bargaining at national and provincial levels and ensure the development of effective policies in a non-disruptive environment. The strategic objective for the programme included:

§ Collective bargaining – To c onclude bargaining on identified matters of mutual interest in public education;

§ Research Services – To identify e vidence-based teacher welfare and national development issues; and

§ Quality Learning and Teaching Campaign (QLTC) – To e stablish and empower all-inclusive and functional QLTC structures on all levels i.e. provincial, district, circuit/ward and school levels.

Annual Targets for 2014/15 (Collective Bargaining Services):

§ To conclude bargaining on four matters of mutual interest identified;

§ To identify one research issue (on Early Childhood Development); and

§ To establish 27 functional QLTC structures.

Quarterly Targets for 2014/15 (Collective Bargaining Services):

§ To place at least one collective bargaining issue on the agenda of the Council every Quarter;

§ To commission research in the 1 ^st Quarter and possibly make the report available in the 3 ^rd Quarter (on Early Childhood Development); and

§ To establish seven functional QLTC structures each for 1 ^st , 2 ^nd and 3 ^rd Quarters respectively; with six established for the 4 ^th Quarter.

3.3.3 Overview of the 2014/15 Budget and MTEF Estimates

Expenditure for 2014/15 was proportioned as follows:

· Collective Bargaining Services – 35 percent;

· Administration Services – 30 percent

· Dispute Prevention and Support Services – 18 percent; and

· Dispute Management Services – 17:percent

The core business of Dispute Management Services and Collective Bargaining Services had been allocated 70 percent of the total budget (up from 66 percent). The approved budget for 2014/15 stood at R77 million (including capital expenditure). The Council anticipated an increase in capital expenditure which relates to the refurbishment of the Council owned building. T he funding of the Council’s strategic outcome oriented goals had not been compromised. The expenditure of the ELRC was closely aligned to the income generated. The funding model was unique and challenging.

The accumulated reserves were adequate over the MTEF period. Revenue increased, excluding the transfer from the transformation fund and accumulated reserves, from R53.8 million in 2010/11 to R58.6 million in 2013/14. This was due to an increase in interest from investments and transfers from reserves. Expenditure increased from R50.2 million in 2010/11 to R58.6 million in 2013/14, at an average annual rate of 5, 5 percent, mainly due to an increase in the staff complement and the Quality Learning and Teaching Campaign in the 2013/14 financial year. The Council projected that deficits would arise over the MTEF period due to the income remaining constant. However, the Council had sufficient reserves to cover this deficit. It was anticipated that the levies would have to be increased to cover the deficit from the 2017/18 financial year since the deficits were not sustainable in the long term.

Activities for the first quarter of the 2014/15 financial year demonstrated the Council’s commitment to the goals set out in the Annual Performance Plan, and displayed a commitment to not only goals related to public education, but the broad governmental goals of good governance, anti-corruption and support of economic transformation programmes.

3.3.4 Portfolio Committee Observations

The Portfolio Committee made the following observations in respect of the ELRC Budget Review:

· The Committee raised concerns in respect of the anomalies of the ELRC and its listing as a public entity.

· There was concern over the functionality of the provincial offices of the ELRC.

· Concerns were raised over the substantial budget increase for Research Services – the Portfolio Committee required an explanation on the huge increase;

· There was a query as to how the four matters raised for collective bargaining were identified.

· The Portfolio Committee further queried the ELRC role in respect of the improvement of the functionality of the QLTC and how the 27 structures to be established would be identified. What was the type of support that the ELRC would be dispensing to these structures?

· The Committee commended the ELRC for its contribution to bringing about labour peace in the Eastern Cape.

· The Portfolio Committee raised concerns in respect of the progress in the evaluation of principals as well as the Teacher-Laptop Initiative.

· It was a matter for concern that some of the targets set were very low.

· The Portfolio Committee queried the role of the ELRC in dealing with temporary educators.

· IQMS had been on the agenda for a long time. The Portfolio Committee queried the status of IQMS presently.

3.3.5 Portfolio Committee Recommendations

The Portfolio Committee recommended the following:

· That the ELRC had a formal engagement with Department of Basic Education and relevant stakeholders on the matter of the ELRC being listed as a public entity; and

· That the ELRC ensured that disputes that posed a challenge be dealt with speedily so as not to disturb teaching and learning.

4. Conclusion

· The reviews have presented a picture of where government stands in the provisioning of access to quality education, enabling the Committee to ascertain progress and challenges faced;

· These sessions presented an opportunity to deliberate on issues with the aim of finding practical ways of coordinating efforts in moving forward with an efficient machinery of delivery;

· The Committee further committed itself to strengthening its oversight role in accordance with the Constitutional provisions;

· The Committee was thus focusing on the implementation of service delivery, building and strengthening capacity; developing human and financial resources and developing the necessary skills required to ensure quality basic education; and

· The Committee regards the improvement of efficiency in the system and the achievement of value for money as vital in the pursuit of quality basic education.

5. Recommendation

The Portfolio Committee on Basic Education, having considered its report on Budget Vote 15: Basic Education recommends that the House accepts the Report.

Report to be considered.