ATC160824: Report of the Portfolio Committee on Higher Education and Training on the First Quarter Performance Report of 2015/16 of the Department of Higher Education and Training, dated 24 August 2016

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE FIRST QUARTER PERFORMANCE REPORT OF 2015/16 OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING, DATED 24 AUGUST 2016

The Portfolio Committee on Higher Education and Training (hereinafter referred to as the Committee) having considered the 2015/16 first quarter performance report of the Department of Higher Education and Training (hereinafter referred as the Department) on 5 August 2015 reports as follows:

1. Introduction and background

The Constitution of the Republic of South Africa Section 55(2) (a) requires that the National Assembly (NA) must provide for mechanisms (a) to ensure that executive organs of state in the national sphere of government are accountable to it; and (b) empowers the National Assembly to maintain oversight of the exercise of national executive authority, including the implementation of legislation.

Consideration of quarterly reports is one of the tools that ensures that organs of the state are accountable to Parliament. These reports are critical for in-year monitoring as they provide information on pre-determined objectives which are reflected in the strategic and annual performance plans, progress against objectives and identifying gaps in implementation. This is to ensure that policies announced by government and authorised by Parliament are actually delivered. Consideration of the first quarter performance report is significant as it provides preliminary indicators on the implementation of the planned programmes.

As part of its in-year monitoring, the Committee convened a meeting with the Department on 05 August 2015 to consider the first quarter financial and non-financial performance report of the 2015/16 financial year. This report accounts for work done by the Committee in its assessment of the first quarter performance report for 2015/16 financial year. The report further makes recommendations for consideration by the Minister of Higher Education and Training. It is important to note that this report is based on preliminary performance information as a process of validation was still underway during the consideration of the quarterly report by the Committee.

2. Policy mandates

2.1. National Development Plan (NDP) Vision for 2030

The NDP sets out a vision for the country for the next 15 years through its Vision 2030. The NDP identifies skills development and education as a critical enabler for economic development. The NDP envisages that by 2030, South Africans should have access to education and training of the highest quality.

The Plan’s goal for the post-school education and training sector is to have a post-school system that provides quality learning opportunities to young people, adults who want to change careers or upgrade skills, people who have left school before completing their secondary education and unemployed people who wish to start a career. Post-school education and training institutions should provide a range of accessible options for younger and older people. The graduates of the post-school system should have adequate skills and knowledge to meet the current and future needs of the economy and society. The Plan sets targets for the post-school education and training to be achieved by 2030.

2.2. Medium Term Strategic Framework (MTSF) 2014 - 2019

The 2014-2019 MTSF is a five year strategic plan of government, and it forms the first five-year implementation phase of the NDP. It articulates the Government’s commitment in implementing the NDP. This Framework requires that the work of all national and provincial departments, municipalities and public entities should be aligned with the NDP vision and goals. The aim of the Framework is to ensure policy coherence, alignment and coordination across government plans as well as alignment with the budgeting process. The Framework sets out measurable targets for the post school education and training aligned to the NDP. The targets include, among others: increased University and Technical Vocational Education and Training Colleges (TVET) student enrolments, increased number of graduates in science, engineering and doctoral studies, increased number of artisans and improved efficiency and effectiveness of the administration of post-school education and training institutions.

 

 

3. Overview and assessment of performance information on the predetermined objectives for the first quarter of 2015/16

3.1. Programme 1: Administration

The purpose of this programme is to conduct the overall management of the Department and provide centralised support services. For the quarter ending 30 June 2015, the programme was expected to produce an approved Information and Communications Technology (ICT) procurement plan. The target was achieved as planned.

3.2. Programme 2: Human Resource Development, Planning and Monitoring Coordination

The purpose of this programme is to provide strategic direction in the development, implementation and monitoring of the department policies and Human Resource Development Strategy for South Africa. There were no specific performance targets for the quarter ending 30 June 2015. However, a number of activities were undertaken towards the achievement of the targets planned for the subsequent quarters.

3.3. Programme 3: University Education

The purpose of this programme is to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system and provide financial support to universities, the National Student Financial Aid Scheme (NSFAS) and the National Institutes for Higher Education (NIHE). For the quarter ending 30 June 2015, the programme had one delivery target, namely, to have an evaluation report on the Higher Education AIDS programme for the 2014/15 financial year approved by the Director-General (DG) by June 2015. The target was achieved as planned.

3.4. Programme 4: Vocational and Continuing Education and Training (VCET)

The purpose of this programme is to plan, develop, evaluate, monitor and maintain national policy, programmes, assessment practices and systems for vocational and continuing education and training, including technical and vocational education and training colleges and post-literacy adult education and training. For the quarter ending 30 June 2015, the programme had four targets and none was achieved. The system performance in respect to the identified expected outcomes would be reported in the fourth quarter of the year under review. The targets that were not achieved at the end of the first quarter were to have governance and policies for TVET Colleges developed, to have staffing norms and standards for Community Education and Training Colleges (CETCs) developed, to have a TVET Colleges monitoring, evaluation and support model reviewed and approved and to have a Student Support Service Annual Plan developed and approved.

The Department reported that the TVET College draft monitoring and evaluation model, and a draft Student Support Services annual plan had to undergo a thourough consultation process with key stakeholders, and they would be approved in the second quarter of the year under review.  With regard to the target on development of staffing norms and standards for Community Education and Training Colleges (CETCs), it was reported there was no baseline data to determine the unit costs for personnel and programmes. The Department had underestimated the amount of work involved in implementing this target. It further committed that, once the staffing norms and standards for CETCs have been developed, they would be approved during the fourth quarter of the year under review.

 

3.5. Programme 5: Skills Development

The purpose of this programme is to promote and monitor the national skills development strategy and to develop a skills development policy and regulatory framework. For the quarter ending 30 June 2015, the programme planned to deliver five targets, of which one was achieved at the time of reporting. The target that was achieved at the end of the first quarter was to have 50 percent national artisan learners pass rate (including the Institute for the Development of Leanerships, Employment Skills and Labour  Assesments (INDLELA) which was exceeded by 8 percent.

The targets that were not achieved at the end of the first quarter were to have the SETA monitoring reports on skills development produced and approved, to have 100 days average lead time from trade test application received until trade test conducted, to have 29 750 new artisan learners registered nationally per annum, and to have 20 110 new artisans qualified per annum.

The reasons highlighted for deviation included the SETA Monitoring Report was yet to be approved at the time of reporting, the 100 days lead time from trade test application received until a trade test conducted was a stretched target from the beginning, and was simply not acceptable to the public. The situation was further exarcebated by the resignation of the Chief Artisan and the Director in the Artisan Unit. The Department undertook to employ more assessors at INDLELA and would refer candidates to other trade test centres for quicker testing. The data on new artisan learners registered nationally per annum and new artisans qualified per annum was not available at the time of reporting.

3.6. Concluding comments on non-financial performance

For the 2015/16 financial year, the Department had a total of 43 key delivery targets and identified 31 expected outcomes in the Annual Performance Plan. There were ten delivery targets to report on for the first quarter of 2015/16. Preliminary information showed that three (30 percent) of the targets were achieved and seven (70 percent) of the targets were not achieved.

The NDP clearly articulates that colleges are the backbone of technical and vocational education and training and that they need to be strengthened. The teaching and learning deficiencies at colleges need to be addressed to improve their performance. Improved quality of the college sector will build confidence and attract more learners. The non-achievement of targets by the Department within the required timelines would cause delays in the implementation of the NDP targets. This will further have an adverse effect on the core business of the post-school education and training sector, which is to produce a skilled and capable workforce to support an inclusive growth path. 

According to the NDP, South Africa needs to produce 30 000 artisans per year by 2030 to meet the needs of the growing economy. The 2014-2019 MTSF sets out the measurable target of increasing the number of artisans produced per year, from 18 110 in 2013 to 24 000 per annum by 2019. The Department did not achieve its targets set for artisan development (new artisan learners registered nationally per annum and new artisans qualified per annum) at the end of the first quarter, because the reported preliminary information entailed the first two months of the quarter. The Department noted that the final figures, including validated data for all three months would be incorporated in the actual final report of the first quarter.

 

 

 

3.7. Overview and assessment of financial performance

The overall spending rate for the first quarter was 39.4 percent (including Direct Charges) and 45.2 percent (excluding Direct Charges). The reasons for this high spending rate was due to the uneven transfers made to universities and TVET Colleges. The average spending for normal operational activities including compensation of employees was 20.2 percent, and the spending rate on compensation of employees was 20.6 percent. The spending rate on personnel remuneration was 19.9 percent, and it was lower than projected due to the delayed transfers of TVET and CET Colleges from the Eastern Cape Provincial Education Department.

The spending rate on Examiners and Moderators was 84.3 percent. The high rate of expenditure on this item was of a concern since it could impact negatively on the next round of examinations later this year. Increased enrolments in TVET Colleges may further compound the financial shortfall. Nonetheless, the Department reported that it closely monitored the expenditure rates in its programmes, and the cost saving measures implemented during the 2014/15 financial year were still in place.

 

3.7.1 2015/16 Financial Year: First Quarter

Programme	Allocation R’000	Actual Expenditure R’000	Variance R’000	% Spent
1. Administration	318 318	88 099	230 219	27.7%
2. Human Resource Development, Planning and Monitoring Coordination	54 843	177 840	(122 997)	324.3%
3. University Education	32 844 325	16 809 421	16 034 904	51.2%
4. Vocational and Continuing Education and Training	8 515 770	1 708 129	6 807 641	20.1%
5. Skills Development	110 699	138 281	6 807 641	124.9%
6. Direct Charges (SETAs and NSF)	14 690 000	3 330 456	(27 582)	22.7%
Total	56 533 955	22 252 226	11 359 544	39.4%

 

4.  Committee observations

The following were the key observations / comments made by the Committee from the presentation of the Department:

• The Committee expressed concern about its ability to exercise sufficient scrutiny of the Department’s first quarter performance of 2015/16 in view of the incomplete preliminary performance information submitted by the Department. The Department explained that all departments were required to submit preliminary performance information to the Department of Planning, Monitoring and Evaluation (DPME) and National Treasury (NT) within 30 days after the end of each quarter, and the final validated performance information is expected to be submitted to both the DPME and National Treasury after 90 days.
• The Committee was concerned about the financial and non-financial performance of the Department for the first quarter of 2015/16 based on the preliminary information. The continuous under-performance of Programme 4: VCET which did not achieve any of its planned targets for the first quarter was noted as a major concern.
• The Committee was concerned about the funding shortfall in respect of the function shift of TVET and CET sectors which was managed in Programme 4: VCET. This would negatively affect the achievement of the White Paper for Post-School Education and Training objective of a post-school education and training system that is responsive to the needs of individual citizens.
• The Committee noted the delay in the appointment of the Deputy Director-General (DDG) for Skills Development as a concern since the Department undertook to fill the post before the end of the previous financial year. The Department reported that the interview process for the post had been concluded, and the recommendations were sent to Cabinet for approval.
• The Committee noted the Department’s plan to develop new policies and staffing norms and standards for TVET and CETC sectors given the absence of baseline information for CETC and unreliable data of TVET Colleges.
• The Committee expressed concern in relation to the tardy and inadequate response by TVET Colleges in dealing with student and staff grievances. The Department reported that the management in certain colleges did not have adequate capacity in dealing with student and staff related demands timeously. 
• The Committee welcomed the extension of the HEAIDS programme to TVET Colleges to support young people in overcoming the epidemic.
• The delays by the Department in resolving the outstanding disciplinary hearing cases of TVET Colleges was noted as a concern.
• The proposed publication of the Recognition of Prior Learning (RPL) policy was welcomed by the Committee since it would increase access to artisan training to assist the country in meeting the NDP target of producing 30 000 artisans per annum by 2030.

 

5. Summary

The first quarter non-financial and financial reporting of the Department provided the Committee with preliminary indicators on the implementation of pre-determined objectives and budget based on the Annual Performance Plan of 2015/16. The Committee was not satisfied overall non-financial performance for the first quarter of 2015/16. Of the 10 planned targets for the quarter, preliminary information showed that the Department achieved only three.

The Committee was made aware of the new reporting regulations where all departments are required to prepare and submit preliminary information to the DPME and National Treasury within 30 days after the end of each quarter, and 90 days thereafter, a final validated performance information is submitted to both the DPME and National Treasury. The Department explained that this process was aimed at ensuring that departments submit properly validated and verified information. Despite the new regulations, the Department was not able to achieve most of its planned targets and pre-determined objectives for the first quarter as stipulated in the 2015/16 Annual Performance Plan that was presented to the Committee in March 2015. The Committee was concerned about the deviations which might impact on the Department’s ability to meet all its targets for the 2015/16 financial year.

6. Recommendations

The Committee having assessed the first quarter performance of the Department for the 2015/16 financial year, recommends that the Minister of Higher Education and Training consider the following:

• The Department should submit a bid to National Treasury to request additional funding to support the Technical and Vocational Education Training (TVET) and Community Education and Training (CET) functions adequately;
• The Department should prioritise the finalisation of the staffing norms and standards for CETCs and TVET Colleges including the harmonisation of conditions of service for CETCs educators;
• The Department should put mechanisms in place to improve its overall performance in meeting the planned targets and pre-determined objective for each quarter. The performance of Programme 4: Vocational and Continuing Education and Training (VCET) should be closely monitored going forward;
• The recruitment of additional human resource capacity at INDLELA should be prioritised to improve the timeframes for testing of artisan learners; and
• The Department should prioritise the finalisation of outstanding disciplinary cases of staff at TVET Colleges.

 

Report to be considered.