ATC170531: Report of the Portfolio Committee on Higher Education and Training on the Third Quarter Performance Report Of 2016/17 of the Department of Higher Education and Training, dated 31 May 2017

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE THIRD QUARTER PERFORMANCE REPORT OF 2016/17 OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING, DATED 31 MAY 2017

The Portfolio Committee on Higher Education and Training having considered the third quarter performance report 2016/17 of the Department of Higher Education and Training (DHET) on 01 March 2017 reports as follows:

1. Introduction and background

Section 55 (2) of the Constitution of the Republic of South Africa, 1996 stipulates that the National Assembly (NA) must provide for mechanisms (a) to ensure that all executive organs of state in the national sphere of government are accountable to it; (b) to maintain oversight of the exercise of national executive authority, including the implementation of legislation, and any organ of state.

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.

As part of its in-year monitoring, the Committee convened a meeting with the Department to consider its third quarter performance report 2016/17. This report accounts for work undertaken by the committee during performance assessment of the third quarter report. The report further makes recommendations for consideration by the Minister of Higher Education and Training.

2. Overview and assessment of the performance information on the predetermined objectives for the third quarter of 2016/17 and adjusted estimates 2016/17

For the 2016/17 financial year, the Department had 38 performance indicators encompassing 70 outputs (targets). There were 10 outputs for the quarter under review, mainly in the core delivery programmes (University Education, Skills Development and the Community Education and Training branch). The two support programmes (Planning and Corporate Services) had no targets due for the quarter. Of the 10 delivery targets, the Department achieved 6 (60 percent).

2.1. Programme 1: Administration

The purpose of this programme is to provide strategic leadership, management and support services to the Department. The programme has six budget sub-programmes, namely:

• Ministry.
• Department Management.
• Corporate Services.
• Office of the Chief Financial Officer.
• Internal Audit.
• Office Accommodation.

 

For the quarter ending 31 December 2016, the programme did not have any planned targets. For 2016/17, there were five annual targets for this programme. As at 31 December 2016, the progress towards the achievement of the annual targets was as follows:

• The Department’s target was to fill 90 percent of approved funded positions. 92.89 percent of the approved funded positions had been filled with a vacancy rate of 7.11 percent.
• 10 disciplinary cases were reported. Four cases (40 percent) were resolved within 90 days. 60 percent of the reported cases were not resolved within the set time frame of 90 days.
• The average lead time from recruitment requisition received until appointment recommendation was 188 days instead of the planned 180 days. This was attributed to inadequate capacity and budget constraints in the Recruitment Unit to respond to the demand.
• It took an average of 29.6 days to settle valid invoices received from creditors.
• A draft 2017/18 Information & Communication Technology (ICT) Plan had been developed and would be finalised before 31 March 2017.

 

 

 

 

2.2. Programme 2: Planning, Policy and Strategy

The purpose of the programme is to provide strategic direction in the development, implementation and monitoring of Departmental policies and the Human Resource Development Strategy for South Africa. The programme has six budget programmes, namely:

• Programme Management: Planning, Policy and Strategy.
• Human Resource Development, Strategic Planning and Coordination.
• Planning, Information, Monitoring and Evaluation Coordination.
• International Relations.
• Legal and Legislative Services.
• Social Inclusion in Education.

 

For the quarter ending 31 December 2016, the programme did not have any planned targets. For 2016/17, there were nine annual targets for this programme. As at 31 December 2016, the progress towards the achievement of the targets was as follows:

• The National Policy on Career Development Services across all spheres of government had been approved by the Minister, and was ready for submission to Cabinet for its consideration.
• The Policy for Open Learning and Distance Education (due by 31 March 2017). The policy had been developed and would be published for public comment.
• Monitoring & Evaluation Framework for Post-School Education and Training (PSET) (due by March 2017). The M&E Framework had been prepared and consulted within the Department and was now ready for finalization.
• A monitoring Report on International Relations was due by March 2017. 80 percent of the International Relations monitoring report content had been received. The report was being collated, edited and would be ready for approval shortly.
• The Macro Indicator Trend Report on PSET was due by March 2017. The data had been received from branches and was being processed. The completion of the report was on track for finalization before 31 March 2017.
• Developing materials for the two identified programmes to be piloted in 2017/18 was due by March 2017. The materials for the Electrician learning programmes was in process whilst materials for the online bridging course had been completed and piloted at five colleges.
• Annual report on skills supply and demand published by March 2017 (due by 31 March 2017). The first draft annual report on the projection of skills supply and demand was completed and ready for approval.
• An annual statistics on PSET report was due for publishing by 31 March 2017. The data was received and collated. The draft report was being edited and would be ready for approval before 31 March 2017.

 

2.3 Programme 3: University Education

The purpose of this programme is to develop and coordinate the policy and regulatory framework for an effective and efficient university education system. Furthermore, it provides financial support to universities, the National Student Financial Aid Scheme (NSFAS) and the National Institute for Higher Education (NIHE). The programme has six budget sub-programmes, namely:

• Programme Management: University Education.
• University-Academic Planning and Management.
• University-Financial and Information Systems.
• University-Policy and Development.
• Teacher Education.
• University Subsidies.

 

There were five targets due by the 31 December 2016 for this programme. Four of the five targets were achieved and related to the oversight role of the branch over universities. The target that was not achieved as planned was the review of the Funding framework for Higher Education Institutions. The review framework was finalised by October 2015 for public comments and the plan was to finalise and publish it for implementation by end of December 2016. However, the Minister requested that it should be presented before Cabinet, before it was widely consulted and finalised. This resulted in a delay as it  was only presented to Cabinet in November 2016. Cabinet recommended that the draft be taken through the consultation process with the sector and thereafter be published.

The reports that were completed by the Branch were as follows:

• A report on the financial health of universities in the 2015 academic year.
•  A report on the use of the Foundation Provision Grant by Universities in 2015/16.
• A report on the use of the 2015/16 Teaching and Development Grant by Universities
• A report on the use of the 2015/16 Research and Development Grant by Universities.

 

The system achieved the following targets:

• 984 000 students enrolled in public higher education studies at universities (achievement 985 212).
• 10 600 graduates in Engineering Sciences from universities (achievement 12 470).
• 9 700 graduates in Human Health and Animal Health from universities (achievement 9 851).
•  6 900 graduates in Natural and Physical Sciences (achievement 7 919).
• 18 300 graduates in Initial Teacher Education from universities (achievement 20 698).
• 2 200  Doctoral graduates from universities (achievement 2 530).
• 6 500  Research Masters graduates (achievement 7 317).
• 77 percent success rate at universities (achievement 78 percent).
• 80 percent higher education under graduate success rate for contact students (achievement 83 percent).
• 68 percent higher education undergraduate success rate in distance learning (achievement 68 percent).
• 43 percent percentage of University academic staff with Doctoral qualifications / PHDs (achievement 44 percent).

 

Areas of underperformance included:

• 30 400 first year students in foundation programmes (achievement 17 977).
• 205 000 eligible university students obtaining financial aid (achievement 178 961).

 

2.4. Programme 4: Technical and Vocational Education and Training (TVET)

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 (TVET) Colleges and post-literacy adult education and training. The programme has five budget sub-programmes, namely:

• Programme Management: Technical and Vocational Education and Training.
• Technical and Vocational Education and Training System Planning and Institutional Support.
• Programmes and Qualifications.
• National Examination and Assessment.
• Financial Planning.

 

For the quarter ending 31 December 2016, the programme did not have planned targets. For 2016/17, there were eight planned annual targets for this programme. As at 31 December 2016, the progress towards the achievement of these targets was as follows:

• Steering mechanism development. The national admission and promotion guidelines for NC(V) was due for approval by the Minister. The revised conduct policy for NC(V) was due for approval by the DG.
• A report on the implementation of teaching and learning support in TVET Colleges was due for approval by the DG by 31 March 2017. The TVET Colleges were implementing the teaching and tearning support plan approved by the DG.
• The Department was working closely with Umalusi to finalise the review of the NC(V).
• The revised current costing model for TVET College programmes was due for approval by the DG by 31 March 2017.
• A report on the implementation of the Student Support Services (SSS) plan in TVET Colleges was due for approval by the DG by 31 March 2017.
• Monitoring and Evaluation report on TVET institutions approved by the DG by 31 March 2017.
• College infrastructure maintenance: a report on TVET Colleges infrastructure maintenance was due for approval by the DG by 31 March 2017. The report was being prepared and consists of the progress to date on setting up the maintenance of college infrastructure.
• Establishment of a coordinating structure for Vocational and Continuing Education and Training (VCET). A process was underway for the creation of 26 posts for the South African Institute for Vocational and Continuing Education and Training (SAIVCET). Treasury advised the Department against establishing a new entity given the insufficient funding available to assist it. The Department established a Unit that would be funded by the National Skills Fund (NSF) to look at curriculum development of the TVET sector. The posts had been advertised to fill the vacancies in the Unit.

 

2.5. Programme 5: Skills Development

The purpose of the programme is to promote and monitor the National Skills Development Strategy (NSDS III) and to develop a skills development policy and regulatory framework for an effective skills development system. The programme has four budget sub-programme, namely:

•  Programme Management: Skills Development.
• SETA Coordination.
• National Skills Development Services.
• Quality Development and Promotion.

 

For the quarter ending 31 December 2016, the programme had four targets. The following was achieved:

• A report on the implementation of the National Skills Development Strategy III (NSDS III) by all the SETAs was completed and approved.
• Achieved 67 percent artisan learners trade test pass rate at INDLELA (target was 54 percent).

The two targets that were not achieved as planned included:

• Workplace Based Learning Programmes Regulations: The draft regulations submission was on route to the Minister for gazetting/publication. The finalization of the regulations had been delayed by the finalization of the Workplace Based Learning Policy which the Minister had directed to the cabinet for further consultation. This was scheduled for April 2017.
• The average lead time from trade test application received until trade test conducted at INDLELA was 132 days instead of the target of 120 days.

 

2.6. Programme 6: Community Education and Training

The purpose of this programme is to plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for community education and training. The programme has four budget sub-programmes, namely:

• Programme Management: Community Education and Training.
• Community Education and Training Colleges Systems Planning, Institutional Development and Support.
• Financial Planning.
• Education and Training and Development Support.

 

For the quarter ending 31 December 2016, the programme had one target, namely, regulations for the establishment of the satellite Community Learning Centres (CLCs). This could not be finalised since the Minister can only establish Colleges and not CLCs. The CLCs can only be established by the Councils. A draft policy had been approved by the Minister for publication in the Gazette for public comments.

 

 

Progress on the targets due by 31 March 2017 is as follows:

• Teaching and learning support: An annual plan for education, training and development improvement plan for CET approved by 31 March 2017. The final plan had been approved.
• CET College infrastructure/facilities maintenance: A final report had been compiled and was ready for approval by the DG.
• Strategic partnerships: A draft strategy on strategic partnerships had been prepared and consulted with internal legal services and approved by the DG.

 

2.7 Financial performance

The overall spending rate for the third quarter was 83.6 percent (including direct charges).  The high spending rate was mainly due to transfers made to universities and TVET Colleges. The average spending for normal operational activities, including compensation of employees was 73.2 percent.

The transfer payments and subsidies were processed as planned and in accordance with payment schedules. The expenditure trends were monitored closely by the Department as various components were at risk of overspending. The cost containment measures as communicated by National Treasury in 2016 were implemented. The highest expenditure was experienced by Programme 3 due to subsidy payments to Universities and the National Student Financial Aid Scheme (NSFAS). There were no irregular, fruitless or wasteful expenditure that had been reported to date. There was, however, possible irregular spending in the CET sector that was currently being reviewed.

At the end December 2016, all transfer payments to institutions, including subsidies were on schedule. All spending was monitored carefully to ensure that there is no overspending and that underspending is kept to the minimum.

 

 

 

3. Committee observations

The Committee noted that:

3.1 The throughput rate of universities and TVET Colleges was not satisfactory, although these institutions continued to receive funding for teaching and learning.

3.2. The inadequate utilisation of the foundation provisioning grants by Walter Sisulu University (WSU) and the University of South Africa (UNISA) was concerning, since the grants were meant to support students from disadvantaged schooling backgrounds and to improve university throughput.

3.3. The unfunded MTSF target of 205 000 eligible university students obtaining financial aid was concerning.

3.4 The financial sustainability of some institutions was at risk and the Department should closely monitor and support these institutions so that teaching and learning is not adversely impacted. The delay in the finalisation of the revised funding framework for universities was a concern since the sector experienced student protests.

3.5 It was disconcerting that the TVET sector continued to operate without a reliable information management system, unlike the university sector, which had the Higher Education Management Information System (HEMIS) that contains crucial data. The Department was urged to attend to this matter urgently.

3.6 The construction of the remaining TVET College campuses had been delayed by the slow processes in awarding of bids to service providers and this process should be finalised.

3.7 The TVET sector was underfunded and the budget cuts had a negative impact on the growth of the sector. The revised funding norms and standards for the sector were urgently needed.

3.8 The challenge of the irrelevant and outdated curriculum for TVET Colleges remained a challenge for the country in general. The country did not produce adequate and appropriately skilled graduates for workplace absorption in support for a growing economy.

3.9 The certification backlog for the CET and TVET sectors was discouraging,  and had adverse effects on the lives of the graduates from these sectors.

3.10 The TVET sector continued to operate with underqualified and unqualified lecturers, some of whom did not have workplace experience for the subjects they taught. This contributed to the poor performance of the sector. The readiness of universities in offering the TVET lecturers qualification should be prioritised.

3.11 The Department did not make progress in meeting the target of average lead time for the processing of trade test applications at INDLELA within 120 days. This needed to be corrected to meet the National Development Plan (NDP) target of producing 30 000 artisans per annum.

3.12 The uncertainty about the future of the SETAs, resulting from the delays in the finalisation of the new SETA landscape had a negative impact on the delivery of the existing commitments. The Department should prioritise the finalisation of the new SETA landscape to bring stability to the sector.

3.13 The recurring overspending on examiners remained a challenge and the Department should find a sustainable solution to this challenge.

3.14 The delays in the finalisation of disciplinary hearing cases, owing to the decentralisation of investigations to branches with inadequate legal capacity was a concern. Futhermore, the filling of vacant positions, due to inadequate capacity in the recruitment unit and funding constraints was also a serious concern.

4. Conclusion

The performance of the Department for the quarter ending 31 December 2016 stood at 60 percent. The Department had 10 delivery outputs that were in the core delivery programmes. The Department also reported  progress towards achievement of the delivery outputs that were due in the fourth quarter of 2016/17. It was commendable that there was no reported irregular, fruitless or wasteful expenditure incurred for the quarter ending 31 December 2016.

The Department continued to experience the recurring challenges related to inadequate HR capacity to finalise disciplinary hearing cases within 90 days, delays in the appointment of senior managers, especially the DDG post, overspending on examiners and the average lead time  from trade test application received until trade test conducted at INDLELA within 120 days. The Department cited insufficient funding as a serious challenge which impacted on its ability to execute its mandate effectively. Nevertheless, the Department undertook to correct the recurring findings within its limited resources.

5. Recommendations

The Committee, having assessed the third quarter performance report 2016/17 of the Department, recommends that the Minister of Higher Education and Training consider the following recommendations:

5.1 The human resource capacity of the Department should be enhanced to fast track the recruitment processes and the finalisation of disciplinary hearing cases within 90 days.

5.2 The appointment of the permanent DDGs for the CET and Planning, Policy and Strategy Branches should be prioritised.

5.3 The elimination of the certification backlog for the TVET and CET sectors should be prioritised.

5.4 The finalisation of the new funding framework for the TVET sector should be prioritised since the TVET Colleges do not have dedicated infrastructure grants.

5.5 A sustainable solution should be found to curb the recurring overspending on examiners.

5.6 The establishment of advisory structures or units within the Department should take into consideration the legal framework.

5.7 The Department should strive to achieve a clean audit for the 2016/17 financial year.

5.8 Strategic partnerships should be established with the relevant government departments on the utilisation of public infrastructure such as Community Learning Centres (CLCs). A sustainable cost sharing model should also be explored for the maintenance of these facilities.

5.9 The Department should establish a reliable information management system for the TVET sector.

Report to be considered.