ATC200608: Report of the Select Committee on Education, Technology, Sports, Arts and Culture on Consideration of the Budget Vote 17: Higher Education and Training, Dated 03 June 2020

NCOP Education and Technology, Sports, Arts and Culture

REPORT OF THE SELECT COMMITTEE ON EDUCATION, TECHNOLOGY, SPORTS, ARTS AND CULTURE ON CONSIDERATION OF THE BUDGET VOTE 17: HIGHER EDUCATION AND TRAINING, DATED 03 JUNE 2020

The Select Committee on Education, Technology, Sports, Arts and Culture(hereinafter referred to as the Committee), having considered the Strategic Plans 2020 – 2025 and Annual Performance Plans(APPs) 2020/21 and budgets of the Department of Higher Education and Training (hereinafter referred to as the Department) and the National Student Financial Aid Scheme (NSFAS), reports as follows:

1. INTRODUCTION AND MANDATE OF THE COMMITTEE, THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING AND THE NATIONAL STUDENT FINANCIAL AID SCHEME

1.1. Purpose of the Budget Vote 17 Report

The purpose of this report is to account for work done by the Committee in consideringthe 2020 - 2025 Strategic Plans and 2020/21 Annual Performance Plans(APP) and budgets of the Department and the NSFAS in accordance with Section 27(1) of the Public Finance Management Act, 1999 (Act. No 29 of 1999), and as referred by the Chairperson of the National Council of Provinces (NCOP) to the Committee in terms of Rule 338 for consideration and reporting.

1.2. Mandate of Committee and the DHET

The mandate of Parliament is based on the provisions of the Constitution of the Republic of South Africa, 1996, establishing Parliament and setting out the functions it performs. Parliament’s role and outcomes are to represent the people and ensure government by the people under the Constitution, as well as to represent the provinces and local government in the national sphere of government. The main functions of Parliament as outlined in the Constitution are:

To pass legislation,
To oversee executive action,
Facilitation of public involvement, co-operative government and,
International engagement.

The Department derives its mandate from section 29 of the Constitution of the Republic of South Africa and the following legislation: Higher Education Act, 1997 (Act No.101 of 1997), National Student Financial Scheme Act, 1999 (Act No. 56 of 1999), Continuing Education and Training Act, 2006 (Act No. 16 of 2006), National Qualifications Framework Act, 2008 (Act No. 67 of 2008), Skills Development Act, 1998 (Act No. 97 of 1998), Skills Development Levies Act, 1999 (Act No. 9 of 1999) and the General and Further Education and Training Quality Assurance Act, 2001 (Act No. 58 of 2001). The Committee oversees the implementation of the above mentioned legislation.

1.3. Method

The 2020 - 25 Strategic Plans and 2020/21 APPs and budgets of the Department and the NSFASwere considered against the background of key government policy documents, including, amongst others, the National Development Plan (NDP), the 2019 – 2024 Medium Term Strategic Framework (MTSF), and the 2020 State of the Nation Address (SONA). The Committee had joint briefing sessions with the Portfolio Committee on Higher Education, Science and Technology to consider the Strategic Plans and the APPs of the Department and the NSFAS on 11,14 and 20 May 2020.

2. OVERVIEW OF THE KEY POLICY FOCUS AREAS RELEVANT FOR THE DEPARTMENT AND THE ENTITIES

2.1.Key government policies

2.1.1. The National Development Plan (NDP) Vision 2030

The NDP identifies the decent work, education and the capacity of the state as particularly important priorities. For the post-school education and training sector, the NDP envisages that by 2030, South Africans should have access to education and training of the highest quality. The education, training and innovation system should cater for different needs and produce highly skilled individuals; and graduates of the post-school system should have adequate skills and knowledge to meet the current and future needs of the economy and society.

2.1.2. The White Paper for Post-School Education and Training (WPPSET)

The White Paper articulates a vision for an integrated system of post-school education and training, with all institutions playing their role as parts of a coherent but differentiated system. The White Paper sets out strategies to expand the current provision of education and training in South Africa, to improve its quality, to integrate the various strands of the post-school system. There are interventions set in the White Paper for implementation by different sectors of the Post-School Education and Training. Flowing from the White Paper, the Department has developed a Draft National Plan for Higher Education, which will be an implementation plan with measurable targets for each sub-system of the sector. The main policy objectives are:

A post-school system that can assist in building a fair, equitable, non-racial, non-sexist and democratic South Africa;
A single, coordinated post-school education and training system, expanded access, improved quality and increased diversity of provision; and
A post-school education and training that is responsive to the needs of individual citizens, employers in both public sectors, as well as broader societal and development objectives.

2.1.3. 2019 – 2024 Medium-Term Strategic Framework (MTSF)

In 2019, the new Administration has identified seven priorities derived from its electoral mandate and the 2019 State of the Nation Address (SONA) to focus its interventions for the 2019 – 2024 MTSF period. The 2019 – 2024 MTSF is a five-year strategic plan of government, and forms the second five-year implementation phase of the NDP. The post-school education and training sector contributes to Priority 2: Education, Skills and Health. This priority contributes to pillar 2 of the NDP pillars, which is Capabilities of South Africans.

In implementing Priority 2: Education, Skills and Health, Government has developed the new 2019 – 2024 MTSF. The Strategy has four Outcomes that are relevant to the Department of Higher Education and Training (DHET). These are:

Expanded access to PSET opportunities;
Improved success and efficiency in the PSET system;
Improved quality of PSET provisioning;and
A responsive PSET system.

2.1.4. 2020 State of the Nation Address (SONA)

The February 2020 State of the Nation Address (SONA) key focus is on inclusive growth and addresses critical priorities for the Higher Education and Training sector. These include, youth employment through appropriate skills development and capabilities, curriculum development, student accommodation and the establishment of two universities and nine Technical and Vocational Education and Training (TVET) colleges.

3. OVERVIEW AND ASSESSMENT OF THE DEPARTMENT’S STRATEGIC PLAN2020 – 2025

The 2019 – 2025 MTSF, which is a five-year strategic plan of government forms the second five-year implementation phase of the NDP and it requires that government departments at all levels, and entities incorporate its policy priorities of the sixth Administration. The Department of Higher Education and Training’s Strategic Plan 2020 – 2025 is guided and aligned to the MTSF priorities. The Strategy identifies four outcomes for under Priority 2: Education, Skills and Health. The Department leads four of the 81 outcomes identified in the MTSF under Priority 2. The Department has incorporated most of the policy priorities under the following Outcomes:

Expanded access to PSET opportunities, which aims to provide a diverse student population with access to a comprehensive and multifaceted range of PSET opportunities;

Improved success and efficiency in the PSET system and aims to improve efficiency and success of the PSET system;
Improved quality of PSET provisioning to build the capacity of PSET institutions to provide quality education and training.
A responsive PSET systemto provide qualifications programmes and curricula that are responsive to the needs of the world of work, society and students.
Excellent business operations within DHETto ensure sound service delivery management and effective resource management within the department.

The Department and its entities will be required to implement different interventions over a five-year period to achievethe outcomes.Contributing to some of the interventions under Priority 2: Education, Skills and Health is the Department of Science and Innovation and the National Research Foundation (NRF), the Department of Employment and Labour and Unemployment Insurance Fund and the Department of Agriculture, Land Reform and Rural Development through agricultural colleges.

3.1. Summary of Priority 2: Education, Skills and Health outcomes interventions

3.1.1. Outcome 1: Expanded access to PSET opportunities

Implementing enrolment plans for universities, Technical and Vocational and Training (TVET) and Community Education and Training (CET) colleges (2020-24);
Ensuring eligible students receive funding through the National Student Financial Aid Scheme (NSFAS) bursaries (through guidelines, policy, legislative review, effective oversight of the NSFAS by DHET and improve management of the NSFAS);
Implementing required agreements, financing systems, infrastructure frameworks and disability support to realise enrolment growth;
SETAs identifying increased number of workplace-based opportunities and make information of work-based learning known to the public;
Establishing centres of specialisation to support students with disabilities in TVET college; and
Promoting the take up of artisanal trades as career choices among youth.

3.1.2. Improved success and efficiency of the PSET system

Advocating the use of open access Learning and Teaching Support Materials (LTSM) in CET colleges; Implement capacity building programmes and interventions at universities;
Increasing the number of TVET students attending foundation courses;
EradicatingNational Accredited Technical Education Diploma (NATED) and National Certificate Vocational NC(V)certification backlog;
Implementing IT examination system for TVET Colleges; and
Increasing the number of universities offering accredited TVET college lecturer qualifications.

3.1.3. Improved quality of PSET provisioning

Increasing the number of universities offering accredited TVET college lecturer qualifications;

Implementing the New Generation of Academics Programme (nGAP); and
Developing standards ofgood governance in public TVET colleges, CETCs, Universities and SETAs.

3.1.4. A responsive PSET system

Industry exposure for lecturers and students (especially in TVET colleges);
Reviewing all TVET college curriculum to align with regional industry needs;
Promoting entrepreneurship in TVET colleges through the establishment of hubs;
Training young artisans through the centres of specialisation at TVET colleges;
Introducing compulsory digital skills training specific to programme offerings at TVET colleges;
CET college skills program piloted around community needs; and
Supporting universities toimplement student-focussed entrepreneurship programmes; Conduct IP awareness sessions (IP Wise) at TVET colleges (at least two per annum).

Though the Department has incorporated most of the policy priorities, the following performance outcome indicators and targets have not been reflected in the five-year strategic plan of the Department as well as the Annual Performance Plan.

Outcome 1: Expanded access to the PSET opportunities:
- NSFAS Policy in place for sustainable funding of students from poor background and from the ‘missing middle’ (guidelines, legislative review, effective oversight by DHET). The Department mentions it in the strategic plan as a focus area over the MTSF period. However, it is reflected as an output indicator and target; effective administration of NSFAS;
- Service Level Agreement (SLA) between the DHET and SETAs to improve performance are met; number of learners registered for SETA-supported skills learnerships annually; and
- Number of learners registered for SETA-supported internships annually.
Outcome 2: Improved success and efficiency of the PSET system:
- Advocacy campaign on the use of Open Access Learning and Teaching Support Materials (LTSM) is undertaken.
Outcome 3: Improve quality of provisioning:
- Number of lecturers from Historically Disadvantaged Institutions (HDIs) and the target is to determine the target from analysing HDIs and Universities of Technology (UoTs) trend through the nGAP; and
- Percentage of universities that have signed agreements with TVET to recognise their qualifications.
Outcome 4: A responsive PSET system:
- Number of protocols signed with industry to place TVET college students and lecturers for workplace experience.

4. 2020/21 MEDIUM-TERM EXPENDITURE FRAMEWORK (MTEF) BUDGET

4.1. Overview and assessment of the 2020/21 Medium-Term Expenditure Framework (MTEF) Budget and the 2020/21 Annual Performance Plan (APP)

Table 1: Summary of the overall Budget Allocation and Expenditure Estimates: 2020/21MTEF

Programme	Budget				Nominal Rand change	Real Rand change	Nominal % change	Real % change
R million	2019/20	2020/21	2021/22	2022/23	2019/20-2020/21		2019/20-2020/21
Administration	412.2	491.2	525.7	552.2	79.0	58.3	19.17 %	14.14 %
Planning, Policy and Strategy	180.7	214.5	227.5	239.2	33.8	24.8	18.71 %	13.70 %
Programme 3: University Education	73 365.0	80 083.4	84 332.6	88 167.9	6 718.4	3 343.2	9.16 %	4.56 %
Technical and Vocational Education and Training	12 630.9	13 813.6	14 644.0	15 278.7	1 182.7	600.5	9.36 %	4.75 %
Skills Development	280.9	318.5	336.6	354.8	37.6	24.2	13.39 %	8.61 %
Community Education and Training	2 143.8	2 522.9	2 686.7	2 780.5	379.1	272.8	17.68 %	12.72 %
Subtotal	89 013.6	97 444.0	102 753.0	107373.4	8 430.6	4 323.8	9.5 %	4.86 %
Direct Charges against National Revenue	18 576.3	19 412.9	20 585.0	21 969.8	836.6	18.4	4.50 %	0.10 %

TOTAL	107 589.8	116 857.0	123 338.1	129 343.1	9 267.2	4 342.2	8.61 %	4.04 %

Over the MTEF period, the Department of Higher Education and Training’s budget amounts to R369.5 billion including direct charges. For the 2020/21 financial year, government allocated an amount of R116.85 billion to the Department of Higher Education and Training. This represents, when factoring inflation, an increase of 4.04% from the 2019/20 adjusted appropriation amounting to R107.58 billion. Government expenditure on post-school education and training for 2020/21 represents a 2.15% as a share of the Gross Domestic Product (GDP). This expenditure as a share of GDP is projected to decrease marginally in the two outer years of the MTEF period to 2.14% and 2.11%, respectively. For the current financial year, Government expenditure on the PSET sector represents 15.42% as a share of the total national expenditure and 29.90% of the total education spending.

The budget is made up of R97.44 billion from voted funds (Department’s programme budget) and R19.41 billion from Direct Charges against the National Revenue Fund, for the Sector Education and Training Authorities (SETAs) and the National Skills Fund (NSF). Allocations from voted funds and Direct Charges against the National Revenue Fund have increased from the previous financial year by 4.86% and 0.10% when adjusted for inflation. The Department’s programme budget excluding Direct Charges, represents 83.39% of the total budget. The Department’s total budget, including Direct Charges is projected to grow in the two outer years of the MTEF period by an average growth rate of 6.3%, from R107.58 billion in 2019/20 to R129.34 billion in 2022/23.

Spending on transfers and subsidies constitutes 90.58%(R105.85 billion) of the R116.85 billion budget of the Department. The bulk of the allocation for transfers and subsidies, R86.43 billion (73.96%) is apportioned for Departmental Agencies and accounts, higher education institutions, foreign governments and international organisations, non-profit organisations (TVET and CET colleges).The second largest allocation of R19.41 billion in the transfers and subsidies goes to the SETAs and the NSF. The allocation for transfers and subsidies is projected to grow at an average growth rate of 6.3% from R97.46 billion in 2019/20 to R117.12 billion in 2022/23. An allocation of R10.98 billion, which represents 9.40% of spending on current payments constitutes the second highest expenditure of the Department’s budget. Payments for capital assets amounts to R16.3 million and it is also projected to decrease in the two outer years of the MTEF period to R13.5 million and R13.2 million, respectively.

The Cabinet has approved budget reductions amounting to R4.5 billion over the MTEF period to be effected mainly on transfers and subsidies in the University Education programme and the TVET programme; a technical inflation adjustment amounting to R62.2 million in 2020/21 and R66.2 million in 2021/22 on the compensation of employees across programmes. An additional adjustment of R60.1 million on the compensation of employees and goods and services is effected as a result of the consolidation of the offices of the Ministers and Deputy Ministers of the Department of Higher Education and Training and the Department of Science and Innovation through the 2019 national macro organisation of government.

The Department’s budget, excluding Direct Charges funds its six programmes, namely:

Programme 1: Administration;
Programme 2: Planning, Policy and Strategy;
Programme 3: University Education;
Programme 4: TVET;
Programme 5: Skills Development; and
Programme 6: CET.

4.2. Overview and assessment of the 2020/21MTEF budget allocation per programme and the 2020/21 performance targets

4.2.1. Programme 1: Administration

The purpose of this programme is to provide strategic leadership, management and support services to the Department. The Programme’s sub-programmes have been reduced from six to five, namely: Department Management, Corporate Services, Office of the Chief Financial Officer, Internal Audit and Office Accommodation. Sub-programme: Ministry has been discontinued due to the consolidation of the offices of the Ministers and Deputy Ministers of the Department of Higher Education and Training and the Department of Science and Innovation through the 2019 national macro organisation of government.

4.2.1.1.Overview and assessment of the 2020/21 MTEF budget allocation

Over the MTEF period, the programme has a total budget of R1.569 billion. For the 2020/21 financial year, the budget amounts to R491.2 million, which represents 0.50% of the Department’s total voted funds. The programme’s 2020/21 budget increases by R79 million from R412.2 million in 2019/20. This represents, when considering inflation, an increase of 14.19%.

Sub-programme 2: Corporate Services, continues to receive the bulk, 50.21% (R246.7 million) of the programme’s total allocation, followed by sub-programme 3: Office of the Chief Financial Officer at 23.30% (R124.3 million). The two sub-programmes received the bulk of the budget increase at 15.15 % and 28.71%, respectively. In terms of economic classification, R487.6 million is for current payments, of which R298.9 million is for compensation of employees and R188.6 million for goods and services. The bulk of the budget on goods and services allocation, R61.3 million is allocated for operating leases, followed by R43.8 million for computer services and R16.7 million on property payments.

4.2.1.2. Overview and assessment of the 2020/21 performance targets

The programme is responsible for one of the five DHET MTSF outcomes, 5: Excellent business operations within the DHET. For the 2020/21 financial year, the programme has seven output indicators and seven predetermined targets.The programme will focus on implementing sound human resource management practices, including staffing, human resource development, performance management, labour relations and human resource administrative systems. The Branch will, amongst others, ensure development of demand and procurement for 2021/22 is approved by the Director-General; work towards achieving an unqualified audit opinion; resolving 100% of disciplinary cases and ensuring 98% network connectivity uptime and conclude 100% of investigations on irregular, fruitless and wasteful expenditure.

4.2.2. Programme 2: Planning, Policy and Strategy

The programme aims to provide strategic direction in the development, implementation and monitoring of departmental policies and in the human resource development strategy for South Africa. The Programme retained its six budget sub-programmes, namely; Programme Management: Planning, Policy and Strategy; Human Resource Development Council of South Africa; Policy, Planning, Monitoring and Evaluation; International Relations; Legal and Legislative Services and Social Inclusion and Quality.

4.2.2.1. Overview and assessment of the 2020/21 MTEF budget allocation

The programme’s budget over the MTEF amounts to R681.3 million. For the 2020/21 financial year, the programme has a total budget of R214.5 million, which increased, when adjusted for inflation, by 13.65%from previous financial year. The programme’s budget constitutes 0.22% of the Department’s totalvoted funds. The significant increase in the budget is due to the shifting of the budget of the South African Qualifications Authority (SAQA) from programme 3: University Education to this programme. Spending on sub-programme 6: Social Inclusion and Quality constitutes 61.99% (R132.9 million) of the programme’s total budget. The sub-programme aims to promote access to higher education and participation by all learners in training programmes, manages the development, evaluation and maintenance of policy, programmes and systems for learners with special needs; and monitors the implementation of these policies. The budget allocation is projected to grow to R227.5 million and R239.2 million in 2021/22 and 2022/23, respectively.

An amount of R116.1 million is apportioned for current payments, of which R101.9 million is for compensation of employees and R14.1 million is for goods and services. The bulk of the budget on goods and services allocation, R10.2 million is equally spent on two line items, legal services and travel and subsistence. An amount of R97.7 million is apportioned for transfers and subsidies, of which R73.7 million is to the SAQA, R19.8 million to Universities South Africa and R4.1 million to foreign governments and international organisations (India-Brazil-South Africa Trilateral Commission and Commonwealth of Learning).

4.2.2.3. Overview and assessment of the 2020/21 performance targets

The programme contributes to the interventions to achieve four of the five MTSF outcomes of the DHET, namely: Expanded access to PSET opportunities; improved success and efficiency of the PSET system; improved quality of PSET provisioning and a responsive PSET system.

During the 2020/21 financial year, the programme has 10 output indicators and 11 predetermined targets. In contributing to expanding access to PSET opportunities, the programme will, amongst others, ensure availability of two courses or subjects on the NOLSs by 31 March 2021; get the Strategy for expanding online learning in PSET approved; review the Recognition of Prior Learning (RPL) coordination Policy and report on the recommendations and proposed amendments by 31 March 2021; and develop a model for programme articulation of TVET college programmes into university programmes by 31 March 2021.

In improving the success and efficiency of the PSET system, two reports on Statistics in the PSET and PSET monitoring will be published. The National Qualifications Framework (NQF) Amendment Bill will be approved by the Minister for public comments by 31 March 2021. This is to support improved quality of PSET provisioning. In contributing to the responsiveness of the PSET system, the programme will produce three research reports to support decision making. A conceptual framework on integrated planning in the PSET system will be developed and get approved by the DG by 31 March 2021.

4.2.3. Programme 3: University Education

The programmeaims to develop and coordinate policy and regulatory frameworks for an effective and efficient university education system and to provide financial and other support to universities, the National Student Financial Aid Scheme and national higher education institutions. This programme has six budget sub-programmes, namely: Programme Management, University Planning and Institutional Funding, University Governance and Management Support, Higher Education Policy Development and Research, Teaching, Learning and Research Development and Universities Subsidies.

4.2.3.1. Overview and assessment of the 2020/21 MTEF budget allocation

Over the MTEF period, the programme has a total budget of R252.58 billion and its 2020/21 financial year allocation amounts to R80.08 billion. The programme’s budget constitutes 82.18% of the Department’s total voted funds. The 2020/21 allocation increased, when adjusted for inflation, by 4.56% from R73.36 billion in 2019/20. The programme’s budget is dominated by sub-programmes 3: University Governance and Management Support and 6: University Subsidies, which constitutes 43.97% and 55.94% of the total programme budget, respectively. Sub-programme 3: University Governance and Management Support is responsible for transfer and subsidies to the National Student Financial Aid Scheme (NSFAS), the Council on Higher Education (CHE) and the National Institute for Humanities and Social Sciences (NIHSS). Allocation to the NSFAS, accounts for 98.81% (R34.79) of the sub-programme’s total budget. The budget increased in real terms by 9.03%. This budget is mainly to support the expanded access to education and training at universities and TVET colleges, through phasing in of the Fee Free Education Policy to support students from households with a combined annual income of less than R350 000, and students with disabilities from households with a combined annual income of less than R600 000.

Sub-programme 6: University Subsidies’ budget for 2020/21 amounts to R44.79 billion, which increased, when inflation adjusted, by 1.30% from previous financial year. The budget is towards expanding access to universities by ensuring that there is adequate infrastructure for teaching and learning as well as student accommodation. An amount of R3.85 billion is allocated for capital expenditure for the 2020/21, of which R2.84 billion is for infrastructure efficiency grants for the 24 universities and R1.01 billion is allocated to the University of Mpumalanga and Sol Plaatje University. An amount of R40.93 billion is allocated for higher education institutions, of which R39.46 billion is subsidies to the 24 universities. To support the operationalization of Sol Plaatje University and the University of Mpumalanga, earmarked grants amounting to R793.6 million are allocated for the two universities.

Though the programme budget is projected to grow to R84.33 billion and R88.16 billion in 2021/22 and 2022/23, Cabinet has approved budget reductions over the MTEF period to be effected mainly on transfers and subsidies.

In terms of economic classification, R101.3 million is allocated for current payments, of which R92 million is for compensation of employees and R9.3 million is for goods and services. In terms of the projected spending on goods and services. An amount of R79.98 billion is allocated for transfer and subsidies.

4.2.3.2. Overview and assessment of the 2020/21 performance targets

The expansion of the public university system requires a careful and systematic enrolment planning process that is in line with available resources, capacity and funding. The programme, together with its public universities, will develop and ensure the implementation of enrolment plans for the period 2020 to 2025. This process will ensure equitable participation that is supported by increased numbers of quality staff, affordable fees, inclusive and sustainable financial aid and improved infrastructure.In expanding access to PSET opportunities, the programme will amongst others, conduct a feasibility study to establish the nature and scope as well as the location of the new institution in Ekurhuleni Metro; develop and implement the Central Applications System at six universities and nine TVET colleges; and develop and submit for approval by the Minister a multifaceted student accommodation strategy.

To improve success and efficiency within the public university system, the programme will intensify the implementation of the University Capacity Development Programme (UCDP) to improve student success, and the quality of teaching and learning and the curriculum in universities. The programme will track and produce a report on the number of undergraduate cohort study reports tracking student throughput. In terms of the system targets for this Outcome, the programme will focus on increased graduate outputs in engineering, natural and physical sciences, human and animal sciences, initial teacher education and doctoral graduates.

To improve quality of provisioning in the higher education sector, the programme will focus implementing a university council support programme and Higher Education Leadership Management Programme. It will also produce reports on the evaluation of research outputs of public universities and on the evaluation of creative and innovation by public universities. In terms of MTSF system targets, the programme will implement the New Generation of Academics Programme (nGAP), which is part of the Staffing South Africa’s Universities Framework (SSAUF) within the UCDP. The nGAPwill receive continued support to recruit new permanent university academics, while at the same time improving staff demographic profiles and addressing the ratio of permanent to temporary staff members. The programme will also support for increased number of university lecturers with PhDs.

The programme will also steer the sector to be responsive to the needs of the society. The programme will support effort by the universities towards developing and implementing programme for Entrepreneurship Development in Higher Education, develop an implementation strategy and plan on the internationalisation of higher education, implement a framework for the policy on languages in higher education. Support will also be provided to the universities to offer TVET college lecturer qualifications.

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

The programmeaims to plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for TVET colleges. It also aims to provide financial and other support to TVET colleges and regional offices. The programme has six 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; Technical and Vocational Education and Training Financial Planning and Regional Offices.

4.2.4.1. Overview and assessment of the 2020/21 MTEF budget allocation

The programme’s budget over the MTEF period amounts to R43.73 billion for the 2020/21 financial year, the programme has a total budget of R13.81 billion. This budget increased, when inflation adjusted, in real terms by 4.75% from adjusted budget of R12.63 billion in 2019/20. The programme’s budget accounts for 14.18% of the Department’s total voted funds. The programme’s budget is projected to grow to R14.64 billion and R15.27 billion in 2021/22 and 2022/23, respectively. Notwithstanding the budget increase, Cabinet has approved budget reductions amounting to R2.6 billion over the MTEF period to be effected mainly on transfers and subsidies.

Sub-programme 2: Technical and Vocational Education and Training System Planning and Institutional Support continues to dominate the programme budget. It accounts for 93.07% of the total programme budget. This sub-programme provides support to management and councils, monitors and evaluate the performance of the TVET system against set indicators, develops regulatory frameworks for the system, manages and monitors the procurement and distribution of learning and teaching support materials, provides leadership for TVET colleges to enter into partnerships for the use of infrastructure and funding resources, and maps out the institutional landscape for the rollout of the TVET college system.

Sub-programme 4: National Examinations and Assessment 2020/21 budget decreased by R60.7 million to R633.6 million. The budget cuts in this sub-programme is concerning, given that the Department experienced challenges in conducting the national examination and assessments due to inadequate funding. Compounding the situation, is the IT examination system challenges that have contributed to the certification backlog.

The programme’s funding will go towards supporting expanded access to education and skills programmes that address the labour market’s needs for immediate skills that include practical components, improving success and efficiency, improving quality and responsiveness of the TVET sector.Transfers and subsidies allocations for 2020/21 amounts to R6.05 billion and it is projected to grow to R6.38 billion and R6.65 billion in 2021/22 and 2022/23, respectively. Over the MTEF, an amount of R1.2 billion is allocated for the operationalisation of the three new TVET college campuses, Nkandla and Bhambanana in Umfolozi TVET college and Waterberg in Thabazimbi. Of this, R1.2 billion, R309.1 million is allocated for the 2020/21 financial year. The programme is also responsible for transfer allocation to the Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA).

Allocation for capital expenditure for the 2020/21 financial year amounts to R959.2 million, which decreased by R124.8 million from R1.08 billion in 2019/20. The infrastructure efficiency grant is mainly towards refurbishment of TVET college buildings, purchasing of modern workshop equipment and for maintenance of existing facilities.

Spending on current payments for the 2020/21 financial year amounts to R7.75 billion, of which R7.27 billion is allocated for compensation of employees and R475.5 million is for goods and services. Spending on compensation of employees accounts for 52.67% of the programme’s total budget. Payments for capital assets amounts to R8.7 million.

4.2.4.2. Overview and assessment of the 2020/21 performance targets

The programme contributes towards the achievement of the following DHET MTSF Outcomes: Expanded access to PSET opportunities; improved success and efficiency of the PSET system; improved quality of PSET provisioning; and a responsive PSET system. The key contribution of the programme is to provide mid-level skills to support the priority sectors targeted by government. It is expected that the critical issue of pervasive youth unemployment and acute shortage of scarce and critical skills provision will be addressed and mitigated. The goal is ultimately to produce TVET graduates who are ready for the world of work. Achieving this requires an enabling environment for quality teaching, a competent teaching workforce, entrenching an enterprising culture among students, fostering skills for the digital economy, and strengthening the management and governance structures in TVET colleges, while ensuring accountability through an improvement in monitoring and oversight of these institutions by the Department.

A key output of the programme is aimed at improving access and the success of enrolled students to contribute to the employment of youth, and consequently, contribute towards combatting unemployment, poverty and social inequality. The increase in student enrolments is, however, constrained by fiscal funding to colleges, which sees capping off of student enrolments at 710 000 for the MTSF period. The focus on scaling up occupational qualifications in TVET colleges also requires colleges to seek alternate sources of funding through concrete and sustainable partnerships with various stakeholders.

Based on the projected budgets for student enrolments, the programme will keep student enrolments consistent over the next five years with provision only factored in for inflationary escalations. In terms of improving student access, success and efficiency in the sector, the programme, will amongst others, enrol students in the Pre-Vocational Learning Programme, improve lecturer competencies to deliver vocational education and review the college programmes and qualifications to make them more responsive and aligned to government priorities.

The new examination system is aimed at significantly transforming the conduct of national examinations across the value chain, from setting question papers through to the certification of successful candidates, thus improving both provisioning and efficiency in service delivery to students in TVET colleges. To achieve improvement and efficiency in TVET colleges, the Department will strengthen governance standards and regulations, and thereby intensify the oversight function of college councils.To improve the governance function in TVET colleges, the effectiveness of college councils will be closely monitored, and evaluated for compliance with their statutory remit.

The development of entrepreneurial skills, as well as the focus on digital training, is aimed at improving the quality of provisioning in TVET colleges, as well as strengthening exit support to graduates for self-employment in the context of a poor labour-absorptive capacity in the economy.

4.2.5. Programme 5: Skills Development

The programmeaims to promote and monitor the National Skills Development Strategy. Develop skills development policies and regulatory frameworks for an effective skills development system. This programme has five sub-programmes, namely: Programme Management: Skills Development; Sector Education and Training Authority (SETA) Coordination; National Skills Authority Secretariat; Quality Development and Promotion, and National Artisan Development.

4.2.5.1. Overview and assessment of the 2020/21MTEF budget allocation

Over the MTEF period, the programme has a total budget of R1.009 billion. For the 2020/21 financial year, the budget amounts to R318.5 million, which represents 0.3% of the Department’s total voted funds. The programme’s 2020/21 budget increases by R37.6 million from R280.9 million in 2019/20. This represents, when considering inflation, an increase of 8.61 % when factoring in inflation rate. The budget is projected to grow in two outer years of the MTEF to R336.6 million and R354.8 million, respectively.

The programme’s budget is dominated by sub-programme 2: Sector Education and Training Authority (SETA) Coordination at 48.73% (R155.2 million). This sub-programmesupports, monitors, reports on the implementation of the national skills development strategy at the sectoral level by establishing and managing the performance of service level agreements with SETAs, and conducting trade test at the Institute for National Development of Learnerships, Employment Skills and Labour Assessments (INDLELA). Sub-programme 5: National Artisan Development’s budget for 2020/21 amounts to R109.5 million, which is the second largest spending of the programme’s total budget, accounting for 34.38%.

An amount of R170.6 is apportioned for current payments, of which R154.7 million is allocated for compensation of employees and R15.9 million for goods and services. The allocation for transfers and subsidies amounts to R146.0 million, of which R27.4 million is for the Quality Council for Trades and Occupations (QCTO) and R118.5 million is for transfer to the Public Services SETA. It is critical to note that allocation for the QCTO is not growing in real terms when factoring in inflation. Spending on payments for capital assets amounts to R2.0 million.

4.2.5.2. Overview and assessment of the 2020/21 performance targets

The programme contributes towards the achievement of three of the five DHET MTSF Outcomes: Expanded access to PSET opportunities; improved success and efficiency of the PSET system; and a responsive PSET system. The programme 11 output indicators and 14 predetermined targets. Of the 14 targets, eight are direct deliverables and six MTSF system targets.

In expanding access to PSET opportunities, the programme will ensure alignment of the sector skills plans (SSPs) to the updated SSP approved framework. Service Level Agreements (SLA) framework will also be approved. The programme will monitor the achievements of the SLA agreed upon with the SETAs are achieved. For the 2020/21, the programme will monitor that SETAs enrol 170 000 learners or students in work-based learning programmes; 146 000 learners are registered in skills development programmes and 30 500 learners enrol in artisan programmes. In contributing towards the achievement of Outcome 2: improved success and efficiency of the PSET system, the programme will focus on increased completion of learners in artisanal. Skills development and learnership programmes.

During the current financial year, the programme will ensure responsiveness to the needs of the society and labour market, by identifying sectoral occupations in high demand, developing SETA monitoring reports and conducting trade tests.

4.2.6. Programme 6: Community Education andTraining (CET)

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 sub-programmes, namely: Programme Management: Community Education and Training; Community Education and Training Colleges Systems Planning, Institutional Development and Support; Community Education and Training Financial Planning and Management; and Education and Training and Development Assessment.

4.2.6.1. Overview and assessment of the 2020/21MTEF budget allocation

The Community Education and Training (CET) programme budget over the MTEF periodamounts to R7.99 billion. For the 2020/21 financial year, the budget amounts to R2.52billion, which constitutes 2.59% of the Department’s total voted funds. The budget for 2020/21 increases, when inflation adjusted, 0.18% from the adjusted appropriation of R2.14billion in 2019/20. The budget is projected to grow to R2.68 million and R2.78billion, respectively.

The bulk of the budget of the programme, at 92.39% (R2.33 billion) is apportioned to sub-programme 2: Community Education and Training Colleges Systems Planning, Institutional Development and Support.This sub-programme provides support to management and councils; monitors and evaluates the performance of the CET system; develops regulatory frameworks for the system; manages and monitors the procurement and distribution of learning and teaching support materials; provides leadership for community education and training colleges to enter into partnerships for the use of infrastructure for college site-hosting centres, and the funding of these partnerships, maps and institutional landscape for the rollout of the CET system; and is responsible for the planning and development of CET infrastructure. The second largest allocation amounting to R167.2 million is apportioned for sub-programme 3: Community Education and Training Financial Planning and Management.

For the 2020/21 financial year, current payments budget amounts to R2.36 billion, of which R2.35 billion is for compensation of employees and R4.8 million for goods and services. allocation for compensation of employees accounts for 93.44% of the programme’s total budget. Spending on compensation of employees increased by R369.6 million from R1.98 million. Transfers and subsidies budget amounts to R159.9 million, of which R156.8 million is transfers to CET colleges and R3.1 million is transfer to ETDP SETA.

4.2.6.2. Overview and assessment of the 2020/21 performance targets

The programme contributes towards the achievement of four of the five DHET MTSF Outcomes: Expanded access to PSET opportunities; improved success and efficiency of the PSET system; improved quality of the PSET provisioning and a responsive PSET system. For the 2020/21 financial year, the programme has 14 output indicators and 14 predetermined targets. The programme has both direct and system deliverables.

Working towards improving access to CET opportunities, the programme will focus on the development and implementation of the sustainable funding model. This will enable the holistic implementation of the national norms and standards for funding CET colleges. The NDP committed government to increase youth and adult participation in the CET sector to 1 million by 2030in appreciation of the challenge of the growing number of NEETs. Lack or inadequate advocacy has contributed to the low enrolment in the CET colleges. The majority of young people who are not in education, employment and training (NEET) and who can benefit from education and training provided by the sector are not aware of the opportunities. The programme will dedicated its effort to developing and implementingadvocacy strategies for the sector. The strategy will support CET colleges to meet their enrolments targets by attracting more youth into CET opportunities.

To improve success and efficiency as well as quality of provisioning of the CET sector, the programme will develop bi-annual reports on teaching and learning improvement plans as well as increasing open access Learning and Teaching Support Material (LTMS) for students. CET lecturers will be trained to improve their competencies and improve quality of teaching in the sector. The programme will work towards the diversification of programme offerings in CET colleges, which are geared towards expanded access and responsive CET colleges by providing for the needs of a wider community while catering for individuals. The accreditation of community learning centres will open opportunities for further study to individuals who could not meet the requirements for entry into TVET colleges and other institutions of further learning.The introduction of entrepreneurship and skills programmes, e.g. digital and other skills programmes, seeks to address issues of unemployment, poverty and inequality within communities while providing skills for establishing sustainable entrepreneurship.

5. OVERVIEW AND ASSESSMENT OF THE NATIONAL STUDENT FINANCIAL AID (NSFAS)) STRATEGIC PLANS 2020 - 2025 AND ANNUAL PERFORMANCE PLANS (APPs) 2020/21

The National Student Financial Aid Scheme (NSFAS) was established in terms of the National Student Financial Aid Scheme Act, 1999 (Act No 56 of 1999). Its main mandate is to provide loans and bursaries to eligible students, developing criteria and conditions for the granting of loans and bursaries to eligible students in consultation with the Minister of Higher Education and Training, raising funds, recovering loans, maintaining and analysing a database, undertaking research for the better utilisation of financial resources, and advising the Minister on matters relating to financial aid for students.

5.1.Alignment with the National Development Plan (NDP) and 2019 – 2024 Medium-Term Strategic Framework (MTSF)

Table 2: Key government policy priorities pertaining to the NSFAS

NDP vision 2030	2019 – 2024 MTSF				NSFAS 2020/21 – 2024/25 Strategic Plan	NSFAS 2020/21 APP
Priorities	Outcome	Outcome Indicator		Target by 2024	Target by 2024	Target
Providing all students who qualify for NSFAS with access to full funding through loans and bursaries to cover cost of tuition, books, accommodation and other living expenses.	Expanded access to PSET opportunities	Effective administration of NSFAS		Elimination of delays in disbursement of funds	N/A	N/A
		Number of university students receive funding through the NSFAS bursaries		450 000	450 000	426 268
		Number of TVET college students receive funding through the NSFAS bursaries		400 000	400 000	310 900
Students who do not qualify should have access to bank loans, backed by state sureties. Both the NSFAS and bank loans should be recovered through arrangements with the SARS.		NSFAS Policy in place for sustainable funding of students from poor background and from the ‘missing middle’ (guidelines, legislative review, effective oversight by DHET)		Sustainable policy on the missing middle adopted and implemented	N/A	N/A
Considering extending the NSFAS to qualifying students in registered private colleges as an incentive for private sector			Not included in the 2014 – 2019 MTSF and the 2019 – 2024 MTSF

NSFAS aims to support the objectives of the NDP and the targets of the governments’ 2019 - 2024 MTSF priorities, specifically, Priority 2: Education, Skills and Health outcome. The NDP proposes an increase in participation rates at Technical and Vocational Education and Training (TVET) colleges to 25% of 20 to 24 year olds and more than 30% participation rate in the higher education sector. The NDP further states that all students who qualify for the National Student Financial Aid Scheme (NSFAS) should be provided with access to full funding through loans and bursaries to cover the costs of tuition, accommodation and other living expenses. The targets for the MTSF include; increasing student enrolment at public universities annually to 1,13 million by 2024, and the number of student enrolments at TVET colleges annually to 710 000 by 2024.

The 2019 – 2024 MTSF commits the NSFAS to have an effective administration of the NSFAS and the target is to eliminate delays in the disbursement of funds. However, this outcome indicator and target are not reflected in the NSFAS’2020 – 2025 Strategic Plan and the 2020/21 APP. The MTSF also set a priority to have a sustainable policy on the missing middle adopted and implemented.While this is mentioned in the Strategic Plan of the Department as focus areas for the MTSF period, it neither has outcome indicator nor target in both the Strategic Plans and APPs of the Department and the NSFAS. The NSFAS Administrator reported to the Committee that the Department is responsible for policy development, whilst NSFAS is only responsible for implementation.

5.2. Overview and assessment of NSFAS 2020/21 Medium Term Expenditure Framework (MTEF) Budget

For the 2020/21 financial year, NSFAS has a total revenue amounting to R38,44 billion. The budget is made up of R1,43 billion entity revenue, R37,01 billion (R34,79 billion DHET Loans and Bursaries); R299,16 million DHET Administration Grant, R1.51 billion from other government units, R332,87 million Department agencies and accounts and R70,70 million from higher education institutions). NSFAS overall budget is projected to grow to R40,45 billion and R42,11 billion in the two outer years of the 2020/21 MTEF.

The phased-in approach of the implementation of the fee-free education policy that was announced in December 2017 is in its third year of implementation. The steep increase in the revenue, especially the DHET Loans and Bursaries is to support this Policy and towards access to education and training of students TVET College and university students coming from poor and working class households with an average annual income of up to R350 000. The 2020/21 revenue increased by R3,81 billion from R34,62 billion in 2019/20.

The bulk of the budget, 99.26% (R36,81 billion) is apportioned for programme 2: Student Centred Financial Aid, excluding an allocation amounting to R1,35 billion for accounting expenses (depreciation/ impairment losses). The allocation increased by R4,13 billion, which represents a nominal increase of 12.65 % from R32,68 billion in 2019/20. Of this budget, R36,71 billion is allocated for bursaries and R103,10 million is for operations. Administration programme’s budget for the 2020/21 financial year amounts to R275,44 million. The allocation decreased by R28,72 million compared to R304,16 million in 2019/20, which represents a 9.44% decrease. The programme’s total budget represents 0.74% of the NSFAS’ total budget, excluding the accounting expenses.

In terms of economic classification, R234.62 million is apportioned for compensation of employees, which accounts for 0.61% of the NSFAS’ 2020/21 total revenue. The allocation for compensation of employees increased by R14.49 million, which represents a nominal percent increase of 6.58%. The budget is projected to grow to R239.61 million and R252.19 million in the two outer years of the MTEF period. An allocation amounting to R139.09 million is apportioned for spending on goods, which decreased by R61,60 million from R200.695 million in 2019/20. The budget is projected to grow to R153.64 million and R159.04 million in 2021/22 and 2022/23 respectively.

An allocation amounting to R36.71 billion is for transfer and subsidies, which accounts for 95.48 % of the total budget of the NSFAS. The allocation increased by R4.15 billion, which represents a nominal increase of 12.75% and it is projected to grow to R38.71 billion and R40.35 billion in the outer two years of the 2020/21 MTEF period. The projected increase is to continue the phasing of the implementation of Fee-Free Education Policy. Payments for capital assets allocation for the 2020/21 financial year amounts to R4.83 million.

NSFAS has not budgeted for a surplus or deficit, its total income equals the total expenditure estimates.

5.3. Overview and analysis of the Annual Performance Plan (APP) 2020/21

The National Student Financial Aid Scheme has two budget programmes, Administration and Core Mandate, previously known as a Student-Centred Financial Aid. NSFAS 2020/21 targets have been developed under four strategic outcomes, which are:

Table 3: The NSFAS Strategic Outcomes:

Programme 1:	Strategic Outcome	Statement	No. of targets
Administration	NSFAS is compliant with all Governance requirements in the delivery of its mandate	To implement governance, risk and compliance processes such that external audit outcomes are improved	3
	NSFAS empowers the Minister with advice on matters relating to financial aid	To provide relevant insights and thought leadership to the Minister and DHET to assist in developing policy impacting on financial aid.	1
	NSFAS core mandate is enabled by effective internal support services.	To provide effective support services that enable NSFAS to deliver on its mandate	2
Programme 2: Core Mandate	NSFAS delivers on its core mandate to provide financial aid to eligible students at public universities and TVET colleges.	To manage the funding application process, funding decision process, and disbursement and payment processes efficiently and effectively.	6

The NSFAS’ two budget programmes have a combined total of 13 output indicators, of which 10 have predetermined targets for the 2020/21 financial year. For the 2020/21 financial year, there are 12 targets spread across the 10 indicators.

5.3.1. Programme 1: Administration

The purpose of the programme is to provide governance and oversight, systems, activities and structures that enable the organisation to deliver on its core mandate effectively and efficiently in pursuit of its strategic outcomes. The programme focuses on lifting governance maturity in key areas of the entity, as well as ensuring that organisational support functions are delivering on key activities in support of the NSFAS value chain. To this end, the role of Human Resource(HR) and Finance are critical in enabling the organisation to have the necessary capacity and adhere to agreed service levels in order to deliver the mandate of the organisation. Similarly, NSFAS needs to reach its target student population, and to this end, brand awareness is critical. This facilitates the access to funding for tertiary education for the poor and working- class.

In ensuring that NSFAS is compliant with governance imperatives with respect to external audit outcomes, ICT governance and cybersecurity, in 2020/21, NSFAS planned to receive an unqualified audit rating with matters of emphasis; achieve level 2 maturity in terms of the Corporate Governance of Information Communication Technology (CGICT) framework and level 1 maturity with respect to cybersecurity.

With regards to empowering the Minister with advice on matters relating to financial aid, the NSFAS will produce four policy advisory briefs related to its mandate. NSFAS also planned to achieve 5% employee turnover and ensure that 100% payments to institutions that are completed within seven working days of receiving the approved disbursement file from operations.

5.3.2. Student-Centred Financial Aid

The purpose of this programme is to ensure that NSFAS delivers on its core mandate in providing financial aid for tertiary education to the poor and working-class. Qualitative characteristics have been embedded within the performance indicators in order to ensure that NSFAS not only delivers in terms of volume, but also in terms of ensuring that the relevant rules and

The 2019 – 2024 MTSF targets for the number of poor and working-class students as per the NSFAS eligibility criteria in public universities and TVET colleges funded by NSFAS are 450 000 and 400 000, respectively. For the 2020/21 financial year, the NSFAS planned to fund a total of 426 268 and 308 467 students in universities and TVET college, respectively. The number of funded students is projected to increase over the 2020/21 Medium-Term Expenditure Framework (MTEF). The number of NSFAS eligible students in universities and TVET colleges is projected to increase by 5 144 to 431 412 and by 38 090 to 346 258 in 2022/23, respectively. This represents an increase of 1.19% in universities and 11% in TVET Colleges.

Notably, the total Rand value in funding administered, in addition to funding received from the DHET, for financial aid annually, is projected to increase by R240.25 million to R1.9 billion in 2020/21. Planned total Rand value recovered and allocated to loan accounts annually is also projected to increase to R776.7 million in 2020/21 from R691.5 million.

6. COMMITTEE OBSERVATIONS

The Committee, having considered and deliberated on the Strategic Plans 2020 - 2025 and Annual Performance Plans 2020/21 made the following key observations and findings:

6.1. Department of Higher Education and Training (DHET)

6.1.1. Programme 1: Administration

6.1.1.1. The filling of senior management positions, in particular the Deputy Director-General (DDG) post has been very slow. The DDG for the CET programme has been in an acting position since 2016, previously, he acted as a DDG for the Vocational and Continuing Education and Training (VCET) programme since 2009, before it was split into TVET and CET branches in 2015. This is in gross violation with the Public Service Regulations, 2001 B5.3 which states that “an employee may not act in a higher vacant post for an uninterrupted period exceeding 12 months”.

6.1.1.2. The increase in the budget allocation for expenditure on consultants and advisory services amounting to R11.8 million was noted as a concern, and the Committee questioned whether the Department does not have in-house capacity to render these services.

6.1.2. Programme 2: Planning, Policy and Strategy

6.1.2.1. The Committee noted that the plans of the Department do not reflect interventions to curb the spread of gender-based violence (GBV) incidences in the PSET system.

6.1.3. Programme 3: University Education

6.1.3.1. The COVID-19 pandemic has put enormous pressure on teaching and learning in higher education for the 2020 academic year. Universities had to shift from contact learning into multimodal remote learning systems in an attempt to provide a reasonable level of academic support to students and save the remainder of the 2020 academic years. However, universities’ ICT capabilities vary, in particular, historically disadvantaged institutions (HDIs) have been struggling to adjust to remote learning mechanisms due to insufficient capacity and funding.

6.1.3.2. The interventions that have been introduced by the Department in an attempt to save the 2020 academic year in higher education were commended by the Committee. The concern that was highlighted by the Committee relates to the students’ accessibility to digital devices (laptops) so that they could access online learning, and the affordability of data to enable access to the internet. Compounding the situation was the poor network connectivity in geographically remote areas. In this respect, the Committee urged the Department to request the services of the Council for Scientific and Industrial Research (CSIR) to undertake a Geo-spatial analysis to identify those students that would be affected by poor network connectivity so that they could be an alternative means to assist the students in those areas not to be left behind.

6.1.3.3. The establishment of the two new universities in Gauteng, the University of Science and Innovation in Ekurhuleni and a University for Combating Crime in Hammanskraal was welcomed by the Committee. The development of these two new universities would not only expand access to education and training, but will diversify provisioning of the PSET system. The Committee urged the Department to consider expanding the teaching and learning sites/campuses of existing universities in Gauteng as other alternatives to expand access.

6.1.3.4. The plans to improve and expand infrastructure in higher education, particularly the HDIs development programme was welcomed by the Committee, including the establishment of the Ministerial Advisory Committee on Infrastructure (MACI). The Committee reiterated its concern with respect to the constructors that are awarded infrastructure development/expansion contracts and abandon them before completion, and the lack of consequence management implemented against these service providers by universities.

6.1.3.5. The absence of a policy to respond to the plight of the missing middle students in higher education remains a concern for the sector. The various student support interventions of the Department are mostly directed at the NSFAS funded students, and the missing middle students are mostly assisted by their respective institutions, at a huge cost leaving them indebted. The Minister undertook to work with the private sector partners to develop a financial aid system that is inclusive of the missing middle students.

6.1.3.6. Whilst noting the importance and magnitude of the higher education sector, the Committee expressed its concern that the bulk of the budget for the entire PSET system, approximately 80% is allocated to the University Education programme, whilst the TVET and CET programmes which are earmarked for developing mid-level occupational skills for young people to access the economy, continue to receive inadequate funding.

6.1.3.7. The abuse of institutional autonomy by some universities at the expense of being transparent and accountable when required by the Committee was noted as a concern.

6.1.4. Programme 4: TVET

6.1.4.1. The impact of the COVID-19 pandemic on the TVET sector posed a serious threat towards saving the 2020 academic year for the sector. Compounding the situation is that less than 10% of TVET colleges indicated their readiness to implement multimodal remote learning systems to provide student academic support during the lockdown period. The ICT infrastructure in the TVET sector is lagging behind and this could be attributed to historic insufficient funding for the sector.

6.1.4.2. The majority of students in the TVET sector have been idle during the lockdown period and there have been inadequate communication with students on teaching and learning mechanisms aimed at saving the 2020 academic year.

6.1.4.3. Insufficient funding for the expansion of infrastructure and enrolment in the TVET remains an ongoing concern, and poses a risk towards the attainment of the NDP targets for this sector. TVET colleges are critical in the training of young people to develop skills, knowledge and attitudes needed in the labour market. The demand of skilled and capable artisans to grow the ailing South African economy largely depends on TVETs and the insufficient investment towards making them institutions of choice poses a risk for the PSET system.

6.1.4.4. The slow pace in the curriculum review of the TVET sector to make it aligned and relevant to the requirements of industry remains an ongoing concern.

6.1.4.5. The implications of the COVID-19 pandemic, particularly for those students that are part of the work-integrated learning (WIL) programme was noted as a concern, given that most industries have been closed, and others have been unable to recover from the financial losses due to the lockdown period. This also poses a threat on the ability of the student to complete their workplace practical component of the studies to attain their qualifications.

6.1.4.6. Inadequate infrastructure, particularly safe and conducive student accommodation in the TVET sector remains an ongoing concern. The utilisation of private accommodation that does not meet the DHET minimum norms and standards for student housing in the TVET sector poses health and safety risks for students.

6.1.5. Programme 5: Skills Development

6.1.5.1. The poor governance and management of some SETAs, including the lack of consequence management against officials responsible for irregularities and corruption remains an ongoing concern.

6.1.5.2. The appointment of the new SETAs’ Accounting Authorities (AAs) by the Minister with effect from 1 April 2020 was welcomed by the Committee.

6.1.6. Programme 6: Community Education and Training

6.1.6.1. Insufficient funding for the CET sector remains an ongoing concern, given that the sector does not have its dedicated infrastructure and sufficient teaching and learning support interventions.

6.1.6.2. The COVID-19 pandemic posed a serious threat towards the saving of the 2020 academic year in the CET sector, given that there are no alternative modes of learning except for contact learning. Students in the CET sector do not receive financial support from the NSFAS. Consequently, they rely on their learning centres to receive all the learning materials. In addition, the closure of schools during the lockdown period has had a huge impact on the CET sector given that most of the learning centres are operating in schools.

6.1.6.3. The various interventions in the PSET system, especially those dealing with infrastructure development and expansion do not take into cognisance the needs of the CET sector. The Committee expressed a concern with what appears to be a neglect of the CET sector in the development and expansion of the PSET system.

6.1.7. Budget

6.1.7.1. As part of the measures announced by the President to respond to COVID-19, a budget of R500 billion was announced, of which R130 billion is to come from reprioritisation of the current 2020/21 financial year budget. The Committee noted that the reprioritisation of funds would impact the Department and its entities’ current financial year plans and budget. Consequently, the APPs would have to be revised to align with the reprioritised budget.

6.1.7.2. The Committee was concerned that the DHET grant allocation to the CHE, SAQA and the QCTO has not been growing in real terms when considering inflation. The entities had to rely on special grants from the National Skills Fund (NSF) to implement some of their projects.

6.2. National Student Financial Aid Scheme (NSFAS)

6.2.1. The various intervenes implemented by the Administrator since his appointment to improve the administration and disbursement of funds and allowances to students was commended by the Committee. The Committee also urged the Administrator to put proper systems in place in preparation for the future of the entity post-administration period.

6.2.2. The COVID-19 pandemic has compelled institutions of higher learning and TVET colleges to re-organise their academic year. The Committee was concerned about the implications of the possibilities of a prolonged academic year on the funding of students. The NSFAS indicated that it would cost an estimated R9.9 billion to pay the tuition and allowances to students for an additional period of three (3) months.

6.2.3. The consequence management implemented against employees and syndicates involved in fraudulent activities at the entity was noted as a concern given the R7.5 billion irregular expenditures as disclosed in the 2018/19 financial year. The entity indicated that all cases of suspected fraud involving both employees and syndicates have been handed to the Directorate for Priority Crime Investigation (Hawks) and the South African Police Service (SAPS) for further investigation.

6.2.4. The delays in the finalisation of the outstanding students’ appeals, particularly in higher education remains an ongoing concern. In addition, the financial exclusion of students due to the N+2 rules has to be reviewed, given the unique circumstances associated with these exclusions.

6.2.5. The Committee expressed its concern with respect to the appointment of a private service provider that assisted with the compilation of the entity’s Strategic Plan 2020 – 2025 and APP 2020/21 at a cost amounting to R490 000. In addition, the APP 2020/21 of the entity had errors and was not consistent with the presentation made by the Administrator. The entity undertook to submit a revised APP 2020/21.

6.2.6. The Committee expressed its reservations with respect to the proposed central procurement of digital devices (laptops) as planned by the Department, despite NSFAS allocating R5 200 per annum to each student as part of the teaching aid allowance. This concern of the Committee is attributed to the reality that some students utilised this allowance for other purposes instead of learning devices such as laptops. In addition, other institutions are utilising this allocation to purchase laptops for students.

6.2.7. The Committee was concerned that some of the students that were part of the missing middle might be eligible for the NSFAS funding post the COVID-19 period due to reduced household income or job losses. This would put a strain on the resources of the NSFAS beyond 2020/21.

6.2.8. The COVID-19 pandemic has led to some people losing their jobs and others receiving reduced monthly income due to the lockdown period. The Committee inquired about the possibility of the NSFAS giving payment holiday to former students who are repaying their student loans. The entity undertook to seek a directive from the Department in concurrence with the Minister of Finance on the possibility of extending a loan payment holiday due to the impact of the COVID-19 pandemic.

6.2.9. The delays with respect to the equalisation of stipends paid to the university and TVET college students remains an ongoing concern. The NSFAS indicated that it implements policy directives from the Department, and it could not provide a way forward with regard to this concern.

7. SUMMARY

The Department presented its first Strategic Plan 2020 – 2025 and APP 2020/21 under the reconfigured Minister of Higher Education, Science and Innovation, following the pronouncement of the merging of the two Ministries by the President of the Republic in June 2019. The Plans were also presented at an unprecedented time when the country was dealing with the COVID-19 pandemic that has disrupted the livelihoods of the human race across the world. The tabling of these Plans in Parliament was done during the month of March 2020, before the national lockdown was announced, and the COVID-19 pandemic could not have been anticipated when the Plans were compiled.

The Strategic Plan 2020 – 2025 of the Department re-emphasises the strides made towards building and expanding the PSET system that caters for the needs of the youth and adults in training and those that are not in any form of training and employment. The Plan also takes into cognisant of Priority 2: Education, Skills and Health of the new 2019 – 2024 MTSF, and the objectives of the White Paper for PSET, which identifies the need to: expand access to opportunities to PSET; improve quality of PSET provisioning; improve the success and efficiency of PSET and improve the responsiveness of the PSET system to the needs of the economy and society in general.

For the next five years, the Department has prioritised to deliver on key interventions which include, the establishment of two new universities in Gauteng (University of Science and Innovation and University for Combating Crime in Hammanskraal); rollout of the integrated infrastructure development support programme for PSET; implementation of the HDIs development programmes and the review of the National Skills Fund (NSF) operations.

The APP 2020/21 of the Department reflects the key outputs for the current financial year in each of the six programmes. With respect to Programme 1: Administration, the Department aims to improve efficiency in corporate services by setting revised targets to improve the turnaround time in dealing with the recruitment process and other related administration operations. Programme 2: Planning focuses on producing reports to support decision-making in response to improving the responsiveness of the PSET system. Programme 3: University Education and other programmes are core delivery programmes of the Department, and they generally aim at expanding access and success in the PSET system.

The Committee was mindful that the Plans of the Department would have to be revised due to the impact of the COVID-19 pandemic and the imminent budget reprioritisation which is expected to be announced by the Minister of Finance later in the year. Irrespective, the consideration of the Department’s Plans by the Committee was necessary to ensure that the Committee exercises its oversight function to hold the Department accountable for its outputs and to provide ideas and proposals to strengthen the work of the Department. The Committee also noted with concern that some of the MTSF outputs indicators and targets do not reflect in the Department’s Strategic Plan.

The Committee also considered the Plans of the NSFAS. The Entity has also aligned their five-year plans with the outcomes of the Priority 2 of the new MTSF and will work collaboratively with the Department to implement the interventions. In terms of the NSFAS, the Committee welcomed the budget increase, especially the allocation from the DHET Loans and Bursaries towards supporting the phased-in approach of the implementation of the fee-free education policy that was announced in December 2017. The Committee, was concerned about the inconsistencies in the indicators and targets in the APP of NSFAS. The entity was requested to table a revised APP in Parliament.

8. RECOMMENDATIONS

The Committee, having considered the Strategic Plan 2020 – 2025 and Annual Performance Plan 2020/21 of the Department and NSFASrecommends that the Minister of Higher Education, Science and Innovation consider the following:

8.1. DHET

8.1.1. Programme 1: Administration

8.1.1.1. The filling of all the acting DDG positions (Planning, TVET and CET) should be expedited. The Minister should also submit to the Committee an action plan with timeframes on the filling of all senior management posts in the Department.

8.1.1.2. The Department should strengthen its internal capacity to limit expenditure on outsourced services.

8.1.2. Planning, Policy and Strategy

8.1.2.1. The Department should ensure that current APP reflects plans to curb gender-based violence in the PSET sector.

8.1.2.2. The Department should ensure that all the outcome indicators and targets outline in the 2019 – 2024 MTSF are reflected in its 2020 – 2025 Strategic Plan and are implemented annually.

8.1.2.3. The Department should table in Parliament the addendum of the adjusted budget and APP targets.

8.1.2.4. The Department working in collaboration with the SAQA and the three Quality Councils should put in place mechanisms to ensure that all institutions of higher learning are implementing articulation policy and consequence management should be implemented against those who are not compliant. Furthermore, the Department should ensure that the MTSF target to have 95 % of universities sign agreements with TVET colleges to recognise their qualifications is implemented and this should be monitored and reported to Parliament annually.

8.1.3. Programme 3: University Education

8.1.3.1. The restructuring of the 2020 academic year should take into consideration the differentiated COVID-19 alert levels at provincial and district levels so that students residing in the hotspot areas are not disadvantaged.

8.1.3.2. The Department should have proper systems in place to ensure that the centralised procurement of digital devices is done in terms of the Public Finance Management Act (PFMA), Act No. 29 of 1999 regulations so that there is accountability.

8.1.3.3. The Minister should consider formulating a policy for the equalisation of stipends paid to the university and TVET college students.

8.1.3.4. The various student support interventions in higher education are mostly directed at the NSFAS funded students, and the missing middle are at the mercy of their respective institutions. It is imperative that the missing middle students are also taken into consideration since they also face similar socio-economic pressures with their peers that are funded by the NSFAS.

8.1.3.5. The Department working in collaboration with institutions of higher learning other stakeholders in the built environment should ensure that consequence management is implemented against construction companies that do not complete infrastructure projects and those that do shoddy work.

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

8.1.4.1. Notwithstanding the current and future fiscal constraints, the Department should engage the National Treasury to increase baseline funding for the TVET colleges subsidies so that they could increase enrolment in line with the NDP targets.

8.1.4.2. The process with respect to the review of the curriculum of the TVET sector should be expedited so that learners are offered programmes that are aligned to industry requirements.

8.1.4.3. The ICT infrastructure and capabilities of the TVET sector need to be developed taking into consideration the need to implement online learning for the sector so that students are not left behind due to the impact of the COVID-19 pandemic and for the future.

8.1.4.4. Inadequate student accommodation in the TVET sector remains, and an ongoing concern, and the integrated infrastructure programme of the Department should prioritise the expansion of student housing in the sector.

8.1.5. Programme 5: Skills Development

8.1.5.1. The Department ought to improve its oversight and monitoring functions over the work of the SETAs and make sure that all the newly appointed SETAs Accounting Authorities (AAs) are held into account for the governance and performance of their respective SETAs.

8.1.6. Community Education and Training (CET)

8.1.6.1. The 2019 – 2024 MTSF commits the Department to have 90 % of those not in education, employment or training taking part in CET colleges’ occupational skills programmes and becoming economically active. Currently, over 90 % of the CET budget is allocated towards compensation of employees. The Department should ensure that the development of a sustainable funding model for the CET is expedited and that consideration be made to increase baseline funding to address infrastructure related challenges, purchase of teaching and learning materials and ensure that the sector is responsive to the local and regional economic needs.

8.2. National Student Financial Aid Scheme (NSFAS)

8.2.1. Given the errors identified by the Committee in the APP 2020/21 of the entity, it is important that an amended APP 2020/21 with the correct information and other key deliverables is tabled in Parliament.

8.2.2. The terms of reference with respect to the appointment of a private service provider that provided advisory services regarding the compilation of the entity’s APP 2020/21 should be submitted to the Committee.

8.2.3. The finalisation of outstanding students’ appeals particularly in the University sector should be accelerated. In addition, it is imperative for the entity to reconsider the rejection of students appeals due to the N+2 rule given the circumstances associated with each appeal.

8.2.4. It is imperative for the entity working in collaboration with the respective institutions to ensure that the R5 200 teaching aid allowance that is allocated to all the NSFAS funded students is utilised for its intended purposes. There should be a requirement for students to produce some kind of evidence showing that the teaching aid allowance has been used to purchase learning support materials.

Report to be considered.

Documents