ATC220510: Report of Portfolio Committee on Higher Education, Science and Innovation on Budget Vote 17: Higher Education and Training, dated 6 May 2022

Higher Education, Science and Innovation

6. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION, SCIENCE AND INNOVATION ON BUDGET VOTE 17: HIGHER EDUCATION AND TRAINING, DATED 6 MAY 2022

INTRODUCTION AND MANDATE OF THE COMMITTEE

The Portfolio Committee on Higher Education, Science and Innovation (“Committee”), having considered the 2022/23 Annual Performance Plans (APPs) and budgets of the Department of Higher Education and Training (hereinafter the Department), Council on Higher Education (CHE), Quality Council for Trades and Occupations (QCTO), National Student Financial Aid Scheme (NSFAS) and the South African Qualifications Authority (SAQA), reports as follows:

1.1. Mandate of the Committee and Department

The Committee derives its mandate from Section 55(2) of the Constitution of the Republic of South Africa, which states 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; and (b) to maintain oversight of (i) national executive authority, including the implementation of the legislation; and (ii) any organ of state.” Rule 227 of the Rules of the National Assembly (9th edition) provides for mechanisms contemplated in section 55(2) of the Constitution.

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.

1.2. Purpose of the Budget Vote 17 Report

The Report accounts for the work done by the Committee in the consideration of the 2022/23 Annual Performance Plans (APPs) and budgets of the Department, NSFAS, CHE, SAQA and the QCTO in accordance with Section 27(1) of the Public Finance Management Act, 1999 (Act No. 29 of 1999), and as referred by the Speaker of the National Assembly (NA) to the Committee in terms of Rule 338 for consideration and reporting.

1.3. Method

The Committee considered the 2022/23 APPs and budgets of the Department, NSFAS, CHE, SAQA and the QCTO were 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 2022 State of the Nation Address (SONA). The Committee had briefing sessions with the Auditor-General South Africa (AGSA) to receive a briefing on the review of the 2022/23 APPs of the Higher Education and Training Portfolio on 20 April 2022. The Committee also held briefings with the Department, NSFAS, CHE, SAQA and the QCTO on the same day to consider their 2022/23 APPs and budgets.

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

Key government policies
1. National Development Plan (NDP) Vision 2030

The NDP identifies the decent work, education and 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. 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 part of a coherent but differentiated system. The White Paper sets out strategies to expand the current provision of education and training in South Africa, improve its quality, and integrate the various strands of the post-school system. The White Paper sets interventions for implementation by different sectors within Post-School Education and Training. The Department has developed a Draft National Plan for Post Education and Training (PSET) from the White Paper, 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. Medium-Term Strategic Framework (MTSF) 2019 – 2024

The 2019 – 2024 MTSF is a five-year strategic plan of Government, and forms the second five-year implementation phase of the NDP. The Department of Higher Education and Training is responsible for contributing to the realisation of the policy priorities as outlined in the MTSF Priority 3: Education, Skills and Health. For the 2020 – 2025 planning period, the Department will focus on these outcomes as follows:

Expanded access to PSET opportunities;
Improved success and efficiency in the PSET system;
Improved quality of PSET provisioning;
A responsive PSET system; and
Excellent business operations within the DHET

In implementing Priority 3, the Department of Science and Innovation, the Department of Employment and Labour and the Department of Agriculture, Land Reform and Rural Development support the work of the Department.

2.1.4. 2022 State of the Nation Address (SONA)

One of the key focus areas of the February 2022 SONA is a comprehensive social compact to grow the economy, create jobs and combat hunger. Additionally, it addresses critical priorities for the Higher Education and Training sector. In response to the huge challenge of youth unemployment the country faces, the President announced that the Department of Higher Education and Training (DHET) will place 10 000 unemployed Technical and Vocational Education and Training (TVET) college graduates in workplaces from April 2022. The President further appealed to the private sector to support measures relating to youth employment and, wherever possible, to drop experience as a hiring requirement and give as many young people as possible their first job.

Additionally, infrastructure projects will be prioritised to support economic growth and better livelihoods, especially in energy, roads and water management. The Infrastructure Fund is at the centre of this effort, with a R100 billion allocation from the fiscus over 10 years. The Infrastructure Fund is now working with state entities to prepare a pipeline of projects with an investment value of approximately R96 billion in student accommodation, social housing, telecommunications, water and sanitation and transport.

2022/23 MEDIUM-TERM EXPENDITURE FRAMEWORK (MTEF) BUDGET

Overview and assessment of the 2022/23 MTEF Budget and the 2022/23 Annual Performance Plan (APP) performance targets

Table 1: Summary of the 2022/23 overall budget allocation and expenditure estimates

Programme	Budget		Nominal Increase / Decrease	Real Increase / Decrease	Nominal Percent change in	Real Percent change in
R million	2021/22	2022/23	2023/24	2024/25	2021/22-2022/23	2021/22-2022/23
Programme 1: Administration	463,6	493,7	30,1	8,8	6.49%	1.91%
Programme 2: Planning, Policy and Strategy	2 221,9	4 912,9	2 691,0	2 497,4	121.11%	111.59%
Programme 3: University Education	80 161,4	88 581,7	8 420,3	4 605,8	10.50%	5.75%
Programme 4: Technical and Vocational Education and Training	12 226,3	12 623,1	396,8	-146,8	3.25%	-1.20%
Programme 5: Skills Development	450,0	421,6	-28,4	-46,6	-6.31%	-10.35%
Programme 6: Community Education and Training	2 365,8	2 481,9	116,1	9,2	4.91%	0.39%
Sub-total	97 889,0	109 514,9	11 625,9	6 909,9	11.88%	7.06%
Direct Charges against National Revenue Fund	18 932,8	20 619,3	1 686,5	798,6	8.91%	4.22%

Total	116 821,8	130 134,2	13 312,4	7 708,5	11.40%	6.60%

3.2. Overview and assessment of the 2022/23 MTEF budget allocation per programme and the 2022/23 performance targets

Over the MTEF period, the Department’s allocation amounts to R409,445 billion, including direct charges against the National Revenue Fund. For the 2022/23 financial year, the Department received a budget of R130,134 billion, which comprises R109,514 billion of voted funds and R20,619 billion of direct charges. The total budget increased by R13,312 billion or 11.40% in nominal terms. When considering inflation-adjusted, the allocation increased by R7,708 billion or 6.60% the budget is projected to grow at an average growth rate of 7.2% between 2021/22 and 2024/25. The voted funds, excluding direct charges, increased with inflation-adjusted by R6,909 billion or 7.06%.

Programmes 2: Planning, Policy and Strategy and 3: University Education received the highest budget increases at 121.11% and 10.50%, respectively in 2022/23. The increase is attributed to the additional allocation towards NSFAS to address the budget shortfall, new funding amounting to R600 million towards infrastructure for student housing and additional allocation for the Presidential Youth Employment Intervention.

The Department’s budget is dominated by transfers and subsidies, which accounts for 91,18% of the total budget, including direct charges against the National Revenue Fund. For the 2022/23 financial year, the allocation for transfers and subsidies amounts to R118,657 billion, of which R65,403 billion is towards Departmental agencies as follows: R47,354 billion to NSFAS for student bursaries and administration, R21,338 million to Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA); R81 million to SAQA; R74,486 million to the CHE; R28,506 million to the QCTO; R123,972 million for Public Service Sector Education and Training Authority (PSETA); R4,223 billion for the National Skills Fund (NSF) and R16,495 billion for the SETAs. An amount of R48,310 billion is toward Higher Education institutions, universities, TVET and CET colleges.

The Allocation for spending on compensation of employees amounts to R10,775 billion. The bulk of the budget for the compensation of employees is allocated to TVET colleges, followed by the CET colleges. The goods and services allocation amounts to R678,0 million. goods and services budget is projected to decrease slightly to R672,817 million in 2023/24.

Below are responses from the Minister of Finance to the 2021 Budgetary Review and Recommendation Report (BRRR) of the Committee.

The Committee noted that with the current funding for ministerial approved programmes at 62 per cent, the department will not be able to meet the enrolment target as per the National Development Plan (NDP). The committee recommended that consideration be made toward progressively injecting additional funds to achieve the 80 per cent funding.

Minister of Finance’s response: The National Treasury acknowledges this recommendation. In light of the limited resources available to Government, the Department of Higher Education and Training has had to tailor enrolment funding for the technical and vocational education and training colleges to align it to the funding available. Should the government’s fiscal position improve, the department will be considered for additional resources.

The Committee notes the response.

The Committee recommended additional funding towards the Community Education and Training (CET), especially given the high rate of youth unemployment and the growing number of youths not in education, employment or training.

Minister of Finance’s response: The National Treasury shares the committee’s concern about the high rate of youth unemployment and the need to provide opportunities for young people. At present, enrolment at CET colleges is relatively low because of low demand rather than limited funding. Improving efficiency, including providing more relevant courses, is likely to encourage more young people to enrol at CET colleges.

The Committee implored the National Treasury to consider additional funding for the National Student Financial Aid Scheme (NSFAS) to avert the instability and unfortunate loss of lives experienced at the beginning of the 2021 academic year.

Minister of Finance’s response: Cabinet is engaging with input from the Ministerial Task Team on Student Funding to find a sustainable solution to the increasing demand to provide fee‐free higher education funding. Funding of the current model has been supplemented by an additional allocation of R32.6 billion over the medium term.

The Committee welcomed the additional funding for student funding, which will bring stability within the sector and will further ensure that guidelines for the DHET Bursary to guide the allocation of funds are published on time.

The Committee requested that consideration for additional funding should be made to increase administrative expenditure of the NSFAS as the current administrative budget imposes limitations on the improvements that the Scheme can implement to improve efficiencies, including ICT challenges.

Minister of Finance’s response: The Department of Higher Education and Training has reprioritised R65 million from savings on unfilled posts in 2021/22. The funds will be used by NSFAS to address its information and communications technology challenges. Further savings may be found by addressing inefficiencies in NSFAS’s current operations.

The Committee welcomed the reprioritisation of R65 million towards NSFAS administration to address the ICT related challenges. However, NSFAS has reported that it has requested R200 million to effect necessary improvements in the ICT systems and processes and to ensure that the systems are fit for purpose.

The Committee recommended that the National Treasury considers the South African Qualifications Authority (SAQA)’s request for additional funding so that the entity can fulfil its mandate and deliver services within the set turnaround times.

Minister of Finance’s response: The Department of Higher Education and Training has reprioritised funding from its baseline to allocate an additional R10.6 million to SAQA over the medium‐term expenditure framework (MTEF) period.

The Committee welcomed the additional allocation to SAQA to implement its digitisation and automation projects.

3.2.1. Programme 1: Administration

The programme provides strategic leadership, management and support services for the Department. The Programme has five budget sub-programmes, namely, Department Management, Corporate Management Services, Office of the Chief Financial Officer, Internal Audit and Office Accommodation.

3.2.1.1. Overview and assessment of the 2022/23 MTEF budget allocation

The total budget over the medium-term allocation to Programme 1 amounts to R1.5 billion, of which R493.7 million is set aside for the 2022/23 financial year. The programme’s budget accounts for 0,45% of the Department’s total voted funds. The budget increased by R9,0 million or 1.95% from the previous financial year’s adjusted appropriation allocation of R463 million when considering inflation-adjusted. The allocation is projected to decrease to R489,7 million in 2023/24.

Sub-programme 2: Corporate Management Services receives 49.96% or R246,7 million of the programme’s total budget. The second highest allocation at 23.33% or R115,2 million is in sub-programme 3: Office of the Chief Financial Officer, followed by sub-programme 6: Office Accommodation at 16.85% or R83,2 million. the budget for the Office Accommodation sub-programme decreased nominally by R9,2 million from R88,8 million in 2021/22.

The allocation for spending on compensation of employees and goods and services for the 2022/23 financial year amounts to R268,3 million and R217,9 million, respectively. Both the allocations for compensation of employees and goods and services are projected to decrease marginally to R265,8 million and R215,9 million in 2023/24, respectively. In terms of spending on goods and services per line item, allocation for computer services has increased significantly from R37,3 million in 2021/22 to R62,0 million in 2022/23. The allocation for computer services is projected to decrease in the outer two years of the MTEF period to R52,9 million and R54,9 million, respectively. Notably, allocation for spending on consultants: Business and Advisory services decreased significantly by R20 million from R30,8 million in 2021/22.

3.2.1.2. Overview and assessment of the 2022/23 performance targets

The programme is responsible for the MTSF outcome focusing on Excellent business operations within the DHET. For the 2022/23 financial year, there are seven (7) targets. The focus during the financial will be on ensuring that the vacancy rate remains below 10%; 80% of the disciplinary cases are resolved within 90 days; maintaining network connectivity at 98% and above to enable excellent business operations within the Department, payment of 100% valid invoices within 30 days and ensuring the achievement of a clean audit outcome from the Auditor-General.

3.2.2. Programme 2: Planning, Policy and Strategy

This programme provides 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 sub-programmes, namely, namely, Programme Management; Human Resource Development Council of South Africa; Policy, Planning, Monitoring and Evaluation; International Relations; Legal and Legislative Services and Social Inclusion and Quality.

3.2.2.1. Overview and assessment of the 2022/23 MTEF budget allocation

Over the MTEF period, the programme’s allocation amounts to R13,684 billion, and for the 2022/23 financial year, the allocation amounts to R4,912 billion. The programme’s budget increased due to the shift in infrastructure development functions and budget allocations from University Education and Technical and Vocational Educational and Training (TVET) programmes to programme 2: Planning, Policy and Strategy. The programme’s budget accounts for 4.49% of the Department’s total voted funds. The budget is projected to decrease in the outer two years of the MTEF period to R4,442 billion and R4,328 billion, respectively.

The bulk of the programme’s budget at 95.68% (R4,700 billion) is allocated to sub-programme 3: Policy, Planning, Monitoring and Evaluation. This sub-programme monitors and evaluates the policy outputs of the department; coordinates research in the fields of higher education and training; and ensures that education policies, plans and legislation are developed into systems.

The budget allocation for sub-programme 6: Social Inclusion and Quality decreased by R12,2 million from R162,8 million in 2021/22 to R150,6 million in 2022/23. It is concerning that the sub-programme that is responsible for promoting access to open and e‐learning opportunities, providing career development services, promoting and monitoring social inclusion and equity in the post‐school education and training system and advancing the implementation of the national qualifications framework received budget cuts for the 2022/23 financial year.

Similarly, there is a budget reduction from R9,1 million in 2021/22 to R8,6 million in 2022/23 in sub-programme 1: Programme Management: Planning, Policy and Strategy, which manages delegated administrative and financial responsibilities, and coordinates all monitoring and evaluation functions in the programme.

The allocation for spending on current payments in 2022/23 amounts to R141,8 million, of which R108,5 million is allocated for spending on compensation of employees and R33,3 million on goods and services. The allocation for compensation of employees is projected to decrease slightly to R107,9 million in 2023/24. This is a concern given that the Department has planned to establish an Infrastructure Development Coordination Unit. The Departments reported that R10,569 million and R21,783 million were reprioritised from Goods and Services, respectively. The reprioritisation was to cater for the South African Qualifications Authority (SAQA)’s automation and digitisation of its manual processes and to Higher Health to cater for addressing preventative activities on Gender-Based Violence in the CET sector.

An amount of R4,767 billion is allocated for transfers and subsidies. The allocation for transfers and subsidies is projected to decrease in the outer two years of the MTEF period to R4,295 billion and R4,174 billion. Of the allocation for transfers and subsidies for the 2022/23 financial year, R81,2 million is allocated to the Departmental agencies: South African Qualifications Authority, and R4,3 million to foreign governments and international organisations (R0,7 million: India-Brazil- South African trilateral and R3,6 million to the Commonwealth of Learning and R20,6 million is allocated to Higher Health.

For the 2022/23 financial year, an amount of R4,661 billion has been allocated for spending on capital expenditure. Of the R4,661 billion allocations, R1,105 billion is for the University of Mpumalanga: R663,0 million and Sol Plaatje University: R442,0 million; University infrastructure and efficiency grant: R2,245 billion; TVET infrastructure and efficiency grant: R710,5 million and R600 million for infrastructure for student housing at the Tshwane University of Technology, the University of KwaZulu-Natal, Gert Sibande and Majuba TVET colleges. Notably, the TVET infrastructure and efficiency grant is projected to decrease in the outer two years of the 2022/23 MTEF period from R710,5 million to R541,9 million and R566,3 million in 2023/24 and 2024/25, respectively. Similarly, the University infrastructure and efficiency grants are also projected to decrease marginally from R2,245 million in 2022/23 to R2,179 million in 2023/24.

3.2.2.2. Overview and assessment of the 2022/23 performance targets

The programme supports the Department’s work toward achieving the DHET’s five MTSF Outcomes, namely, An integrated and coordinated PSET System, Expanded access to PSET opportunities, Improved success and efficiency of the PSET System, Improved Quality of PSET provisioning and a responsive PSET System.

Twenty-three targets are planned under this programme for the 2022/23 financial year. In supporting an integrated and coordinated PSET System, the programme will Gazette the revised Recognition of Prior Learning Coordination Policy for public comments; submit to the Minister policy brief on articulation between TVET and universities for approval; and have the National Qualifications Framework Amendment Bill approved by Parliament.

In line with the function and budget allocation shifts, the infrastructure-related performance indicators and targets have been shifted from the University Education and TVET programmes to the Planning, Policy and Strategy programme. In working toward expanded access to PSET opportunities, the programme will, amongst others, submit to the Minister a plan for the establishment of new institutions, based on a feasibility study for approval; submit to the Minister revised Policy on Norms and Standards for student housing for approval; and develop a Multifaceted student accommodation strategy for approval by DG.

The programme will further produce various oversight reports on the following: Implementation of the Infrastructure Development Support Programme for PSET; Imbali Precinct projects completed in collaboration with the Durban University of Technology (DUT); the establishment of a Multi-Purpose Centre in Giyani; and the feasibility study for the development of a satellite of the University of Zululand campus in Ulundi; progress toward the achievement of Macro Infrastructure Framework milestones. The programme plans to enter into two new agreements on cooperation in higher education and training; produce a report on the implementation of Social Inclusion and a report on Gender Equality and Gender-Based Violence policy framework for the PSET System.

The programme will also support improved success and efficiency of the PSET and the focus will be on publishing two reports on Statistics on PSET and producing a draft PSET monitoring report; producing a report on the implementation of the National Integrated Career Development Service

With respect to the improved quality of the PSET System, the programme will focus on developing a policy brief on E-learning/Open Learning Strategy in PSET; developing TVET colleges infrastructure maintenance plan for 2023/24 relating to all (100%) sites of delivery for approval by the Director-General (DG), produce infrastructure delivery plans for universities for approval by DG; and produce a report on the implementation of norms for differentiated infrastructure.

In supporting a responsive PSET system, the programme will submit to the Minister a monitoring report on the implementation of the ERRP for approval.

3.2.3. Programme 3: University Education

The programme develops and coordinates policy and regulatory frameworks for an effective and efficient university education system and provides financial and other support to universities, the National Student Financial Aid Scheme, the Council on Higher Education and national institutes for higher education. The 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.

3.2.3.1. Overview and assessment of the 2022/23 MTEF budget allocation

Over the medium term, the programme’s budget allocation amounts to R279,779 billion. For the 2022/23 financial year the allocation amounts to R88,581 billion. The budget increased by R8,420 billion (10.5% nominal percentage change or 5.75% real percentage change) from R80,161 billion allocated in 2021/22. The significant increase is due to additional funds allocated toward the National Student Financial Aid Scheme to cater for the budget shortfall to fund students from poor and working-class families. The Minister of Finance, Mr E Godongwana, announced during the budget speech on 22 February 2022, that the Government will make an additional allocation of R36,6 billion for financial support to current bursary holders and first-year students under NSFAS.

Sub-programmes 3: Institutional Governance and Management Support, which is responsible for monitoring and supporting institutional governance management and provides sector liaison services and sub-programme 6: University Subsidies received the bulk of the increase at R44,493 billion and R44,012 billion, respectively.

The allocation for spending on compensation of employees for the 2022/23 financial year amounts to R90,6 million and 8,8 million for goods and services.

The bulk of the programme’s budget, R88,481 billion or 99,8% is for transfers and subsidies, of which R44,429 billion is transferred to Departmental agencies and accounts as follows: R44,042 billion to NSFAS, R312,6 million to NSFAS: Administration and R74,5 million to the Council on Higher Education.

Notably, the allocation to the NSFAS Administration decreased from an adjusted budget of R367,8 million in 2021/22 to R312,6 million in 2022/23. The allocation for spending on Administration is projected to increase marginally to R313,8 million and R327,9 million in 2023/24 and 2024/25 financial years. For the 2022/23 financial year, subsidies to higher education institutions amount to R44,010 billion.

3.2.3.2. Overview and assessment of the 2022/23 performance targets

The programme supports the Department in its intentions toward achieving the expanded access to PSET opportunities; improved success and efficiency of the PSET system; improved quality of PSET provisioning; and a responsive PSET system. The programme has 33 targets for 2022/23.

On expanded access to PSET opportunities, the programme will review the enrolment planning statement for the cycle 2023 – 2025 for universities, produce a report on the achievement of the Ministerial enrolment planning targets, submit to the Minister for approval of a Fee Regulation, submit to the Minister for approval the updated guidelines for the implementation of the DHET Bursary Scheme at public universities and have 1 098 000 students enrolled at public universities.

In contributing to improved success and efficiency of the PSET System, the programme will ensure, amongst others, that 227 000 students complete a university qualification, the number of graduates as follows: 11 000 in human health sciences, 900 in animal health sciences, 209 000 in initial teacher education, 14 500 masters, 3 350 doctoral graduates. The programme will work toward improved quality of provisioning. In the 2022/23 financial year, the programme will support efforts toward contributing to the improved quality of the PSET system. The focus will be on supporting the filling of 85 new Generations of Academics Programme (nGAP) posts at universities, ensuring that 40 doctoral scholarships are allocated to universities through the University Doctoral Staff Doctoral Programme (USDP) for award to permanent instructional or research staff members 25 will be made to permanent instructional or research staff at universities in the Future Professors Programme.

Regarding a responsive PSET system, the programme will support eight (8) universities to implement student-focussed entrepreneurship development activities.

3.2.4. Programme 4: Technical and Vocational Education and Training

The programme aims to plan, develop, implement, monitor, maintain, and evaluate national policy, programme assessment practices and systems for TVET colleges. It also provides financial and other support to TVET colleges and regional offices. The programme has six budget sub-programmes, namely, Programme Management: TVET, TVET System Planning and Institutional Support, Programmes and Qualifications, National Examinations and Assessment, Technical and Vocational Education and Training Financial Planning and Regional Offices.

3.2.4.1. Overview and assessment of the 2022/23 budget allocation

The programme’s budget over the medium term amounts to R38,520 billion. For the 2022/23 financial year, the programme is allocated a budget of R12,623 billion. The allocation increased nominally by R396,9 million from the adjusted budget of R12,226 million in 2021/22. When factoring in inflation, the programme budget has decreased by 1.20%. The programme budget is projected to grow at an average growth rate of 2.5% between 2021/22 and 2024/25. The programme’s budget accounts for 11.53% of the Department’s total voted funds.

Sub-programme 2: TVET System Planning and Institutional Support are apportioned the largest budget amounting to R11,663 billion. This sub-programme provides support to management and councils, monitors and evaluates 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. The sub-programme’s budget increased nominally by 2.43% from R11,387 billion in 2021/22.

An amount of R644,2 million, which is the second-highest allocation, is apportioned to sub-programme 4: National Examinations and Assessment, followed by sub-programme 6: Regional Offices at R266,5 million.

The current payments are allocated a budget of R8,296 billion, of which R7,902 billion is for compensation of employees and R393,3 million for goods and services. The allocation for compensation is projected to grow to R8,003 billion and R8,361 billion in 2023/24 and 2024/24, respectively, whilst allocation for goods and services is projected to decrease slightly to R389,9 million in 2023/24 and increase to R408,4 million in 2024/25. The bulk of the goods and services allocation amounting to R96,7 million is apportioned to subsistence and travel, followed by R84,4 million for computer services and R65,7 million for consumables: Stationery, printing and office supplies.

The allocation amounting to R4,318 billion is allocated for transfers and subsidies, of which R18,1 million is allocated to Departmental agencies and accounts: Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA) and R4,300 billion, of which R3,877 billion is subsidies to TVET colleges and R423,4 million for the operationalisation of new TVET college campuses. Notably, the allocation for subsidies to TVET colleges is projected to decrease slightly to R3,819 billion in 2023/24.

3.2.4.2. Overview and assessment of the 2022/23 performance targets

The programme will contribute to the four DHET MTSF outcomes, namely, Expanded access to PSET opportunities, Improved success and efficiency of the PSET System, Improved Quality of PSET provisioning and a responsive PSET System. For the 2022/23 financial year, the programme has 26 targets. The focus during 2022/23 will be on expanding access to PSET opportunities, whereby the Department will develop a three-year enrolment plan with differentiation in programmes, establish an additional Disability Student Unit to support students with disabilities in TVET colleges, enrol 580 849 students in TVET colleges, fund 329 554 students through NSFAS, train 800 artisan learners in Centres of Specialisation.

The student enrolments at TVET colleges for the 2022/23 financial year are targeted at 580 849. Notably, the projected student enrolment target is lower than 610 000 targeted in 2021/22. During a media briefing on the PSET sector’s state of readiness for the academic year 2022, the Minister, Dr Nzimande reported that the planned 2022 headcount of student enrolments into the ministerial approved programmes is 508 000, which is lower than the 2022/21 headcount enrolments funded by the state and TVET colleges from student fees. This is really concerning, noting that the NDP aims to increase student enrolment in the TVET colleges to 1.25 million by 2030. The 2019 – 2024 MTSF targets student enrolment of 610 000 at TVET colleges per annum. However, the enrolment target is 29 151 lower than the MTSF targets.

Of grave concern is that the Minister further reported that the 2022 enrolment planning for the TVET colleges will only be funded by the state at R14,385 billion, with a correlating budget deficit of R165 million or 1.15% funding deficit. This will adversely impact access to education and training for youth and adults and will adversely impact the production of skills to support economic growth. The Department, on the one hand, is expanding the sector through building additional TVET college campuses, whilst decreasing headcount enrolment in the sector due to funding challenges.

In contributing to improved success and efficiency of the PSET System, the programme will release examination results to qualifying students within 40-days from the last day of the exams timetable, issue certificates to qualifying candidates following the publication of results, 72 298 TVET college students are targeted to complete N6 qualification, 13 552 TVET college students to complete NC(V) Level 4. Regarding the improved quality of PSET provisioning, the programme aims to have 70% of TVET college lecturers with professional qualifications, 14% of TVET college lecturing staff will appropriately be placed in industry or exchange programmes, and 100 lectures will participate in project-based lecturer capacity building programmes in engineering (electrical, plumbing and mechanical).

In ensuring a responsive PSET system, the programme will have 25 TVET colleges offering Fourth Industrial Revolution (4IR) aligned skills training, 3 000 lecturers participating in digital literacy programmes, all 50 TVET colleges implementing student-focussed entrepreneurship development programmes and 10 new or revised subjects for TVET colleges approved by the Director-General.

3.2.5. Programme 5: Skills Development

This programme promotes and monitors the National Skills Development Strategy (NSDS). It develops skills development policies and regulatory frameworks for an effective skills development system. The programme has five budget sub-programme, namely, Programme Management: Skills Development, National Artisan Development, Sector Education and Training Authority Coordination, National Skills Authority Secretariat and Quality Development and Promotion.

3.2.5.1. Overview and assessment of the 2022/23 budget allocation

Over the medium-term, the programme’s budget amounts to R1,178 billion. For the 2022/23 financial year, the allocation amounts to R421,6 million, which accounts for 0.38% of the Department’s total voted funds. The allocation decreased by R28,4 million or 6.3% in nominal terms from the R450,0 million in 2021/22. The budget allocation is projected to increase to R427,5 million in 2023/24 and to decrease significantly to R328,9 million in 2024/25. Overall, the allocation is projected to decrease by 9.9% between 2021/22 and 2024/25.

Sub-programme 2: Sector Education and Training Authority Coordination receives the bulk of the programme’s budget at 61.97% (R261,2 million). The sub-programme supports, monitors and 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 tests at the Institute for the National Development of Learnerships, Employment Skills and Labour Assessments (INDLELA). The second highest allocation of R108,7 million, which accounts for 25.79% of the programme’s total budget, is apportioned to sub-programme 5: National Artisan Development. This sub-programme manages and monitors the development of artisans. Notably, this sub-programme got a huge budget decrease amounting to R45,6 million or 29.55% in nominal terms from R154,3 million in 2021/22 adjusted appropriation. The budget cuts are very concerning given that the Department will implement the National Skills Development Strategy to support the Economic Reconstruction and Recovery Plan (ERRP) through producing relevant skills.

The allocation for current payments amounts to R166,9 million, of which R149,4 million is allocated to the compensation of employees and R17,5 million for goods and services. Notably, the allocation for compensation for employees is projected to decrease to R146,8 million in 2023/24 and to increase marginally to R150,5 million in 2024/25. The allocation for goods and services decreased significantly from an adjusted appropriation of R55,2 million in 2021/22 to R17,5 million in 2022/23 and it is projected to grow marginally to R18,1 million and R18,9 million in 2023/24 and 2024/25, respectively.

The allocation for spending on transfers and subsidies amounts to R252,5 million, which increased slightly by R3,3 million from an adjusted appropriation of R249,2 million. The allocation is projected to increase to R260,2 million in 2023/24 and decrease to R157,0 million in 2024/25. An amount of R28,5 million is allocated to the Quality Council for Trades and Occupations (QCTO) and R124,0 million is allocated to the Public Service Sector Education and Training Authority (PSETA) and R100 million to the National Skills Fund.

3.2.5.2. Overview and assessment of the 2022/23 performance targets

This programme contributes to the four DHET MTSF Outcomes, namely, Expanded access to PSET opportunities, Improved success and efficiency of the PSET System, Improved Quality of PSET provisioning and a responsive PSET System. For the 2022/23 financial year, the programme has 12 targets.

In expanding access to PSET opportunities, the programmes aims to have 107 00 learners or students placed in work-based learning, register 148 000 learners in skills development programmes, and enrol 23 000 in artisanal programmes. With respect to improved success and efficiency of the PSET system, 21 000 artisans are targeted to be found competent, 32 550 learners are targeted to complete learnerships, 105 000 learners to complete skills programmes.

In contributing to improved quality of PSET provisioning, the programme aims to have 95% of SETAs that meet a good standard of governance, 100% allocated SETA mandatory grants paid to employers. The programmes will contribute to a responsive PSET system by ensuring the 40-day average lead time from qualifying trade test applications received until the trade test is conducted, 21 SETAs will be assessed to have developed credible Sector Skills Plans (SSPs). The programme will produce a monitoring report on the implementation of the Skills Strategy.

3.2.6. Programme 6: Community Education and Training (CET)

The programme aims to plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for community education and training. Provide financial and other support to community education and training colleges. The programme has four budget sub-programmes, namely, Programme Management: Community Education and Training; Community Education and Training Systems, Planning, Institutional Development and Support; Community Educating and Training College Financial Planning and Management; and Education, Training and Development Assessment.

3.2.6.1. Overview and assessment of the 2022/23 budget allocation

The CET programme’s budget over the MTEF period amounts to R7,735 billion. For the 2022/23 financial year, the programme’s budget amounts to R2,481 billion, which constitutes 2.27% of the Department’s total voted funds. The budget increased by R9,3 million, or 0.39% when considering inflation-adjusted, from an adjusted appropriation of R2,365 billion in 2021/22. The budget is projected to grow at an average growth rate of 4.3% between 2021/22 and 2024/25.

Sub-programme 2: Community Education and Training System Planning, Institutional Development and Support is apportioned the bulk of the budget at 89.96% (R2,232 billion). The sub-programme is responsible 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 CET colleges to enter into partnerships for the use of infrastructure for college site‐hosting centres and the funding of these partnerships, maps an institutional landscape for the rollout of the CET system, and is responsible for the planning and development of CET infrastructure. The sub-programme budget is projected to grow at an average growth rate of 4.6% between 2021/22 and 2024/25.

Sub-programme 3: Community Education and Training Colleges Financial Planning and Management receives the second highest allocation, amounting to R228,8 million or 9.22% of the programme’s total budget. This sub-programme The programme sets up financial management systems; develops the financial management capacity of CET colleges; manages and determines the fair distribution of funding to CET colleges in accordance with funding norms and standards; monitors compliance with supply chain management policy; and ensures the timely submission of audited performance information, annual financial statements, and quarterly and annual reports.

The allocation for spending on current payments for the 2022/23 financial year amounts to R2,263 billion, of which R2,256 billion is for the compensation of employees and R7,2 million for goods and services. The allocation for spending on compensation of employees accounts for 90.89% of the CET programme’s total budget. The budget allocation for compensation of employees is projected to increase in the outer two years of the MTEF period to R2,349 billion and R2,454 billion in 2023/24 and 2024/25, respectively. Notably, the budget allocation for goods and services is projected to decrease in the outer two years of the MTEF period to R4,6 million and R4,8 million in 2023/24 and 2024/25, respectively. The decrease in the allocation for goods and services is due to the reprioritisation of funds to Higher Health to cater for addressing preventative activities on Gender-Based Violence (GBV) in the CET sector.

An amount of R218,4 million is allocated for transfers and subsidies, of which R215,2 million is for CET colleges and R3.2 million is for Departmental agencies and accounts: ETDP SETA.

The Department reported that an amount of R2,548 million was reprioritised toward the CET funding model.

3.2.6.2. Overview and assessment of the 2022/23 performance targets

The CET programme contributes to the three of the five DHET MTSF Outcomes: Expanded access to PSET opportunities, Improved success and efficiency of the PSET system, and Improved quality of the PSET. For the 2022/23 financial year, the programme has 10 targets.

In contributing toward expanded access to PSET opportunities, the programme will review the five-year enrolment plan for CET colleges and get it approved by the Minister, have a sustainable funding model for CET colleges approved by the Director-General and will also enrol 266 424 students.

With respect to improved success and efficiency of the PSET system, 40 000 college students are targeted to complete General Education and Training Certificate (GETC) Level 4; two new programmes and qualifications will be offered in CET colleges; produce a report on the implementation of open of access learning and teaching support materials (LTSM) for students in CET colleges. To improve the quality of the PSET system, the Department targeted to have 95% of the CETCs that meet standards of good governance, 900 CET college lecturers will be trained, 100% of CET colleges compliant with the policy on the conduct and management of examinations and assessment, and 35 pilot community learning centres will be accredited.

ENTITIES OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING

The Committee considered and assessed the 2022/23 Annual Performance Plans and the MTEF Budget allocations of the NSFAS, CHE, SAQA and QCTO. These entities are funded through parliamentary grants (voted funds) and also generate other income through services they provide, fundraising. The NSFAS generates other revenue from loan recoveries from previous beneficiaries and management fees from managing funds from other funders.

4.1. NATIONAL STUDENT FINANCIAL AID SCHEME (NSFAS)

4.1.1. Mandate of the NSFAS

The mandate of the NSFAS is informed by the Constitution of the Republic of South Africa, 1996, section 29(1) (b) of the Bill of Rights of the Constitution, the National Student Financial Act, 1999 (Act No. 56 of 1999 as amended), the Higher Education Act, 1997 (Act No. 101 of 1997 as amended), the Continuing Education and Training Act, 2006 (Act No. 16 of 2006), Public Finance Management Act, 1999 (Act NO. 1 of 1999), Treasury Regulations, 2005, Public Audit Act, 2004 (Act No. 25 of 2004), and the National Credit Act, 2005 (Act No 34 of 2006). In addition to the core legislative mandate, the work of the Entity is informed by key government policies; namely, the NDP, the White-Paper for PSET, and the MTSF 2019 – 2024.

The NSFAS’s main responsibility is to administer loans and bursaries and allocate these 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 (“the Minister”), raising funds, recovering loans, maintaining and analysing a database, undertaking research aimed at better utilisation of financial resources and for advising the Minister on matters relating to student financial aid.

The NDP commits the NSFAS to provide all students who qualify for the NSFAS with access to full funding through loans and bursaries to cover the costs of tuition, books, accommodation and other living expenses. In terms of loan recoveries, the NDP enjoins the NSFAS to recover through an arrangement with the South African Revenue Service. Furthermore, MSTF has identified Seven Apex Priorities, including Priority 3: Education, Skills and Health. There are four outcomes; namely, expanded access to PSET opportunities, improved success and efficiency of the PSET system, improved quality of the PSET provisioning and a responsive PSET system. The NSFAS directly contributes to Outcome 1: Expanded access to PSET opportunities. The MTSF commits the NSFAS to fund 420 000 and 400 000 University students and of TVET college students by 2024, respectively.

4.1.2. Overview of the Revised 2020/21 – 2024/25 Strategic Plan

Table 2: Amendments to the Strategic Plan

Reference to current strategic plan

Revisions to the approved strategic plan

Reasons for the revisions

Strategic Outcome 1

Alternative pool of funding available for eligible students

KPI 1.1 Amount of funds (Rand value) raised from new funders

(“new” removed)

KPI 1.1 Amount of funds (Rand value) raised from funders (refined)

The title name of the indicator has been refined. The technical Indicator description includes funding from core and non-core funders. The wording “new funders” has been removed and replaced by funders

Strategic Outcome 2

A sustainable and improved systems for recoveries

KPI 2.1 Amount of money recovered

(Rand value) from NSFAS debtors

Revised target:

2022/23 Targets = R388.5m

2023/24 Targets = R396.3m

2024/25 Targets = R404.2m

The ongoing Covid-19 pandemic has impacted negatively on recoveries. The recovery rate has been stagnant due to slow pace of recoveries and unsuccessful debit orders. The Covid-19 pandemic has contributed to the high unemployment rate in South Africa.

The recent political unrest in KZN and Gauteng due to political challenges has the potential for an economic slowdown in the country.

Strategic Outcome 3

Fund the right student, correct amount at the right time

KPI 3.3: Percentage of assistive devices provided to students with disabilities within 30 days of receipt of claims. (new)

Key Performance Indicator removed

KPI 3.3: Percentage of first-time entry students where bursary accounts are created within 10 days of receipt of registration data from Institutions.

This indicator is removed due to misalignment with the new disbursement model

An indicator in respect of students with disabilities has been added

Source: NSFAS Annual Performance Plan 2022/23

4.1.3. Focus over the MTSF period and Strategic Outcomes

The Entity has developed two Strategic Outcome Oriented Goals to inform its focus over the MTSF period as follows:

Table 3: Strategies over the five-year period

Strategies Outcome Oriented Goals	Goal 1	Goal 2
Strategies Outcome Oriented Goals	An effective, efficient and transparent public entity in providing student financial aid	Increased access to higher education and improved student financial aid environment for poor and working-class
Goal Statement	To implement effective, efficient and transparent processes and operations to ensure stakeholder objectives are achieved	To increase access to funding for eligible students by raising funds, maximising loan recoveries and creating a student-centred bursaries model through improved communication support for students and a central application process
Outcomes	Outcome 6 - Clean governance embedded in all behaviour practices Outcome 7 – An optimal organisation that deploys resources efficiently	Outcome 1 - Alternative pool of funding available for eligible students Outcome 2 - A sustainable and improved systems for recoveries Outcome 3 - Fund the right student, correct amount at the right time Outcome 4 - Engaged and informed stakeholders Outcome 5 - Research and knowledge management database for improved decision making and stakeholder needs

Source: Revised NSFAS Strategic Plan for fiscal years 2020/21 – 2024/25 (Update for 2022/23)

4.1.4. Overview and assessment of the 2022/23 performance targets

NSFAS has two budget programmes, namely, Administration and Student-Centred Model. For the 2022/23 financial year, the two programmes have a combined 17 targets.

4.1.5. Programme 1: Administration

The programme aims to conduct the overall management, administration, and governance of the entity and to provide efficient and effective support services to sustain the student-centred operating model. The programme has seven planned targets.

Selected key deliverables for the 2022/23 financial year, amongst others:

Obtain an unqualified audit opinion;
Achieve CGICTAS Level 3;
To determine a baseline on level of maturity with respect to Cyber security;
Award 60% of total procurement value to BBB-EE level 1 service providers;
Fill 90% of approved funded positions; and
Employ 50% women in management positions.

4.1.5.1. Student-Centred Model

The programme aims to increase access to funding for eligible students by raising funds, maximising loan recoveries and creating student-centred loans and bursaries through improved communication support for students and the central application process. The programme further aims to improve the provision of financial aid to an increasing number of eligible students and to improve the efficiency of the application and funding of students. The programme implements five Outcomes.

The programme has 10 targets.

The focus of the programme in 2022/23 will be to:

Raise R48,3 million from funders;
Recover R388,5 million from NSFAS debtors;
Provide 90% of assistive devices to students with disabilities within 30 days of receipt of claims;
Develop a stakeholder engagement tool and collect a baseline for stakeholders; and
Produce four research reports.

4.1.6. Overview and assessment of the 2022/23 MTEF budget allocation

The NSFAS budget for the 2022/23 financial year amounts to R48,968 billion (the budget includes approved use of recovered funds for debt collection and administration fees from other funders). The budget comprises the Entity’s revenue of R1,436 billion or 2,9%, R45,854 billion or 93.64% from DHET Grant and R1,677 billion or 3.42% from other grants. The overall budget increased significantly by R6,983 billion from R41,985 billion in 2021/22. The increase is due to additional allocated to cater for the shortfall in the NSFAS budget. Similarly, the DHET Grant allocation to the NSFAS increased from R38,561 billion in 2021/22 to R45,854 billion in 2022/23. The DHET grant allocation to the NSFAS is projected to grow in the two outer years of the MTEF period to R47,942 billion and R51,954 billion in 2023/24 and 2024/25, respectively. Notably, the allocation from other grants decreased marginally from R1,964 billion in 2021/22 to R1,677 billion in 2022/23.

In terms of projected expenditure for the 2022/23 financial year, the bulk of the projected expenditure of the NSFAS, R49,252 billion is apportioned to programme 2: Student-Centred Model, which is the core mandate of the NSFAS and has 10 targets for the 2022/23 financial year. The Administration programme is allocated R309,408 million and R1.461 million for capital assets.

The NSFAS projected expenditure is dominated by transfers to institutions (universities and TVET colleges) for student bursaries. for university and TVET college students, at 96.42% or R47,219 billion. Compensation for employees is allocated R246,567 million and goods and services R165,472 million. Accounting expenditure is allocated R1,307 billion.

4.2. Council on Higher Education (CHE)

The mandate of the CHE is premised on the Higher Education Act, 1997 (Act No. 101 as amended) and the National Qualifications Framework Act, 2008 (Act No. 67 of 2008 as amended). In terms of its mandate as per the two primary legislation, the CHE is responsible for the following:

Advising the Minister of Higher Education and Training on all higher education matters upon request and at its own initiative;
Promoting quality and quality assurance in higher education through its permanent sub-committee, the Higher Education Quality Committee (HEQC), including auditing the quality assurance mechanisms and accrediting programmes offered by higher education institutions;
Monitoring the state of higher education and publishing information regarding developments in higher education regularly, including arranging and co-ordinating conferences on higher education issues;
Developing and managing the qualification sub-framework for higher education, namely, the Higher Education Qualifications Sub-Framework (HEQSF), including the development of qualifications that are necessary for the higher education sector; and
Advising the Minister of Higher Education and Training on matters relating to the HEQSF.

The mandate is further premised on key policies; namely the National Development Plan: Vision 2030, the White Paper for Post-School Education and Training, the National Plan for Higher Education, and the Medium-Term Strategic Framework 2019 – 2024: Priority 3: Education, Skills and Health, amongst others.

The CHE has not revised its 2020 – 2025 Strategic Plan.

4.2.1. Focus over the MTSF period and Strategic Outcomes

The work of the CHE over the MTSF period will continue to be informed by its five Strategic Outcomes; namely,

Strategic Outcome 1: CHE as an effective custodian of the HEQSF. The entity will manage the development and implementation of the HEQSF policies, qualification standards and data to meet the goals of the NQF, National Plan for PSET (NPPSET) and the NDP.
Strategic Outcome 2: Comprehensive and coherent quality assurance system for the higher education sector. Under this Strategic Outcome, the CHE will develop and implement a new Quality Assurance Framework for effective and efficient internal quality assurance (IQA) and external quality assurance (EQA) for the sector.
Strategic Outcome 3: A reputable centre of intellectual discourse, knowledge generation and advancement. The CHE will revitalise and strengthen its research, monitoring and advice capabilities.
Strategic Outcome 4: Governance, compliance and risk management. The entity plans to set the broad strategic direction, policy and tome for good governance, statutory compliance and risk management of the organisation to support the discharge of its core functions.
Strategic Outcome 5: Sustainable, responsive and dynamic organisation. The CHE plans to design and implement an organisational architecture, business processes, capabilities and infrastructure to realise the strategy of the entity.

4.2.2. Overview and assessment of the 2022/23 performance targets

The CHE has four budget programmes, namely: Management of the Higher Education Qualification Sub-Framework (HEQSF) and Quality Promotion; Quality Assurance; Research, Monitoring and Advice, and Corporate. For the 2022/23 financial year, the four programmes have a combined 48 targets.

Below are selected programme key deliverables for the 2022/23 financial year:

4.2.2.1. Programme 1: Management of the HEQSF and Quality Promotion

The programme aims to manage the development and implementation of HEQSF policies, qualification standards and data to meet the goals of the NQF, NPPSET and the NDP. The programme has five budget sub-programmes, namely, Qualifications Standards Development, Data Management; Policy Development and Review; Partnerships and Collaborations; and Quality Promotion and Capacity Development. The sub-programmes contribute to the overall purpose of the programme stated above. The programme has 14 targets for 2022/23.

Selected key deliverables for the 2022/23 financial year include, amongst others:

Develop or review three qualification standards;
Initiate four qualifications standard development or review;
85% of private higher education institutions that have all required sets of data records in the database;
Two data uploads onto the National Learner Records Database (NLRD).
Competition of Phase 3 in the review and further development: approvals and publication of the updated HEQSF;
Five higher education institutions provided with support with respect to the development and implementation of relevant institutional policies;
Involved in one regional and/or international events and/or forums on qualifications framework, quality assurance and promotion; and
Organise 20 quality promotion and capacity building forums and/or workshops.

The 2022/23 budget allocation amounts to R9,518 million, of which R2,005 million is allocated for spending on compensation of employees and R4,127 million for goods and services. the bulk of the budget on goods and services, R3,864 million is apportioned to Agency and supported/outsourced services, followed by R3,603 million to travel and subsistence.

4.2.2.2. Quality Assurance

The programme contributes toward the fulfilment of the mandate of the CHE as the national authority for quality assurance in higher education. The programme develops and implements processes to inform, assure, promote and monitor quality in Higher Education Institutions (HEIs). The programme comprises four budget sub-programmes, namely, Accreditation, Institutional Audits, National Reviews, and Quality Assurance Framework.

This programme aims to significantly streamline the process and improve turnaround times. The new indicators and targets in the APP have been formulated to give effect to the planned improvement in the performance of the Accreditation function.

For the 2022/23 financial year, the programme has 12 targets.

Selected key deliverables for the 2022/23 financial year include, amongst others:

85% of applications received that go through the accreditation process and are presented to the HEQC within 12 months from the date of appointment of evaluators;
95% of site visits undertaken whose reports are presented to the HEQC within 12 months from the date of receipt of reports from site visit panels;
20 institutional site visits by CHE audit panels, depending on the individual institution’s agreed planning with the CHE;
Eight institutional audit Improvement Plans submitted by institutions, depending on individual institution’s agreed planning with the CHE;
Approve one plan for the QAF-Management Information System; and
Develop five Higher Education Practice Standards.

The programme’s budget allocation for 2022/23 amounts to R28,284 million, which is apportioned to three sub-programmes. Of this allocation, R14,810 million is for the compensation of employees and R11,094 million for goods and services.

4.2.2.3. Research, Monitoring and Advice

The programme aims to revitalise and strengthen the research, monitoring, evaluation and advice capabilities of the CHE in order to advance the realisation of Outcome 3 in the Strategic Plan 2020 – 2025, namely, to make the CHE a reputable centre of intellectual discourse, knowledge generation and advancement on higher education. The programme comprises three budget sub-programmes, namely, Research, Monitoring and Advice. There are nine planned targets for 2022/23.

Selected key deliverables for the 2022/23 financial year include, amongst others:

Produce three research reports;
Organise two conferences, colloquia, seminars, or symposium;
Produce four policy briefs or Briefly Speaking articles;
Produce one VitalStats; and
Respond to 100% of requests for advice.

The programme’s 2022/23 budget allocation amounts to R9,524 million, of which R3,861 million is for the compensation of employees and R5,663 million for goods and services.

4.2.2.4. Programme 4: Corporate

The programme provides leadership, oversight, systems, activities and structures that enable the organisation to operate effectively and efficiently in fulfilment of its mandates and in pursuit of its outcomes. The programme has four budget sub-programmes, namely, Governance, Corporate Services, Finance and Supply Chain Management, and Communications and Stakeholder Relations. There are 13 planned targets for 2022/23.

Selected key deliverables for the 2022/23 financial year include, amongst others:

Develop or review seven ICT policies, frameworks, guidelines and procedures;
Develop or review eight financial management and supply chain management policies, frameworks, guidelines and procedures;
Organise and hold 22 scheduled governance meetings;
Conclude 80% of activities as per the approved annual ICT Operational Plan;
Offer 15 staff training interventions;
Submit four approved expenditure reports to DHET by the compliance date; and
Conclude 80% of activities as per the Communication and Advocacy Plan.

For the 2022/23 financial year, the programme’s allocation amounts to R34,647 million, of which R16,691 million is allocated for the compensation of employees and R17,956 million for goods and services.

4.2.3. Overview and assessment of the 2022/23 MTEF budget allocation

For the 2022/23 financial year, the CHE’s total revenue amounts to R81,973 million. The revenue increased by R4,777 million from the adjusted appropriation of R77,196 million in 2021/22. The budget is made up of R74,4 million or 90% from DHET transfers or voted funds and R7,487 million or 9% from the entity’s own revenue (R5,856 million: Private Accreditation – Cost Recovery and R1,631 million: interests, rental income, etc.). The overall budget is projected to grow in the outer two years of the MTEF period to R90,960 million and R95,044 million in 2023/24 and 2024/25, respectively.

Programme 4: Corporate receives the bulk of the total budget, 42.26% or R34.647 million, followed by programme 2: Quality Assurance, which receives 34.5% or R28.284 million. Programme 1: Management of HEQSF receives R9.518 million or 11.61%, and programme 3: Research, Monitoring and Advice receives R9.524 million or 11.61%. The allocation for spending on compensation of employees amounts to R37,039 million and R44,934 million is apportioned for goods and services.

4.3. South African Qualifications Authority (SAQA)

SAQA derives its legislative mandate from the National Qualifications Framework Act, 2008 (Act No. 67 of 2008 as amended). In terms of the Act, SAQA is mandated to, amongst others:

Provide advice, oversee NQF implementation and collaborate with the Quality Councils;
Develop NQF policies and criteria;
Maintain a National Learners’ Records Database (NLRD), and provide an evaluation and advisory service with respect to foreign qualifications;
Undertake research, collaborate with international counterparts, and drive the communication and advocacy strategy to promote the understanding of the NQF architecture; and
Perform any function consistent with the NQF Act that the Minister of Higher Education and Training may determine.

SAQA further derives its policy mandate from the NDP Vision 2030, the White Paper on PSET, including the National Plan for the Post-School Education and Training and the Department’s five-year Strategic Plan. Additionally, SAQA’s mandate is further informed by the White Paper for Post-School Education and Training, the National Plan for PSET and the recent Economic reconstruction and Recovery Plan (ERRP).

The MTSF does not specify any direct contribution from SAQA to the five-year outcomes, outcome indicators and targets. The DHET recommended that the SAQA, as the custodian of the NQF, should focus their work toward contributing to the achievement of the three outcomes, improved quality; expanded access (Recognition of Prior Learning and Articulation) and improved efficiency.

4.3.1. Focus over the MTSF period and Strategic Outcomes

SAQA aims to have an integrated and transparent national qualifications framework that facilitates access to, and mobility and progression within education, training and career paths. Over the MSTF period, the work of the Entity will be informed by five Outcomes; namely,

Outcome 1: A dynamic NQF that is responsive, adapts to and supports the changing needs of life-long learning
Outcome 2: Visionary and influential leadership that drives a clear, evidence-based NQF Agenda
Outcome 3: Well-articulated quality-assured-qualifications and relevant professional designations that instil trust and meet the needs of the people.
Outcome 4: A competent and capable team, dedicated and resourced to develop and maintain the NQF.
Outcome 5: Stakeholders and role-players who are aligned to deliver on the NQF.

4.3.2. Overview and assessment of the 2022/23 performance targets

SAQA has four budget programmes under which the activities toward achieving the Strategic Outcomes are implemented. The programmes are Administration, Registration and Recognition, ICT and NQF Management Information Systems, Authentication and Ratification Services and Research. Twenty-five targets are planned for the 2022/23 financial year.

4.3.2.1. Programme 1: Administration

The programme covers the activities under the Office of the CEO; Finance and Administration; and Governance, People, and Strategy divisions. Its purpose is to support the operations of SAQA. The programme has 10 planned targets for 2022/21. It covers the activities of the Executive office and the following Directorates: Finance and Administration; Human Resources; Information Technology; and Advocacy, Communication and Support. The programme contributes to the achievements of three of the five outcomes, to have visionary and influential leadership that drives a clear, evidence-based NQF Agenda; having a competent and capable team, dedicated and resourced to further develop and maintain the NQF and to have stakeholders and role-players who are aligned to deliver on the NQF.

Selected key deliverables for the 2022/23 financial year include, amongst others, to:

Identify and implement two initiatives to promote the South African NQF;
Implement SAQA’s Implementation Plan for the Addis Convention;
Continue to implement the plan to generate funds through alternate revenue streams;
Report on the effectiveness of the System of Collaboration;
Develop a Monitoring and Evaluation protocol for the System of Collaboration; and
Advice the executive authority on the NQF matters as required; Ensure that the NQF MIS incorporating the NLRD contains 22 000 000 learners with achievements.

The programme’s budget for 2022/23 amounts to R53,601 million, or 46.4% of SAQA’s total budget. The allocation to this programme decreased by R2,984 million from R56,587 million in 2021/22.

4.3.2.2. Programme 2: Registration and Recognition

The programme is responsible for registering qualifications and part-qualifications, recognising professional bodies, and registering professional designations. This programme contributes to two of the five Outcomes and has three targets for 2022/23.

Deliverables for the 2022/23 financial year include, amongst others, to:

Produce a concept paper on the registration of national qualifications on the NQF in consultations with the three Quality Councils (QCs) and the DHET, and
Use research findings to amend the Policy and Criteria for Recognising a Professional Body and Registering a Professional Designation if required.

The total budget allocation for this programme for 2022/23 is R11,021 million. The allocation to this programme increased by R474 000 from R10.557 million in 2021/22.

4.3.2.3. ICT and NQF MIS

The programme covers the work of the ICT unit and the NQF MIS sub-unit incorporating the NLERD. It is responsible for ensuring effective ICT governance and the aligned development of ICT infrastructural resources to support the achievement of organisational objectives and business processes. The ICT unit drives SAQA’s plans to embrace the Fourth Industrial Revolution by enabling the automation of operations across the organisation and developing end-to-end workflows where required. Owing to budget cuts, the ICT unit will not pursue any ICT development in this financial year, unless budget permit. The focus will be on keeping current systems operational and investigating the move to the Microsoft platform from International Business Machines Corporation (IBM). This programme contributes to two of the five Outcomes.

Six targets are planned under this programme.

Selected key deliverables for the 2022/23 financial year include, amongst others,

Develop an end-to-end electronic system for the evaluation of foreign qualifications;
Develop a funding proposal for the digitisation of legacy achievement records;
Ensure that the QCs load learner achievement on the NQF MIS;
Publish the Policy on the Misrepresentation of Qualifications if the President proclaims the NQF Amendment Act, 2019, and
Update the Register of Misrepresented Qualifications.

The programme’s budget for 2022/23 is R18,945 million, which decreased by R5,733 million from R24,678 million in 2021/22.

4.3.2.4. Programme 4: Authentication and Ratification Services

The programme is responsible for verifying South African qualifications and evaluating foreign qualifications. It also locates foreign qualifications on the South African NQF by comparing them to the relevant national qualifications.

There are two planned targets for 2022/23. The programme will complete all compliant applications received for evaluation of foreign qualifications within three months. It also plans to complete all compliant verification requests received for the verification of South African qualifications within 25 working days.

The 2022/23 budget allocation for the programme is R24,389 million, which increased marginally by R1,048 million from the previous year allocation’s allocation of R32,341 million.

4.3.2.5. Research

The programme is responsible for conducting evidence-based research to track the development and implementation of the NQF and to evaluate the impact of the NQF on the people in South Africa. The programme has four targets.

Key deliverables for the 2022/23 financial year include, amongst others, to:

Review one NQF policy;
Produce the final 2021 NQF Impact Study Report; and
Provide the Minister with a report on the progress made by SAQA and the QCs in implementing the Articulation Policy.

The allocation to this programme amounts to R5,232 million, which increased R224 000 from the previous year allocation of R5,008 million.

4.3.3. Overview and assessment of the 2022/23 MTEF budget allocation

For the 2022/23 financial year, SAQA has a total of R115,666 million. The budget is made up of R34.501 million or 29.82% from entity revenue (Evaluation fees, Verifications, Interest, Sundry and Professional Bodies) and R81.164 million or 70.17% from DHET transfers. The budget decreased by R4,493 million from R120,159 million in 2021/22. The budget is projected to grow in the outer two years of the MTEF period to R124,194 million and R130,298 million in 2023/24 and 2024/25, respectively. Notably, the DHET grant is also projected to grow to R88,143 million and R92,628 million in 2023/24 and 2024/25, respectively.

The bulk of the budget of the entity amounting 46.34% or R53,601 million is allocated to programme 1: Administration this programme, followed by programme 4: Authentication and Ratification Services at 21.08% or R24,389 and programme 3: ICT and NQF MIS at 16.37% or R18,945 million. the allocation for spending on compensation of employees amounts to R78,792 million and goods and services is R36,873 million.

4.4. Quality Council for Trades and Occupations (QCTO)

The Quality Council for Trades and Occupations derives its mandate from the Constitution of the Republic of South Africa, section 22 and section 29. It further derives its legislative mandate from the National Qualifications Framework Act, 2008 (Act No. 67 of 2008 as amended) and the Skills Development Act, 1998 (Act No 97 of 1998 as amended), Higher Education Laws Amendment Act, 2010 (Act No. 26 of 2010), Public Finance Management Act, 1999 (Act No. 1 of 1999). The mandate is further premised on key policies; namely the National Development Plan: Vision 2030, the White Paper for Post-School Education and Training, the National Skills Development Plan, the Medium-Term Strategic Framework 2019 – 2024: Priority 3: Education, Skills and Health; Ministerial Guidelines on Implementation of the NQF; Revised Strategic Plan 2020/21 to 2024/25 of the DHET; Industrial Action Plan; and the NQF Evaluation Plan.

The overall mandate of the QCTO is to develop and manage the OQSF of the NQF. This includes the development and quality assurance of occupational qualifications (including trades) and part qualifications registered on the OQSF, with a specific focus on occupational qualifications that address the national demand.

The QCTO contributes to Priority 3: Education, Skills and Health of the Medium-Term Strategic Framework (MTSF) for 2019 to 2024. The successful implementation of the MTSF and the NDP remains critically dependent on access to education and training of the highest quality. The QCTO diligently pursues increasing access to occupationally directed programmes in alignment with economic areas of highest demand, with a specific focus on increasing the supply of artisan skills, which is facilitated through an emphasis on TVET college expansion.

In expanding access to PSET opportunities, the following MTSF 2019 -2014 interventions are relevant to the work of the QCTO:

The training of young artisans through the centres of specialisation at TVET colleges.
The development of new occupational and trade qualifications to increase access to trades and occupational programmes and therefore, contributing toward the achievement of the target of 30 000 artisans by 2030.

In supporting a responsive PSET system, the QCTO will support the following interventions.

Introduction of compulsory digital skills training, specific to programme offerings at TVET colleges and the piloting of the CET college skills programmes around community needs.
Implementation of hubs to promote student-focused entrepreneurship development activities and the establishment.
Percentage of NEET students taking part in CET occupational skills programmes becoming economically active.

4.4.1. Overview of the QCTO’s Revised 2020 – 2025 Strategic Plan

The QCTO revised its 2020 – 2025 Strategic Plan and the Revised Plan was tabled in Parliament. The main reason for the revision, as noted in the Strategic Plan, was to take into account all the relevant policies, legislation and other mandates for which the QCTO is responsible for and to accurately reflect the impact, outcomes and outputs, which the QCTO will endeavour to achieve over the period 2022/23 to 2024/25.

The QCTO revised the 2020/21 – 2024/25 Strategic Imperative 2: Adopting a special focus on Technical and Vocational Education and Training (TVET) colleges and Community Education and Training (CET) colleges and replacing it with the following imperative:

“Ensuring the development and quality assurance of occupational qualifications, part qualifications and skills programmes that are responsive to the labour market and developmental state initiatives.”

The QCTO included in the legislative and National imperatives, the Draft Economic Reconstruction and Recovery Plan Skills Strategy, Occupational Qualifications Sub-Framework and Ministerial Determination, 2020. It noted that the Minister Gazetted the Occupations Qualifications Sub-Framework (OQSF) on 29 October 2021 and the OQSF provides for the following:

Parity of esteem between the OQSF, HEQSF and the General Education and Training Qualification Framework (GENFETQF);
Promotes single and coordinated NQF;
TVET colleges “Institutions of Choice”;
Promotes Systematic Articulation between TVET colleges and higher education institutions;
Higher Education institutions offering OQSF qualifications; and
CET colleges to offer skills programmes; and contribute to ERRP Skills Strategy.

Table 4: Inclusion of new Outcome Indicators and Five-Year Targets

Outcome indicator	Baseline	Five-Year Target
Outcome 1: A single, national, quality-assured Occupational Qualifications Sub-framework that promotes synergy, simplification and effectiveness
1.2. Level of Articulation between the OQSF, GENFETQA and HEQSF	No baseline established as yet	An evaluation report on the extent of articulation of qualifications on the OQSF with qualifications on the other two Sub-frameworks (GENFETQA and HEQSF)
1.4 Level of industry satisfaction with the OQSF	No baseline established as yet	Evaluation report on the extent of Industry satisfaction with the OQSF
1.5 Number of comparable Qualifications Frameworks against which the OQSF is benchmarked	No baseline established as yet	5
Outcome 2: QCTO to ensure that the development and quality assurance of occupational qualifications, part-qualifications and skills programmes are responsive to the labour market and developmental state initiatives
2.1 Percentage of occupational qualifications, part qualifications and skills programmes developed as identified in the DHET Economic Reconstruction and Recovery Skills Strategy	No baseline established as yet	80 % of qualifications developed as identified in the DHET Economic Reconstruction and Recovery Skills Strategy
2.3 Number of occupational qualifications, part-qualifications and skills programmes in high demand offered by Universities	No baseline established as yet	As per agreed targets in the approved DHET Revised Strategic Plan and Economic Reconstruction and Recovery Plan Skills Strategy
2.4 Number of occupational qualifications, part qualifications and skills programmes in high demand offered by CET Colleges	No baseline established as yet	As per agreed targets in the approved DHET Revised Strategic Plan and Economic Reconstruction and Recovery Plan Skills Strategy
2.5 Number of occupational qualifications, part qualifications and skills programmes in high demand offered by Private Skills Development Providers	No baseline established as yet	As per Economic Reconstruction and Recovery Plan Skills Strategy
2.6 Number of TVET Colleges offering occupational qualifications part- qualifications and skills programmes in high demand	No baseline established as yet	As per agreed targets in the approved DHET Revised Strategic Plan and Economic Reconstruction and Recovery Plan Skills Strategy
2.7 Number of CET Colleges offering occupational qualifications part- qualifications and skills programmes in high demand	No baseline established as yet	As per agreed targets in the approved DHET Revised Strategic Plan and Economic Reconstruction and Recovery Plan Skills Strategy
2.8 Number of Universities offering occupational qualifications part qualifications and skills programmes in high demand	No baseline established as yet	As per agreed targets in the approved DHET Revised Strategic Plan and Economic Reconstruction and Recovery Plan Skills Strategy
2.9 Number of Private Skills Development Providers offering occupational qualifications part qualifications and skills programmes in high demand	No baseline established as yet	As per agreed targets in the approved DHET Revised Strategic Plan and Economic Reconstruction and Recovery Plan Skills Strategy
Outcome 3: QCTO is a responsive learning organisation
3.1 The relevance and responsiveness of the QCTO and the OQSF evaluated	No baseline established as yet	An evaluation report that measures sectoral perceptions of the relevance and responsiveness of the QCTO and the OQSF

Source: QCTO Revised Strategic Plan 2020/21 – 2024/25

4.4.2. Focus over the MTSF period and Strategic Outcomes

Over the MTSF period, the work of the QCTO will be informed by the three Outcomes as follows,

Outcome 1: A single, national, quality-assured Occupational Qualifications Sub-framework that promotes synergy, simplification and effectiveness.

The Outcome contributes to the achievement of the NDP, MTSF, WPPSET, and the mandate of the QCTO and other policy priorities; by supporting the delivery of quality education, skills and training. It will also support equity and equality issues in education and training. A sub-framework that promotes synergy, simplification and effectiveness will also contribute to employability, which is a key goal of the NDP. It will also ensure adequate and timely responsiveness to the demands of the 4IR.

Outcome 2: QCTO to ensure that the development and quality assurance of occupational qualifications, part-qualifications and skills programmes are responsive to the labour market and developmental state initiatives.

Strategic Framework (MTSF), NSDP, WPPSET, NPPSET, DHET Revised Strategic Plan, Economic Reconstruction and Recovery Skills (ERR SS) and the mandate of the QCTO and the latest list of Occupations in High Demand. The NSDP (principle 8) requires Quality Councils to design, develop and maintain relevant qualifications. The NDP specifically makes reference to improving the quality of education, skills development and innovation.

Outcome 3: QCTO is a responsive learning organisation

This Outcome responds to the NDP’s intent to respond to the skills needs of all sectors and respond to the lifelong learning needs of a wide range of candidates. It also contributes to the NDP imperative to develop partnerships. The outcome also supports the NSDP intent to identify and increase the production of occupations in high demand.

4.4.3. Overview and assessment of the 2022/23 performance targets

The QCTO’s activities toward achieving the three Outcomes will be undertaken under the four budget programmes, namely, Administration; Occupational Qualifications Management, Assessment and Certification; Occupational Qualifications Quality Assurance and Research Analysis.

For the 2022/23 financial year, the QCTO APP has 28 planned targets.

Below is a summary of the key deliverables per programme:

4.4.3.1. Programme 1: Administration

To enable QCTO performance through Strategic leadership and reliable delivery of management support services that will ensure a responsive and learning organisation. The programme has four targets for 2022/23.

Selected key deliverables for the 2022/23 financial year include, amongst others, to:

Implement 40% of the capacity building strategy;
Implement 100% MSP Annual Plan deliverables;
Implement 40% of the Marketing and Communications Strategy; and
Implement 40% of the Change Management Strategy.

The 2022/23 budget allocation for the programme amounts to R66,051 million, of which R29,141 million for compensation of employees, R32,910 million for goods and services and R4,0 million for capital expenditure. Notably, the allocation for spending on capital expenditure has decreased significantly from R10,760 million in 2021/22 to R4,0 million in 2022/23.

4.4.3.2. Programme 2: Occupational Qualifications Management, Assessment and Certification

The programme ensures that occupational qualifications, part-qualifications and skills programmes on the OQSF are available, issue certificates to qualifying learners, verifies the authenticity of issued certificates and maintains stakeholder relationship. The programme has 10 targets for 2022/23.

Selected key deliverables for the 2022/23 financial year, amongst others:

Recommend to SAQA 50 prioritised occupational qualifications (full/part) for registration on the OQSF.
Recommend to SAQA 200 Historically Registered Qualifications for deactivation on the OQSF;
Quality assures 90% of assessments for occupational qualifications and part-qualifications against QCTO standards within 21 working-days turnaround;
Produce Report on the Implementation of Approved Council Plan;
Quality assures 90% of Assessment Quality Partners for Assessment (or Assessment Bodies) quality assures against QCTO compliance standards;
Quality assures 95% of certificates issued within the turnaround time (21 working days); and
Report on occupational qualifications, part-qualifications and skills programmes in high demand offered by TVET colleges, CET colleges, Universities and Private Skills Development Providers.

The 2022/23 allocation for this programme amounts to R22,805 million. The budget decreased by R3,127 million from the adjusted appropriation of R25,932 million in 2021/22. The QCTO notes that the budget has been significantly impacted by budget cuts implemented by the DHET due to the COVID-19 pandemic and its impact on the economy. These budget cuts have significant long-term negative impacts as the work of the unit is critical in ensuring the development of qualifications, part-qualifications and skills programmes required by the country to promote employability, thereby contributing to the economic recovery of the country.

The limited budget will also impact the degree of quality assurance carried out by the QCTO for the external assessments. The QCTO noted that it will have to implement more risk-based quality assurance to mitigate the constraints brought about by the limited budgets. The Certification Unit has embarked on digitising hard copy learner records. This project is funded by the National Skills Fund and indirectly through the main budget of QCTO. The unit currently issues trade certificates on an e-platform. The intention of having qualifications and skills programmes issued by QCTO to also be on an e-platform will be adversely affected by the budget cuts.

4.4.3.3. Programme 3: Occupational Qualifications Quality Assurance

The programme aims to establish and maintain quality standards for Accreditation and Assessment within the OQSF. There are 12 planned targets for 2022/23.

Selected key deliverables for the 2022/23 financial year,

Process 90% of Skills Development Providers accreditation applications for Occupational qualifications and part-qualifications within the turnaround time (90 working days);
Process 80% of Skills Development Providers accreditation applications for historically registered Qualifications (Trades, non-Trades, NATED Report 190/191, Skills Programmes) within the turnaround time (90 working days);
Process 90% of assessment centre applications (accreditation granted or declined) within the turnaround time (30 working days);
Quality assure 75% of accredited Skills Development Providers with implemented NATED Report190/191 (e.g. N4 – N6) programmes against the QCTO compliance standards; and
Quality assure 40 NATED Report 190/191 instructional offering marking sessions against QCTO standards.

The programme is allocated R36,530 million, of which R24,751 million is for the compensation of employees and R11,779 million for goods and services. Notably, the budget for goods and services increases significantly by R7,115 million from the adjusted appropriation of R4,664 million in 2021/22. The QCTO notes that the main contribution of the goods and services budget are travelling expenses, payment and training of Subject Matter Experts (SMEs) as well as workshops.

4.4.3.4. Programme 4: Research Analysis

The programmes establishes and maintains QCTO Standards for quality assurance through research, monitoring, evaluation and analysis. The programme has two planned targets for 2022/23. The focus during the financial year will be on producing three Research reports and get them approved by the CEO and to publish online Research Bulletin.

The programme’s allocated budget for 2022/23 amounts to R3,867 million (R1,949 million for compensation of employees and R1,918 million for goods and services.

4.4.4. Overview and assessment of the 2022/23 MTEF budget allocation

The QCTO’s budget for 2022/23 amounts to R129,253 million. the budget comprises R28,506 million of DHET Grant, R96,147 million SETA Grant and R4,600 million of revenue from certification and accreditation services and interest received. The overall budget has increased by R10,223 million, mainly due to the increase in SETA Grants and the projected revenue from services rendered. The SETA Grant is projected to experience healthy growth in the outer two years of the MTEF period to R100,954 million and R106,002 million in 2023/24 and 2024/25, respectively. Notably, the DHET grant is not growing, when considering inflation. The budget is projected to grow in the outer two years of the MTEF period to R134,010 million and R140,687 million in 2023/24 and 2024/25, respectively.

The bulk of the QCTO’s budget at 51.10% or R66,051 million is apportioned to the Administration programme, followed by Occupational Qualifications Quality Assurance at 28,26% or R36,530 million and Occupational Qualifications Management and Certification at 17.64% or R22,805 million. Programme 4: Research Analysis and Quality Assurance receives the smallest allocation at 2.9% or R3,867 million.

The allocation for spending on compensation of employees amounts to R73,868 million, which constitutes 57.14% of the QCTO’s total budget. Goods and services allocation amounts to R51,385 million or 39,75% of the total budget of the QCTO. The allocation for spending on capital expenditure amounts to R4,0 million.

4.4.5. Key issues affecting the QCTO

The QCTO budget needs urgent review to enable the entity to fulfil its role in the PSET sector as it aims to provide an enabling skills development across all institutional types, i.e., to enable the implementation of the OQSF.
The National Skills Fund cash injection of R2,2 billon in the TVET and CET colleges to implement Occupational Qualifications will place a greater strain on the QCTO resources to provide for adequate quality assurance.
The Business Case of the QCTO, which was presented to the DHET in February 2017 is still not yet been approved. Consequently, the QCTO will not be in a position to fill all the positions on its organisational structure and also revoke the quality assurance function from the Quality Assurance Partners.

COMMITTEE OBSERVATIONS

The Committee, having assessed the 2022/23 Annual Performance Plans (APPs) of the Departments and entities, made the following observations and key findings.

5.1. Department of Higher Education and Training

5.1.1. Programme 1: Administration

The Committee reiterated its concerns about the delays in the filling of vacant positions in the Department within the stipulated timeframe. The Committee also noted the difficulties experienced by the Department in filling the DDG University Education position, which has been vacant for more than a year. The Committee welcomed the appointment of Dr Socikwa to act for a period of 12 months in the position, while the Department continues with the process of filling the position on a substantive basis.
The Committee welcomed the steps taken by the Department to expedite the filling of vacant positions through the creation of an online application platform where applicants would be able to upload their applications via the Departmental website and an E-link.
The Committee noted with concern the implications of the Departments’ inadequate human resource capacity on its service delivery mandate and its ability to achieve its planned targets.
The Committee welcomed the increment in the budget for the compensation of employees from R9.640 billion in 2021/2022 to R10.776 billion in the current financial year.

5.1.2. Programme 2: Planning, Policy and Strategy

The Committee noted the significance of this programme’s oversight function over the entire PSET sector. However, it raised concerns about the ability of the Department to execute this oversight and monitoring mandate in light of the poor governance and performance by some PSET institutions. The Committee was also concerned that approximately R10.8 million had been set aside for subsistence and travelling (S&T) in the 2022/23 financial year. It was noted that this allocation was insufficient given the number of PSET institutions that need to be monitored in particular those that have infrastructure development projects underway.
The Committee reiterated its concern regarding the scourge of gender-based violence (GBV), which has been likened to a pandemic. The Committee welcomed the inclusion of the target to produce a report on the implementation of the Gender Equality and the GBV Policy Framework for the PSET system. However, it noted that GBV response programmes need to be mainstreamed as part of the Department’s priority area in the PSET sector, and solely producing a report was inadequate.
The Committee noted the shifting of the infrastructure development functions from the core delivery programmes of the Department such as University Education and TVET to the Planning, Policy and Strategy programme. The shifting of infrastructure programmes to this programme was aimed at improving the planning and coordination of infrastructure projects in the PSET sector. The Committee welcomed the transfer of support staff from the other programmes to support the Planning, Policy and Strategy Branch and the proposed development of a dedicated infrastructure development support unit.
The Committee expressed concern that some of the performance indicators set by the Department and other entities were found to be not useful by the AGSA pro-active assessment of the 2022/23 APPs, and adjustments had to be made to ensure the targets meet the principles of being specific, measurable, achievable, relevant and time-bound (SMART). Notwithstanding the adjustment made to the performance indicators, the Committee welcomed the 2022/23 APPs of the Department and the entities.
The Committee noted the increase in the number of performance indicators/targets in the 2022/23 APP, however, concerns were raised with respect to the insufficient budget of the Department to execute its mandate meaningfully. The Committee also noted that it was critical for the Department to make a concerted effort to have a meaningful impact on the lived realities of citizens through its targets.
The Committee noted the budget allocation for the external service providers or consultants to render services in areas where there is no capacity within the Department. The Committee was of the view that building internal capacity would have positive spin-offs for the Department in the long-term, and would reduce expenditure considering the fiscal constraints.

5.1.3. Programme 3: University Education

The Committee expressed concern about inadequate support/funding for students coming from families whose household income exceeds the NSFAS threshold of R350 000 per annum while at the same time they cannot afford the cost of higher education (missing middle). Equally concerning is that the number has grown due to loss of jobs resulting from the impact of COVID-19 and slow economic growth.
The Minister has also reported that NSFAS funded students owed historic debt amounting to R5,3 billion. This debt was owed by students who were funded on the R122 000 family income threshold and were not funded full cost of study. The Department has not reported whether there is funding allocated in the form of a debt relief fund to cater for this debt.
The Committee noted the work underway by the Ministerial Task Team (MTT) appointed to develop a comprehensive and sustainable funding model for the PSET system, which will also respond to the needs of the missing middle students.
The Committee noted the projected marginal downward trend in the Doctoral graduates from 3 552 in 2021/22 to 3 350 in 2022/23 due to the impact of inadequate funding for bursaries for postgraduate students. Additionally, the Committee noted the commitments by the Minister that the National Research Fund (NRF) will fund postgraduate student’s total cost of study. However, this decision to fund the total cost of study will result in fewer students being funded.
The Committee also noted that the Department projected downward trends on student completions at universities from 237 882 in 2021/23 to 227 00 in 2022/23 and graduates in initial teacher education from 30 809 in 2021/22 to 29 000 in 2022/23.
The Committee noted with great concern that the University Education programme receives 80.89% of the Department’s total budget, excluding direct charges against the National Revenue Fund. However, R8,8 million was allocated for goods and services in the 2022/23 financial year and this is inadequate given the oversight, monitoring and evaluation work that the programme has to conduct over institutions.
The Committee noted that universities received the largest portion of the Department’s budget, 65.4% of the Department’s total budget. However, some institutions used institutional autonomy as a mechanism to evade public scrutiny on their utilisation of public funds.
The Committee welcomed the Minister’s call upon universities to provide support to other PSET institutions, in particular, the improvement of articulation by students coming from the TVET college sector to universities. It was noted that some universities utilised institutional autonomy to stifle progressive directives from Government.
The Committee noted that the Central Applications Clearing House (CACH) has not been effective in providing prospective students with the necessary support needed to access higher education institutions. Additionally, the marketing of the service needed significant improvement so that the uptake of the service can increase, in particular by students coming from geographically remote areas.
The Committee noted the impact of the devastating floods in KwaZulu-Natal and urged the Department to ensure that students affected are provided with the necessary support so that they are not left behind in terms of the academic programme.

5.1.4. Programme 4: Technical and Vocational Education and Training

The Committee expressed concern that the TVET programme received R12.623 billion, which roughly equates to 11% of the Department’s total budget. The budget shortfall for the TVET sector has adversely affected the meeting of the NDP and MTSF targets on headcount enrolment for the sector over the years. Notwithstanding the critical role that the sector should play in producing occupational skills to support the economic growth, funding is not commensurate with the sector’s policy mandate.
The Committee noted with grave concern the report by the Minister that funding for the TVET sector has not been growing since 2013 and the impact of this on headcount enrolments that are currently below the MTSF annual target and the NDP. The lack of adequate funding to support the TVET sector was not in line with the Government’s plan of making TVET colleges institutions of choice for young people to acquire the necessary skills needed to access the labour market.
The shortage of student accommodation in the TVET sector was noted as a serious concern given the need to increase enrolments in the sector. The Committee welcomed the additional allocation for student housing at the two TVET colleges, Gert Sibande and Majuba TVET colleges over the medium term.
The Committee noted the report by the Department that the devastating floods in the KwaZulu-Natal Province affected only one TVET college, Esayidi, Kokstad Campus. The Committee urged the Department to provide the necessary support to all affected students and staff to ensure that the academic programme at the college campus can resume.

5.1.5. Programme 5: Skills Development

The Committee noted the significant role played by sector education and training authorities (SETAs) in the PSET system and called for improved governance and management of funds by these institutions to have a meaningful impact on the lives of citizens.
The Committee noted with concern the lack of dedicated funding to support INDLELA Trade Test Centre, which plays an important role in the development of artisans required to sustain the economy.
The Committee noted the importance of having suitably qualified Accounting Authority members and executives in SETAs to improve good governance and management.

5.1.6. Programme 6: Community education and Training

The Committee expressed a concern that the allocation for the CET programme amounts to R2.481 billion which is only 2% of the total overall budget of the Department. It was noted that the CET sector remains critical to supporting the development of short-term skills for out-of-school young people and adults to access the labour market.
The over-reliance of the CET sector on basic education / schools to provide access to teaching and learning infrastructure was noted as a major concern. It was noted that 90% of the CET core business / activities took place in schools due to the lack of dedicated infrastructure for the CET sector.
The Committee noted with concern the impact of the devastating floods in KwaZulu-Natal Province, which had affected more than 600 schools. Consequently, the CET students who are accommodated in these schools are impacted. The Committee urged the Department to provide the necessary support to the affected students so that they are not left behind in terms of the academic programme.
The Committee expressed concern regarding the target to increase CET enrolments from 142 585 in 2021/22 to 266 424 in 2022/23. It was noted that the CET sector did not have the necessary capacity to accommodate this significant increase given its limited resources.
The Committee commended the Department for convening the Ministerial CET Summit, which took place on 8-9 March 2022. It was noted that the resolutions of this Summit ought to have a positive impact on the growth of the CET sector.

5.1.7. Budget

The Committee welcomed the 7% increment in the Department’s budget for 2022/23, especially additional allocation to student funding in the MTEF period as well as R900 million allocation for infrastructure for student accommodation.
The Committee further welcomed the reprioritisation of R200 million within the Department’s baseline funding toward assisting PSET institutions in KwaZulu-Natal Province to deal with the impact of the floods.
The Committee noted with concern the decrease in the nominal growth in the budget, in the outer two years of the MTEF period.
Notwithstanding that, the Committee welcomed the increase in the allocation for student funding over the medium term to fund the fee-free education policy and to ensure stability in higher education and TVET sectors; the Committee reiterated its 2021 concern about the exponential growth in student funding that is not commensurate to the growth in universities subsidies and the impact this will have in the medium to long term on the ability of the institutions to deliver quality education to students.
The Committee noted with grave concern that the Department has many unfunded mandates, which were not funded from the voted funds, but through other sources such as the National Skills Fund, savings within the Departmental programmes and donor funding. The Committee noted the concern by the Department that some donor funding was coming to an end and this could impact on the sustainability of the funded programmes.

5.2. National Student Financial Aid Scheme

The Committee noted with concern the delays in the adjustment of the entity’s indicators as highlighted by the AGSA. The AGSA had undertaken a pro-active assessment of the usefulness of the entity’s performance indicators/targets in the 2022/23 APP, and some of them were not aligned with the SMART principles. Consequently, the entity will need to make the necessary adjustments and submit an amended 2022/23 APP to Parliament.
The Committee welcomed the increase in the budget for student funding from R41.985 billion in 2021/22 to R48.968 billion in 2022/23. However, it was concerned about the 19.9% reduction in the administrative budget from R382.5 million in 2021/22 to R306.2 million in 2022/23, and its impact on the planned systems and processes improvements. The growth in the amount of student funding budget signifies growth in the number of beneficiaries and related controls that need to be put in place to ensure that the funds are properly disbursed. However, the administration budget amounted to 0.81% of the total student funding budget in 2022/23, and this remains a serious concern. Other similar PSET institutions utilise 10% of their total budget for administration, and the administration threshold of the NSFAS will need to be increased in the medium-term.
The Committee noted the progress made by the entity in the handling of the 2022 funding applications. There have been notable improvements made in the NSFAS portal, which is able to provide real-time eligibility decisions to the eligible first-time entry (FTEN) applicants, including South African Social Security Agency (SASSA) grants beneficiaries.
The Committee noted with concern that a high number of students in the potential exceptions were students from the University of the Free State.
The Committee expressed concern about the delays in the turn-around time in resolving student queries. It was noted that some members of the Committee who tried to assist students had also experienced the delays.
The Committee noted with concern the existing systemic challenges in the legacy information and communication technology (ICT) systems of the entity, including the delays in the procurement of an ICT system that is fit for purpose.
The Committee expressed concern about the nine TVET colleges that were not complying with the submission of data needed for the close-out project.
The Committee noted with concern the increasing demand for fee-free higher education compared to the available funding to meet the demand in the medium term period. Equally concerning was the low recovery rate of loans owed by former beneficiaries pre-2018.
The Committee noted the Board’s initiative of engaging stakeholders in the PSET institutions, in particular those, which experienced NSFAS related challenges. However, it expressed concern about the NSFAS communication strategy, which was more reactive than proactive.
The Committee noted the progress made in the finalisation of the close-out project, which is expected to be finalised in June 2022. The Committee stressed the importance of improving data exchange between NSFAS and institutions for reconciliation of records.

5.3. Council on Higher Education

The Committee expressed concern about the allegations that Walter Sisulu University (WSU) awarded degrees that were not accredited, and the impact of this on the students. The Committee noted the response by the CHE that the media sensationalised the matter and that all but five programmes were accredited. The CHE was working with the University to address the five legacy qualifications and the entity will conduct an institutional audit of the University.
The Committee accepted the 2022/23 APP of the entity notwithstanding the limited budget available for it to fully execute its mandate.
The Committee welcomed the digitisation of the systems and processes of the entity.

5.4. South African Qualifications Authority

The Committee commended the SAQA Board and the Executive management for steering the entity well during the difficult past two years of the COVID-19 pandemic, which adversely affected its income-generating services and resulted in the retrenchments of 89 staff members in 2021.
The Committee welcomed the commitment from the entity that priority was being given to its former employees in the filling of any available vacancies and short-term contract jobs.
The Committee welcomed the report that the entity was financially sustainable in the short term and hoped that the automation and digitisation projects would be fast tracked to ensure medium to long-term sustainability and to avoid reputational risks
The Committee welcomed the additional allocation (R20 million) to the entity for digitisation and automation of processes and systems. The Committee also welcomed the commitment from the entity that its savings would be redirected for the implementation of the automation project.
The Committee expressed grave concern about the delays in the proclamation of the NQF Amendment Act, 2019. Equally concerning to the Committee was that the Department’s plans present the NQF Amendment Bill to Parliament for processing, while there is an outstanding proclamation of the 2019 NQF Amendment Act.
The Committee was concerned that some of the entity’s 2022/23 APP targets were set based on the hope that the President will proclaim the NQF Amendment Act; and, that those targets will not be achieved in the event the President does not proclaim the Act.

5.5. Quality Council for Trades and Occupations

The Committee welcomed the 2022/23 APP of the entity notwithstanding its insufficient budget to fully execute its mandate.
The Committee expressed concerns about the delays in the approval of the business case of the entity, which would enable it to be fully functional and take over the Education and Training Quality Assurance (ETQA) function, co-shared with the SETAs.
The Committee was concerned that the entity’s approved organisational structure provides for 246 permanent posts to be filled in phases based on the availability of funds. However, the entity had a total number of 94 permanent staff members, and the limited human resource capacity impacts its ability to fulfil its role in the PSET sector through the implementation of the Occupational Qualifications Sub-Framework (OQSF).
The delays in the appointment of the Council Chairperson and the filling of other vacant Council positions by the Minister were noted as a concern. The Committee noted that it has been over a year that the vacant Council positions have not been filled. These delays have the potential to limit the Council’s ability to exercise its oversight role over the affairs of the entity.
The QCTO since its establishment has been leasing its premises, and the delays in the purchasing of its own premises have been repeatedly stressed as a concern by the Committee.

RECOMMENDATIONS

The Committee, having assessed the 2022/23 APP of the Department and entities, recommends that the Minister of Higher Education, Science and Innovation considers the following:

6.1. DEPARTMENT OF HIGHER EDUCATION AND TRAINING

6.1.1. Programme 1: Administration

The Department expedites the filling of vacant positions within the stipulated timeframe, including the DDG University Education. The filling of vacant positions will assist the Department in meeting its service delivery requirements and related performance indicators and targets.
The Department expedites the procurement of the E-recruitment system, which is aimed at reducing the turn-around time for filling vacant positions.

6.1.2. Programme 2: Planning, Policy and Strategy

The Department expedites the establishment of the infrastructure development support unit in this Branch. Additionally, the Department capacitates the Branch to execute its oversight and monitoring over the implementation of infrastructure development projects by institutions to ensure that they are completed within the allocated budget and specific timeframes.
The Department considers adding more specific and actionable targets in the implementation of the Gender Equality and the GBV Policy Framework for the PSET system. Mainstreaming of the Department’s response to GBV will contribute significantly to the fight against the scourge in the PSET sector, this would require the requisite funding in line with advancing gender responsive budgeting.
The allocated budget of R10.8 million for travelling and subsistence in 2022/23 will need to be increased given that the Planning Branch has a critical oversight function over the PSET system.
The Department considers building internal capacity within the Planning, Policy and Strategy Branch to minimise the utilisation of consultants, which is estimated to cost R4 million for the 2022/23 financial year.
The Department, working with entities should improve on the development of their performance indicators and targets of the APPs in line with the SMART principles.

6.1.3. Programme 3: University Education

The Department expedites the development of a sustainable student funding model of the PSET system so that students from the missing middle bracket are assisted with funding to access higher education institutions.
The Department improves the marketing and roll-out of the CACH so that it can have a meaningful impact in expanding access to higher education institutions.
Higher education institutions in KwaZulu-Natal put mechanisms in place to support students coming from areas affected by the devastating floods so that they are not left behind in terms of the academic programme.
The University Education Branch ensures that universities adhere to the reporting requirements in terms of the utilisation of public funds allocated to them. The notion of institutional autonomy should not be used at the expense of public accountability, given that universities receive 65.4% of the Department’s budget.
The Department ensures that universities put the necessary mechanisms in place to support the training and development of TVET and CET lectures and students, and other areas of common interest.
The Department ensures that the University sector plays a greater role in supporting other programmes in the PSET sector.

6.1.4. Programme 4: Technical and Vocational Education and Training

The TVET sector needs additional funding to increase enrolment in line with the MTSF targets and to achieve the 2030 NDP target of 1 million students in the TVET sector.
TVET colleges in KZN mechanisms put in place mechanisms to support students coming from areas affected by the devastating floods so they are not left behind in terms of the academic programme.
The development and expansion of student accommodation infrastructure in the TVET sector be prioritised, and capacity-building initiatives are implemented to assist the management of TVET colleges with the necessary skills required to utilise the Infrastructure Efficiency Grants (IEG) earmarked for infrastructure expansion and maintenance.
The Department expedites the improvement of student’ placement into workplace or industry to acquire the necessary work-based learning to complete their qualifications. Equally, the industry needs to absorb more students to participate in work-integrated learning programmes to obtain the necessary experience required to complete their qualifications.

6.1.5. Programme 5: Skills Development

Dedicated funding be considered to assist INDLELA Trade Test Centre to operate efficiently and effectively in the training and development of artisans required to build and sustain the economy.
The proper coordination of the skills development interventions by SETAs be prioritised to improve their uptake and impact on the lives of citizens.
Work be done to encourage industry to assist in the absorption of students for work-integrated learning and post-qualification.

6.1.6. Programme 6: Community Education and Training

The Department works towards the realisation of closer working relationships and collaboration between CET colleges and other relevant PSET institutions, including the private sector.
Additional funding and resources are needed to increase enrolment and capacity of CET colleges to contribute to the mass skills provision and alleviation of poverty and youth unemployment in the country.
The Department ensures that the resolutions coming out of the Ministerial CET Summit are implemented to position CET colleges as institutions of choice for the provision of skills programmes.
The Department ensures that the students affected by the devastating floods in KZN are provided with the necessary support to catch up on the academic programme.

6.2. National Student Financial Aid Scheme

The entity expedites the adjustment of the performance indicators that were not aligned to the SMART principles as highlighted by the AG in the APP 2022/23.
The entity improves its communication strategy so it can be accessible to all the relevant stakeholders and students in the PSET sector. Students need to be kept up to date regarding the processes of the entity.
NSFAS expedites the finalisation of students’ appeal process to ensure that no student is left behind in terms of the academic programme.
The entity expedites the payment of tuition and residence fees to institutions so that institutions and private accommodation providers can cater for the needs of students in student residences.
NSFAS, working in collaboration with the Department, ensures that the nine TVET colleges that have not submitted data for the close-out project do submit and consequence management is implemented against these colleges.
NSFAS improves its turnaround time in response to the student-related queries.
NSFAS prioritises the procurement of an ICT system that is fit for purpose to improve the operations and systems of the entity.
The entity solicits additional funding to increase its administration budget which is not sufficient to support Student-centred Model for effective and efficient disbursement of funding to institutions and students.
A review of the centralisation of the NSFAS be undertaken, considering the inadequate accessibility of the entity in all institutions of higher education and training. NSFAS should investigate avenues to maximise accessibility at various institutions, and this could include the establishment of district/regional offices closer to PSET institutions.

6.3. Council on Higher Education

The entity, working with WSU, ensures that all students who have been negatively affected by the allegations in relation to offering of unaccredited qualifications by University are provided with the necessary support.
Institutional audits be undertaken at universities to assess their capacity in the management of their academic activities.
The Communication and Advocacy Plan of the entity be translated into indigenous languages to ensure access of information to all the citizens of the country.

6.4. South African Qualifications Authority

The entity expedites the implementation of the automation and digitisation projects aimed at ensuring the organisation works smart and efficiently.
SAQA, working in collaboration with the Office of the Minister, liaises with the Office of the President on the outstanding proclamation of the NQF Amendment Act, 2019.
SAQA expedites collaborations with other PSET institutions to improve articulation pathways within and across sub-frameworks.
The Department ensures that additional funding is allocated to improve the financial sustainability of the entity over the medium term to long-term.

6.5. Quality Council for Trades and Occupations

The Minister expedites the consideration and approval of the documentation submitted to his Office by the QCTO for the purchase of its own premises.
The Minister expedites the filling of the vacant position of the Board Chairperson and other vacancies in the QCTO Council.
The QCTO needs to be adequately funded and capacitated as the quality assurance demand is expected to increase due to the uptake of the occupational programmes by TVET and CET colleges.
QCTO expedites the automation project to improve its efficiency.

Report to be considered

Documents