CHE ANNUAL REPORT 2012 - 2013
CHE Switchboard: +27 12 349 3840
1 Quintin Brand Street,
Persequor Technopark
Brummeria
Pretoria
South Africa
PO Box 94
Persequor Park
0020
South Africa
CHE ANNUAL REPORT 2012 - 2013
Published by
The Council on Higher Education
www.che.ac.za
ISBN: 978-1-919856-86-5
council on higher education
Council on Higher Education
2012 - 2013
council on higher education
Council on Higher Education
2012 - 2013
The Council on Higher Education (CHE) is an independent statutory body established in terms of the
Higher Education Act, (Act 101 of 1997), as amended. It operates in accordance with the prevailing
legislative and regulatory frameworks of the Republic of South Africa and with due cognisance of its
obligations and responsibilities in terms of such laws and regulations. The Higher Education Act sets out
the mandate and responsibilities of the CHE.
VISION
The CHE as an independent statutory body strives to be an organisation nationally and internationally
recognised for the quality of its intellectual contribution to and its impact on the development of the South
African higher education system through its core functions of advising the Minister of Higher Education
and Training, monitoring trends in the higher education system and assuring and promoting the quality
of higher education.
MISSION
The mission of the CHE is to contribute to the development of a transformed, equitable, high quality higher
education system capable of responding to the intellectual, ethical and human resource challenges of a
democratic society based on social justice principles which operates in a global context.
The main areas of work of the CHE are:
• To provide advice to the Minister of Higher Education and Training on all higher education matters
on request and proactively;
• To develop and implement a system of quality assurance for all higher education institutions,
including private providers of higher education, which focuses on programme accreditation,
institutional audits, national reviews, quality promotion and capacity development;
• To monitor the state of the higher education system in relation to the goals of national policies and
international trends;
• To contribute to the development of higher education through intellectual engagement with key
issues in a number of activities (including research, publications and conferences) and in partnership
with relevant stakeholders.
CHE ANNUAL REPORT 2012 - 2013
council on higher education
Published by
The Council on Higher Education
CHE Switchboard: +27 12 349 3840
1 Quintin Brand Street,
Persequor Technopark
Pretoria
South Africa
PO Box 94
Persequor Park
0020
South Africa
www.che.ac.za
Values
In pursuit of its vision and mission the CHE is committed to and guided by the following values:
• Independence
• Transformation
• Integrity
• Public Accountability
ISBN: 978-1-919856-89-6
che annual report 2012-2013
Contents
For ew or d 2
Chairperson’s Message
CEO ’s O v e r v i e w 4
The Year in Perspective
Strategic Objectives and Goals
8
Fulfilling the Mandate of the CHE
9
Quality Assurance and Quality Promotion
11
Standards Development
17
Corporate Services
18
Annual Financial Statements
23
Non-Financial Performance Indicators
60
Organisational Structure
66
Composition of Council and HEQC
68
Acronyms
74
CHE ANNUAL REPORT 2012-2013
1
Foreword
Acting Chairperson’s Message
In the year under review the Council bid farewell to its
Chairperson, Professor Chabani Manganyi, whose term
of office came to an end in December 2012. Professor
Manganyi served the Council with distinction since 2009
and his guidance and wisdom and the breadth and depth
of his experience as a leader in education, both at the
institutional and national level, will be sorely missed. As
will his steady hand, which ensured that despite a period
of organisational uncertainty and instability resulting from
a management lacuna between 2009/10, the Council
continued to discharge its mandate without disruption. On
behalf of Council I would like to acknowledge and thank
Professor Manganyi for his contribution and wish him all
the best in retirement.
I would also like to convey our condolences to the family
and colleagues of Prof Edmund Zingu, who was coopted onto Council in October 2012, specifically because
of his experience and understanding of the role of the
Universities of Technology. His untimely death in April
2013 has robbed the country and higher education of a
committed and experienced educator.
The Council, Audit and Risk Committee and management,
worked tirelessly in the past two years on addressing the
shortcomings in administrative and governance systems,
including compliance procedures. This entailed ensuring
the successful implementation of and bringing to a close
the action plan linked to the recommendations flowing
from the internal and external audit findings that was
developed in the 2009/10 financial year. This is reflected in
the fact that not only has the Council once again received
an unqualified audit, but the findings in the management
letter are limited and largely of a housekeeping nature.
The strengthening of administrative and governance
systems will enable the Council in future to focus on
discharging its core functions and mandate. The latter, as
reported elsewhere, has already begun and is progressing
well. A full complement of senior staff is in place, which
has enabled the Council to develop and finalise a range
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CHE ANNUAL REPORT 2012-2013
of planned projects across the mandate areas of the CHE
for implementation in 2013/14. The Council has also made
steady progress in giving effect to its new mandate as
the Quality Council for Higher Education – the revised
Higher Education Qualifications Sub-framework (HEQSF)
was approved by the Minister in December 2012 and the
Council approved the Framework for the Development of
Qualifications Standards in Higher Education in March
2013.
The Council is also working in close collaboration with
the South African Qualifications Authority (SAQA) and
the other Quality Councils (QCs) in addressing a range
of priorities identified by the Minister of Higher Education
and Training relating to articulation pathways, including
the Recognition of Prior Learning (RPL) and Credit
Accumulation and Transfer (CAT).
The Council looks forward to engaging with the much
anticipated White Paper on Post-School Education and
Training going forward. The Council’s Higher Education
Quality Committee (HEQC) is working with the Department
of Higher Education and Training to ensure the successful
establishment of the two new universities in Mpumalanga
and the Northern Cape.
In conclusion I would like to thank my colleagues on the
Council and its standing committees, including the HEQC
and its sub-committees, and the staff of the CHE, for their
continued commitment, dedication and hard work.
Dr Letticia Moja
Acting Chairperson
Council on Higher Education
CHE ANNUAL REPORT 2012-2013
3
CEO’S Overview
the year in perspective
The focus in the recent past on consolidating the CHE’s
structures, systems and processes to enhance its
operational efficiency and effectiveness has begun to bear
fruit. This has enabled the CHE in the past year to focus on
revitalising and developing its core mandate, in particular,
in relation to its monitoring and evaluation and institutional
audit functions.
The capacity constraints, which impacted on the monitoring
and evaluation function of the CHE have been addressed
and since October 2012, the directorate is fully staffed
and operational. An ambitious and exciting work-plan has
been developed at the centre of which is the initiation
of a twenty year review of the state of higher education.
The review will focus on the achievements and progress
made since 1994, the challenges that remain and future
directions, including the readiness of the higher education
system to respond to and embrace new challenges and
opportunities, in particular, the advances in, and impact of,
the digital revolution.
The monitoring function has also been given added
impetus with the publication in early 2013 of the first in
what will become an annual series of Higher Education
VitalStats booklets, which aside from providing information
on the current state of public higher education in South
Africa, will contribute to identifying issues for further
analysis and research. And significant progress has
been made in developing a new private higher education
management information system, which in future would
enable comprehensive information to be provided on the
state of private higher education in South Africa.
The development of pro-active advice on critical issues
in higher education identified by the Council, in particular,
based on its quality assurance function, is taking off. In
March 2013, the CHE provided the Minister with advice on
the Status and Location of Public Colleges, which resulted
from the re-accreditation of higher education programmes
offered by Agricultural Colleges that was undertaken by
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CHE ANNUAL REPORT 2012-2013
the HEQC at the request of the Department of
Agriculture, Forestry and Fisheries.
The review of the draft framework for the next cycle
of institutional audits with a view to strengthening
the impact of the quality assurance system has been
completed. This has resulted in a shift in focus from
institutional audits to the quality enhancement of
teaching and learning but located within the broader
theme of student success. A draft Framework for
Institutional Quality Enhancement in the Second
Period of Quality Assurance, was approved by
the HEQC and Council in December 2012. The
framework will be finalised in the latter half of 2013
after consultation with the higher education sector
and implemented in 2014.
The Framework for the National Review of
Programmes was approved by the HEQC and
Council in June 2012, thus paving the way for the
first national review, that is, of the Bachelor of Social
Work, since the re-establishment of the directorate
in December 2010. Furthermore, discussions have
also been held with the South African Law Deans
Association regarding the possibility of undertaking
a national review of the LL.B.
Similarly, the Framework for the Development
of Qualification Standards in Higher Education
was approved by Council in March 2013, thus
enabling the initiation of pilot projects in standards
development. There are two pilots in the planning
stage, namely, the development of standards for the
Bachelor of Social Work and the MBA respectively.
There is continued focus on improving administrative
and management systems to reduce internal control
deficiencies. The short-comings in this regard that
were previously identified have been successfully
addressed. The appointment of a Chief Financial
Officer who has been in post since August 2012
has contributed to stability and the capacity
constraints, which exacerbated the challenges
relating to non-compliance in the finance and supply
chain functions, have been addressed through the
creation of two additional posts. However, there is
no room for complacency and this will continue to
receive the attention that it deserves.
The CHE is committed to ensuring that underexpenditure is limited to not more than 5% of the
budget annually. However, in the past two years, a
combination of factors, which included challenges
in filling vacant posts, strengthening governance
and management systems and revisiting the focus
of the quality assurance function of the CHE, has
contributed to under-expenditure. As indicated
above, these issues have been addressed and the
CHE is now well-placed to give effect to its overall
mandate in a concerted manner going forward.
In conclusion, I can state with a measure of
confidence that as an organisation we have turned
the corner and while not out of the woods, we are
well-placed to respond and contribute to the building
of a high quality higher education system. It goes
without saying that none of this would have been
possible without the support and guidance of the
Council and the HEQC and the commitment and
dedication of all the members and their respective
sub-committee’s and the perseverance, hard work
and dedication of the staff. I would also like to
express my gratitude to Prof Chabani Manganyi,
the outgoing chair for his support and guidance and,
in particular, for the exemplary manner in which
he observed the distinction between oversight and
management, which is critical for the efficient and
effective functioning of any organisation. Thank you
for your unstinting support.
Ahmed Essop
Chief Executive Officer
Council on Higher Education
CHE ANNUAL REPORT 2012-2013
5
Council Members
Prof Chabani Manganyi
6
Dr Letticia Moja
Chairperson
Acting Chairperson
1 April - 31 December 2012
1 January - 31 March 2013
Prof Magda Fourie-Malherbe
Ms Dora Ndaba
Ms Malebo Ledwaba
Prof Yunus Ballim
Prof Beverley Thaver
Dr Zilungile Sosibo
Dr Bandile Masuku
Dr Nyambeni Luruli
Mr Edmund Nxumalo
Prof Shireen Motala
Dr Yvonne Dladla
CHE ANNUAL REPORT 2012-2013
CO-OPTED Members
Prof Sophie Mogotlane
Dr Molapo Qhobela
Prof Edmund Zingu
ex officio Members
Mr Ahmed Essop
Chief Executive Officer
Council on Higher Education
(CHE)
Dr Thomas Auf der
Heyde
Deputy Director-General
Human Capital and
Knowledge Systems
Department of Science and
Technology (DST)
Dr Mafu Rakometsi
Dr Albert van Jaarsveld
Chief Executive Officer
Council for Quality Assurance in
General and Further Education
and Training (Umalusi)
Mr Joe Samuels
Chief Executive Officer
South African Qualifications
Authority (SAQA)
President
National Research Foundation
(NRF)
Dr Diane Parker
Acting Deputy
Director-General
Universities Branch
Department of Higher
Education and Training
(DHET)
Ms Joyce Mashabela
Chief Executive Officer
Quality Council for Trades
and Occupations (QCTO)
CHE ANNUAL REPORT 2012-2013
7
STRATEGIC OBJECTIVES AND GOALS
The Strategic Objectives and Goals, set out below, are extracted from the CHE’s Annual Performance Plan and
outline the framework for the narrative report, pages 9 – 22.
Goal One
Goal Three
To contribute to informing and influencing the public
debate on the policy framework for the transformation
of the higher education system and to become a
recognised centre for information and policy analysis
on higher education.
To promote quality and quality assurance in higher
education, including enhancing the quality of higher
education.
Objective One
To audit the quality assurance mechanisms of higher
education institutions.
To provide advice to the Minister of Higher Education
and Training on all higher education matters on request
and on the CHE’s own initiative.
Objective Seven
Objective Two
To monitor the state of higher education, including
publishing information and convening conferences,
seminars and workshops on developments in higher
education.
Goal Two
To contribute to the development of qualification
standards to ensure the relevance, comparability and
currency of qualifications.
Objective Three
To develop and manage the HEQSF, including
the articulation of qualifications between the three
sub-frameworks, namely, the HEQSF, the General
and Further Education and Training Qualifications
Sub-Framework and the Trades and Occupations
Qualifications Sub-Framework.
Objective Four
To develop and implement policy, criteria and standards
for higher education qualifications to inform and guide
the development, registration and publication of
qualifications.
Objective Five
To maintain a database of learner achievements
in higher education and to submit the data to the
National Learner Records Database (NLRD), which is
maintained by SAQA.
8
CHE ANNUAL REPORT 2012-2013
Objective Six
To accredit new programmes submitted by public
and private higher education institutions and to reaccredit existing programmes offered by private higher
education institutions.
Objective Eight
To undertake national reviews of existing programmes
in specific subject fields and qualification levels offered
by public and private higher education institutions.
Objective Nine
To promote quality and to develop capacity and
understanding of the role of quality assurance in
improving quality in higher education at both the
systemic and institutional levels.
Goal Four
To ensure the efficient and effective provision of
corporate services – administrative, financial, technical
and professional, to support the discharge of the core
mandate of the CHE.
Objective Ten
To ensure the development of human resources
management environment that enables staff to develop
their full potential.
Objective Eleven
To ensure that financial, administration and supply chain
management is compliant with the requirements of the
Public Finance Management Act (PFMA), relevant
Treasury regulations and laws.
FULFILLING THE MANDATE OF THE CHE
Advising the Minister
In terms of the Higher Education Act, the CHE has
a dual advisory function: providing advice at the
request of the Minister of Higher Education and
Training and providing advice on its own initiative in
response to critical issues identified by the CHE that
impact on the higher education system.
and for enabling students to grapple with the
changing role of knowledge in contributing to social
and economic development in the 21st century. The
report of the Task Team is being finalised and will
be released in mid-2013 for public comment and
consultation. This will inform the advice that the
Council intends providing to the Minister on the
matter.
In the year under review the Council received no
requests for advice from the Minister. The Council
did, however, provide advice on its own initiative
to the Minister on the need to clarify the location
and status of agricultural and other public colleges.
This advice resulted from the re-accreditation of the
higher education programmes offered by agricultural
colleges, which was undertaken by the HEQC at the
request of the Department of Agriculture, Forestry
and Fisheries (DAFF) in 2012. The findings of the
re-accreditation process indicated that the quality
of provision in Agricultural Colleges is negatively
affected by the lack of clarity on the status and
location of these colleges.
Student Governance in Public
Higher Education Institutions
Monitoring of the State of Higher
Education
Governance and Management in
Higher Education
The CHE is responsible for monitoring and
interpreting trends and progress towards achieving
national policy goals and objectives in higher
education. In February 2013 the CHE launched
an annual series of VitalStats booklets, the first of
which, VitalStats 2010, provides student and staff
data in public higher education for the period 2005
to 2010, including cohort data for the 2005 student
intake. VitalStats will be updated and published
annually to ensure the availability of recent, audited
data on the sector to inform research and analysis.
In response to the ongoing governance challenges at
some universities, which has resulted in the affected
institutions being placed under administration, the
CHE initiated a research project to unpack the
underlying factors, and to identify interventions
that may be required to stabilise such institutions.
The initial background research, which included
a study of audit and administrator reports as well
as interviews with relevant stakeholders, has been
completed and is being analysed to identify what
further research is required. It is intended that the
outcomes of the project will result in the Council
providing advice to the Minister.
A review of the state of higher education to mark the
first two decades of democracy has been planned
and will begin in the 2013/14 financial year.
Research projects
The Council established a Task Team in November
2011 to investigate the desirability and feasibility of
restructuring the duration of the current three- and
four-year undergraduate diplomas and degrees, as
a mechanism for both enhancing academic success
This project, initiated in 2012 in the light of the
ongoing unrest and disputes relating to different
aspects of student governance in public higher
education institutions, is underway. It focuses on
the participation of student political organisations
in Student Representative Council (SRC) elections,
as well as the role, function and structure of SRCs
in higher education institutions. Initial background
research has been completed and empirical
research will be undertaken in the first half of the
new financial year.
Private Provider Database
There was continued progress in collecting data on
student enrolment and achievement data in private
higher education through the Higher Education
Quality Committee Information System (HEQCIS),
which has been developed in conjunction with the
South African Qualifications Authority (SAQA).
The number of unique private providers that have
CHE ANNUAL REPORT 2012-2013
9
submitted one data load increased from 93 (79%) to
111 (92%) in this financial year, with the number that
had successfully uploaded data for a second time or
more rising from 79 in the June cycle to 96 for the
December cycle. Within the current cycle 81% of all
unique private higher education institutions (PHEIs)
each successfully submitted at least one full data
load.
There has also been significant progress made
in developing a framework for a private higher
education management information system
that would facilitate the monitoring of trends in
private higher education and enable comparative
analysis with the public higher education system.
The framework, which is being developed jointly
with DHET, SAQA and representatives of private
providers conjunct, will be finalised and implemented
in the 2013/14 financial year.
Publications
The following publications were produced in the
year under review:
•
•
•
•
10
Brenda Leibowitz, Jean Farmer and Megan
Franklin, Higher Education Monitor No 13:
Teaching Excellence Awards in South Africa:
A National Study, which assesses the impact
of, and reflects on the lessons learned from,
the CHE/HELTASA National Excellence in
Teaching and Learning Awards.
VitalStats: Public Higher Education 2010,
which provides student and staff data in
public higher education for the period 2005
to 2010, including cohort data for the 2005
student intake.
Kagisano 8: Academic Freedom, which brings
together contributions on academic freedom
and institutional autonomy presented as part
of a series of Roundtable discussions on
key issues in higher education convened by
Rhodes University in 2010.
Kagisano 9: The Aims of Higher Education,
which brings together contributions on the
aims of higher education presented as part
of a series of Roundtable discussions on
key issues in higher education convened by
Rhodes University in 2010.
CHE ANNUAL REPORT 2012-2013
QUALITY ASSURANCE AND QUALITY PROMOTION
The Higher Education Quality Committee (HEQC)
is a permanent committee of the Council and has
statutory responsibility for quality assurance and
quality promotion.
The HEQC is appointed for a three-year period. The
term of office of the current HEQC commenced on
1 April 2012:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Prof Yunus Ballim*, Chairperson - University
of the Witwatersrand
Prof Theo Andrew, Executive Dean, Faculty
of Engineering and the Built Environment,
Durban University of Technology
Prof Narend Baijnath, Pro Vice-Chancellor,
University of South Africa
Prof Usuf Chikte, Executive Head,
Interdisciplinary Health Sciences, University
of Stellenbosch
Dr Felicity Coughlan, Director, The
Independent Institute of Education
Dr Andrew Kaniki, Executive Director,
Knowledge Management and Strategy,
National Research Foundation
Mr Thamsanqa Ledwaba, Independent
Consultant and Advisor – Co-opted member
Ms Kuselwa Marala, Director, Academic
Administration, Cape Peninsula University of
Technology
Prof John Mubangizi, Deputy ViceChancellor and Head of the College of Law
and Management Studies, University of
KwaZulu-Natal
Ms Nicolene Murdoch, Executive Director
Teaching, Learning and Quality, Monash
University, South Africa
Prof Nthabiseng Ogude, Vice-Chancellor,
Tshwane University of Technology
Prof Martin Oosthuizen, Deputy ViceChancellor Teaching and Learning, NorthWest University
Prof Edmund Zingu*, Retired Acting Principal,
Mangosuthu University of Technology.
Appointed October 2012
Prof Rocky Ralebipi-Simela, Regional
Director, Limpopo Region, UNISA
Dr Diane Parker, Acting Deputy DirectorGeneral, Universities Branch, DHET
Ms Eugenie Rabe, Chief Operating Officer,
Umalusi
Mr Ahmed Essop, Chief Executive Officer,
CHE
•
Dr Mark Hay, Executive Director, Quality
Assurance, CHE. (Resigned 31 December
2012)
* Council member
Quality Promotion and Capacity
Development
The quality promotion and capacity development
function has been strengthened in the past year.
Six quality assurance forums, two each with
public institutions, private institutions and statutory
professional bodies were conducted. The purpose
of the forums is to exchange information on quality
assurance issues and developments.
In addition, the fourth CHE-HELTASA (Higher
Education Learning and Teaching Association of
Southern Africa) Teaching Excellence Awards took
place in December 2012 at the annual HELTASA
conference. The purpose of the awards is to
signal support for excellence in teaching in higher
education and to encourage the professionalisation
of teaching and learning in higher education. The
awards were presented to five academics for
submitting outstanding teaching portfolios.
The quality assurance model of the CHE continues
to be of interest, in particular, to newly established
quality assurance agencies in the region and
continent more generally. This has resulted in the
development of collaborative links and relationships,
including study visits as outlined below:
•
•
•
•
•
•
National Board for Higher Education from
Eritrea visited in June 2012;
Tanzanian Commission for Universities
visited in July 2012;
South Sudan Ministry of Higher Education,
Science and Technology visited in August
2012;
Seychelles Quality Authority visited in
November 2012;
United Kingdom Association of University
Administrators visited in November 2012;
Memorandum of Understanding (MOU) with
the Lesotho Council on Higher Education
was signed in Maseru on 16 October 2012.
In addition, the ongoing discussions to develop
collaborative
relationships
with
statutory
professional councils is beginning to crystallise and
CHE ANNUAL REPORT 2012-2013
11
two MOUs were signed; with the Engineering Council
of South Africa (ECSA) in November 2012 and the
Health Professionals’ Council of South Africa (HPCSA)
in February 2013.
National Reviews
National reviews focus on the re-accreditation of existing
programmes with a view to improving programme
quality. The Framework for the National Review of
Programmes and accompanying manual were finalised
and a National Reviews Committee established, which
comprises of the following members:
•
•
•
•
•
•
•
Prof Theo Andrew, Chairperson, Executive
Dean, Faculty of Engineering and the Built
Environment, Durban University of Technology
Prof Jean Baxen, Deputy Dean Research,
Faculty of Education, Rhodes University
Prof Dhiro Gihwala, Dean Faculty of Health
Sciences, Cape Peninsula University of
Technology
Prof Ken Harley, Emeritus Professor, University
of KwaZulu-Natal
Ms Kuselwa Marala, Deputy Chairperson,
Director, Academic Administration, Cape
Peninsula University of Technology
Dr Paul Steyn, Academic Head, Akademia
Konkordia
Prof Völker Wedekind, Deputy Dean, Continuing
Education, University of KwaZulu-Natal.
The first planned national review of the Bachelor of
Social Work has been initiated and training workshops
for reviewers were held in November 2012 and March
2013. The national review itself will begin in mid-2013.
In the interim period, the Directorate undertook a review
project in conjunction with the South African Institute of
Physics (SAIP) on the challenges facing undergraduate
physics education. This has been completed; however,
the preparation of the draft report was delayed and will
be finalised in mid-2013.
In addition, the directorate continues to monitor
the teach-out of the final four teacher education
programmes relating to the 2005 national review of
teacher education that were either de-accredited or on
notice of withdrawal of accreditation.
12
CHE ANNUAL REPORT 2012-2013
Institutional Audits Directorate
In the period under review, the Institutional Audits
Directorate focused on (i) ongoing monitoring of the
remaining institutional audits that must be closed;
and (ii) conceptualising the development of a quality
enhancement project focused on teaching and learning
for the next round of quality assurance.
The Institutional Audits Committee (IAC) is responsible
for critiquing and approving reports submitted at
different stages of the audit process. In the 2012-2013
financial year the IAC met on 17 May and 4 October
2012.
The IAC which oversees the work of the directorate
comprised of the following members:
•
•
•
•
•
•
•
•
Prof Usuf Chikte, Chairperson (from July 2012),
Executive Head, Department of Interdisciplinary
Health Sciences, Stellenbosch University
Dr Ngoato Takalo, Chairperson (until June 2012)
Deputy Director, Partnerships, The Independent
Institute of Education
Prof John Duncan, Retired Dean of Research,
Rhodes University
Prof Rocky Ralebipi-Simela, Regional Director,
Limpopo Region, University of South Africa
Prof Nan Yeld, Dean, Centre for Higher
Education Development, University of Cape
Town
Prof Bennie Anderson, Chief Executive Officer,
Da Vinci Institute
Prof Xikombiso Mbhenyane, Deputy ViceChancellor Academic, University of Venda
Ms Judy Favish, Director, Institutional Planning,
University of Cape Town.
The improvement plans and progress reports that
served before the IAC are outlined below.
Improvement Plans
•
•
Cape Peninsula University of Technology improvement plan accepted; visited on 24
August 2012
Mangosuthu University of Technology –
improvement plan accepted; visited on 13
November 2012
•
•
•
University of Limpopo – improvement plan
not approved; visited on 18 July 2012;
resubmitted improvement plan approved;
visited on 29 October 2012; support visit
made on 25 February 2013; required interim
progress report expected in March 2013
but extension requested and interim report
received on 3 April 2013
University of Zululand - improvement plan not
approved in 2011; re-submitted improvement
plan approved; visited on 27 July 2012.
Walter
Sisulu
University
(under
administration) – preparation visit on 24
July 2012; improvement plan not approved;
visited on 20 November 2013; support
meeting with administrator on 15 March 2013
and with DVC and two senior staff on 16 April
2013; improvement plan to be revised and
resubmitted at the end of April 2013.
Progress Reports
•
•
•
•
North-West University - voluntary interim
progress report received
UNISA - progress report not approved;
visited on 22 November 2012; voluntary
support meetings requested by UNISA on
14 February and 28 March 2013; progress
report to be revised and resubmitted in
September 2013
University of Johannesburg - visited on 8
May 2012; progress report submitted in
March 2013
Vaal University of Technology - progress
report approved; visited on 27 July 2012.
Audits Closed
•
•
Oval International Computer Education.
Vaal University of Technology.
Support in concluding the audit
process
In the case of the University of Limpopo and Walter
Sisulu University, the IAC agreed that the Director of
Institutional Audits would offer support in concluding
the audit process. A support visit was made to the
University of Limpopo on 25 February 2013 for this
purpose. The situation at Walter Sisulu University
is complicated because the university was placed
under administration shortly after the audit report was
released. Three support meetings have been held
with the administrator and three senior managers to
help them integrate their turnaround strategy with
addressing recommendations contained in the audit
report.
Quality Enhancement
In December 2012 the HEQC and the Council
approved a draft Framework for Institutional
Quality Enhancement in the Second Period of
Quality Assurance, which focuses on the quality
enhancement, rather than institutional auditing,
of teaching and learning. The specific focus is on
promoting student success, which is conceptualized
as increasing the number of graduates that have
attributes that are personally, professionally
and socially valuable. The framework will be
operationalized through the implementation of
the Quality Enhancement Project (QEP). It is
envisaged that the QEP will run for approximately
five years. Anticipated outcomes of the QEP include
benchmarks, codes of good practice, tools and
resources for improving undergraduate educational
provision, which will lead to improved outputs in
terms of the number and quality of graduates.
In the period since the approval of the draft
framework, information sharing and consultation on
the QEP took place at the following meetings:
•
•
•
•
Quality Assurance Forum with Professional
Bodies on 26 February 2013;
meeting with DVCs Academic and Teaching
and Learning from public universities on 27
February 2013;
Quality Assurance Forum with private higher
education providers on 12 March 2013;
Quality Assurance Forum with public higher
education providers on 18 March 2013.
A series of focused consultations are planned with
a range of institutions, which should contribute
to further development of the QEP framework.
Regional symposia are planned for August to
broaden awareness among higher education
institutions (HEIs) of the QEP and issues affecting
student success. It is envisaged that the final
framework document, including an implementation
plan, will be completed in the second half of 2013
and that implementation of the QEP will commence
in 2014.
CHE ANNUAL REPORT 2012-2013
13
Programme Accreditation
The functions of the Accreditation Directorate are to:
•
•
•
•
accredit new programmes offered by public and
private higher education institutions;
re-accredit existing programmes offered by
private higher education institutions;
respond to enquiries and complaints received
about the quality of higher education
programmes and programme delivery offered
by both public and private higher education
institutions;
monitor and report on policy developments in
higher education, as they affect the accreditation
and re-accreditation of programmes.
Applications for programme accreditation and reaccreditation are sent by the Directorate to peers for
evaluation and a recommendation on the accreditation
status is made to the Accreditation Committee.
The Accreditation Committee consisted of the following
members:
•
•
•
•
•
•
•
•
•
•
•
•
14
Dr Felicity Coughlan, Chairperson, Director and
Head, The Independent Institute of Education
Dr Rolf Becker, Executive Director, South African
Council for Natural Scientific Professions
Ms Gloria Castrillón, Director, Quality Assurance
and Regulatory Affairs, Milpark Business School
Prof Jennifer Clarence-Fincham, Operational
Director, Academic Development and Support,
University of Johannesburg
Mr Colin Daniels, Associate Dean, Faculty
of Informatics and Design, Cape Peninsula
University of Technology
Prof Sabiha Essack, Dean, Faculty of Health
Sciences, University of KwaZulu-Natal
Dr Shaheeda Essack, Deputy Director, Private
Higher Education, DHET
Prof Marvin Kambuwa, Principal, Regent
Business School
Prof Wendy Kilfoil, Director, Department for
Education Innovation, University of Pretoria
Prof Lesley le Grange, Vice Dean Research,
University of Stellenbosch
Mr Martiens Loots, Chief Education Specialist,
Educator Qualifications and Programmes
Department of Higher Education and Training
Dr Nalize Marais, Institutional Research and
Academic Planning Directorate, University of
the Free State
CHE ANNUAL REPORT 2012-2013
•
•
•
•
•
•
Prof Gugu Moche, Executive Dean, College of
Science Engineering and Technology, University
of South Africa
Prof Relebohile Moletsane, Professor and JL
Dube Chair in Rural Education, University of
KwaZulu-Natal
Mr Vincent Morta, Director, Quality Assurance
and Management Information Systems (MIS),
Institutional Planning Office, University of the
Western Cape
Ms Nicolene Murdoch, Executive Director,
Teaching, Learning and Quality Assurance,
Monash South Africa
Prof Martin Oosthuizen, Deputy Vice-Chancellor,
Teaching and Learning, North-West University
Ms Jean Skene, Director, Higher Education
MIS, DHET.
Accreditation of New Programmes
Submissions for accreditation of programmes are
received and evaluated on an on-going basis throughout
the year and therefore applications submitted in one
financial year may only receive an HEQC outcome in
the following financial year.
The Accreditation Directorate received 302 applications
for accreditation of new programmes in 2012/13. These
applications are disaggregated per NQF level in Table
1 and per CESM category in Table 2.
In the same period, 2012/13, the HEQC approved a
total of 288 outcomes which included applications for
the accreditation of new programmes, representations
and deferrals. This included 162 applications rolled over
from 2011/12. Of the 302 applications for programme
accreditation submitted in the 2012/13 year, 126 were
fully processed and received an HEQC outcome and
processing of the remaining 176 applications will be
completed during the 2013/14 financial year. Of the
288 outcomes, 160 programmes were accredited and
128 programmes were not accredited. Poorly designed
curricula and unsatisfactory teaching and learning
approaches were among the most common reasons for
programmes not being accredited.
The majority of applications submitted, were for
programmes at NQF level 5, 6, 7 and 8, as indicated
below in Table 1.
Table 1: New applications for programme accreditation per NQF level
LEVEL
5
LEVEL
6
LEVEL
7
LEVEL
8
LEVEL
9
LEVEL
10
TOTAL
61
86
60
60
25
10
302
Number of
Applications
Similarly, as in the previous year, the majority of programmes applications were in business, commerce and
management sciences, visual and performing arts, computer sciences and health care and health sciences, as
shown in Table 2 below.
Table 2: New applications for programme accreditation per CESM category
CESM Category
Agriculture, Agricultural Operations and Related Sciences
Architecture and the Built Environment
Number of Applications
13
4
Visual and Performing Arts
28
Business, Economics and Management Studies
97
Communication, Journalism and Related Studies
9
Computer and Information Sciences
23
Education
27
Engineering
Health Professions and Related Clinical Sciences
7
39
Family Ecology and Consumer Sciences
4
Languages, Linguistics and Literature
6
Law
4
Life Sciences
6
Physical Sciences
3
Mathematics and Statistics
0
Military Sciences
0
Philosophy, Religion and Theology
Psychology
Public Management and Services
Social Sciences
Total
11
4
16
7
302
CHE ANNUAL REPORT 2012-2013
15
Follow-up on programmes accredited
with conditions
As part of the process of accreditation, the Directorate
followed up on conditions set for programmes
provisionally accredited. This aspect of the accreditation
process enables the HEQC to ensure that the quality
of the programmes which institutions propose to offer
is sufficient to meet the minimum standards required
in terms of the HEQC accreditation criteria before
students are enrolled. It also enables the Directorate to
monitor whether programmes are addressing longerterm conditions set by the Accreditation Committee,
based on evaluator reports.
Higher Education Qualifications SubFramework (HEQSF) Alignment
This is a large scale project that commenced in
2011 and the target date for completion is the end of
2016. The purpose of the project is to align existing
programmes offered by public and private institutions
of higher education with the HEQSF. In 2011 institutions
were required to submit these programmes according
to three categories, A, B or C depending on the degree
of change required for alignment to the HEQSF.
•
•
•
Category A programmes require minimal
change.
Category B programmes require a less than
50% change.
Category C programmes require more than a
50% change and will need to be phased out and
may need to be submitted as new programmes
via the HEQC-online system.
Since 2011, a total of 9735 programmes have been
logged onto the HEQSF-online system:
The first phase of the project, i.e., processing Category
A programmes is planned for completion by the end
of the 2013/14 financial year. There were 320 late
submissions received in 2012/13 and this included 175
Category A programmes.
A total of 2521 Category A programmes were approved
as aligned and deemed accredited. The remaining
doctorate and diploma programmes, and late
submissions will be processed by the end of 2013.
16
CHE ANNUAL REPORT 2012-2013
The processing of the programmes in Category B will
commence in 2014 after completion of the processing
of the programmes in Category A.
STANDARDS DEVELOPMENT
The main focus of the year under review was the
finalisation of the second draft Framework for
Qualification Standards in Higher Education for
approval by Council. The first draft Framework
was revised, based on the submissions received
as part of the consultation process, from higher
education institutions as well as other interested
parties, and on recommendations from the
Standards Development Reference Group. There
were extensive discussions on the conceptual
underpinnings, both internally with the HEQC and
selected institutional experts, including taking
into account the extensive research done by the
CHE previously and recent international trends in
qualification standards. One of the commendations
from the HEQC was that the draft Framework was
conceptually sound and provided a solid foundation
for the work on qualification standards.
The second draft Framework included an exemplar
(prototype) of a higher education qualification
standards statement and a glossary of terms, as
requested in the public comments received. The
Framework and the prototype use many terms
whose meanings needed clarification: hence, a
glossary to ensure consistency in the interpretation
of these terms. The definitions continue to be
discussed and refined alongside implementation
of the Framework to allow for further clarification of
meaning as and when necessary.
The Council approved the second draft Framework
at its meeting of 13 March 2013. Subsequent to the
approval of the Framework, preparations for the
pilot phase started in earnest with the establishment
of expert groups. As the Framework indicates, the
CHE relies to a great extent on academic expertise
in the relevant field; hence, the need for such
expert groups. Preparations for the development
of pilot standards for the Bachelor of Social Work
and Master of Business Administration (MBA)
degrees are at an advanced stage, after successful
consultations with the Association of South African
Social Work Education Institutions (ASASWEI),
and South African Business Schools Association
(SABSA) respectively. The identification of other
qualifications for the pilot phase is underway and
will be finalised in the 2013/14 financial year.
CHE ANNUAL REPORT 2012-2013
17
CORPORATE SERVICES
Overview
The role of the Corporate Services Directorate is to
enable the efficient and effective functioning of the CHE
in discharging its core mandate through the provision
of a range of professional, technical and administrative
support services, including financial administration,
human resources management (HR), supply chain
management, information communication technology
management (ICT), facilities management and
maintenance, security, cleaning services and corporate
communication. The services are either provided
internally, specifically finance, HR and supply chain
management or externally through outsourcing on the
basis of service level agreements, specifically internal
audit, ICT, building maintenance, security, and cleaning
services. It offers centralised and co-ordinated support
•
•
In the period under review, the human resources
function has developed and implemented the following
milestones:
•
•
•
•
•
•
to the core function of the CHE.
The Corporate Services Directorate aims to add value
to the CHE’s operations with the emphasis on quality,
integrity, compliance, efficiency, effectiveness and
economies of scale, thus ensuring that the CHE:
•
•
•
complies with the requirements of the PFMA,
relevant Treasury regulations and laws;
is guided by sound HR and business practices,
including the procurement and management of
assets and services; and
as a public entity, effectively discharges its
reporting responsibilities on all levels and to all
its stakeholders.
Human Resources
The Human Resources function has made significant
progress in operationalizing and giving effect to one of
the CHE’s key strategic imperatives, namely, to build the
CHE’s intellectual capability through the development
of an enabling human resources framework and, in
particular, instituting a focused staff development
programme to ensure that we have sufficient human
capacity and capability to execute current and future
organisational strategy.
The Human Resources and Remuneration Committee
(HRRC), which oversees the work of the directorate
comprises of the following members:
•
•
18
Ms Tina Georgoulakis
Dr Yvonne Dladla*
CHE ANNUAL REPORT 2012-2013
Ms Jennie Browning
Ms Dora Ndaba*
* Council Member
•
ongoing review of HR policies to ensure
alignment with organisational needs and best
practice;
implementation of the staff development plan;
leadership capacity building skills;
an effective performance management system;
development of a Recruitment and Retention
strategy, that included a revised flexible
remuneration framework;
streamlined HR processes by developing and
implementing an Employee Shared Services
(ESS) platform to manage both our Leave and
Performance Management system;
revision and implementation of employee
benefits in relation to the retirement contribution
framework.
Staff Turnover, Recruitment and
Retention
Recruitment and retention continue to be a challenge
for the CHE. As indicated in the tables and graphs
below ten employees left the CHE and twelve joined
the organisation in the year under review. The overall
turnover was 23.8% compared to 14.8% in the previous
financial year. This is significantly higher than the
industry norm of 5%.
In general the reasons for the resignations are lack of
career growth and linked to salaries. However, at the
senior levels, in particular the challenge in recruiting and
retaining staff is in large partly linked to the fact that the
CHE’s remuneration framework is not competitive with
remuneration levels in higher education institutions,
which is the main source for the recruitment of senior
staff and where we lose them to. This prompted the
CHE to develop a recruitment and retention strategy
that included a proposal for a flexible remuneration
framework. This proposal should mitigate the risk of
losing key personnel and ensure sustainability of the
organisation. Although the proposal was approved by
the CHE Council on 7 December 2012, it yet has to be
implemented as it still requires further approval from the
Minister of Higher Education and Training and the
Minister of Finance in line with the Higher Education
Act of 1997.
The implementation of the organisational structure
progressed well, with 78% of the positions filled.
The staff complement of the structure is 54 and the
staff strength during the review period was 42. The
process of filling the remaining vacant positions is
on-going.
The tables and graphs below provide information
on employment, vacancies, turnover, and employee
movements within the CHE for the period under
review.
Employee Movements
50
40
30
20
10
0
Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Jun-12
Sep-12
Dec-12
Mar-13
Filled
40
44
44
42
Hired
1
6
2
3
Attrition
1
2
2
5
Vacancy
14
10
10
12
CHE ANNUAL REPORT 2012-2013
19
Turnover Staff Turnover
2 1 Senior Management Director Manager Project Administrator 4 Administrator 3 Resignations
Other Senior
Management
Director
Manager
Project
Administrator
Administrator
Other
Total
Percentage
1
0
4
3
2
0
10
23.8%
Occupancy Profile Occupancy Profile
Unfilled 22% Filled 78% Senior
Management
Director
Manager
Project
Administrator
Administrator
Other
Total
Filled
1
7
10
5
17
2
42
Unfilled
1
0
5
4
2
0
12
Total
2
7
15
9
19
2
54
20
CHE ANNUAL REPORT 2012-2013
Staff Training and Development
Employment Equity Profile
Training is dedicated to unlocking the potential of
all our employees through flexible and relevant
development solutions. In the period under review
45 employees attended 29 training courses and 9
received bursary grants for self-development. These
training initiatives are in line with the CHE Staff
Training and Development Plan. The importance
attached to staff training and development is
reflected in the fact that it accounts for 5% of the
CHE’s personnel costs.
The CHE’s total organisational structure provides for
a total staff compliment of 54, of which 42 positions
are filled and 12 are vacant.
The national EAP (economically active population)
by race, the average for Africans is 74.9%, 11.3%
for Whites, 3% for Indians, and 10.8% for coloureds,
whilst the national EAP average by gender is 45.2%
for females and 54.8% for males.
However in terms of the CHE Employment Equity
targets, for the year 2012/13, there are still
challenges of insufficient representation in terms of
Africans, especially at Senior Management level,
females and people with disabilities. Interventions
are in place to ensure that the CHE ultimately
achieves to have a workforce that reflects the
national economically active population of South
Africa across all occupational levels over the next
two years. This is depicted in the graph below.
Labour Relations
The CHE remains committed in ensuring that
harmonious relations with employees and in
particular organised labour are based on mutual
respect and trust. The existence of the Labour
Forum, a joint structure between Management
and Nehawu, continued to play an integral role in
fostering and maintaining this relationship. During
the period under review, no industrial action was
experienced and the collective bargaining processes
were handled within the agreed framework. This
resulted in parties reaching settlements in a number
of issues including substantive conditions of
employment.
EmploymentEquity
Equity Profile
Employment
Profile
CHE
NEAP
3%
71%
24%
CHE TARGET
50%
10.8%
45.2%
74.9%
9%
69%
5%
African
Coloured
50%
11.3%
17%
Indian
White
2%
54.8%
79%
21%
Male
Female
Disabled
CHE ANNUAL REPORT 2012-2013
21
Performance Management – 2012/13
The Performance Management process for the
financial year was concluded at the end of March 2013
and bonuses were paid out to deserving employees.
There seems to be a good understanding of the
system now compared to the previous years and
the organisation is really embracing performance
into becoming one of the pillars of success which
will eventually become the culture of the CHE. In
an attempt to retain newly appointed employees the
process was amended to include employees who had
successfully completed their probation period and
reward them on a pro-rated basis. A total of 34 out of
42 employees participated in the process and a total of
R700 296.73 was paid out on 28 March 2013.
The overall performance distribution was as follows:
Rating
Category
Description
1
Unacceptable
performance
Performance does not meet the standard expected
for the job.
2
Performance not fully
effective
Performance meets some of the standards expected
for the job.
3
Performance fully effective
Performance fully meets the standard expected in all
areas of the job.
38%
4
Performance
significantly above
expectations
Performance is significantly higher than the standards
expected in the job.
44%
5
Outstanding
performance
Performance far exceeds the standards expected of
an employee at this level.
9%
9%
Information Communication and
Technology and Facilities
Administration and Finance
Following the comprehensive internal and external
compliance audit of policies, procedures and systems
conducted last year, a detailed action plan was
developed to address the problems identified. There
has been significant progress made in implementing
the action plans.
The major focus in the past year has been on
updating policies and ensuring that they comply with
the applicable guidelines from National Treasury,
Accounting Standards and best practices. Significant
enhancement of current procedures and processes
were made to address internal control deficiencies
identified by both the internal and external auditors.
This was confirmed by the follow up Audit performed by
the internal auditors in November 2012 and progress
reports tabled at the Audit and Risk Committee
meetings.
The following were developed and implemented during
the period under review;
•
•
•
•
•
22
Percentage
(%)
the ICT Strategy and Operational Plan for the
financial years 2012-2016;
the ICT Charter that governs the CHE’s ICT
Steering Committee;
re-configuration and upgrading of the CHE’s
website;
reviewing and development of ICT policies, in
line with the internal and external audit findings;
development of the CHE’s Facilities Strategy for
the years 2013-2017.
CHE ANNUAL REPORT 2012-2013
The appointment of a Chief Financial Officer in August
2012 has contributed to stability and enabled the
addressing of the identified challenges in a focused
manner. Furthermore, the capacity constraints, which
exacerbated the challenges relating to non-compliance
in the finance and supply chain functions, have been
addressed through the creation of two additional
permanent posts.
ANNUAL FINANCIAL STATEMENTS
Inde x
General Information
24
Statement of Responsibility
25
Audit and Risk Committee Report
26
Accounting Authority Report
27
Statement of Financial Position
35
Statement of Financial Performance
36
Statement of Changes in Net Assets
37
Cash Flow Statement
38
Accounting Policies
39
Notes to the Annual Financial Statements
46
CHE ANNUAL REPORT 2012-2013
23
GENERAL INFORMATION
24
Country of incorporation and domicile
South Africa
Nature of business and principal activities
Schedule 3A Public Entity
Council
Mr Ahmed Essop
Dr Letticia Moja
Registered office
CHE Building
1 Quintin Brand Street, Persequor Technopark,
Pretoria, South Africa
Business address
CHE Building
1 Quintin Brand Street, Persequor Technopark,
Pretoria, South Africa
Postal address
PO Box 94
Persequor Park
0020
South Africa
External audit
Auditor-General of South Africa
Registered Auditors
CHE ANNUAL REPORT 2012-2013
STATEMENT OF RESPONSIBILITY
The Council is required by the Public Finance
Management Act (Act 1 of 1999) to maintain
adequate accounting records and is responsible for
the content and integrity of the financial statements
and related financial information included in this
report. It is the responsibility of the Council to ensure
that the financial statements fairly present the state
of affairs of the CHE as at the end of the financial
year and the results of its operations and cash flows
for the period then ended. The external auditors are
engaged to express an independent opinion on the
financial statements and were given unrestricted
access to all financial records and related data.
The financial statements have been prepared
in accordance with Standards of Generally
Recognised Accounting Practice (GRAP) including
any interpretations, guidelines and directives issued
by the Accounting Standards Board (ASB).
The financial statements are based upon appropriate
accounting policies consistently applied and
supported by reasonable and prudent judgements
and estimates.
The Council acknowledges that it is ultimately
responsible for the system of internal financial
control established by the CHE and places
considerable importance on maintaining a strong
control environment. To enable the Council to meet
these responsibilities, the Council sets standards for
internal control aimed at reducing the risk of error
or deficit in a cost effective manner. The standards
include the proper delegation of responsibilities
within a clearly defined framework, effective
accounting procedures and adequate segregation
of duties to ensure an acceptable level of risk. These
controls are monitored throughout the CHE and all
employees are required to maintain the highest
ethical standards in ensuring the CHE’s business
is conducted in a manner that in all reasonable
circumstances is above reproach. The focus of risk
management in the CHE is on identifying, assessing,
managing and monitoring all known forms of risk
across the CHE. While operating risk cannot be fully
eliminated, the CHE endeavours to minimise it by
ensuring that appropriate infrastructure, controls,
systems and ethical behaviour are applied and
managed within predetermined procedures and
constraints.
The Council is of the opinion, based on the
information and explanations given by management
in response to the internal and external audit
reports, that the system of internal control provides
reasonable assurance that the financial records
may be relied on for the preparation of the financial
statements. Where deficiencies were noted, the
controls are being strengthened. However, any
system of internal financial control can provide only
reasonable, and not absolute, assurance against
material misstatement or deficit.
The CHE is financially dependent on a transfer
payment from the Department of Higher Education
and Training for continued funding of operations.
The financial statements are prepared on the
basis that the CHE is a going concern and that the
Department of Higher Education and Training will
transfer the payment as listed in the Estimates of
National Expenditure (ENE) to the CHE.
The Council is primarily responsible for the financial
affairs of the CHE and is supported by the CHE’s
senior management and the internal auditors.
The external auditors are responsible for
independently reviewing and reporting on the CHE’s
financial statements. The financial statements have
been examined by the CHE’s external auditors and
their report is presented on page 27.
The financial statements set out on pages 23 to 59,
which have been prepared on the going concern
basis, were approved by the Executive Committee
of the Council on 25 July 2013 and were signed on
its behalf by:
Dr Letticia Moja
Mr Ahmed Essop
Acting Chairperson
Chief Executive Officer
CHE ANNUAL REPORT 2012-2013
25
AUDIT AND RISK COMMITTEE REPORT
Audit and Risk Committee members
and attendance
Evaluation of annual financial
statements
The Audit and Risk Committee consists of the members
listed hereunder and should meet 4 times per annum
in accordance with its approved terms of reference.
During the current year 4 meetings were held.
The Audit and Risk Committee has:
•
Name of member
Number of meetings
attended
Prof A Melck
(Chairperson)
3 of 4
•
Dr D Tromp
4 of 4
•
Ms D Naidoo
4 of 4
Mr J Samuels
4 of 4
Audit and Risk Committee
responsibility
The Audit and Risk Committee reports that it has
complied with its responsibilities arising from section
55(1) (a) of the PFMA and Treasury Regulations section
27.1.
The Audit and Risk Committee also reports that it has
adopted appropriate formal terms of reference through
its Audit and Risk Committee charter, has regulated
its affairs in compliance with this charter and has
discharged all its responsibilities as contained therein.
The effectiveness of internal control
In line with the PFMA and Treasury Guidelines, Internal
Audit provides the Audit and Risk Committee and
management with assurance that the internal controls
are appropriate and effective. This is achieved by
means of the risk management process, as well as
the identification of corrective actions and suggested
enhancements to the controls and processes. From
the various reports of the Internal Auditors, the audit
report on the annual financial statements, and the
management report of the Auditor‑General of South
Africa, it was noted that some matters were reported
that indicate some minor deficiencies in the system of
internal control and deviations therefrom. Accordingly,
we can report that the system of internal control
over financial reporting for the financial year was
satisfactory, the deficiencies that were identified are
being addressed by management.
26
•
CHE ANNUAL REPORT 2012-2013
•
reviewed and discussed the audited annual
financial statements to be included in the annual
report, with the Auditor‑General and the Council;
reviewed the Auditor‑General of South Africa’s
management report and management’s
response thereto;
noted that there were no changes in accounting
policies and practices;
reviewed the entity’s compliance with legal and
regulatory provisions;
reviewed significant adjustments resulting from
the audit.
The Audit and Risk Committee concurs with and
accepts the Auditor‑General of South Africa’s report on
the annual financial statements, and is of the opinion
that the audited annual financial statements should
be accepted and read together with the report of the
Auditor‑General of South Africa.
Internal audit
The Audit and Risk Committee is satisfied that the
internal audit function is operating effectively and that
it has addressed the risks pertinent to the CHE and its
audits.
Auditor‑General of South Africa
The Audit and Risk Committee has met with the
Auditor‑General of South Africa to ensure that there are
no unresolved issues.
Recommendation
At its meeting held on 18 July 2013, the Audit and
Risk Committee recommended the adoption of
the annual financial statements to the Council.
Prof Antony Melck
Chairperson of the Audit and Risk Committee
Report of the Auditor-general
REPORT OF THE AUDITORGENERAL TO PARLIAMENT ON
THE FINANCIAL STATEMENTS
OF THE COUNCIL ON HIGHER
EDUCATION
REPORT ON THE FINANCIAL
STATEMENTS
general notice issued in terms thereof and
International Standards on Auditing. Those
standards require that I comply with ethical
requirements and plan and perform the
audit to obtain reasonable assurance about
whether the financial statements are free
from material misstatement.
4.
An audit involves performing procedures to
obtain audit evidence about the amounts and
disclosures in the financial statements. The
procedures selected depend on the auditor’s
judgement, including the assessment of the
risks of material misstatement of the financial
statements, whether due to fraud or error. In
making those risk assessments, the auditor
considers internal control relevant to the
entity’s preparation and fair presentation of
the financial statements in order to design
audit procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness
of the entity’s internal control. An audit also
includes evaluating the appropriateness
of accounting policies used and the
reasonableness of accounting estimates
made by management, as well as evaluating
the overall presentation of the financial
statements.
5.
I believe that the audit evidence I have
obtained is sufficient and appropriate to
provide a basis for my audit opinion.
Introduction
1.
I have audited the financial statements of
the Council on Higher Education (CHE) as
set out on pages 23 to 59, which comprise
the statement of financial position as at
31 March 2013, the statement of financial
performance, statement of changes in net
assets and the cash flow statement for the
year then ended, and the notes, comprising
a summary of significant accounting policies
and other explanatory information.
Accounting authority’s
responsibility for the financial
statements
2.
The Council, which constitutes the
accounting authority, is responsible for
the preparation and fair presentation of
these financial statements in accordance
with South African Standard of Generally
Recognised Accounting Practice (SA
Standards of GRAP) and the requirements of
the Public Finance Management Act of South
Africa, 1999 (Act No. 1 of 1999) (PFMA), and
for such internal control as the accounting
authority determines is necessary to enable
the preparation of financial statements that
are free from material misstatement, whether
due to fraud or error.
Auditor-General’s responsibility
3.
My responsibility is to express an opinion
on these financial statements based on my
audit. I conducted my audit in accordance
with the Public Audit Act of South Africa,
2004 (Act No. 25 of 2004) (PAA), the
Opinion
6.
In my opinion, the financial statements
present fairly, in all material respects,
the financial position of the CHE as at
31 March 2013, and its financial performance
and cash flows for the year then ended in
accordance with SA Standards of GRAP and
the requirements of the PFMA.
Emphasis of matter
7.
I draw attention to the matter below. My
opinion is not modified in respect of this
matter.
CHE ANNUAL REPORT 2012-2013
27
Report of the Auditor-general continued
Restatement of corresponding figures
Additional matters
8.
13.
As disclosed in notes 19 and 22 to the financial
statements, the corresponding figures for 31
March 2012 have been restated as a result of
an error discovered during 2013 in the financial
statements of the CHE at, and for the year
ended, 31 March 2012.
Report on other legal and regulatory
requirements
9.
In accordance with the PAA and the general
notice issued in terms thereof, I report the
following findings relevant to performance
against predetermined objectives, compliance
with laws and regulations and internal control,
but not for the purpose of expressing an opinion.
Predetermined objectives
Achievement of planned targets
14.
11.
I performed procedures to obtain evidence about
the usefulness and reliability of the information
in the annual performance report as set out on
pages 60 to 65 of the annual report.
The
reported
performance
against
predetermined objectives was evaluated
against the overall criteria of usefulness and
reliability. The usefulness of information in the
annual performance report relates to whether
it is presented in accordance with the National
Treasury’s annual reporting principles and
whether the reported performance is consistent
with the planned objectives. The usefulness of
information further relates to whether indicators
and targets are measurable (i.e. well defined,
verifiable, specific, measurable and time
bound) and relevant as required by the National
Treasury’s Framework for managing programme
performance information (FMPPI).
The reliability of the information in respect of the
selected objectives is assessed to determine
whether it adequately reflects the facts (i.e.
whether it is valid, accurate and complete).
12. There were no material findings on the annual
performance report concerning the usefulness
and reliability of the information.
28
CHE ANNUAL REPORT 2012-2013
Of the total number of 36 targets planned for the
year, 10 were not achieved during the year under
review. This represents 28% (>20%) of the total
planned targets that were not achieved during
the year under review as reported in the CHE’s
annual performance report.
Material adjustments to the annual
performance report
15.
10.
Although no material findings concerning the
usefulness and reliability of the performance
information were identified in the annual
performance report, I draw attention to the
matters below.
Material audit adjustments were identified in the
CHE’s annual performance report during the
audit, which management has since corrected.
Compliance with laws and regulations
16.
I performed procedures to obtain evidence that
the entity has complied with applicable laws and
regulations regarding financial matters, financial
management and other related matters. My
findings on material non-compliance with
specific matters in key applicable laws and
regulations as set out in the general notice
issued in terms of the PAA are as follows:
Annual financial statements
17.
The financial statements submitted for auditing
were not prepared in all material respects in
accordance with the requirements of section
55(1) (b) of the PFMA. Material misstatements
in the recognition of accreditation revenue,
classification of trade debtors and payments
received in advance and finance leases identified
by the auditors in the submitted financial
statements were subsequently corrected.
Internal control
18.
I considered internal control relevant to my
audit of the financial statements, annual
performance report and compliance with laws
and regulations. The matters reported below
under the fundamentals of internal control
are limited to the significant deficiencies
that constituted the basis for opinion, the
findings on the annual performance report
and the findings on compliance with laws
and regulations included in this report.
Leadership
19.
Adequate oversight responsibility regarding
financial reporting and related internal
controls are not always exercised.
Financial and performance
management
20.
Although the entity has sound internal
controls over the daily and monthly
processing and reconciliation of transactions,
these were not effectively implemented in
some areas resulting in material adjustments
to the financial statements on the affected
balances as reported in paragraph 17 of this
report. Pretoria
31 July 2013
CHE ANNUAL REPORT 2012-2013
29
ACCOUNTING AUTHORITY REPORT
The Council submits its report for the year ended 31
March 2013.
•
1.
•
Mandate and Objectives of the
Council on Higher Education
The Council on Higher Education (CHE) is as a public
entity listed under Schedule 3A of the Public Finance
Management Act (PFMA) (Act 1 of 1999), as amended.
It adheres to principles of good governance, financial
and performance management and is held accountable
for these to the Parliament of the Republic of South
Africa.
The CHE was established as a juristic person
in terms of section 4 of the Higher Education Act
(Act 101 of 1997), as amended and as the Quality
Council for Higher Education in terms of the National
Qualifications Act (Act 67 of 2008). In summary, the
main areas of work of the CHE are:
•
•
•
•
•
to provide advice to the Minister of Higher
Education and Training on all higher education
matters, at the Minister’s request and at its own
initiative;
to develop and implement a system of quality
assurance for all higher education institutions,
including private providers of higher education,
which includes programme accreditation,
institutional audits, national reviews, and
capacity development and quality promotion;
to develop and manage the Higher Education
Qualifications Sub-Framework (HEQSF) and the
development of higher education qualifications;
to monitor the state of the higher education
system in relation to national policy goals and
international trends;
to contribute to the development of higher
education through facilitating intellectual
engagement on key issues in partnership with
relevant stakeholders.
2.Role and responsibilities
The Council fulfils the role of the Accounting
Authority in terms of section 49 of the Public Finance
Management Act (PFMA) (Act 1 of 1999), as amended.
As the Accounting Authority, the Council acts in a
fiduciary capacity and its responsibilities include:
30
CHE ANNUAL REPORT 2012-2013
•
•
•
3.
ffective, efficient and transparent systems of
e
financial and risk management and internal
control, internal audit and procurement;
effective and appropriate steps to collect
revenue due, prevent irregular, fruitless and
wasteful expenditure, losses from criminal
conduct and expenditure as a result of noncompliance with operational policies;
management, including safeguarding, of the
assets, liabilities, revenue and expenditure of
the CHE;
compliance with applicable legislation; and
an effective and appropriate disciplinary system
for failure to comply with the PFMA and the
internal control system.
Portfolio Committee on Higher
Education and Training
The CHE presented its Three-year Business Plan and
MTEF Budget 2012-2015 to the Committee on 25 April
2012.
The CHE was advised by the Portfolio Committee
that it would not be required to present its 2011-2012
Annual Report, which was tabled in Parliament on
26 September 2012, as the Committee was focusing
on the annual reports from the Sector Education and
Training Authorities (SETA’s).
4.
Governance of the Council on
Higher Education
The Council is comprised of a Chairperson appointed
for five (5) years and thirteen (13) ordinary Council
members appointed for a period of four (4) years. Eight
(8) non-voting members are appointed to the Council,
nominated respectively by the Director-General of the
Department of Higher Education and Training, the
Provincial Heads of Education, the Director-General
of the Department of Science and Technology, the
Director-General of the Department of Labour, the
National Research Foundation and the Chief Executive
Officers of the South African Qualifications Authority
(SAQA), the General and Further Education and
Training Quality Assurance Council (Umalusi) and the
Quality Council for Trades and Occupations (QCTO),
in their official capacities. Three members can be coopted by the Council
All members who served on the Council during the year
under review were appointed in terms of the Higher
Education Act (Act 101 of 1997) as amended.
Committees and Sub-committees
The Council has one (1) permanent committee, the
Higher Education Quality Committee (HEQC). The
HEQC has executive responsibility for quality promotion
and quality assurance in higher education.
The functions of the HEQC in terms of the Higher
Education Act are to:
•
•
•
promote quality in higher education
audit the quality assurance mechanisms of
higher education institutions
accredit programmes of higher education
Sub-committees
On 31 March 2013 four (4) Council sub-committees
were in place and fully functional, namely:
1.
2.
3.
4.
Executive Committee (EXCO);
Audit and Risk Committee (ARC);
Human Resources and Remuneration
Committee (HRRC);
Monitoring and Evaluation Committee (MEC).
The members of sub-committees are appointed for
the specific knowledge and skills they bring to the
Committee.
The Council and its sub-committees, including
its permanent committee responsible for quality
assurance, the HEQC, have functioned effectively in
terms of the CHE’s statutory mandate and adherence
to principles of good governance.
5.Remuneration of Council
Members
Members of Council and its various sub-committees
who are not CHE employees or government officials
qualify for daily allowances for services rendered to the
CHE in accordance with the Treasury Regulations and
Directives.
Payments made to Council members per individual
and number of meetings attended:
CHE ANNUAL REPORT 2012-2013
31
ACCOUNTING AUTHORITY REPORT (continued)
NAME
MEETINGS
ATTENDED
REPRESENTATION
FEES 2012/2013 R
Paid to members:
Prof NC Manganyi
Chairperson
2 of 3
16 500
Dr Y Dladla
Council Member
3 of 4
19 242
Prof M Fourie-Malherbe
Council Member
4 of 4
25 656
Ms M Ledwaba
Council Member
4 of 4
25 656
Dr N Luruli
Council Member
4 of 4
25 656
Dr B Masuku
Council Member
1 of 4
6 414
Council Member/Acting Chair
4 of 4
25 656
Prof S Motala
Council Member
3 of 4
19 242
Ms D Ndaba
Council Member
4 of 4
25 656
Dr Z Sosibo
Council Member
4 of 4
25 656
Prof B Thaver
Council Member
4 of 4
25 656
Prof S Mogotlane
Council Member
2 of 2
12 828
Dr L Moja
Non remunerated:
Prof Y Ballim
Council Member
3 of 4
Ms J Mashabela
Council Member
2 of 4
DHET
3 of 4
UMALUSI
4 of 4
Dr A van Jaarsveld
NRF
3 of 4
Dr T Auf der Heyde
DST
1 of 3
Mr J Samuels
SAQA
4 of 4
Dr M Qhobela
Council Member
1 of 2
Dr D Parker
Dr M Rakometsi
32
CHE ANNUAL REPORT 2012-2013
SUB-COMMITTEES
Council and Non-Council members who served on CHE governance structures and were remunerated as follows:
NAME
COMMITTEE
REPRESENTATION
MEETINGS
ATTENDED
FEES 2012/2013
R
Prof NC Manganyi
EXCO
Chairperson
2 of 3
16 500
Dr L Moja
EXCO
Council Member
3 of 3
9 242
Dr B Masuku
EXCO
Council Member
3 of 3
19 242
Prof Y Ballim
EXCO
Council Member
2 of 3
NR
Dr D Parker
EXCO
Council Member
2 of 3
NR
Prof A Melck
ARC
Chairperson
3 of 4
NR
Ms D Naidoo
ARC
Expert Member
4 of 4
15 576
Mr J Samuels
ARC
Council Member
4 of 4
NR
Dr D Tromp
ARC
Expert Member
3 of 4
11 576
Ms J Browning
HRRC
Expert Member
2 of 2
7 788
Dr Y Dladla
HRRC
Council Member
2 of 2
7 788
Ms D Ndaba
HRRC
Council Member
2 of 2
7 788
Ms T Georgoulakis
HRRC
Expert Member
2 of 3
9 735
Prof T Andrew
HEQC
Member
6 of 7
38 484
Prof N Baijnath
HEQC
Member
5 of 7
32 070
Prof U Chikte
HEQC
Member
7 of 7
44 898
Dr F Coughlan
HEQC
Member
7 of 7
44 898
Mr T Ledwaba
HEQC
Member
7 of 7
44 898
Ms K Marala
HEQC
Member
4 of 7
25 656
Prof J Mubangizi
HEQC
Member
6 of 7
38 484
Ms N Murdoch
HEQC
Member
6 of 7
38 484
Prof N Ogude
HEQC
Member
3 of 7
19 242
Prof M Oosthuizen
HEQC
Member
5 of 7
32 070
Prof R Ralebipi-Simela
HEQC
Member
5 of 7
32 070
Prof E Zingu
HEQC
Member
1 of 3
6 414
Prof Y Ballim
HEQC
Member
6 of 7
NR
Dr A Kaniki
HEQC
Member
5 of 7
NR
Dr D Parker
HEQC
DHET
5 of 7
NR
Ms E Rabe
HEQC
Umalusi
4 of 7
NR
Ms J Mashabela
HEQC
QCTO
1 of 3
NR
Paid to members:
Non remunerated:
CHE ANNUAL REPORT 2012-2013
33
ACCOUNTING AUTHORITY REPORT (continued)
6.Risk management
11.
The CHE has reviewed its risk profile during the course
of the year to consider the extent to which potential
events may have an impact on the achievement of
the organisation’s objectives. Emerging events were
assessed from two perspectives – likelihood and
impact – and a number of risks, predominantly on a
strategic level, were identified and weighed.
The Council is not aware of any matter or circumstance
arising since the end of the financial year.
7.
Materiality Framework
As required by the Treasury Regulations, the Council
has developed and agreed on a materiality and
significance framework appropriate to its size and
circumstances.
8.
Internal audit
The internal audit function is under the direction of the
Audit and Risk Committee and ultimately the Council,
in evaluating the effectiveness of its system of internal
controls in place, and recommending improvements
where appropriate. The internal audit function is
contracted out as appropriate due to the size of CHE.
9.
External audit
As required by the PFMA, the current external auditor
of the CHE is the Auditor-General.
10.
Going concern
The CHE is financially dependent on a transfer
payment from the Department of Higher Education and
Training. On the basis that the transfer payment has
been listed in the Estimates of National Expenditure,
the Council believes that the CHE will continue to be
a going concern in the year ahead. For this reason,
the Council continued to prepare the annual financial
statements on a going concern basis.
34
CHE ANNUAL REPORT 2012-2013
Subsequent events
Statement of financial position
for the year ended 31 March 2013
Restated
2013
(R)
2012
(R)
Note(s)
Assets
Current Assets
Receivables from exchange transactions
2
719,620
293,845
Cash and cash equivalents
3
22,024,528
18,420,327
22,744,148
18,714,172
27,468,475
28,426,508
Non‑Current Assets
Property, plant and equipment
4
Intangible assets
5
168,982
99,038
27,637,457
28,525,546
Liabilities
Current Liabilities
Finance lease obligation
6
219,206
239,205
Payables from exchange transactions
7
1,879,424
2,715,273
Provisions
8
808,931
510,946
2,907,561
3,465,424
Non‑Current Liabilities
Finance lease obligation
6
145,604
285,006
Unspent conditional grants and receipts
9
6,528,286
7,637,146
6,673,890
7,922,152
9,581,451
11,387,576
40,800,154
35,852,142
40,800,154
35,852,142
Total Liabilities
Net Assets
Accumulated surplus
CHE ANNUAL REPORT 2012-2013
35
Statement of financial PERFORMANCE
for the year ended 31 March 2013
Restated
2013
(R)
2012
(R)
3,473,935 2,388,674
Note(s)
Revenue
Exchange Revenue
Interest received ‑ investment
10
881,371 731,156
Non‑exchange Revenue
11
41,101,860 37,761,631
45,457,166 40,881,461
Total revenue
Expenditure
Personnel
12
Depreciation and amortisation
(1,642,120) (1,623,001)
(281,257) (40,916)
Repairs and maintenance
(354,101) (610,748)
Loss on disposal of assets
(5,030) (38,970)
Finance costs
General Expenses
36
(19,096,814) (16,877,572)
13
14
(19,280,491) (15,566,695)
Total expenditure
(40,659,813) (34,757,902)
Surplus for the year
CHE ANNUAL REPORT 2012-2013
4,797,353 6,123,559
Statement of CHANGES IN NET ASSETS
for the year ended 31 March 2013
Accumulated
surplus
(R)
Balance at 01 April 2011
29,728,583 Total net
assets
(R)
29,728,583
Changes in net assets:
Surplus for the year
6,123,559 6,123,559
Opening balance as previously reported 31 March 2012
35,852,142 35,852,142
Prior year errors
150,658 150,658
Balance at 01 April 2012 as restated
36,002,800 36,002,800
Surplus for the year
4,797,354 4,797,354
Balance at 31 March 2013
40,800,154 40,800,154
Adjustments
Changes in net assets
CHE ANNUAL REPORT 2012-2013
37
CASH FLOW Statement
for the year ended 31 March 2013
2013
(R)
2012
(R)
Note(s)
Cash flows from operating activities
Receipts
Grants
41,101,860
Interest income
37,761,631
881,371
731,156
3,473,935
2,388,674
45,457,166
40,881,461
Employee costs
(19,096,814)
(16,877,572)
Suppliers
(21,264,356)
(17,062,918)
(281,257)
(40,916)
Other receipts
Payments
Finance costs
(40,642,427)
(33,981,406)
15
4,814,739
6,900,055
Purchase of property, plant and equipment
4
(680,827)
(688,190)
Proceeds from sale of property, plant and equipment
4
32,183
(1)
Purchase of other intangible assets
5
(121,236)
(46,711)
(769,880)
(734,902)
Finance lease payments
(440,658)
(46,936)
Net increase in cash and cash equivalents
3,604,201 6,118,217
18,420,327 12,302,110
22,024,528
18,420,327
Net cash flows from operating activities
Cash flows from investing activities
Net cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
38
CHE ANNUAL REPORT 2012-2013
3
ACCOUNTING POLICIES
1.
Presentation of Annual
Financial Statements
The annual financial statements have been prepared
in accordance with the Standards of Generally
Recognised Accounting Practice (GRAP) including
any interpretations, guidelines and directives issued
by the Accounting Standards Board.
These annual financial statements have been
prepared on an accrual basis of accounting and are
in accordance with historical cost convention unless
specified otherwise. They are presented in South
African Rand.
A summary of the significant accounting policies,
which have been consistently applied, are disclosed
below.
These accounting policies are consistent with the
previous period.
1.1
Significant judgements and sources of
estimation uncertainty
In preparing the annual financial statements,
management is required to make estimates and
assumptions that affect the amounts represented
in the annual financial statements and related
disclosures. Use of available information and the
application of judgement is inherent in the formation
of estimates. Actual results in the future could differ
from these estimates which may be material to the
annual financial statements. Significant judgements
include:
Trade receivables / Held to maturity investments
and/or loans and receivables
The CHE assesses its loans and receivables for
impairment at the end of each reporting period. In
determining whether an impairment loss should
be recorded in surplus or deficit, the CHE makes
judgements as to whether there is observable data
indicating a measurable decrease in the estimated
future cash flows from a financial asset.
The impairment for loans and receivables is
calculated on a portfolio basis, based on historical
loss ratios, adjusted for national and industry‑specific
economic conditions and other indicators present
at the reporting date that correlate with defaults on
the portfolio. These annual loss ratios are applied
to loan balances in the portfolio and scaled to the
estimated loss emergence period.
Impairment testing
The recoverable amounts of cash‑generating units
and individual assets have been determined based
on the higher of value‑in‑use calculations and
fair values less costs to sell. These calculations
require the use of estimates and assumptions. It
is reasonably possible that the assumption may
change which may then impact our estimations
and may then require a material adjustment to the
carrying value of goodwill and tangible assets.
The CHE reviews and tests the carrying value of
assets when events or changes in circumstances
suggest that the carrying amount may not be
recoverable.
Provisions
Provisions were raised and management
determined an estimate based on the information
available. Additional disclosure of these estimates
of provisions are included in note 8 ‑ Provisions.
Effective interest rate
The CHE used the prime interest rate to discount
future cash flows.
Allowance for doubtful debts
On debtors an impairment loss is recognised in
surplus and deficit when there is objective evidence
that it is impaired. The impairment is measured as
the difference between the debtors carrying amount
and the present value of estimated future cash flows
discounted at the effective interest rate, computed
at initial recognition.
CHE ANNUAL REPORT 2012-2013
39
ACCOUNTING POLICIES (continued)
1.2
Property, plant and equipment
Property, plant and equipment are tangible non‑current
assets (including infrastructure assets) that are held for
use in the production or supply of goods or services,
rental to others, or for administrative purposes, and are
expected to be used during more than one period.
The cost of an item of property, plant and equipment is
recognised as an asset when:
•
•
it is probable that future economic benefits or
service potential associated with the item will
flow to the entity; and
the cost of the item can be measured reliably.
Property, plant and equipment is initially measured at
cost.
The cost of an item of property, plant and equipment is
the purchase price and other costs attributable to bring
the asset to the location and condition necessary for
it to be capable of operating in the manner intended
by management. Trade discounts and rebates are
deducted in arriving at the cost.
Where an asset is acquired at no cost, or for a nominal
cost, its cost is its fair value as at date of acquisition.
The initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is
located is also included in the cost of property, plant and
equipment, where the entity is obligated to incur such
expenditure, and where the obligation arises as a result
of acquiring the asset or using it for purposes other than
the production of inventories.
Recognition of costs in the carrying amount of an item
of property, plant and equipment ceases when the
item is in the location and condition necessary for it
to be capable of operating in the manner intended by
management.
Property, plant and equipment is carried at cost less
accumulated depreciation and any impairment losses.
Property, plant and equipment are depreciated on the
straight line basis over their expected useful lives to
their estimated residual value. Land is not depreciated
as it is deemed to have indefinite value.
40
CHE ANNUAL REPORT 2012-2013
The useful lives of items of property, plant and
equipment have been assessed as follows:
Item
Average useful life
Land
Indefinite
Buildings
10 ‑ 30 years
Furniture and fixtures
10 ‑ 14 years
Office equipment
3 ‑ 21 years
IT equipment
7 ‑ 10 years
Computer software
2 ‑ 7 years
The residual value, and the useful life and depreciation
method of each asset are reviewed at the end of each
reporting date. If the expectations differ from previous
estimates, the change is accounted for as a change in
accounting estimate.
Each part of an item of property, plant and equipment
with a cost that is significant in relation to the total cost
of the item is depreciated separately.
The depreciation charge for each period is recognised
in surplus or deficit unless it is included in the carrying
amount of another asset.
Items of entity are derecognised when the asset is
disposed of or when there are no further economic
benefits or service potential expected from the use of
the asset.
The gain or loss arising from the derecognition of an
item of property, plant and equipment is included in
surplus or deficit when the item is derecognised. The
gain or loss arising from the derecognition of an item
of property, plant and equipment is determined as the
difference between the net disposal proceeds, if any,
and the carrying amount of the item. Gains shall not be
classified as revenue.
Assets which the entity holds for rentals to others and
subsequently routinely sell as part of the ordinary
course of activities are transferred to inventories when
the rentals end and the assets are available‑for‑sale.
These assets are not accounted for as non‑current
assets held for sale. Proceeds from sales of these
assets are recognised as revenue. All cash flows on
these assets are included in cash flows from operating
activities in the entity.
1.3
Intangible assets
An asset is identified as an intangible asset when
it:
•
is capable of being separated or divided from
an entity and sold, transferred, licensed,
rented or exchanged, either individually or
together with a related contract, assets or
liability; or
•
arises from contractual rights or other legal
rights, regardless whether those rights are
transferable or separate from the CHE or
from other rights and obligations.
An intangible asset is recognised when:
•
it is probable that the expected future
economic benefits or service potential that
are attributable to the asset will flow to the
CHE; and
the cost or fair value of the asset can be
measured reliably.
Intangible assets are carried at cost less any
accumulated amortisation and any impairment
losses.
An intangible asset is regarded as having an
indefinite useful life when, based on all relevant
factors, there is no foreseeable limit to the period
over which the asset is expected to generate net
cash inflows or service potential. Amortisation is not
provided for these intangible assets, but they are
tested for impairment annually and whenever there
is an indication that the asset may be impaired. For
all other intangible assets amortisation is provided
on a straight line basis over their useful life.
The amortisation period and the amortisation
method for intangible assets are reviewed at each
reporting date.
Intangible assets are initially recognised at cost.
Reassessing the useful life of an intangible asset with
a finite useful life after it was classified as indefinite
is an indicator that the asset may be impaired. As
a result the asset is tested for impairment and the
remaining carrying amount is amortised over its
useful life.
An intangible asset acquired through a non‑exchange
transaction, the cost shall be its fair value as at the
date of acquisition.
Internally generated brands, mastheads, publishing
titles, customer lists and items similar in substance
are not recognised as intangible assets.
Expenditure on research (or on the research phase
of an internal project) is recognised as an expense
when it is incurred.
Amortisation is provided to write down the intangible
assets, on a straight line basis, to their residual
values as follows:
•
An intangible asset arising from development (or
from the development phase of an internal project)
is recognised when:
•
•
•
•
•
•
it is technically feasible to complete the asset
so that it will be available for use or sale.
there is an intention to complete and use or
sell it.
there is an ability to use or sell it.
it will generate probable future economic
benefits or service potential.
there are available technical, financial and
other resources to complete the development
and to use or sell the asset.
the expenditure attributable to the asset
during its development can be measured
reliably.
Item
Useful life
Computer software,
internally generated
1 ‑ 8 years
Intangible assets are derecognised: when no future
economic benefits or service potential are expected
from its use or disposal. The gain or loss is the
difference between the net disposal proceeds, if
any, and the carrying amount. It is recognised in
surplus or deficit when the asset is derecognised.
1.4
Financial instruments
A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or a residual interest of another entity.
CHE ANNUAL REPORT 2012-2013
41
ACCOUNTING POLICIES (continued)
The amortised cost of a financial asset or financial
liability is the amount at which the financial asset or
financial liability is measured at initial recognition minus
principal repayments, plus or minus the cumulative
amortisation using the effective interest method of any
difference between that initial amount and the maturity
amount, and minus any reduction (directly or through
the use of an allowance account) for impairment or
uncollectibility.
A financial asset is:
•
•
•
cash;
a residual interest of another entity; or
a contractual right to:
-receive cash or another financial asset
from another entity; or
-exchange financial assets or financial
liabilities with another entity under
conditions that are potentially favourable
to the entity.
A financial liability is any liability that is a contractual
obligation to:
•
•
deliver cash or another financial asset to another
entity; or
exchange financial assets or financial
liabilities under conditions that are potentially
unfavourable to the entity.
Financial instruments at fair value comprise financial
assets or financial liabilities that are instruments held
for trading. A financial instrument is held for trading if:
•
•
•
•
it is acquired or incurred principally for the
purpose of selling or repurchasing it in the
near‑term; or
on initial recognition it is part of a portfolio of
identified financial instruments that are managed
together and for which there is evidence of a
recent actual pattern of short term profit‑taking;
non‑derivative financial assets or financial
liabilities with fixed or determinable payments
that are designated at fair value at initial
recognition; and
financial instruments that do not meet the
definition of financial instruments at amortised
cost or financial instruments at cost.
Classification
The CHE has the following types of financial assets
(classes and category) as reflected on the face of the
statement of financial position or in the notes thereto:
42
CHE ANNUAL REPORT 2012-2013
Class
Category
Receivable from
exchange transactions
Financial asset measured
at amortised cost
Cash and cash
equivalent
Financial asset measured
at amortised cost
The CHE has the following types of financial liabilities
(classes and category) as reflected on the face of the
statement of financial position or in the notes thereto:
Class
Category
Payables from
Exchange
transaction
Financial liability measured at
amortised cost
Provision
Financial liability measured at
amortised cost
Finance Lease
obligations
Financial liability measured at
amortised cost
Initial recognition
The CHE recognises a financial asset or a financial
liability in its statement of financial position when the
entity becomes a party to the contractual provisions of
the instrument.
Transaction costs are recognised as part of the cost of
the instrument. Subsequent to initial recognition these
instruments are measured as set out above.
1.5Leases
A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to
ownership. A lease is classified as an operating lease
if it does not transfer substantially all the risks and
rewards incidental to ownership.
Finance leases ‑ lessee
Finance leases are recognised as assets and liabilities
in the statement of financial position at amounts equal
to the fair value of the leased property or, if lower,
the present value of the minimum lease payments.
The corresponding liability to the lessor is included in
the statement of financial position as a finance lease
obligation.
The discount rate used in calculating the present value
of the minimum lease payments is the interest rate
implicit in the lease.
Minimum lease payments are apportioned between
the finance charge and reduction of the outstanding
liability. The finance charge is allocated to each
period during the lease term so as to produce a
constant periodic rate of on the remaining balance
of the liability.
Any contingent rents are expensed in the period in
which they are incurred.
Operating leases ‑ lessee
Operating lease payments are recognised as an
expense on a straight‑line basis over the lease term.
The difference between the amounts recognised
as an expense and the contractual payments are
recognised as an operating lease asset or liability.
1.6
Provisions and contingencies
Provisions are recognised when the CHE has a
present obligation as a result of a past event, for
which it is probable that an outflow of resources
embodying economic benefits or service potential
will be required to settle the obligation and a reliable
estimate can be made of the obligation. All the
provisions of the CHE are short‑term in nature and
thus ignore the effect of discounting.
Where the effect of time value of money is material,
the amount of a provision is the present value of the
expenditures expected to be required to settle the
obligation.
Where some or all of the expenditure required to
settle a provision is expected to be reimbursed by
another party, the reimbursement is recognised
when, and only when, it is virtually certain that
reimbursement will be received if the entity settles
the obligation. The reimbursement is treated as a
separate asset. The amount recognised for the
reimbursement does not exceed the amount of the
provision.
Provisions are reviewed at each reporting date
and adjusted to reflect the current best estimate.
Provisions are reversed if it is no longer probable
that an outflow of resources embodying economic
benefits or service potential will be required, to
settle the obligation.
Where discounting is used, the carrying amount of
a provision increases in each period to reflect the
passage of time. This increase is recognised as an
interest expense.
A provision is used only for expenditures for which
the provision was originally recognised. Provisions
are not recognised for future operating deficits.
1.7Revenue from exchange transactions
Revenue is the gross inflow of economic benefits or
service potential during the reporting period when
those inflows result in an increase in net assets,
other than increases relating to contributions from
owners.
An exchange transaction is one in which the
CHE receives assets or services, or has liabilities
extinguished, and directly gives approximately
equal value (primarily in the form of goods, services
or use of assets) to the other party in exchange.
Fair value is the amount for which an asset could
be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length
transaction.
Measurement
Revenue is measured at the fair value of the
consideration received or receivable, net of trade
discounts and volume rebates
Rendering of services
When the outcome of a transaction involving the
rendering of services can be estimated reliably,
revenue associated with the transaction is
recognised by reference to the stage of completion
of the transaction at the reporting date. The outcome
of a transaction can be estimated reliably when all
the following conditions are satisfied:
•
•
•
the amount of revenue can be measured
reliably;
it is probable that the economic benefits
or service potential associated with the
transaction will flow to the CHE;
the stage of completion of the transaction at
the reporting date can be measured reliably;
and
CHE ANNUAL REPORT 2012-2013
43
ACCOUNTING POLICIES (continued)
•
the costs incurred for the transaction and
the costs to complete the transaction can be
measured reliably.
When services are performed by an indeterminate
number of acts over a specified time frame, revenue
is recognised on a straight line basis over the specified
time frame unless there is evidence that some other
method better represents the stage of completion.
When a specific act is much more significant than any
other acts, the recognition of revenue is postponed until
the significant act is executed.
When the outcome of the transaction involving the
rendering of services cannot be estimated reliably,
revenue is recognised only to the extent of the expenses
recognised that are recoverable.
The transfer from DHET is recognised when it is
probable that future economic benefits will flow to the
CHE and when the amount can be measured reliably.
A transfer is recognised as revenue to the extent that
there is no further obligation arising from the receipt of
transfer payment.
Conditions on transferred assets are stipulations that
specify that the future economic benefits or service
potential embodied in the asset is required to be
consumed by the recipient as specified or future
economic benefits or service potential must be returned
to the transferor.
1.9Borrowing costs
Service revenue is recognised by reference to the
stage of completion of the transaction at the reporting
date. Stage of completion is determined by services
performed to date as a percentage of total services to
be performed.
It is inappropriate to capitalise borrowing costs when,
and only when, there is clear evidence that it is difficult
to link the borrowing requirements of an entity directly
to the nature of the expenditure to be funded i.e. capital
or current.
Interest, royalties and dividends
Borrowing costs are recognised as an expense in the
period in which they are incurred.
Revenue arising from the use by others of entity assets
yielding interest, royalties and dividends is recognised
when:
•
•
it is probable that the economic benefits or
service potential associated with the transaction
will flow to the CHE, and
the amount of the revenue can be measured
reliably.
Interest is recognised, in surplus or deficit, using the
effective interest rate method.
Royalties are recognised as they are earned in
accordance with the substance of the relevant
agreements.
Dividends or their equivalents are recognised, in surplus
or deficit, when the CHE’s right to receive payment has
been established.
44
1.8Revenue from non‑exchange transactions
CHE ANNUAL REPORT 2012-2013
1.10 Translation of foreign currencies
Foreign currency transactions
A foreign currency transaction is recorded, on initial
recognition in Rands, by applying to the foreign
currency amount the spot exchange rate between the
functional currency and the foreign currency at the date
of the transaction.
At each reporting date:
•
•
•
foreign currency monetary items are translated
using the closing rate;
non‑monetary items that are measured in
terms of historical cost in a foreign currency are
translated using the exchange rate at the date of
the transaction; and
non‑monetary items that are measured at fair
value in a foreign currency are translated using
the exchange rates at the date when the fair
value was determined.
Exchange differences arising on the settlement of
monetary items or on translating monetary items
at rates different from those at which they were
translated on initial recognition during the period
or in previous annual financial statements are
recognised in surplus or deficit in the period in which
they arise.
When a gain or loss on a non‑monetary item is
recognised directly in net assets, any exchange
component of that gain or loss is recognised
directly in net assets. When a gain or loss on a
non‑monetary item is recognised in surplus or
deficit, any exchange component of that gain or loss
is recognised in surplus or deficit.
Cash flows arising from transactions in a foreign
currency are recorded in Rands by applying to the
foreign currency amount the exchange rate between
the Rand and the foreign currency at the date of the
cash flow.
1.11 Fruitless and wasteful expenditure
Fruitless expenditure means expenditure which was
made in vain and would have been avoided had
reasonable care been exercised.
All expenditure relating to fruitless and wasteful
expenditure is recognised as an expense in the
statement of financial performance in the year that
the expenditure was incurred. The expenditure
is classified in accordance with the nature of the
expense, and where recovered, it is subsequently
accounted for as revenue in the statement of
financial performance.
1.12 Irregular expenditure
Irregular expenditure as defined in section 1 of
the PFMA is expenditure other than unauthorised
expenditure, incurred in contravention of or that
is not in accordance with a requirement of any
applicable legislation, including ‑
(a)
(b)
(c)
the PFMA; or
the State Tender Board Act, 1968 (Act No. 86
of 1968), or any regulations made in terms of
the Act; or
any provincial legislation providing for
procurement procedures in that provincial
government.
National Treasury practice note no. 4 of 2008/2009
which was issued in terms of sections 76(1) to 76(4)
of the PFMA requires the following (effective from 1
April 2008):
Where irregular expenditure was incurred in the
previous financial year and is only condoned in
the following financial year, the register and the
disclosure note to the financial statements must be
updated with the amount condoned.
1.13Budget information
CHE are typically subject to budgetary limits in the
form of appropriations or budget authorisations (or
equivalent), which is given effect through authorising
legislation, appropriation or similar.
General purpose financial reporting by CHE shall
provide information on whether resources were
obtained and used in accordance with the legally
adopted budget.
The annual financial statements and the budget
are on the same basis of accounting therefore a
comparison with the budgeted amounts for the
reporting period have been included in the Statement
of comparison of budget and actual amounts.
1.14Related parties
The entity operates in an economic sector currently
dominated by entities directly or indirectly owned by
the South African Government. As a consequence
of the constitutional independence of the three
spheres of government in South Africa, only entities
within the national sphere of government are
considered to be related parties.
Management are those persons responsible for
planning, directing and controlling the activities of the
entity, including those charged with the governance
of the entity in accordance with legislation, in
instances where they are required to perform such
functions.
Close members of the family of a person are
considered to be those family members who may
be expected to influence, or be influenced by, that
management in their dealings with the entity.
Only transactions with related parties not at arm’s
length or not in the ordinary course of business are
disclosed.
CHE ANNUAL REPORT 2012-2013
45
NOTES TO THE StatementS (continued)
for the year ended 31 March 2013
2013
(R)
2012
(R)
2.Receivables from exchange transactions
Trade debtors
525,734 22,434
Deposits
22,580 22,580
Other receivables
-
39,104
Prepaid expenses
160,214 190,013
Staff loans
11,092 19,714
719,620 293,845
Fair value of receivables from exchange transactions
The fair value of short term receivables approximates the carrying amount of the balance due to their short term
maturity.
Receivables from exchange transactions impaired
No receivables from exchange transactions were impaired during the current financial year.
The maximum exposure to credit risk at the reporting date is the fair value of each class of loan mentioned above.
The CHE does not hold any collateral as security.
3.Cash and cash equivalents
46
Cash on hand
(40) 2,117
Standard Bank Account
8,290,296 7,851,673
Investec Investment Account
7,995,429 7,590,884
South African Reserve Bank Account
17,023 16,172
Standard Bank: Private Accreditation funds
5,721,820 2,959,481
22,024,528 18,420,327
CHE ANNUAL REPORT 2012-2013
4.
Property, plant and equipment
2013
Cost /
Valuation
Land
Buildings
Furniture and fixtures
Office equipment
IT equipment
Leased Office Equipment
Total
Accumulated
depreciation
and
accumulated
impairment
5,314,747
23,041,879
2012
-
Carrying
value
Cost /
Valuation
5,314,747
5,314,747
(3,285,608) 19,756,271 22,860,509
Accumulated
depreciation
and
accumulated
impairment
-
Carrying
value
5,314,747
(2,474,357) 20,386,152
1,811,758
(1,110,567)
701,191
1,820,975
(957,727)
863,248
943,207
(360,749)
582,458
671,589
(247,853)
423,736
2,405,053
(1,546,547)
858,506
2,205,210
(1,264,491)
940,719
727,813
(472,511)
255,302
727,813
(229,907)
497,906
34,244,457
(6,775,982) 27,468,475 33,600,843
(5,174,335) 28,426,508
Reconciliation of property, plant and equipment ‑ 2013
Opening
balance
Land
Additions
Disposals
Depreciation
5,314,747
-
-
20,386,152
181,370
-
Furniture and fixtures
863,248
-
(9,217)
Office equipment
423,736
271,618
-
(112,896)
582,458
IT equipment
940,719
227,839
(27,996)
(282,056)
858,506
Leased Office Equipment
497,906
-
-
(242,604)
255,302
28,426,508
680,827
(37,213)
Additions
Disposals
5,314,747
-
-
21,143,788
46,807
-
Buildings
-
Total
5,314,747
(811,251) 19,756,271
(152,840)
701,191
(1,601,647) 27,468,475
Reconciliation of property, plant and equipment ‑ 2012
Opening
balance
Land
Buildings
Depreciation
-
Total
5,314,747
(804,443) 20,386,152
Furniture and fixtures
981,209
2,760
(8,081)
(171,942)
803,946
Office equipment
453,484
28,021
(6,254)
(88,565)
386,686
IT equipment
815,182
345,874
(24,634)
(301,791)
834,631
(200,444)
499,977
Leased Office Equipment
435,693
264,728
-
29,144,103
688,190
(38,969)
(1,567,185) 28,226,139
Assets with a cost price of R623, 353 (2012: R45, 642) have been fully depreciated, but are still in use.
Refer to note 19 regarding the prior year error identified in the current year.
CHE ANNUAL REPORT 2012-2013
47
NOTES TO THE StatementS (continued)
for the year ended 31 March 2013
2013
(R)
2012
(R)
Details of properties
Erf 1 Persequor Park, Pretoria
The property is located at 1 Quintin Brand Street, Persequor Technopark,
Pretoria. The title deed number is T4934/2009 and the extent of the property
is 7580 square metres.
‑ Purchase price: 30 January 2009
27,360,000 27,360,000
‑ Additions since purchase or valuation
897,099 715,729
‑ Capitalised expenditure
99,527 99,527
28,356,626 28,175,256
5.
Intangible assets
Cost /
Valuation
Computer software, other
2013
2012
Accumulated
amortisation
and
accumulated
impairment
Accumulated
amortisation
and
accumulated
impairment
592,685
(423,703)
Carrying
value
Cost /
Valuation
168,982
471,448
(372,410)
Additions
Amortisation
121,236
(51,292)
Additions
Amortisation
46,711
(55,816)
Carrying
value
99,038
Reconciliation of intangible assets ‑ 2013
Opening
balance
Computer software, other
99,038
Total
168,982
Reconciliation of intangible assets ‑ 2012
Opening
balance
Computer software, other
109,122
Total
100,017
Computer software to the value of R172, 307 (2012: R102, 707) have been fully depreciated, but are still in use.
Refer to note 19 regarding the prior year error identified in the current year.
48
CHE ANNUAL REPORT 2012-2013
2013
(R)
6.
2012
(R)
Finance lease obligation
Minimum lease payments due
‑ within one year
241,343 276,676
‑ in second to fifth year inclusive
155,629 303,718
396,972 580,394
less: future finance charges
(32,162) (56,183)
Present value of minimum lease payments
364,810 524,211
Present value of minimum lease payments due
‑ within one year
219,206 239,205
‑ in second to fifth year inclusive
145,604 285,006
364,810 524,211
Non‑current liabilities
145,604 285,006
Current liabilities
219,206 239,205
364,810 524,211
The average lease term was 3 years and the average effective borrowing rate was 9% (2012: 10%). Interest
rates are linked to prime at the contract date. All leases have fixed repayments and no arrangements have
been entered into for contingent rent.
Minimum obligations payable under finance lease agreements are not effected by escalation (other than prime
interest rate) or any other imposed lease arrangements such as those concerning return of net surplus, return
of capital contributions, dividends, or any other debt.
The CHE’s obligations under finance leases are secured by the leased office equipment with the carrying
value as per note 4.
7.
Payables from exchange transactions
Trade payables
1,521,881 2,261,875
Accreditation fees received in advance
309,796 384,503
Accrued bonus
28,345 52,113
Other payables
19,402 16,782
1,879,424 2,715,273
CHE ANNUAL REPORT 2012-2013
49
NOTES TO THE StatementS (continued)
for the year ended 31 March 2013
8.Provisions
Reconciliation of provisions ‑ 2013
Opening
Balance
Movement
510,946 Total
Leave pay provision
(18,546) 492,400
Interest and Penalties ‑ SARS
-
316,531 316,531
808,931
510,946 297,985 Reconciliation of provisions ‑ 2012
Opening
Balance
Leave pay provision
Movement
380,035 130,911 Total
510,946
Leave pay provision
The leave pay provision relates to vesting leave pay to which employees may become entitled upon leaving the
employment of the entity. The provision is utilised when employees are paid for their accumulated leave. There are
no expected reimbursements of this provision.
Interest and penalties: SARS
The provision for interest and penalties relates to late payments of employee tax (PAYE) in 2009.
9.Unspent conditional grants and receipts
National Treasury granted approval to the DHET to transfer an additional R9 million to the CHE for the implementation
of the standard setting directorate which is part of the expanded mandate of the CHE resulting from the promulgation
of the NQF Act.
Unspent conditional grants and receipts comprises of:
2013
(R)
2012
(R)
6,528,286 7,637,146
Unspent conditional grants and receipts
Deferred Income
Movement during the year
Balance at the beginning of the year
7,637,146 8,626,777
Income recognised during the year
(1,108,860) (989,631)
6,528,286 7,637,146
10. Investment revenue
Interest earned
50
CHE ANNUAL REPORT 2012-2013
881,371
731,156
2013
(R)
2012
(R)
11. Non exchange revenue
Operating grants
Grants received from DHET
39,993,000 36,772,000
Deferred Income ‑ Standard Development
1,108,860 989,631
41,101,860 37,761,631
Basic
16,321,290 15,538,509
Bonus
686,529 325,662
12.Employee related costs
Medical aid ‑ company contributions
558,576 470,103
UIF
54,626 68,471
Group Insurance
8,114 8,490
NEHAWU
11,880 8,085
Other short term costs
10,630 5,995
Post‑employment benefits ‑ Pension ‑ Defined contribution plan
1,104,483 381,029
Provident Fund: Administration Fees
339,086 64,640
Staff benefits ‑ Computer Loans
1,600 6,588
19,096,814 16,877,572
281,257 40,916
13. Finance costs
Finance leases
A new lease was entered into during the latter part of 2011/2012.
CHE ANNUAL REPORT 2012-2013
51
NOTES TO THE StatementS (continued)
for the year ended 31 March 2013
2013
(R)
2012
(R)
14. General expenses
52
Assessment rates & municipal charges
205,657 192,018
Auditors remuneration
1,611,753 1,288,289
Bank charges
40,033 57,906
Cleaning
399,251 301,398
Consulting and professional fees
6,917,530 5,096,679
Consumables
147,372 109,446
Garden services
31,464 41,724
Insurance
248,254 255,208
Conferences and seminars
16,294 28,596
Bursaries
85,981 122,362
1,677,805 1,438,765
IT expenses
Promotions and sponsorships
30,028 -
Levies
25,236 Magazines, books and periodicals
12,447 14,661
Recruitment Costs
901,911 422,998
Postage and courier
75,488 56,612
Printing and stationery
693,728 668,299
Project maintenance costs
52,650 12,394
Relocation Costs
-
94,005
Security services
190,650 263,459
Subscriptions and membership fees
112,817 102,856
Telephone and fax
223,581 225,476
Training
425,728 462,144
Travel ‑ local
2,563,034 2,056,974
Travel ‑ overseas
121,800 203,144
Electricity
371,846 301,567
Honorarium
242,259 378,300
Venue & Catering
559,099 366,854
Small assets below R5 000
163,299 -
SARS penalties
316,531 -
Remuneration of Council Members
816,965 978,508
19,280,491 15,566,695
CHE ANNUAL REPORT 2012-2013
26,053
2013
(R)
2012
(R)
4,797,353 6,123,559
15. Cash generated from operations
Surplus
Adjustments for:
Depreciation and amortisation
1,642,120 1,623,001
Loss on sale of assets and liabilities
5,030 38,970
Finance costs ‑ Finance leases
281,257 40,916
Movements in provisions
297,985 130,911
Receivables from exchange transactions
(425,775) (151,669)
Payables from exchange transactions
(674,371) 83,998
Unspent conditional grants and receipts
(1,108,860) (989,631)
4,814,739 6,900,055
Changes in working capital:
16. Auditors’ remuneration
External Auditors
Internal Auditors
908,465
890,386
703,288 397,903
1,611,753 1,288,289
(6,528,286) (7,637,146)
1,285,000 1,364,000
17.Related parties
Relationships
Executive Authority
Public Entities under the DHET
Members of Key Management and Council Emoluments
Related party transactions:
Unspent conditional grants owed to related parties
DHET
Consulting fees paid to related parties
SAQA
Grant received from related parties
DHET
(39,993,000) (36,772,000)
CHE ANNUAL REPORT 2012-2013
53
NOTES TO THE StatementS (continued)
for the year ended 31 March 2013
18. Members of Key Management and Council Emoluments
Executive Management
2013
Bonuses &
performance
related
Emoluments
payments
Total
Chief Executive Officer
1,212,813
-
1,212,813
Chief Financial Officer*
705,656
60,509
766,165
Executive Director: Quality Assurance**
846,893
-
846,893
Director: Corporate Services
850,388
98,945
949,333
Director: Institutional Audits***
501,893
45,170
547,063
Director: Accreditation*
573,592
-
573,592
Director: National Reviews
731,776
-
731,776
Director: Standards Development
331,095
-
331,095
Director: Monitoring and Evaluation
795,444
86,039
881,483
6,549,550
290,663
6,840,213
* Appointed 01 August 2012
** Resigned 31 December 2012
*** Appointed 01 September 2012
2012
Emoluments
Bonuses &
performance
related
payments
Total
Chief Executive Officer
1,161,241 -
1,161,241
Chief Financial Officer
580,879 -
580,879
Director: Corporate Services
716,117 Director: Institutional Audits
679,926 -
679,926
Director: Accreditation
749,255 Director: National Reviews
387,862 -
387,862
Executive Director: Quality Assurance
Director: Standards Development
1,016,615 59,014 96,793 52,661 775,131
846,048
1,069,276
290,536 -
290,536
5,582,431 208,468 5,790,899
Council Members Remuneration
For services as Council Members
54
CHE ANNUAL REPORT 2012-2013
2013
2012
(R)
(R)
816,965
978,508
2013
(R)
2012
(R)
19. Prior period errors
In the comparative period, the Council incorrectly accounted for revenue. Income and Accounts Receivables
were overstated by R118,750. In order to correct this overstatement, the opening accumulated surplus and the
Accounts receivables were reduced with the same amount.
Prior year depreciation was overstated and as a result there was a difference in the closing balance of
the carrying amount for prior year and the opening balance in the current year. The effect of this error was
understatement of closing book values and understatement of accumulated surplus by R199,390.
In the comparative period, the Council incorrectly understated expenditure by R48,732.
The correction of the errors results in adjustments as follows:
Statement of financial position
Accounts Receivable
-
(118,750)
Property, Plant and Equipment
-
199,390
Accumulated surplus
-
150,658
Depreciation
-
199,390
Expenditure
-
(48,732)
-
118,750
Statement of Financial Performance
Revenue
20. Comparative figures
Certain comparative figures have been reclassified. The effects of the reclassification are as follows:
Statement of Financial Performance
General expenses
-
1,101,509
Employee related costs
-
(1,101,509)
316,531
-
21. Fruitless and wasteful expenditure
Fruitless and wasteful expenditure
Fruitless and wasteful expenditure relates to SARS interests and penalties for the late payment of employee
tax (PAYE) from 2009
CHE ANNUAL REPORT 2012-2013
55
NOTES TO THE StatementS (continued)
for the year ended 31 March 2013
2013
(R)
2012
(R)
22. Irregular expenditure
Opening balance
-
6,211,825
Current year
-
Less: Amounts condoned
-
(6,211,825)
-
-
-
6,211,825
Details of irregular expenditure condoned
Condoned by (condoning authority)
Renovation to the office building
Council
23. Financial instruments disclosure
Categories of financial instruments
2013
Financial assets
At amortised
cost
Trade and other receivables from exchange transactions
Cash and cash equivalents
Total
719,620
719,620
22,024,527
22,024,527
22,218,412
22,218,412
Financial liabilities
At amortised
cost
Trade and other payables from exchange transactions
Total
1,879,424
1,879,424
Provisions
808,931
808,931
Finance lease obligation
364,811
364,811
3,053,166
3,053,166
2012
Financial assets
At amortised
cost
Trade and other receivables from exchange transactions
Cash and cash equivalents
Total
293,845 293,845
18,420,327 18,420,327
18,714,172 18,714,172
Financial liabilities
At amortised
cost
Trade and other payables from exchange transactions
56
Total
2,715,273 2,715,273
Provisions
510,946 510,946
Finance lease obligation
524,211 524,211
3,750,430 3,750,430
CHE ANNUAL REPORT 2012-2013
24.Taxation
The CHE is exempt from normal income tax as more than 80% of its income is defrayed from funds voted by
Parliament. The CHE is exempted from the payment of Value Added Tax (VAT) on the transfer received. As a
result, any VAT paid by the CHE is also not refundable by SARS.
25.Risk management
Financial risk management
The CHE’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value
interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
Liquidity risk
The CHE is exposed to liquidity risk with regards to the payment of its trade payables. These trade payables
are all due within the short‑term. The CHE manages its liquidity risk by holding sufficient cash in its bank
account, supplemented by cash available in a money market account. The CHE’s risk to liquidity is a result of
the funds available to cover future commitments. The CHE manages liquidity risk through an on-going review
of future commitments and credit facilities.
The table below analyses the CHE’s financial liabilities and net‑settled derivative financial liabilities into
relevant maturity groupings based on the remaining period at the date of the statement of financial position to
the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
At 31 March 2013
Payable from exchange transactions
Finance lease obligation
At 31 March 2012
Payables from exchange transaction
Finance lease obligation
Less than 1
year
Between 1
and 2 years
Between 2
and 5 years
1,879,424
-
-
219,206
145,604
-
Less than 1
year
Between 1
and 2 years
Between 2
and 5 years
2,715,273
-
-
239,205
285,006
-
Interest risk
The CHE’s interest rate risk arises from investments held at different financial institutions. The interest received
forms part of revenue and covers part of the CHE’s expenditure.
Credit risk
Credit risk consists mainly of cash deposits with banks and the Corporation for Public Deposits, staff loans
and other receivables. The CHE only deposits cash with institutions with high quality credit standing and limits
exposure to any one counter‑party.
The receivables are exposed to a low credit risk and no amounts are overdue. Financial assets exposed to
credit risk at year end were as follows:
CHE ANNUAL REPORT 2012-2013
57
NOTES TO THE StatementS (continued)
for the year ended 31 March 2013
2013
(R)
2012
(R)
8,287,025
7,851,673
Financial instrument
Bank
Trade debtors
Short term deposits
525,734
22,434
13,734,272
10,566,537
26. Going concern
The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern.
This basis presumes that funds will be available to finance future operations and that the realisation of assets and
settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.
58
CHE ANNUAL REPORT 2012-2013
CHE ANNUAL REPORT 2012-2013
59
Loss on disposal
Repairs and Maintenance
General expenses (note 14)
Total capital expenditure
CAPITAL EXPENDITURE
19,639,622
5030
354101
19,280,491
758,526
(6,433,934)
(51,386,000)
Total Expenditure
(Deficit)/Surplus for the year
(23,786,562)
(303,526)
(1,642,120)
(25,653,792)
Other expenditure
Finance charges
Depreciation and Amortisation
Employee costs
44,952,066
Total Revenue
Expenditure
1,288,600
Other Revenue
644,466
-
39,738,000
3,281,000
Deferred income recognised
Investment revenue
Roll-over of funds
DHET-Government Grant
Revenue
Original Budget
6,688,934
0
6,688,934
6,433,934
255,000
Adjustments and
roll-overs
27 Statement of comparison of budget and actual amounts
758,526
255,000
(51,386,000)
(23,786,562)
(303,526)
(1,642,120)
(25,653,792)
51,641,000
1,288,600
3,281,000
644,466
6,433,934
39,993,000
Final budget
802,063
4,797,353
(40,659,813)
(19,639,622)
(281,257)
(1,642,120)
(19,096,814)
45,457,166
3,473,935
1,108,860
881,371
-
39,993,000
Actual outcome
(43,537)
(4,542,353)
106%
1881%
79%
83%
(10,726,187)
93%
(4,146,940)
100%
74%
88%
(22,269)
(6,556,978)
6,615,834
270%
(2,185,335)
137%
100%
34%
Actual outcome as
a % of final budget
2,172,140
(236,905)
6,433,934
Variance between
final budget and
actual
non-financial performance indicators
for the year ended 31 March 2013
Strategic
Objective
Annual
Cumulative
Output
Comments
Advise the
Minister on
request or on
own initiative
Number of
responses to
requests
100%
0
No requests for advice
on any higher education
matters were received.
Number of
proactive pieces
of advice given
1
1
Council provided advice
to the Minister on the
status of agricultural
and other colleges.
Research
Projects
On-going
projects
1
1
The performance
indicators project is ongoing with data updated
annually.
Projects in
progress
1
2
The task team report
on the undergraduate
curriculum is close to
completion.
The student
governance project is
proceeding after being
delayed due to capacity
constraints.
Projects initiated
1
1
The project on
governance is
underway.
Dissemination of
research findings
Number of
publications
2
4
The electronic versions
of the four publications
are on the CHE
website.
Development
and
management of
the HEQSF
Alignment
of existing
programmes with
the HEQSF
100%
Total number of
programmes to
be assessed and
realigned
100 %
2519
assessed
320 received
This number refers
to Category A. The
anticipated finalisation
date for all categories is
end 2016.
Development,
registration and
publication of
qualifications
Development
of qualifications
standards
Development
of models for
qualification
types (QT)
and field/
subject specific
standards (FS)
2
2
Completed.
Consultation on
models
3
0
Will be undertaken
2013/2014.
Pilots for
development of
standards
7 (4 QT; 3
FS)
0
Draft QT prototype
models finalised in
preparation for pilots.
Advising the
Minister
Monitoring the
state of higher
education
60
Programme
Performance
Indicator
Annual
Target
as per
Strategic
Plan 2012 2013
CHE ANNUAL REPORT 2012-2013
Strategic
Objective
Programme
Performance
Indicator
Annual
Target
as per
Strategic
Plan 2012 2013
Annual
Cumulative
Output
Comments
NLRD Database
Collecting data
from private
institutions
Number of
private providers
that will be
contributing to
the HEQCIS
database
75%
81%
Within the current
cycle 81% of all
unique PHEIs each
successfully submitted
at least one full data
load.
Auditing
institutional
quality
assurance
mechanisms
Analyse and
approve
institutional
improvement
plans
Number of
improvement
plans analysed
and submitted
for approval by
the Institutional
Audits
Committee
4
4
One institution which
is under administration
will resubmit its plan.
Monitoring of
Improvement
Plans
1
2
The process is
continuing through
the Institutional Audits
Committee and is ontrack.
Pilot second
cycle framework
focused on
teaching and
learning
Institutional
reviews of public
higher education
institutions
3
0
The implementation
of the second period
of reviews has been
postponed. No pilot
audits will take place in
2012/13.
2nd Cycle reviews
framework
Draft revised
framework
1
1
The draft framework
has been revised in
line with the Quality
Enhancement
process which will
be undertaken. The
framework will be
finalised after the pilot
stage.
CHE ANNUAL REPORT 2012-2013
61
non financial performance indicators (continued)
for the year ended 31 March 2013
Strategic
Objective
Institutional
programme
accreditation
and reaccreditation
Programme
Accreditation of
new programmes
submitted by
public and private
higher education
institutions
Performance
Indicator
Annual
Target
as per
Strategic
Plan 2012 2013
100%
Number of
candidacy phase
programmes
recommended
for approval by
the HEQC
Number of new/
additional sites
of delivery
recommended;
and
100%
Annual
Cumulative
Output
95%
288 programmes
recommended
302 received
100%
100%
50
National
Reviews, i.e.
re-accreditation
of programmes
in specific fields
and qualification
level
CHE ANNUAL REPORT 2012-2013
Target achieved.
The number of site
visits undertaken is
dependent on requests
made by the HEQC,
DHET.
66 were recommended
75 received
1
1
Manual finalised.
Conducting of
national review
(site visits) –
review 1
17 (estimate)
0
The planned national
review of social work
was delayed as the
professional body was
undertaking site visits
during this financial
year. The process will
commence in 2013/14.
Draft reports –
review 1
17 (estimate)
0
Not applicable.
0
Not applicable.
Only pipeline
students remain
in the outstanding
programmes.
100%
Final report for
review 1
62
Target achieved.
The DHET provides
the CHE with a list
of institutions and
programmes from
PHEIs that need to be
re-accredited on an
annual basis.
Number of
programmes
recommended
for reaccreditation by
the HEQC
Development and Development
implementation of of a manual for
review 1
national reviews
Finalisation
of Teacher
Education
Review
Target achieved.
51 sites
Number of site
100%
visits undertaken
Re-accreditation
of programmes
offered by private
higher education
institutions
Comments
88%
Number of
teach-out plans
5
7
Number of
improvement
plans analysed
3
2
Strategic
Objective
Quality
Promotion
Programme
Performance
Indicator
Annual
Target
as per
Strategic
Plan 2012 2013
Annual
Cumulative
Output
Comments
Training of
reviewers for the
second cycle
framework
Number
of training
workshops for
institutional
reviewers
2
0
Training of
institutions in
the institutional
review
methodology for
the second cycle
workshops for
institutions
Number
of training
workshops for
institutions
1
0
Training of
evaluators for
programme
accreditation and
re-accreditation
Number
of training
workshops for
evaluators
1
1
On target.
Number of
Quality
forums
assurance
forums and
public and private
institutions and
professional
bodies
3
6
Six forums were
held. Two each for
public institutions,
private institutions and
professional bodies.
HELTASA/CHE
Awards Project
5
5
Five awards presented.
Annual awards
The implementation of
the second period of
reviews was postponed.
As a result the training
was also put on hold.
CHE ANNUAL REPORT 2012-2013
63
non financial performance indicators (continued)
for the year ended 31 March 2013
Strategic
Objective
Human
Resources
Management
64
Programme
Performance
Indicator
Annual
Target
as per
Strategic
Plan 2012 2013
Annual
Cumulative
Output
Comments
Skills
Development
Plan
Development
and
implementation
of the Skills Plan
100%
of funds
budgeted
57% of funds Challenges were
budgeted
experienced during
the year to meet
targets. Due to capacity
constraints the units
could not release all
employees as planned
and the high turnover
compounded the
problem.
Recruitment and
retention strategy
Filling of all
vacant positions,
including
reduced
turnaround
time – maximum
three months
100%
100%
Although positions are
filled the challenge in
retaining staff is still
being experienced
as shown by the high
turnover rate. However
planned vacancies for
the year filled.
Development of
remuneration
policy
Approved
Strategy and
Plan (25%
implementation)
n/a
The Council approved
the strategy subject
to approval from the
DHET and National
Treasury. Response not
yet received.
Achieve
organisational
growth and
sustainability
Functioning
performance
management
system
100%
100%
On target.
Employment
Equity
Representivity
by race and
gender
Developed
Strategy and
Plan
100%
Approved employment
equity plan.
Creation and
management
of a stable and
a harmonious
labour relations
environment
Reduction in
disciplinary and
grievance rate
25%
100%
No disciplinary
actions taken against
employees this year.
CHE ANNUAL REPORT 2012-2013
Strategic
Objective
Programme
Financial
Finance
systems
administration
and supply chain
management
compliant with
PFMA and
relevant laws
and regulations
Supply Chain
Management
Performance
Indicator
Annual
Target
as per
Strategic
Plan 2012 2013
Annual
Cumulative
Output
Comments
100%
compliant
100%
compliant
On target.
100%
Supply chain
compliant
management
policies
procedures
reviewed
and updated
annually;
effective
control systems
in place;
unqualified audit.
100%
compliant
On target.
Policies
reviewed
and updated
annually;
effective
control systems
in place;
unqualified audit
CHE ANNUAL REPORT 2012-2013
65
ORGANISATIONAL STRUCTURE
for the year ended 31 March 2013
ceo’s office
ceo direct reports
CHIEF
EXECUTIVE
OFFICER
CHIEF
EXECUTIVE
OFFICER
A Essop
PERSONAL
ASSISTANT
ORGANISATIONAL
SECRETARY
PERSONAL
ASSISTANT
LIBRARIAN
CHIEF
FINANCIAL
OFFICER
EXECUTIVE
DIRECTOR:Q A
ORGANISATIONAL
SECRETARY
LIBRARIAN
DIRECTOR:
CORPORATE
SERVICES
DIRECTOR:
INSTITUTIONAL
AUDITS
DIRECTOR:
MONITORING&
EVALUATION
RECEPTIONIST
K Moyo
DIRECTOR:
NATIONAL
REVIEWS
DIRECTOR:
STANDARDS
DEVELOPMENT
DIRECTOR:
PROGRAMME
ACCREDITATION
CORPORATE SERVICES
CHIEF FINANCIAL
OFFICER
B Shongwe
STANDARDS DEVELOPMENT
DIRECTOR
CORPORATE
SERVICE
V Matsam
ADMINISTRATOR
M Mashiane
SUPPLY CHAIN
MANAGER
T Moraka
FINANCE
MANAGER
K Kabwe
DIRECTOR
F Faller
HUMAN
RESOURCES
OFFICER
P Maqubela
ADMINISTRATOR
SUPPLY CHAIN
ADMINISTRATOR
P Kakumbi
SENIOR
MANAGER
O Mokgatle
FINANCE
ADMINISTRATOR
J Maree
FINANCE
ASSISTANT
N Mofomme
ADMIN
ASSISTANT:
D Motlhalifi
FACILITIES
CLERK
K Makgalo
GENERAL
OFFICE
ASSISTANT
M Mmako
GENERAL
OFFICE
ASSISTANT
L Maluleke
MONITORING AND EVALUATION
DIRECTOR
D Webbstock
ADMINISTRATOR
L Mayepu
RESEARCHER
MANAGER:
G Simpson
RESEARCHER
N Ramoupi
DATA
ADMINISTRATOR
M Gordon
RESEARCHER
N Bhengu
INFORMATION
ADMINISTRATOR
NJ Masekoa
66
CHE ANNUAL REPORT 2012-2013
QUALITY ASSURANCE
PROGRAMME ACCREDITATION
EXECUTIVE
DIRECTOR: QUALITY
ASSURANCE
DIRECTOR
K Naidoo
ADMIN
ASSISTANT
S Shikweni
ADMINISTRATOR
R Bothman
PERSONAL
ASSISTANT
C Khwinana
SENIOR
MANAGER:
OPERATIONS/
COMPLIANCE &
MONITORING
MANAGER
PROJECT
ADMINISTRATOR
Pam du Toit
MANAGER
T Mtombeni
SENIOR
MANAGER
PROJECTS
T Bezuidenhout
PROJECT
MANAGER
M Lekganyane
PROJECT
ADMINISTRATOR
MANAGER
Z Ngxabazi
PROJECT
ADMINISTRATOR
PROJECT
ADMINISTRATOR
F Kanise
NATIONAL REVIEWS
INSTITUTIONAL AUDITS
DIRECTOR
R Vally
DIRECTOR
D Grayson
ADMINISTRATOR
R Bennideen
MANAGER
RESEARCH
MANAGER
PROJECT
ADMINISTRATOR
E Roman
RESEARCHER
P Sipuka
PROJECT
ADMINISTRATOR
ADMINISTRATOR
J Maloi
PROJECT
ADMINISTRATOR
ADMINISTRATOR
P Nkuna
ADMINISTRATOR
A Sibuyi
CHE Staff Complement = 54
Filled Postions = 42
Total Number of Vacancies = 12
CHE ANNUAL REPORT 2012-2013
67
COMPOSITION OF COUNCIL AND HEQC
Council Members
Name
Appointed
Other CHE
committees
Qualification
Area of Expertise
Directorships
Members
Prof Yunus
Ballim
July 2006
EXCO
PhD
• Engineering
Education
• Civil Engineering
materials
• Higher Education
Bidvest Wits
Football Club
(non-executive)
PhD Sociology
and Social
Work
• Organizational
Development
• Social Policy
• Human Resource
Management
• Research
• Productivity
Management
• Strategic Planning
• Community
Facilitation and
Development
Thebe Tourism
Group (Pty) Ltd
Umalusi
HEQC
Dr Yvonne
Dladla
April 2009
HRRC
Prof Magda
FourieMalherbe
July 2006
PhD
• Higher Education
(governance,
management,
student success)
Ms Malebo
Ledwaba
December 2010
BTech
Management
• Management
Dr Nyambeni
Luruli
December 2010
MEC
PhD (Polymer
Science)
• Analytical
Chemistry
• Polymer Science
• Polymer
Conversion
• Student training
Dr Bandile
Masuku
April 2009
EXCO
MBChB
• Governance
• Student activism
(COSAS and
SASCO)
• Higher Education
Transformation
• Youth Development
Sector
• Medical/Health
Sector
MMed (not yet
conferred)
68
CHE ANNUAL REPORT 2012-2013
Thebe
Foundation
Kelly Group (Pty)
Ltd
YD Consulting
(Pty) Ltd.
YAME Unique
Crafts (Pty) Ltd
Name
Appointed
Other CHE
committees
Qualification
Area of Expertise
Directorships
May 2009
EXCO
MMed (O & G)
• Health Professions
Education and
Training
• Management
Chair Medical
and Dental
Professions
Board
Prof Chabani
Manganyi
(Chairperson)
October 2007December 2012
EXCO
DLitt et Phil
(Psychology)
• Psychology
• Education
• Governance
• TISO
Foundation • Thabo Mbeki
Foundation
• Ulwazi Express
Trust
Prof Shireen
Motala
December 2010
MEC
PhD
• Education policy
• Doctoral education
• Schooling access,
quality and
financing
Ms Dora
Ndaba
December 2010
HRRC
BTech
Transport and
Logistics
• Strategic
Management
• Human Resource
• Marketing
• Auditing and
Financial
Management
• Business
Management
• Water
Research
Commission
• National
Regulator for
Compulsory
Specifications
• National Small
Business
Advisory
Council
Mr Edmund
Nxumalo
December 2010
MEC
Masters
in Public
Administration
• Quality Assurance
Education
• Skills Development
Training
• Technology
Demonstration
Centre
• Tshwane South
College
Dr Zilungile
Sosibo
December 2010
PhD (Adult
Education)
• Teacher Education
(T&L)
• Curriculum
Development
• Diversity and
Transformation in
Education
• Education
Management
• Research
• Umalusi
Prof Thaver
Beverley
December 2010
PhD
(Education)
• Higher Education
• NRF-rated
researcher in higher
education
Dr Letticia
Moja
(Acting
Chairperson,
1 January
2013 - )
MEC
CHE ANNUAL REPORT 2012-2013
69
COMPOSITION OF COUNCIL AND HEQC (continued)
Name
Appointed
Other CHE
committees
Qualification
Area of Expertise
Directorships
Co-opted members
Prof Sophie
Mogotlane
October 2012
PhD
• Community Health
• Research
• South African
Nursing
Council
• Council for
Tshwane
University of
Technology
• Hospice
Palliative Care
Association
Dr Molapo
Qhobela
October 2012
PhD
• Governance
• Audit
• Higher Education
• International
Crops
Research
Institute
for semiarid tropics
(ICRISAT)
• Trustee –
Cradle of
Human Kind
• South African
Actuaries
Development
Programme
Prof Edmund
Zingu
October 2012
– April 2013
(deceased)
PhD (Physics)
• Physics
• Education
PhD
(Chemistry)
• Higher Education
and science
and technology
management and
policy
• Africa Institute
of South Africa
Masters in
International
Development
Education
• Higher Education
• Education policy
and planning
• Umalusi
• SAQA
• QCTO
• Old Mutual
Education Trust
MA
• Teaching,
administration and
management
• Umalusi
• SAQA
• QCTO
PhD
• Teacher Education
• Higher Education
• Mathematics
Education
• Peta Source
cc (50%
partnership)
HEQC
Non Voting members
Dr Thomas
Auf der
Heyde (DST)
July 2012
Mr Essop
May 2010
Ahmed (CHE)
70
Ms Joyce
Mashabela
(QCTO)
January 2012
Dr Diane
Parker
(DHET)
January 2011
CHE ANNUAL REPORT 2012-2013
EXCO
HEQC
Name
Appointed
Dr Mafu
Rakometsi
(Umalusi)
January 2009
Mr Joe
Samuels
(SAQA)
January 2012
Dr Albert van
Jaarsveld
(NRF)
January 2009
Other CHE
committees
ARC
Qualification
Area of Expertise
Directorships
PhD
• General and
Further Education
and Training –
curriculum and
examinations
• Umalusi
Council
• SAQA Board
• QCTO
• Helderberg
College Council
MPhil
• Policy Development
• Qualifications
Framework
• Education and
Training system
• Community
Education and Adult
Education
• SAQA
• QCTO
• Umalusi
• NSA
PhD
• Biodiversity
• Conservation • Angelfish
Investments
(dormant)
Higher Education Quality Committee
Name
Appointed
Other CHE
committees
Qualification
Area of Expertise
Directorships
Members
Prof Theo
Andrew
April 2012
Prof Narend
Baijnath
April 2012
Chair - National
Reviews
Committee
PhD (Rural
Telecommunication
Planning)
• Electrical
Engineering
• System Science
• Engineering
Education
• Engineering
Council of
South Africa
(ECSA)
• Member KZN
branch of the
SAIEE Council
for Electrical
Engineering
DEd
• Higher education
strategy, policy and
planning;
• Open, distance and
e-learning;
• Quality assurance;
• Higher education
management and
leadership
• Organisational
architecture
• Business
intelligence.
• Commonwealth
of Learning
• Broadcape
CHE ANNUAL REPORT 2012-2013
71
COMPOSITION OF COUNCIL AND HEQC (continued)
Name
Prof Usuf
Chikte
Appointed
April 2012
Other CHE
committees
Chairperson
Qualification
January 2009
Chairperson
Accreditation
Committee
• Policy Formulation
• Regulatory Affairs,
Governance And
Professional Ethics
• Executive
member of
the Medical
and Dental
Professions
Board
• HPCSA
DPhil
• Private education
provision
• Governance
• Policy
• Open University
Curriculum
and Validation
Committee
- external
member
PhD
• Research
M Ed in
Cognition
• Curriculum Studies
• Quality
Management
LLD (UDW)
• Human Rights
• Constitutional Law
M Phil
• Quality assurance
• Strategic planning
• Higher Education
Management and
Governance
• Teaching &
Learning
• Curriculum
Development
• Assessment of
student learning
• Academic / student
administration
Institutional
research
• Executive
Director:
Monash South
Africa Limited
Non Profit
Company,
• Monash
Educational
Enterprises
• Monash
Property South
Africa
PhD
(Chemistry
Education)
• Chemistry
• Science Education
• Higher Education
Management and
Leadership
• HESA
• South African
Technology
Network
April 2010
Dr Andrew
Kaniki
April 2012
Ms Kuselwa
Marala
April 2012
Prof John
Mubangizi
April 2012
Ms Nicolene
Murdoch
April 2012
Prof
Nthabiseng
Ogude
April 2012
National
Reviews
Accreditation
Committee
72
Directorships
PhD
Institutional
Audits
Committee
Dr Felicity
Coughlan
Area of Expertise
Swayani Films
Prof Martin
Oosthuizen
April 2012
Accreditation
Committee
DTh
• Higher Education
Planning
• Quality Assurance
• Teaching and
Learning
Prof Rocky
RalebipiSimela
April 2012
Institutional
Audits
Committee
PhD
(Library and
Information
Science)
• Higher Education
• Sabinet on Line
• Senior Management • National Skills
Authority Board
CHE ANNUAL REPORT 2012-2013
Name
Appointed
Other CHE
committees
Qualification
Area of Expertise
Directorships
Co-opted member
Mr
Thamsanqa
Ledwaba
January 2009
MPhil Public
Policy
Public Policy
Expertise:
• Policy Research &
Analysis
• Strategic Planning
• Policy Monitoring &
Evaluation
• Education Policy
Specialist
• Social & Economic
Policy Analyst
• LedBan Group
Pty (Ltd)
• Tshelela Africa
Investment
Group Pty (Ltd)
Corporate Sector
Expertise
• Project
Management
• Corporate Affairs
Management
• International
Relations
• Management
Consulting
• Strategic
Negotiation and
Communications
Ex officio member
Ms Eugenie
Rabe
(Umalusi)
March 2011
BA (English
and History)
• Education
CHE ANNUAL REPORT 2012-2013
73
ACRONYMS
74
ASB
Accounting Standards Board
ARC
Audit and Risk Committee
ASASWEI
Association of South African Social Work Education Institutions
CEO
Chief Executive Officer
CFO
Chief Financial Officer
CESM
Classification of Educational Subject Matter
CHE
Council on Higher Education
DAFF
Department of Agriculture, Forestry and Fisheries
DHET
Department of Higher Education and Training
DST
Department of Science and Technology
EAP
Economically Active Population
ENE
Estimates of National Expenditure
ESS
Employee Self Service
EXCO
Executive Committee
FMPPI
Framework for managing programme performance information
GRAP
Generally Recognised Accounting Practice
HELTASA
Higher Education Learning and Teaching Association of South Africa
HEQC
Higher Education Quality Committee
HEQCIS
Higher Education Quality Committee Information System
HEQSF
Higher Education Qualifications Sub-Framework
HESA
Higher Education South Africa
HEI
Higher Education Institution
HPCSA
Health Professions Council of South Africa
HR
Human Resources
HRCC
Human Resources and Remuneration Committee
IAC
Institutional Audits Committee
IASB
International Accounting Standards Board
ICT
Information and Communication Technologies
MBA
Master in Business Administration
MEC
Monitoring and Evaluation Committee
MIS
Management Information System
MOU
Memorandum of Understanding
MTEF
Medium Term Expenditure Framework
NEHAWU
National Education, Health and Allied Workers’ Union
CHE ANNUAL REPORT 2012-2013
NQF
National Qualifications Framework Act 67 of 2008
NRF
National Research Foundation
NLRD
National Learners’ Records Database
PAA
Public Audit Act of South Africa, Act 25 of 2004
PAYE
Payments to Employee Tax
PFMA
Public Finance Management Act 1 of South Africa, Act 1 of 1999
PHEI
Private Higher Education Institution
QC
Quality Council
QCTO
Quality Council for Trades and Occupations
QEP
Quality Enhancement Project
SABSA
South African Business Schools Association
SAIP
South African Institute of Physics
SAQA
South African Qualifications Authority
SATN
South African Technology Network
SARS
South African Revenue Services
SETA
Sector Education Training Authority
SCM
Supply Chain Management
SRC
Students Representative Council
SQA
Seychelles Quality Authority
UIF
Unemployment Insurance Fund
UMALUSI
Council for Quality Assurance in General and Further Education and Training
UNISA
University of South Africa
VAT
Value Added Tax
CHE ANNUAL REPORT 2012-2013
75
NOTES
76
CHE ANNUAL REPORT 2012-2013
The Council on Higher Education (CHE) is an independent statutory body established in terms of the
Higher Education Act, (Act 101 of 1997), as amended. It operates in accordance with the prevailing
legislative and regulatory frameworks of the Republic of South Africa and with due cognisance of its
obligations and responsibilities in terms of such laws and regulations. The Higher Education Act sets out
the mandate and responsibilities of the CHE.
VISION
The CHE as an independent statutory body strives to be an organisation nationally and internationally
recognised for the quality of its intellectual contribution to and its impact on the development of the South
African higher education system through its core functions of advising the Minister of Higher Education
and Training, monitoring trends in the higher education system and assuring and promoting the quality
of higher education.
MISSION
The mission of the CHE is to contribute to the development of a transformed, equitable, high quality higher
education system capable of responding to the intellectual, ethical and human resource challenges of a
democratic society based on social justice principles which operates in a global context.
The main areas of work of the CHE are:
• To provide advice to the Minister of Higher Education and Training on all higher education matters
on request and proactively;
• To develop and implement a system of quality assurance for all higher education institutions,
including private providers of higher education, which focuses on programme accreditation,
institutional audits, national reviews, quality promotion and capacity development;
• To monitor the state of the higher education system in relation to the goals of national policies and
international trends;
• To contribute to the development of higher education through intellectual engagement with key
issues in a number of activities (including research, publications and conferences) and in partnership
with relevant stakeholders.
CHE ANNUAL REPORT 2012 - 2013
council on higher education
Published by
The Council on Higher Education
CHE Switchboard: +27 12 349 3840
1 Quintin Brand Street,
Persequor Technopark
Pretoria
South Africa
PO Box 94
Persequor Park
0020
South Africa
www.che.ac.za
Values
In pursuit of its vision and mission the CHE is committed to and guided by the following values:
• Independence
• Transformation
• Integrity
• Public Accountability
ISBN: 978-1-919856-89-6
CHE ANNUAL REPORT 2012 - 2013
CHE Switchboard: +27 12 349 3840
1 Quintin Brand Street,
Persequor Technopark
Brummeria
Pretoria
South Africa
PO Box 94
Persequor Park
0020
South Africa
CHE ANNUAL REPORT 2012 - 2013
Published by
The Council on Higher Education
www.che.ac.za
ISBN: 978-1-919856-86-5
council on higher education
Council on Higher Education
2012 - 2013
council on higher education
Council on Higher Education
2012 - 2013