PERFORMANCE INFORMATION ON
PRE-DETERMINED OBJECTIVES AND
BUDGET
Presentation to the
Portfolio Committee on
Higher Education and Training
20 August 2014
Presentation Outline
1. Background
2. Performance per Programme
(2013/14 fourth quarter and 2014/15 first quarter)
• Administration
• Human Resource Development, Planning and
Monitoring Coordination
• University Education
• Vocational and Continuing Education and
Training
• Skills Development
3. Budget Performance
2
Background
For the quarter ending 31 March 2014 (4th Quarter)
• There were 107 pre-determined targets during the
fourth quarter of the 2013/14 financial year
• As at 31 March 2014, 67% (72) of the targets were
achieved, 33% (35) were not achieved
• Further to this date, some of the targets that have not
been achieved has subsequently been achieved after
31 March 2014
3
Background
For the quarter ending 30 June 2014 (1st Quarter)
• The Department had 5 pre-determined targets, mainly in
the University Education and Vocational and Continuing
Education and Training (VCET) programmes
• Of the 5 targets, 3 were achieved and 2 were still in the
implementation phase
• Implementation of targets that will be fully reported at
the end of the financial year has also commenced and
each programme will present progress status thereof
4
Programme 1: Administration
Purpose: Provide overall management and administration
of the department
4th Quarter Performance:
22 Targets: 20 Achieved and 2 Not achieved
Key Achievements
• ICT governance maturity level 3 achieved (above the
targeted level 2)
• IT services available 24 hours, 7 days a week (24/7) to
DHET users (as planned)
• Functional user-friendly and updated DHET website
functional 90 days per year (as planned)
5
Programme 1: Administration
• Achieved an average of four months to fill a funded
vacancy from the date of advertisement to the date of
recommendation (as planned)
• Reduced vacancy rate of funded posts in the
department to 7.1% (target was10%)
• Disciplinary cases during the quarter were resolved
within 58 days (target 90 days)
• Achieved 98% performance against the Human
Resource Strategic Planning Framework as measured
by the Department of Public Service and Administration
(DPSA) assessment tool
6
Programme 1: Administration
• 100% compliance to SCM transactional processes
complying with SCM policies (as planned)
• Issued 3 DHET internal newsletters published quarterly
(target was 1)
• 99.72% of response to queries via call centre (as
planned)
• 4 exhibitions and public relations events held (as
planned)
• 99% compliance with Occupational Health and Safety
(OHS) (as planned)
• 96% compliance with security directives (target 95%)
• Risk management strategy and policy have been
developed and approved (as planned).
7
Programme 1: Administration
• Processed transfers was within an average period of 5
days (as planned)
• DHET financial statements were prepared and
approved
• 100% compliance to PFMA (as planned)
• Less than 1% of asset lost and / or unauthorised
movements
8
Programme 1: Administration
Deviations from targets during the fourth quarter
 The target to pay invoices from service providers within
28 days from the day the invoice was received was not
achieved.
− Instead valid claims / invoices were settled within
30 days. In terms of section 8.2.3 of the Treasury
Regulations all payments due to creditors must be
settled within 30 days from receipt of an invoice and
this was met where possible
9
Programme 1: Administration
 100% compliance with performance management
framework is not achieved.
− The Department will hold Managers and Supervisors
with direct supervisors, accountable for ensuring that
the planning and assessment timelines issued by HR
are met. This will be effective from 1 April 2014. A
circular will go out in this regard.
10
Programme 1: Administration
2014/15 1st quarter performance
• There were no specific delivery targets for the 1st
quarter of the 2014/15. However progress towards
ensuring that annual targets are achieved was made.
The main focus during the quarter under review was:
– Departmental IT Governance Framework aligned
with the Corporate Governance of ICT Policy
developed by the Department of Public Service
Administration (DPSA) has been developed
11
Programme 1: Administration
• The Department managed to keep the vacancy rate
below 10% (currently 8%) and the average period of 4
months to fill funded posts
• In respect to the period it takes to award a bid from the
date of receiving the draft bid specifications from
programme managers, there seems to be a challenge
to reach the 90 days target
12
Programme 2: HRD, Planning and Monitoring
Coordination
Purpose: Provide strategic direction in the development,
implementation and monitoring of departmental
policies and Human Resource Development
Strategy for South Africa
4th quarter performance:
18 Targets: 13 Achieved and 5 Not achieved
Key Achievements:
• 100% of public institutional data (50 Public TVET
Colleges, 23 HE institutions and 21 SETAs) integrated
into education and training management information
system (as planned)
13
Programme 2: HRD, Planning and Monitoring
Coordination
• Career Management and Information system modules
developed and 3 modules developed during the quarter
(target 2 modules)
• Targeted users were reached by career guidance
services through different platforms (radio, web portal,
exhibition and helpline) – as planned.
• DHET Annual Performance Plan was developed with
performance indicators and approved (as planned)
• Quarterly performance progress report on the
implementation of the strategic plan and the Annual
Performance Plan produced and approved (as
planned)
14
Programme 2: HRD, Planning and Monitoring
Coordination
• International relations operational framework strategy
was developed and implementation report produced
and approved (as planned)
• Engagement plans developed and implementation
report compiled and approved (as planned)
• A publication on international collaboration produced
and approved (as planned)
15
Programme 2: HRD, Planning and Monitoring
Coordination
• Litigations against the Department were dealt with in
line with prescribed court rules
• Legal opinions and agreements were provided as per
requests
• Annual Ministerial policy guidelines developed and
approved (as planned)
• Dealt with requests for advice within the standards
approved by the Branch Head (as planned)
16
Programme 2: HRD, Planning and Monitoring
Coordination
Deviation from planned targets during fourth quarter
 A research bulletin was approved and published after
the end of the quarter due to qualitative checks that
took longer than planned
 An investment report on education and training was
compiled and approved by after the deadline of
31 March 2014 due to qualitative checks that took
longer than planned
 Monitoring report on the implementation of the Social
Inclusion Framework was subsequently finalised and
approved in April 2014
17
Programme 2: HRD, Planning and Monitoring
Coordination
 Updated database of international engagements of all
public post-school institutions
− The revision of the electronic data capturing system
was delayed due to system development delays as
the Department did not have at its disposal technical
resources that could develop an online application
− The technical resource was only allocated in
November 2013 to this project. Surveys have since
been submitted to Universities and the content will
be updated accordingly
18
Programme 2: HRD, Planning and Monitoring
Coordination
• Monitoring and evaluation report on the mandatory role
of the Quality Councils and SAQA:
− Due to consultative process followed the monitoring
and evaluation report was finalised and approved
after 31 March 2014.
2014/15 1st Quarter Performance
• There were no specific delivery targets for the 1st
quarter of the 2014/15 financial year. However progress
towards ensuring that annual targets are achieved was
made:
19
Programme 2: HRD, Planning and Monitoring
Coordination
2014/15 1st Quarter Performance
•Institutional data integration: 50% Data integrations
have been initiated for Adult Education and Training
(AET) and Technical and Vocational Education and
Training (TVET) 2013 Annual Surveys. The Minister has
approved and signed the Standard for the Publication of
Post-School Education and Training Statistics Report in
South Africa as well as Data Dissemination Standards
which was published in the Government Gazette on 12
June 2014 as Gazette No. 37733 of June 2014
20
Programme 2: HRD, Planning and Monitoring
Coordination
• On track with the development of a Career
Development Policy and implementation strategy:
- A draft Career Development Policy has been
developed and will be presented to the National
Career Development Government Forum for
consultation
- The Career Development Services tender to extend
the National Career Advice Portal (NCAP) modules
is in process. The Service Provider for the
‘Competency Framework for Career Development
Practitioners’ has delivered the first draft for
consultation
21
Programme 2: HRD, Planning and Monitoring
Coordination
•The engagement plan to pursue and strengthen bilateral
relations with priority countries in Africa, Middle East,
South and the North as well as with multilateral agencies
has been compiled and being finalised
22
Programme 3: University Education
Purpose: Develops and coordinates policy and regulatory
frameworks for an effective and efficient
university education system and provides
financial support to universities, National Student
Financial Aid Scheme and National Institutes for
Higher Education
4th quarter performance:
17 Targets: 14 Achieved and 3 Not achieved
Achievements:
• 18% headcount enrolment at universities over
population 20 to 24 year old (as planned)
• 2 public higher education institutions established
23
Programme 3: University Education
• 21 universities are now involved in Foundation Phase
teacher education
• Monitoring report on the implementation of TVET
Lecturer Qualifications developed and approved
• 18 universities had indicated interest to develop TVET
College lecturer qualifications (target 10)
• Monitoring and evaluation reports on the use of
infrastructure grants to universities produced
• Monitoring and evaluation reports on the use of
teaching development grants to universities produced
• 87% of the 23 public higher education institutions with
good governance and management in place
24
Programme 3: University Education
• 100% (3) statutes of universities reviewed and
published in government gazette
• Governance training workshop for ministerial
appointees conducted (as planned)
• 12 363 Publications units produced in the 2012
calendar year, as reported in the Research Outputs
Report, was approved by January 2014
• 1.38 ratio of research output units per instructional /
research staff in 2012 (above target of 1.36)
• 2 updates on the HEMIS for audited student and staff
data (as planned)
• 1 annual update on the HEMIS system for final building
space data from the Universities (as planned)
25
Programme 3: University Education
Deviation from targets during the fourth quarter
 The draft Policy on Professional Qualifications for Adult
Educators and Community Education and Training
Lecturers was not published for public comment as
planned.
− The draft policy document had been widely
consulted and finalised early in the third quarter and
is undergoing an approval process
26
Programme 3: University Education
 97% of Private Higher Education Institutions (PHEIs)
comply with the regulatory criteria
– The 100% target is ambitious and an ideal. The
achievement of 97% compliance, while not meeting
the ideal, is considered to be acceptable. A total of
116 PHEIs were registered by the end of the quarter,
and of these only 4 were non-compliant with all the
regulations, and had been put under notice of intent
to cancel.
27
Programme 3: University Education
• The target of five Ministerial Appointees on each
university council has not been achieved.
- Universities are autonomous institutions and their
individual statutes determine the number of
Ministerial appointees for their Council. Currently
eight of the 25 universities have statutes that do not
specify 5 Ministerial Appointees
- The Department has requested these universities to
review their statutes to enable the Minister to
appoint 5 members to their Councils
28
Programme 3: University Education
• While some of these universities have indicated they
are considering the request, others have indicated
already that they do not intend to comply
• The review of the Higher Education Act (of 1997, as
amended) currently underway will consider this issue
and whether or not the Act should stipulate that
councils must have five ministerial appointees. Any
change in the act will require these universities to
review their statutes
29
Programme 3: University Education
2014/15 1st quarter performance
• The University Education programme had two specific
quarterly targets in the APP which were not were fully
achieved during the quarter
• In addition to the specific quarter targets, one of the
quarterly targets set for later in the financial year was
also achieved, namely the establishment of the third
new university in South Africa since 1994, the Sefako
Makgato Health Sciences University (SMU)
• 23 University teaching development plans (3-years)
were submitted and approved (target was 24
universities)
30
Programme 3: University Education
• 24 Research Development Plans were submitted and
evaluated by a review panel in terms of criteria. All 24
RDPs have been recommended for approval
• However the submissions requesting approval were not
completed during the quarter, and therefore the final
approval was not obtained by June 2014. It is
anticipated that all 24 plans will be approved during the
second quarter.
31
Programme 3: University Education
• Significant progress has been made by the branch on
other 2014-15 annual targets:
– HEMIS second submission 2013 student data for the
23 Institutions has been loaded to the National
database and all standard reports have been
generated for all the enrolment target indicators
– 2013 final audited data will be uploaded during July
to the national database. Thereafter reports will be
generated and the verification process against the
external audit reports will commence
– The process is on track and the final audited 2013
data will be available in October 2014
32
Programme 3: University Education



A monitoring report on the use of the
earmarked grant to support the
development of each of the newly
established universities (University of
Mpumalanga (UMP) and Sol Plaatje
University (SPU)) produced and
approved by 31 March 2015
5 universities have submitted
applications for PQM approval to offer
the qualification programmes for TVET
College lecturers by 31 March 2015
A national Policy on Professional
Qualifications for Educators in
Community and Adult Education and
Training is published in the Government
Gazette by 31 March 2015
The annual report on the establishment of
UMP and SPU from the project
management team has been received and
found to be satisfactory. On-going
monitoring is being carried out and the
final monitoring report will be completed
during the 4th quarter for approval
2 universities have thus far submitted
applications for approval
The draft policy has been published for
public comment. Interested parties were
given until the 15 July to submit
comments. Once comments are received
they will be analysed and the draft final
policy will be prepared for approval. This
process is on track
33
Programme 3: University Education

R2 2 billion disbursed to universities
by 31 March 2015
R140m was disbursed during the first
quarter.

A monitoring report on the effective
use of infrastructure grants by each
university (23) produced and
approved by 31 March 2015
Most universities have submitted their
annual infrastructure progress reports and
these have been analysed. Selective site
visits to some infrastructure projects will be
carried out during the 2nd and 3rd quarters.
The final monitoring will be completed in the
4th quarter

Annual monitoring report on the
outputs of scarce skills graduates
from 23 universities with
recommendations for interventions
produced and approved by 31 March
2015
Once the audited 2013 HEMIS data is
available (i.e. October 2013) the annual
monitoring report will be developed
34
Programme 3: University Education

An annual report on the financial
health of 25 universities with
recommendations for
improvement produced and
approved by 31 March 2015

Draft revised regulations for
regulating PHEIs are approved
by the Minister and published in
the Government Gazette for
public comment by September
2014
An annual monitoring report on
PHEIs’ compliance with the
regulatory criteria with
recommendations for
improvement produced and
approved by 31 March 2015

21 of 25 universities submitted their annual
reports by the 30 June as required. 4 universities
were granted an extension to submit by the 31
July. The analysis of the audited financial
statements commenced during June. The final
report will be ready for approval in the 4th quarter
Draft regulations have been developed and a
submission has been drafted for Ministerial
approval
109 PHEIs submitted their annual reports and the
process of analysing the annual reports for
compliance is underway and is expected to be
completed by October 2014. The final monitoring
report will be compiled on the basis of the
analysis and on-going
35
Programme 3: University Education

An improved Policy on the
measurement of research
outputs of universities is
approved by the Minister
and published in the
government gazette for
implementation by 31
March 2015
The final policy statement was completed after taking
into account the public comments on the draft policy
published in the previous financial year. The final policy
statement was sent to the CHE for advice. Comments
have been received from the CHE and will be analysed.
Once finalised it will be submitted for ministerial
approval for publication. The process is on track to meet
the target of 31 March 2015.

An annual report on the
research outputs of 23
universities approved by
31 March 2015
23 institutions had submitted their research outputs
claims by early June 2014. All books and conference
proceedings were screened and sent for expert
evaluation by the end of June 2014. The next step will
be to receive the expert reports, and for the research
outputs panel to meet and make decisions on the
recommendations. It is expected that by November
2014 the panel will have made its final
recommendations and the draft research outputs report
will be ready for final approval
36
Programme 3: University Education

2 (1 student and 1
staff) updates for 23
universities by
31 March 2015

1 annual update for
23 universities by
31 March 2015
All HEMIS second submission 2013 student data for the 23
institutions has been loaded to the National database and all
standard reports have been generated. All preliminary staff
data for 2013 has been uploaded to the National database
and standard reports generated. The University of Zululand
submitted late due to the fact that they had to appoint a new
HEMIS officer
The 2013 space data for 21 of the 23 universities has been
loaded to the National database. UNISA has submitted their
data but there are issues with the loading of the data due to
the format provided. The University of Zululand still has to
submit their space data as the new HEMIS officer is waiting
verification of data from the assets department. UCT, the
University of Fort Hare, University of Venda and the
University of Witwatersrand (Wits) submitted their data late.
Wits’ data has errors as they cannot verify the classification
of subject matter for some of the venues
37
Programme 4: Vocational and Continuing
Education and Training
Purpose: Plan, develop, evaluate, monitor and maintain
national policy, programmes, assessment
practices and systems for vocational and
continuing education and training, including
further education and training colleges and postliteracy adult education and training
4th quarter performance:
•37 Targets: 13 Achieved and 24 Not achieved as at
31 March 2014
Key Achievements:
•290 106 learners were enrolled in AET Centres
•670 455 headcount enrolments in TVET Colleges
38
Programme 4: Vocational and Continuing
Education and Training
• 273 679 TVET college students awarded bursaries
• Report on the coordination of the following donorfunded projects produced:
− Business Management Standards
− Qualifications, review, NC (V) selected subjects review
− Student Support Services interventions implemented to
selected TVET Colleges
• NASCA related policies and regulations developed
• 9 institutions have been identified to for declaration as
community colleges
39
Programme 4: Vocational and Continuing
Education and Training
• 75 personnel at Public TVET Colleges were trained in
strategic and Operational planning
• Training and assessment of the implementation of the
Collective Agreement was conducted in 9 provinces
• All (50) public TVET Colleges responding to annual
survey conducted by the Department
• A TVET college model was developed and forms the
basis for all underway projects of constructing new
campuses and refurbishment of existing ones
• 100% of registered private colleges comply with
applicable regulations
40
Programme 4: Vocational and Continuing
Education and Training
Deviation from targets during the fourth quarter
 New 1x3 NC (V) qualification registered on the NQF
was not been achieved:
− Delay in the completion of this output is attributable
to the extensive stakeholder consultative process
undertaken in formulating the final
recommendations
− The NC (V) qualifications policy will only be revised
once the Departmental recommendations have
been approved
41
Programme 4: Vocational and Continuing
Education and Training
 Material development for the National Senior Certificate for Adults
Qualification:
− A protracted engagement on articulation by the Department of
Basic Education (DBE), DHET, Umalusi and South African
Qualifications Authority (SAQA) resulted in the National Senior
Certificate for Adults (NASCA) only being registered as a
qualification at the end 2013
− This development impacted negatively on the crafting of the
curriculum, the related training and the development of the
teaching and learning materials as envisaged
− The material development activity is currently underway and
subsequently overlapped into 2014/15 activities
42
Programme 4: Vocational and Continuing
Education and Training
 AET educators and TVET College lectures trained for
the NASCA and GETC:
− Due to the threat of a disengagement programme by
AET educators in Limpopo, the scheduled training
sessions could not go ahead (1 056 AET
practitioners were to be trained)
− In KZN, scheduled training sessions had to be
postponed as a result of the province not being able
to transport educators to the various venues (1 000
educators were targeted)
43
Programme 4: Vocational and Continuing
Education and Training
• Approval of the Amended National Certificate
(Orientation):
− The Amended National Certificate (Orientation) was
planned to have been developed and approved in the
fourth quarter under review. Owing to financial and
human capacity constraint in the Department, this
output was not realized
− Umalusi will undertake the development of the new
qualification in the 2015/16 financial year
• Colleges offering NQF level 5 to 6 programmes:
− The number of colleges offering HE programmes has
reduced from the 8 reported in the previous year to 7
in the current year and 3 less than the target of 10
44
Programme 4: Vocational and Continuing
Education and Training
− This is attributed to the fact that this offering is not
funded and students are expected to fund their
studies at their own cost. This proved unachievable
given the present economic climate
• 46 College councils trained in institutional and
corporate governance (target 50):
− Training was delayed as a result of not having fully
constituted College councils
45
Programme 4: Vocational and Continuing
Education and Training
• Construction of 6 new TVET college campuses :
− There were delays caused by environmental impact
assessment, procurement process and awarding of
tenders on the construction of new TVET college
campuses
• The target to have all (100%) AET Centres with
improved conditions of service for educators was not
achieved due to lack of funding. Could not obtain
funding for provinces to implement the mandate
46
Programme 4: Vocational and Continuing
Education and Training
• 100% (all) of public TVET College functions transferred
to the Department - The progress on the transfer of
functions is impacted by factors outside the control of
the Department
• Targets for the training of TVET college lecturers, PEDs
officials, and other personnel in TVET colleges were
achieved in quarters preceding the quarter under review
• 98% AET colleges conducted improved assessments
(target 100%)
• 96% (i.e.48 out of 50) of TVET Colleges conducted
improved assessments as only 2 public TVET Colleges
reported irregularities – Majuba and East Cape
Midlands
47
Programme 4: Vocational and Continuing
Education and Training
 A national examination report compiled and approved:
− A draft performance report for 2013 examination
cycle was compiled and then amended to reflect a
full academic year instead of only the November
examination cycle after March 2014 and is yet to be
approved
48
Programme 4: Vocational and Continuing
Education and Training
2014/15 1st Quarter Performance
There were no specific delivery targets for the 1st quarter
of the 2014/15. However, progress towards ensuring that
annual targets are achieved was made:
•In the first term of the Report 190/1 trimester and
semester based programmes; and the yearlong National
Certificate (Vocational) programmes, 359 119 unaudited
headcount student enrolments have been reported.
This figure excludes students enrolled in other
occupationally directed short skills programmes and is
almost 50% of the annual target.
49
Programme 4: Vocational and Continuing
Education and Training
• The Department is still on track with public institutions to
be identified for declaration as Community Colleges
• A draft National Policy on Community Colleges to
facilitate the community college establishment process
has been developed for gazetting
• Nine potential sites have been identified for the
establishment of these colleges and operational cost
projections for the establishment after declaration and
piloting of community colleges have been developed with
a view to submitting it to the National Treasury through a
bidding process
50
Programme 4: Vocational and Continuing
Education and Training
• Substantive broad and specific or project driven
interventions aimed at improving academic performance
i.e. pass and certification rates of TVET college students
enrolled in Report 190/1 and NC(V) programmes are
being implemented by colleges and administered by the
Department
51
Programme 5: Skills Development
Purpose: Promote and monitor the national skills
development strategy. Develop skills
development policy and a regulatory framework
4th quarter performance:
13 Targets: 10 Achieved and 3 Not Achieved as at
31 March 2014
Key Achievements:
• 5 154 artisan candidates were found competent
nationally
• 27 346 graduates were receiving work intergraded
learning (WIL)
• 16 audits conducted at SETA or QCTO accredited trade
test centres (target 10)
52
Programme 5: Skills Development
• All SETAs (21) have partnership agreements with public
TVET Colleges and Universities (284 partnership
agreements) (target was at least 4)
• 100% (All) SETAs implementing NSDS III with approved
service level agreement
• All 21 SETAs Strategic plans were approved
• 2 SETA Fora targeted to improve communication with
SETAs were held (as planned)
• 1 NSDS quarterly implementation report compiled
53
Programme 5: Skills Development
Deviation from targets during the fourth quarter
• 7 450 artisan learners registered nationally (target was
13 000)
− Incomplete reports from SETAs which get corrected
progressively
• 45% of national artisan learners pass trade test (target
48%)
− This performance only reflects testing conducted at
INDLELA . Artisan RPL System still in pilot phase to
assist persons who are RPL candidates tested at
INDLELA
• Scarce and critical skills list has been compiled but
could not be approved within the planned timeframe
54
Programme 5: Skills Development
2014/15 1st Quarter performance
• All 3 planned targets for the 1st quarter were achieved.
- 6 097 artisan candidates registered nationally
(Target was 3000)
- 2 329 artisan candidates found competent nationally
(Target was 2000)
- 9 audits conducted at SETA or QCTO accredited
trade test centres (Target was 5)
• Progress has been made towards the achievement of
the 2014-15 annual targets which is as follows:
55
Programme 5: Skills Development

37 016 graduates
receiving
Structured Work
Place Learning by
31 March 2015

48% of INDLELA
national artisan
learners pass
trade test by
31 March 2015
All 21 SETAs’ Service Level Agreements were approved with the
inclusion of the graduate placement targets. Measures are in
place for SETAs to report placement of graduate on quarterly
basis and validate the quarterly reports that are received from
SETAs. Lastly all SETAs’ first quarterly reports were submitted
as required providing progress towards predetermined
objectives and performance targets
Measures are in place to convey at least two workshop trainings
for electricians and boilermakers to assist with improving
competencies for unemployed before testing. A centralized
National Artisan Development Quality Assurance Committee has
been established to coordinate audits to trade test centres with
the SETAs on a monthly basis. Provincial Artisan Development
Steering Committees are being established in each province that
combines all the public TVET Colleges into a single structure to
coordinate artisan development in each province that will have
specific emphasis of RPL for artisans that will also have an
impact on the trade test pass rate nationally
56
Programme 5: Skills Development

30 TVET colleges with
partnership agreements
with SETAs by
31
March 2015
All 21 SETAs’ Service Level Agreements were approved
with the inclusion of targets for TVET colleges’
partnership agreements and SETAs first quarterly reports
were submitted as required providing progress towards
predetermined objectives and performance targets
57
2013/14 Financial Year End
Programme
1: Administration
2: Human Resource
Development, Planning and
Monitoring Coordination
3: University Education
4: Vocational and Continuing
Education and Training
5: Skills Development
6: Direct Charges (SETAs and
NSF)
Total
Allocation
R’000
Actual
Expenditure
R’000
203 729
203 044
685
99.7
43 827
43 535
292
99.3
28 299 507
28 299 279
228
100.0
5 686 806
5 686 388
418
100.0
100 031
99 723
308
99.7
12 090 186
12 090 186
-
100.0
46 424 086
46 422 155
1 931
100.0
Variance
R’000
% Spent
58
Explanations of Material Variances
• Programme 1: Administration
(Unspent: R685 000)
Under-expenditure mainly due to:
– Staff attrition and posts not filled as projected
– Invoices i.r.o. travel and accommodation not received as projected
• Programme 2: Planning and Monitoring
(Unspent: R292 000)
Under-expenditure mainly due to:
– Invoices i.r.o. travel and accommodation not received as projected
– Invoices i.r.o. legal and legislative claims not received as projected
– Fewer active court cases outside Pretoria
• Programme 3: University Education
(Unspent: R228 000)
Under-expenditure mainly due to:
– Staff attrition and posts not filled as projected
– Invoices i.r.o. travel and accommodation not received as projected
59
Reasons for Deviations
• Programme 4: Vocational and Continuing
Education and Training
(Unspent: R418 000)
Under-expenditure mainly due to:
– Examination claims i.r.o. examiners and moderators not received as
projected
– Travel and subsistence claims i.r.o. examiners and moderators not
received as projected
– Saving on computer equipment due to revision of replacement period for
some of the equipment as a result of budget constraints
• Programme 5: Skills Development
(Unspent: R308 000)
Under-expenditure mainly due to:
– Staff attrition and posts not filled as projected
– Indlela security system because of transitional arrangements and the
extent of the project
60
2013/14:
Spending Trends per Economic Classification
Allocation
R’000
Actual
Expenditure
R’000
Deviation
R’000
Compensation of Employees
398 903
398 450
453
99.9
Goods and Services
178 844
178 134
710
99.6
Provinces (TVET Colleges Conditional Grant)
2 454 188
2 454 188
-
100.0
Sector Education and Training (skills levy)
9 673 818
9 673 818
-
100.0
National Skills Fund (skills levy)
2 416 368
2 416 368
-
100.0
National Student Financial Aid Scheme
5 769 405
5 769 405
-
100.0
113 201
113 145
56
100.0
22 388 767
22 388 767
-
100.0
2 917
2 927
(10)
100.3
3 013 189
3 013 189
-
100.0
Higher Education South Africa for HEAIDS project
7 000
7 000
-
100.0
Leave Gratuities
1 815
1 705
110
93.9
5 636
5 032
604
89.3
35
27
8
77.1
46 424 086
46 422 155
1 931
100.0
Economic Classification
%
Spent
Transfer Payments
Public Entities: Other transfers such as SAQA, QCTO and CHE
Universities (current)
Commonwealth of Learning and IBSA
TVET College Subsidies
Capital Expenditure
Machinery and equipment
Intangible assets
Total
61
2014/15: First Quarterly Report: Summary
•
•
•
•
•
•
•
•
The overall spending rate for the first quarter is 41.2% (including Direct Charges)
The spending rate for the first quarter excluding Direct Charges is 47.5%
The reasons for this high spending trend is due to the uneven transfers made to
universities and TVET Colleges
Average spending for normal operational activities including compensation of
employees was 28.9% as opposed to the ideal 25% that it should have been
The spending rate on compensation of employees is 27.3% which is higher than the
normal trend and is made up as follows:
- The spending rate on Departmental Personnel Expenditure is 24.8%
Spending on this item is at a high risk as vacancies are still in process of being
filled and the upgrading of posts from levels 9 and 11 to 10 and 12 respectively still
need to be paid.
- The spending rate on Examiners and Moderators is 37.7%
Spending on this item is at a high risk and will mainly be influenced by
examinations later in the year. This item is also directly impacted by the number of
enrolments in TVET Colleges
The Spending on transfers and Subsidies are on track
Expenditure trends are monitored closely within the Department
Cost saving measures have been implemented in the Department
62
2014/15 Financial Year End: First Quarter
Programme
1: Administration
2: Human Resource Development,
Planning and Monitoring
Coordination
3: University Education
4: Vocational and Continuing
Education and Training
5: Skills Development
6: Direct Charges (SETAs and NSF)
Total
Allocation
R’000
Actual
Expenditure
R’000
217 101
57 597
159 504
26.5
48 785
9 726
39 059
19.9
30 448 037
15 689 749
14 758 288
51.5
6 042 177
1 737 115
4 305 062
28.7
110 581
24 772
85 809
22.4
13 440 000
3 189 225
10 250 775
23.7
50 306 681
20 708 184
29 598 497
41.2
Variance
R’000
% Spent
63
2014/15: Spending Trends per Economic Classification
Economic Classification
Actual
Expenditure
R’000
Allocation
R’000
Deviation
R’000
% Spent
Compensation of Employees
426 540
116 259
310 281
27.3
Goods and Services
183 994
41 418
142 576
22.5
2 631 346
877 126
1 754 220
33.3
10 752 647
2 551 426
8 201 221
23.7
National Skills Fund (skills levy)
2 687 353
637 799
2 049 554
23.7
National Student Financial Aid Scheme
6 138 832
3 451 436
2 687 396
56.2
121 037
30 215
90 822
25.0
24 155 093
12 203 001
11 952 092
50.0
2 915
-
2 915
0.0
3 195 827
798 963
2 404 284
25.0
7 240
-
7 420
0.0
-
25
(25)
3 677
515
3 162
-
-
-
50 306 681
20 708 183
29 598 498
Transfer Payments
Provinces (TVET College Conditional Grant)
Sector Education and Training (skills levy)
Public Entities: Other transfers such as SAQA, QCTO and CHE
Universities (current)
Commonwealth of Learning and IBSA
TVET College Subsidies
Higher Education South Africa for HEAIDS project
Leave Gratuities
-
Capital Expenditure
Machinery and equipment
Intangible assets
Total
14.0
41.2
64
Thank You