performance information on pre-determined objectives and budget presentation to the portfolio...

PERFORMANCE INFORMATION ON PRE-DETERMINED OBJECTIVES AND

BUDGET

Presentation to the Portfolio Committee on

Higher Education and Training

20 August 2014

Presentation Outline

2

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

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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

Background

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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

Background

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)

Purpose: Provide overall management and administration of the department

Programme 1: Administration

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• 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


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• 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).


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• 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


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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


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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.


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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


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• 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


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Programme 2: HRD, Planning and Monitoring Coordination

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)

Purpose: Provide strategic direction in the development, implementation and monitoring of departmental policies and Human Resource Development Strategy for South Africa

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• 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)

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• 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)

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• 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)

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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

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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

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• 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:

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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

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• 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

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•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

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Programme 3: University EducationPurpose: 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

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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

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• 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)

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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

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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.


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• 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


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• 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


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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)


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• 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.


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• 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


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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

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

5 universities have submitted applications for PQM approval to offer the qualification programmes for TVET College lecturers by 31 March 2015

2 universities have thus far submitted applications for approval

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 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


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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


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An annual report on the financial health of 25 universities 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 revised regulations for regulating PHEIs are approved by the Minister and published in the Government Gazette for public comment by September 2014

Draft regulations have been developed and a submission has been drafted for Ministerial approval

An annual monitoring report on PHEIs’ compliance with the regulatory criteria with recommendations for improvement produced and approved by 31 March 2015

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


36

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


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2 (1 student and 1 staff) updates 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

1 annual update for 23 universities by 31 March 2015

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

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 post-literacy 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

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• 273 679 TVET college students awarded bursaries• Report on the coordination of the following donor-

funded 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

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• 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

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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

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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

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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)

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• 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

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− 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

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• 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


• 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

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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

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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.

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• 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


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• 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


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Programme 5: Skills DevelopmentPurpose: 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)

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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

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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


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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:


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37 016 graduates receiving Structured Work Place Learning 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

48% of INDLELA national artisan learners pass trade test by 31 March 2015

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


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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

2013/14 Financial Year End

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ProgrammeAllocation

R’000

Actual Expenditure

R’000

Variance

R’000% Spent

1: Administration 203 729 203 044 685 99.7

2: Human Resource Development, Planning and Monitoring Coordination

43 827 43 535 292 99.3

3: University Education 28 299 507 28 299 279 228 100.0

4: Vocational and Continuing Education and Training

5 686 806 5 686 388 418 100.0

5: Skills Development 100 031 99 723 308 99.7

6: Direct Charges (SETAs and NSF)

12 090 186 12 090 186 - 100.0

Total 46 424 086 46 422 155 1 931 100.0

Explanations of Material Variances

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• 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

Reasons for Deviations

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• 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

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Economic ClassificationAllocation

R’000

Actual Expenditure

R’000

Deviation

R’000%

Spent

Compensation of Employees 398 903 398 450 453 99.9

Goods and Services 178 844 178 134 710 99.6

Transfer Payments

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

Public Entities: Other transfers such as SAQA, QCTO and CHE 113 201 113 145 56 100.0

Universities (current) 22 388 767 22 388 767 - 100.0

Commonwealth of Learning and IBSA 2 917 2 927 (10) 100.3

TVET College Subsidies 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

Capital Expenditure

Machinery and equipment 5 636 5 032 604 89.3

Intangible assets 35 27 8 77.1

Total 46 424 086 46 422 155 1 931 100.0

2013/14: Spending Trends per Economic Classification

2014/15: First Quarterly Report: Summary

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• 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

2014/15 Financial Year End: First Quarter

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ProgrammeAllocation

R’000

Actual Expenditure

R’000

Variance

R’000% Spent

1: Administration 217 101 57 597 159 504 26.5

2: Human Resource Development, Planning and Monitoring Coordination

48 785 9 726 39 059 19.9

3: University Education 30 448 037 15 689 749 14 758 288 51.5

4: Vocational and Continuing Education and Training 6 042 177 1 737 115 4 305 062 28.7

5: Skills Development 110 581 24 772 85 809 22.4

6: Direct Charges (SETAs and NSF) 13 440 000 3 189 225 10 250 775 23.7

Total 50 306 681 20 708 184 29 598 497 41.2

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Economic ClassificationAllocation

R’000

Actual Expenditure

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

Transfer Payments

Provinces (TVET College Conditional Grant) 2 631 346 877 126 1 754 220 33.3

Sector Education and Training (skills levy) 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

Public Entities: Other transfers such as SAQA, QCTO and CHE 121 037 30 215 90 822 25.0

Universities (current) 24 155 093 12 203 001 11 952 092 50.0

Commonwealth of Learning and IBSA 2 915 - 2 915 0.0

TVET College Subsidies 3 195 827 798 963 2 404 284 25.0

Higher Education South Africa for HEAIDS project 7 240 - 7 420 0.0

Leave Gratuities - 25 (25) -

Capital Expenditure

Machinery and equipment 3 677 515 3 162 14.0

Intangible assets - - - -

Total 50 306 681 20 708 183 29 598 498 41.2

2014/15: Spending Trends per Economic Classification

Thank You

performance information on pre-determined objectives and budget presentation to the portfolio...

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performance information

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