ANNUAL PERFORMANCE PLAN AND BUDGET FOR 2013/14

1. Presentation to the Select Committee on Education and Recreation 24 April 2013 ANNUAL PERFORMANCE PLAN AND BUDGET FOR 2013/14

2. Presentation Outline • Mandate and Progress • 2. ProgrammePlans and Targets for 2013/14 • Administration • Human Resource Development, Planning and Monitoring Coordination • University Education • Vocational and Continuing Education and Training • Skills Development • 3. 2013/14 MTEF Budget Information

3. Mandate • Expandaccess to education and training for the youth • Adequately capacitate educational institutions for effective provision or facilitation of learning • Increase the number of students successfully entering the labour market upon completion of training • Colleges with a curriculum responsive to the demands of the market place with a special emphasis on artisan training • Credible institutional mechanisms for skills planning to support an inclusive economic growth path • Expand research, development and innovation capacity for economic growth and social development • Highly effective, professional, efficient administration informed by good corporate governance practices

4. Progress on Key Performance Indicators Progress since 2009 • Students headcount enrolments at universities increased by 12% from 837 779 to 937 455 • First time enrolments at universities increased by 9% from 164 528 to 179 101 • Graduates from universities increased by 11% from 144 810 to 160 299 • Graduates in Engineering Sciences increased by 9% from 8 424 to 9 193 • Graduates in Human Health and Animal Health increased by 10% from 7 341 to 8 049 • Graduates in Natural and Physical Sciences increased by 59% from 3 468 to 5 518 • Research Masters graduates increased by 26% from 4 179 to 5 281 • Doctoral graduates increased by 15% from 1 373 to 1 576 • Initial teacher education graduates increased by 60% from 6 315 to 10 133 • NSFAS students bursary funding at FET Colleges increased from R318 million in 2010 to R1.9 billion in 2013 targeting 222 817 students

5. Progress since 2009 • Headcount enrolments in FET Colleges increased by 24% from 345 566 in 2010 to 427 423 in 2011 and 657 690 in 2012 • Introduced a draft Framework for lecturer qualification for FET Colleges for public comment • Established the Quality Council for Trades and Occupation (QCTO) andNational Artisan Moderation Body (NAMB) • Artisan candidates found competent increased by 60% from 8 238 to 13 168 • 3 400 graduates received Work Integrated Learning in 2011 • Artisan trade test pass rate has improved from 41% to 43% in 2009 and 2011 respectively • Entered into 8 bilateral and multilateral agreements • 138 international scholarship offers are being afforded to South African students

6. Programme 1: Administration Purpose: Provide overall management and administration of the department

7. Risks and Mitigation Measures

8. Programme 2: Human Resource Development, 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

9. Programme 2: Human Resource Development, Planning and Monitoring Coordination

10. Programme 2: Human Resource Development, Planning and Monitoring Coordination

11. Risks and Mitigation Measures

12. Programme 3: University Education Purpose: Develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. Provide financial support to universities, the National Student Financial Aid Scheme and the National Institutes for Higher Education

13. Programme 3: University Education Purpose: Develop and coordinate policy and regulatory frameworks for an effective and efficient university education system. Provide financial support to universities, the National Student Financial Aid Scheme and the National Institutes for Higher Education Strategic Objective: Expand the higher education sector in order to increase equitable access with success

14. Programme 3: University Education

15. Programme 3: University Education Strategic Objective 2: Improve success rates in higher education studies at public institutions and therefore increase graduate outputs by 2014

16. Programme 3: University Education Strategic Objective 3: Monitor good governance and management of the Higher Education system in order to build capacity and efficiency

17. Programme 3: University Education Strategic Objective 4: To develop and enhance the research capacity and productivity of universities.

18. Risks and Mitigation Measures

19. Risks and Mitigation Measures

20. 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 Strategic Objective: Increase access to and improve success in programmes leading to intermediate and high-level learning by 2014

21. Expanding Access to AET Programmes

22. Expanding Access to FET Colleges

23. Expanding Access to FET College NSFAS Bursaries

24. Programme 4: Vocational and Continuing Education and Training

25. Programme 4: Vocational and Continuing Education and Training

26. Programme 4: Vocational and Continuing Education and Training

27. Programme 4: Vocational and Continuing Education and Training Strategic Objective: Strengthen the institutional capacity of VET institutions to improve their performance and efficiency

28. Establishment of 14 FET College Campses

29. Programme 4: Vocational and Continuing Education and Training Strategic Objective: Provide support for the implementation of a monitoring, evaluation, and research for the improvement of the vocational education and training subsystem

30. Risks and Mitigation Measures

31. Risks and Mitigation Measures

32. Programme 5: Skills Development Purpose: Promote and monitor the national skills development strategy. Develop skills development policy and a regulatory framework Strategic Objective: Provide a dynamic interface between the workplace and learning institutions and to promote quality learning at work and for work by 2016

33. Programme 5: Skills Development Strategic Objective: Promote the alignment of skills development outputs to the needs of the workplace and to the broader growth needs of the country’s economy

34. Programme 5: Skills Development Strategic Objective: Provision of funding to support projects that are national priorities in the NSDS, advance the Human Resource Development Strategy (HRDS) of South Africa and support the NSA in its work

35. Risks and Mitigation Measures

36. Financial Information • For the 2013 MTEF the Department’s budget is still based on the original 5 Programmes as approved by National Treasury • The Department’s budget consists of two portions namely: - The normal voted funds for the 5 Programmes of the Department - The skills levy funding for the NSF and the SETAs that is listed in the budget as “Direct Charges” • The Department’s allocation for 2013/14 is, therefore, in two parts: - Normal Voted funds: R34.322 billion - Direct charges: R12.403 billion

37. Financial Information – Normal Voted Funds • Normal voted funds increases at an annual average rate of 7.8 % from R31.6 billion in 2012/13 to R39.5 billion in 2015/16 • The amount of R34.3 billion for 2013/14 is an increase of 8.7% (R2.7 billion) on the 2012/13 allocation mainly for additional financial support to universities, FET Colleges and student funding through NSFAS • Over the 2013 MTEF period, baseline increases with R300.5 million (2013/14), R693.4 million (2014/15) and R1.8 billion (2015/16) • Additional allocations are mainly for improved service conditions (including FET Colleges) and capital infrastructure allocations for the two new universities in Northern Cape and Mpumalanga: R150 million, R500 million and R1 billion

38. Financial Information – Direct Charges • The Direct Charges represent the skills levy revenue that is transferred to the NSF and SETAs • Direct charges increases at an annual average rate of 9.1% from R11.4 billion in 2012/13 to R14.8 billion in 2015/16 • The levy is distributed at an 80:20 ratio in terms of the current legislative framework • For 2013/14 the distribution is as follows: - 80% to the SETAs: R9.922 billion - 20% to the NSF: R2.481 billion

39. Financial Information

40. Financial Information 2 Programme 1 provides for the overall management and administration of the Department and represents 0.6% of the budget Biggest programme: Subsidies to Universities and NSFAS (Bursaries for Universities and FET Colleges (R1.988 billion)) 3 Includes funding for FET Colleges: Conditional grant: R2.443 billion FET Colleges Subsidies: R3.013 billion 4 1 Total allocations Direct charges

41. Financial Information Grant to PEDs NSFAS Bursaries FETCollege Subsidies

42. Financial Information • The funding of the FET College Sector increases as follows over the MTEF period: • From 1 April 2013 the Department will transfer subsidies directly to FET Colleges in terms of the Funding Norms

43. Thank You