Umalusi’s budget review presentation to the Portfolio Committee on Basic Education

Umalusi’s budget review presentation to the Portfolio

Committee on Basic Education

17 April 2013

Cape Town

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• Umalusi mandate• Vision, mission, goals and KRA’s• 2012/13 Revenue & Expenditure • 2013/14 Budget • Three Year Budget Forecast• Conclusion

Overview

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• As a Quality Council to develop and manage a sub-framework of qualifications for general and further education and training;

• To develop and quality assure qualifications and curriculum;

• To quality assure assessments at exit points;

• To certificate learner achievements;

• To quality assure provision and accredit private providers of education and training, and assessment;

• To conduct research related to the sub-framework; and

• To advise the Minister

Umalusi Mandate 2012/13

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Umalusi Council is the cornerstone on which the country’s educational aspirations and standards are anchored and built; and as such the Council and staff are committed to ongoing improvement in standards and quality in general and further education and training.

In order to issue learners with credible certificates, Umalusi, through its leadership and expert knowledge, develops and secures standards through:

• quality assuring qualifications and curricula,

• confirming that assessment is fair, valid and reliable,

• quality assuring the provision of education and training, and assessment providers, and

• grounding its work in research to ensure informed positions and approaches

Vision & Mission

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• Promote quality and internationally comparative standards in GFET

• Maintain and improve educational standards through development and evaluation of qualifications and curriculum, quality assurance of assessment, and accreditation of providers of education, training and assessment,

• Continuously develop in-depth knowledge and expertise in mandated areas through rigorous research,

• Report on the quality of education and training in GFET within the mandate,

• Issue appropriate and credible certificates of learner achievement in terms of specific qualifications on the GFET Framework of Qualifications,

• Provide reliable and credible leadership and guidance in standard setting and quality assurance,

• Ensure the financial efficiency and sustainability of the organisation, and

• Determine expectations and appropriately respond to these within the parameters of Umalusi’s mandate.

Goals

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1. Establishing and maintaining a system to develop, evaluate and certify qualifications (and curriculum)

2. Improving and maintaining the system for quality assuring assessment for certification

3. Establishing and implementing a system for evaluation and accreditation of private providers

4. Research, matters related to the Sub-framework of qualifications and report on quality in general and further education and training supported by statistical analysis

5. Developing and ensuring good corporate governance and management of the office of the Chief executive Officer

6. Ensuring that Information Technology systems are established, maintained and improved

7. Ensuring that finance, human resources and administrative support systems are maintained and improved

7 Key Result Areas

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Unaudited Statement of Financial Performance as at 31 March 2013 Net deficit of R 6 369 609 87% of Budgeted Revenue from operations

recognized with 16% realized in previous year

101% Grant from the Department of Basic Education received with thanks

93% of the budgeted expenses incurred with vacancy rate at 10%

EXECUTIVE SUMMARY

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Unaudited Statement of Financial Position, Cash flow, Debtors and Investments

Total Assets valued at R 66 090 656 147% of invoiced debts collected to date Cash available at the end of the period

amounted to R 2 032 563 Investments R 33 268 454, attracting net

interest of 5% p.a.

EXECUTIVE SUMMARY (2)

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Comparative total expenditure vs 3 year average

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2012/13 Revenue Budget vs Actual

Revenue Streams

Budget Actual % Comment

Accreditation Fees 1 649 740 1 659 045 101 As institutions request accreditation – cannot predict number of applications

Certification Fees 42 358 260

27 469 761 -35 Early requests for certification of 2011 candidates to the value of R 20m was recognized in previous year (2011/12) thus accounting for the shortfall for this year

Department of Basic Education Grant

41 844 000

42 330 000 101 Grant payment transfer on schedule

Interest 1 600 000 1 927 030 120 Due to non-use of surpluses

Reserve Funds 0 0 0

Verification Fees 5 500 000 5 763 817 105 DPSA circular requiring all government departments to verify staff qualifications via SAQA

Other 0 2 175 204 100 ETDP seta refund, provider conference fees, Cathsseta project, private telephone, etc

R 92 952 000 R 81 324 857

13 Below budget

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2012/13 Expenditure Budget vs Actual (Current)

Expenditure Budget Actual % Comment

National Operations

34 694 539 35 974 715 104 Increased scope of mandate

Corporate Services 58 257 461 50 470 242 87 Maintenance unspent due to renovation programme and the few vacant posts currently being filled

R 92 952 000

R 86 444 957

93 7 % unspent

•Net deficit as at 31 March 2013 is therefore R 6 369 609

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Statement of Financial Position as at 31 March 2013

Mar 2013 Mar 2012

Assets 26 953 642 21 402 262

Investments @ CPD 33 268 454 27 446 983

Current assets 5 826 730 21 373 260

R 66 090 656 R 70 222 505

Capital and Reserves 47 032 633 61 617 213

Current Liabilities 10 861 400 8 605 292

R 66 090 656 R 70 222 505

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Budget for 2012/13

2012/13 Budget…Received further approval of revised budget including the R 27m in reserve, for:

•Renovations- R 6,4m (done)•Adult Matric project- R 2m (under discussion)•Other premises- R 15m (in progress)•Unforeseen expenses- R 4m (reserved based on outcome of additional premises)

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Budget for 2013/14

The revised budget for 2013/14 for R 110 704 500 was granted by the Minister of Basic

Education in a letter dated 10 April 2013.

The grant approved is R 97 662 000.

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Qualifications, Curriculum & CertificationOUTCOMES Previous

BudgetCurrentBudget2013/14

Motivation

• Qualifications sub-framework developed and maintained

• Standards for new qualifications developed

• Curricula evaluated and/or developed

• Policy developed and implemented

• Learner achievements certificated

• Verification processes maintained and improved

R 3 605 234

R 4 900 000

36% increase due to the development of: NASCA ;GETCA ;NIC ; The Level 5 qualification (post matric); and AdvocacyOngoing review of the CAPS curriculum for all phasesDevelopment of certification systems for new qualifications

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Quality Assurance of Assessments

OUTCOMES PreviousBudget

CurrentBudget2013/14

Motivation

• Question papers moderated • Marking standardized• CASS moderated• Exams monitored• Standards for assessment

articulated and maintained • Stakeholder relations established

and managed• Management, support and

governance structures maintained and improved

R 20 850 000

R 24 100 000

16% increase due to scope of work

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Evaluation and Accreditation

OUTCOMES PreviousBudget

CurrentBudget2013/14

Motivation

Accreditation and monitoring system for providers of education and training reviewed, maintained and extendedAccreditation and monitoring system for assessment bodies maintainedProvider site visits conductedPolicy developed and implementedStakeholder relationships developed and maintainedData management systems developed and maintained Reports developed Administrative systems maintained and improved

R 5 739 305

R 9 900 000

72% increase due to the implementation of full accreditation processes for private providers:Initially 500 schools, 240 Colleges and 60 AET Centres plus silent new applications.Staffing and structuresAdvocacyNew assessment bodies monitored and quality assured (2)Provider conferences (Schools and AVET)Reporting system (data management system developed)

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Statistical Information and Research

OUTCOMES PreviousBudget

CurrentBudget2013/14

Motivation

• Reporting (Research reports and quality reports per qualifications)

• Research is planned, managed and implemented

• Statistical supports provided to other units

• Research forum/committee maintained• Strategic support provided • Stakeholders consulted on strategic

research• Stakeholders engaged with through

conferences and published documents• Resource centre maintained /improved

R 4 500 000

R 4 800 000

7% increase due to increase in research projects namely: 8 new projects and 8 reports for printing including 3 seminars

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Governance and Office of the Chief Executive Officer

OUTCOMES PreviousBudget

CurrentBudget2013/14

Motivation

• Organisational planning and implementation reviewed

• Organizational governance maintained

• Stakeholder relations established and managed

• Public relations programme implemented

R 3 268 030

R 3 758 236

15% increase due to administrative costs for travel, accommodation and flights

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Corporate Services: Information Technology

OUTCOMES PreviousBudget

CurrentBudget2013/14

Motivation

• Information technology systems established, maintained and improved

• Certification IT program effectively implemented

• Adequate computer hardware and software installed and maintained to support operations

R 6 047 383 R 7 132 861

18% increase required due to increase in computer costs mainly for replacement of hardware and software

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Corporate Services: Finance and Supply Chain Management

OUTCOMES PreviousBudget

CurrentBudget2013/14

Motivation

Finance and Accounting systems maintained and improved including payroll paymentsSupply Chain Management system maintained and improvedBuilding and security systems maintained and improved

R 45 504 887

R 52 314 570

15 % increase due to additional posts approved by Council, as per the HR review and approximately 6.6% towards cost of inflation linked salary increments

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Corporate Services: Human Resource Management and Development

OUTCOMES PreviousBudget

CurrentBudget2013/14

Motivation

Administration of Human resources carried outHR development plans implemented General services providedRecords Management Services provided

R 3 437 161 R 3 798 833 11% increase due to HR development strategies with staff workshops and implementation of records management services

GRAND TOTAL R 92 952 000

R 110 704 500

19% increase in the budget for 2013/14 excluding the additional budget for 2012/13 for capex etc.

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Total Income 2000/1 (actual) to 2015/16 (budget)YEAR INCOME BUDGET DBE GRANT GRANT %

2000/01 R 6 150 786 0 0

2001/02 R 7 027 948 0 0

2002/03 R 13 757 861 R 1 513 000 11

2003/04 R 18 076 902 R 3 050 000 17

2004/05 R 23 547 626 R 12 869 000 55

2005/06 R 28 603 979 R 7 690 000 27

2006/07 R 32 972 345 R 10 286 000 31

2007/08 R 36 013 566 R 12 652 000 35

2008/09 R 46 434 369 R 16 044 000 35

2009/10 R 52 442 731 R 16 494 000 31

2010/11 R 59 464 754 R 17 350 000 29

2011/12 R 93 219 718 R 18 391 000 20

2012/13 R 92 952 000 R 42 330 000 46

2013/14 R 110 704 500 R 97 662 000 88

2014/15 R 118 919 797 R 106 488 297 90

2015/16 R 135 240 416 R 120 944 191 89

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3 Year Budget Forecast

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• Umalusi future as published in the Higher Education and Training Green paper:

• Umalusi Position• Umalusi recommendations• Umalusi Strategic and Annual Performance

Plans submitted

Challenges

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Thanks to Ms H Malgas , Chairperson of the Portfolio Committee, and Honorable members for this opportunity to present Umalusi’s budget review.

We would like to express our sincere gratitude to this committee, the Minister of Basic Education and the Department for its support in ensuring that the grant awarded to Umalusi is improved so that our mandate of quality assuring standards is achieved in South Africa.

Dr Mafu S Rakometsi

THANK YOU

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