Umalusi’s budget review presentation to the Portfolio Committee on Basic Education Tuesday, 24 March 2015 Cape Town 1.

Umalusi’s budget review presentation to the Portfolio

Committee on Basic Education

Tuesday, 24 March 2015

Cape Town

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• Umalusi mandate• Vision, mission, goals and KRA’s• 2014/15 Revenue & Expenditure • 2015/16 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 on matters related to the sub-framework

Umalusi Mandate 2014/15

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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 – schools, colleges and adult learning centres as well as private assessment bodies

4. Researching, matters related to the sub-framework of qualifications and reporting 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 28 February 2015

Net surplus of R 19 440 165 97% of Budgeted Revenue from operations recognized 100% Grant from the Department of Basic Education

received with thanks 82 % of the budgeted expenses incurred with vacancy

rate at 12.2 %

EXECUTIVE SUMMARY

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Unaudited Statement of Financial Position, Cash flow, Debtors and Investments as at 28 February 2015

Total Assets valued at R 103 994 330 134.33% of invoiced debts collected to date Cash available at the end of the period amounted

to R 4 988 405 Investments R 53 224 298, attracting net interest

of 5.88 % p.a. from Reserve Bank CPD

EXECUTIVE SUMMARY (2)

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Comparative total expenditure vs 3 year average

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2014/15 Revenue Budget vs Actual

Revenue Streams

Budget Actual % Comment

Accreditation Fees 4 370 000 9 701 115 222% As institutions request accreditation – cannot predict number of applications

Certification Fees 2 880 000 2 724 798 95% Fees collected from private assessment bodies

Department of Basic Education Grant

107 354 000 107 354 000 100% Grant payment transfer per approved schedule

Interest 1 550 000 3 158 959 204% Due to non-use of reserves

Reserve Funds 10 654 098 0 0% Unused to date due to collection of revenue

Verification Fees 8 000 000 7 593 459 95% Verification of qualifications on request from private verification companies

Other 0 464 135 0% Private telephone calls, rental income, t-shirt sales to staff, etc.

R 134 808 098 R 130 996 466 97%

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2014/15 Expenditure Budget vs Actual (Current)

Expenditure Budget Actual % Comment

National Operations

58 358 557 46 896 845 80% Per mandate

Corporate Services

76 449 541 64 077 433 84% Salaries for posts to be filled

R 134 808 098 R 110 974 278 82% 18 % available till end of March 2015

•Net surplus as at 28 February 2015 is therefore R 19 440 165

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Statement of Financial Position as at 28 February 2015

Feb 2013/14 Feb 2014/15

Assets 37 955 710 37 448 030

Cash and cash equivalents 51 364 672 58 215 207

Current assets 8 299 852 8 331 093

R 97 620 234 R 103 994 330

Capital and Reserves 88 998 032 93 130 001

Current Liabilities 8 622 202 10 864 329

R 97 620 234 R 103 994 330

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Budget for 2015/16

The Budget for 2015/16 of R 134 639 131 was approved by the Minister of Basic Education on 10 February 2015.

The grant approved is R 112 705 000.

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Reserve Forecast for 31 March 2015

Internal renovations to premises transferred into Umalusi’s name in January 2014

15 000 000

Installation of disabled access to current and new building

4 000 000

Payment for accrued expenses and creditors not paid at year end

11 000 000

Reserve for possible litigation and contingencies 17 000 000

TOTAL R 47 000 000

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Qualifications, Curriculum & CertificationOUTCOMES Previous

Budget

Current

Budget

2015/16

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

• Qualifications Standards Committee and sub-committees maintained

R 7 850 000 R 6 200 918 Despite the 21 % decrease QCC will be able to achieve its objectives through reprioritization and / or redesign of projects for greater efficiency

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Quality Assurance of Assessments

OUTCOMES Previous

Budget

Current

Budget

2015/16

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 – Assessment standards Committee

R 34 700 000 R 32 495 350 The 6% decrease will be accommodated by reprioritization or redesign of quality assurance processes for greater efficiency

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Evaluation and Accreditation

OUTCOMES Previous

Budget

Current

Budget

2015/16

Motivation

• Accreditation and monitoring system for providers of education and training reviewed, maintained and extended

• Accreditation and monitoring system for assessment bodies maintained

• Provider site visits conducted and reported on• Policy developed and implemented• Stakeholder relationships developed and

maintained• Data management systems developed and

maintained • Administrative systems maintained and

improved• Accreditation Committee of Council

maintained

R 10 903 000 R 9 758 381 Despite the 10% decrease E & A will be able to achieve its objectives through reprioritization of work

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Statistical Information and Research

OUTCOMES Previous

Budget

Current

Budget

2015/16

Motivation

• Reports developed (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 4 905 557 R 4 439 701 Despite the 9% decrease SIR will be able to achieve its objectives through reprioritization and redesign of research projects

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Public Relations & Communications

OUTCOMES Previous

Budget

Current

Budget

2015/16

Motivation

• Public relations programme implemented

R 1 900 000 R 1 975 463 The increase of 3.9% accommodates the increases for travel and administrative costs

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Governance and Office of the Chief Executive Officer

OUTCOMES Previous

Budget

Current

Budget

2015/16

Motivation

• Organizational plans developed and implemented

• Planning and implementation reviewed

• Organizational governance maintained

• Stakeholder relations established and managed

R 1 961 311 R 1 837 680 Despite the 6% decrease GOCEO will be able to achieve its objectives

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Corporate Services: Information Technology

OUTCOMES Previous

Budget

Current

Budget

2015/16

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 8 170 091 R 7 653 885 Despite the 6% decrease IT will be able to achieve its objectives

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Corporate Services: Finance and Supply Chain Management

OUTCOMES Previous

Budget

Current

Budget

2015/16

Motivation

• Finance and Accounting systems maintained and improved including payroll payments

• Supply Chain Management system maintained and improved

• Building and security systems maintained and improved

R 60 040 894 R 66 281 453 10% increase due to additional posts approved by Council, and approximately 5.6% towards cost of inflation linked salary increments

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Corporate Services: Human Resource Management and Development

OUTCOMES Previous

Budget

Current

Budget

2015/16

Motivation

• Administration of Human resources carried out

• HR development plans implemented

• General services provided• Records Management Services

provided

R 4 377 245 R 3 996 300 Despite the 9% decrease HRM&D will be able to achieve its objectives through reprioritization of training and development initiatives

GRAND TOTAL R 134 808 098 R 134 639 131 -0.13% decrease

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Total Income 2000/1 (actual) to 2017/18 (budget)

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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 81 527 016   R 42 330 000 52

2013/14 R 120 904 924   R 97 662 000 81

2014/15   R 134 808 098 R 107 354 000 80

2015/16   R 134 639 131 R 112 705 000 84

2016/17   R 173 409 843 ? ?

2017/18   R 193 296 806 ? ?

3 Year Budget Forecast

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Challenges

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• White paper on post school education and its implications for Umalusi

• Strengthening of the quality assurance of marking process

• The proposed amendments and extension of the Senior Certificate

• Development of certification systems for new qualifications

• No channels of reporting to the Portfolio Committee on Higher Education despite perennial problems with the DHET examinations systems

• Strengthening the monitoring processes in the light of the new phenomenon of group copying

• Class action – litigation by learners whose results have been blocked as a result of pending group copying hearings

Thanks to Ms N Gina, Chairperson of the Portfolio Committee, and Honourable members for this opportunity to present Umalusi’s budget review

Dr MS Rakometsi

THANK YOU

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