Further Education and Training Conditional Grant: 2012/13 Annual Performance

Evaluation Report

Select Committee on Appropriations Presentation:

14 August 2013

• Background of the Grant and Outputs• Purpose of the Evaluation and Methodology• Budget Allocation Trends• Expenditure Trends• (Over) /Under Expenditure• Performance Reporting , Monitoring and Capacity• Summary of Key Findings and Recommendations • Transfer of FET College Function to DHET• 2013 MTEF Allocations• Conclusion

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PRESENTATION CONTENTS

• Introduced for the sole purpose of preparing for the shifting of the public FET Colleges’ function to the Department

• Geared towards assisting all 50 FET Colleges to achieve the following Outputs as captured in the grant framework:

– Enrolment of NC(V) Programmes set out in college enrolment target planning

– Enrolment in approved Report 191 Programmes as set out in college enrolment target planning

– Expanding Information and Communication Technology (ICT) for teaching and learning utilising connectivity norms

– Continue implementing Management Information Systems (MIS) systems for the delivery of transversal MIS services

– Implementation of the Funding Norms for FET Colleges– Upgrading, alterations, refurbishment and modernisation of classrooms,

workshops and laboratories. Maintenance and repairs of equipment to support the delivery of approved programmes

– Infrastructure development

BACKGROUND OF THE GRANT AND OUTPUTS

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Purpose: To comply with the requirements of the Division of Revenue Act and to evaluate the performance of the grant to determine possible corrective measures for improved performanceThe annual performance evaluation report of the 2012/13 FET Colleges conditional grant was submitted on 31 July 2013

Data collection methods and sources• Desktop performance evaluation

– Documents review of quarterly reports, enrolment reports and operational plans for all 50 FET Colleges

• Site visits to 9 FET colleges to assess and verify achievement of grant Outputs

– Interviews with FET College principals, campus managers, lecturers, students and provincial officials

PURPOSE OF THE EVALUATION AND METHODOLOGY

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Province 2010/11 2011/12 2012/13 % Growth Rate (2010-2012)

Eastern Cape 559 963 634 009 699 923 25%

Free State 257 075 295 075 323 804 26%

Gauteng 894 566 1 023 222 1 133 245 27%

KwaZulu-Natal 649 178 765 537 858 862 32%

Limpopo 442 127 495 566 545 768 23%

Mpumalanga 286 096 321 840 345 285 21%

Northern Cape 52 297 66 640 78 342 50%

North West 215 613 238 751 261 789 21%

Western Cape 447 043 534 671 597 589 34%

Total 3 803 958 4 375 311 4 844 607 27%

BUDGET ALLOCATION TRENDS2010/11-2012/13 (R’000)

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Province 2010/11 2011/12 2012/13

Eastern Cape 489 414 681 634 687 164

Free State 218 914 325 967 308 282

Gauteng 784 779 1 113 617 1 133 245

KwaZulu-Natal 649 177 834 146 870 412

Limpopo 441 868 500 870 544 966

Mpumalanga 288 935 321 840 345 285

Northern Cape 52 297 65 247 78 364

North West 211 751 238 014 258 933

Western Cape 448 762 534 661 597 505

Total 3 585 897 4 615 996 4 824 156

EXPENDITURE TRENDS2010/11-2012/13

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ProvinceBudget

allocation/Transfer

Actual Spending (Over)/Under Spending % Spent

Eastern Cape 699 923 687 164 12 759 98%

Free State 323 804 308 282 15 522 95%

Gauteng 1 133 245 1 133 245 0 100%

KwaZulu-Natal 858 862 870 412 (11 550) 101%

Limpopo 545 768 544 966 802 100%

Mpumalanga 345 285 345 285 0 100%

Northern Cape 78 342 78 364 (22) 100%

North West 261 789 258 933 2 856 99%

Western Cape 597 589 597 505 84 100%

Total 4 844 607 4 824 156 20 451 99.6%

UNDER EXPENDITURE 2012/13R’000

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Reasons for material differencesEastern Cape: Under-spending was as the results of the unspent portion of PERSAL which reverted back to the revenue fund and the provincial portion of goods and servicesFree State: Under-spending is the results of the PERSAL component which was not spent at the end of the financial year Kwazulu-Natal: Over spending of R11.5 million is the result of the PERSAL payments for FET College and lecturing staff which was partly caused by the implementation of the Occupation Service Dispensation (OSD) and wage agreementsNorth West: Under-spending was as the result of the provincial portion of goods and services which reverted back to the revenue fund.

REASONS FOR (OVER) / UNDER EXPENDITURE

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Monthly Reporting All provinces submitted monthly reports All 50 FET colleges submitted their quarterly reports as per the DORA 96% of financial reports from FET Colleges received on a monthly basis Performance Monitoring Enrolment Monitoring Process is conducted each year in January by

Department and PED officials Data verification conducted in February each year by Department and

PED officials Desktop Monitoring (Monthly, quarterly) conducted on ongoing basis by

Department officialsMonitoring Capacity Three Deputy Directors linked to the conditional grant, supported by

PED officials, are appointed in the Monitoring and Evaluation Unit (Financial, Planning and Management Information System)

Organisational structure revised to accommodate more officials for monitoring and evaluation

PERFORMANCE REPORTING , MONITORING AND CAPACITY

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• Allocations are commensurate with learner enrolments• Transfers of the conditional grant were made according to the approved

payment schedule• Conditional grant budgets were utilised according to the funding norms• The total spent as a percentage of the total adjusted budget allocation

amounted to 99,6%. (see overall expenditure table)• North West transfers to Taletso FET College as well as Mopani FET

College in Limpopo were delayed but subsequently paid

SUMMARY OF KEY FINDINGS AND RECOMMENDATIONS2012/13 EVALUATION REPORT

1. BUDGET ALLOCATION

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• There was a commendable achievement as colleges ensured the inclusion of Output 2 and 3 of the Minister’s Delivery Agreement in their college strategic/operational plans and planning

• The PED’s and Colleges confirmed contribution of additional funding as well as other forms of support to colleges in order to deal with the growth projections

• All FET Colleges exceeded their projected student enrolment, the exceeded enrolment targets were funded through the allocation received from the National Skills Fund

• Colleges reported increased collaborations with SETAs and the associated high-value benefits towards training and skills development for FET College students. Collaborations with SETAs created greater opportunities for experiential learning (Work-Based Exposure) and placement

2. FUNDING NORMS AND PLANNING IN TERMS OF OUTPUT 2 AND 3

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• All FET colleges exceeded targets for student enrolments for NC(V) and Report 191 programmes during the 2012/13 financial year, despite insufficient infrastructure capacity

• Colleges reported, overwhelmingly, of extra efforts to not turn away students and reported a notable shift in enrolments with more students enrolling for National Technical Education (NATED) (Report 191) courses than the NC(V) programmes

• The Department would continue with advocacy for NC(V) programmes as part of profiling FET Colleges as possible options for further education

3. ENROLMENTS - NC(V) AND REPORT 191

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• FET Colleges registered certain concerns on the delays in the issuing of certificates for National Certificate (Vocational)

• The challenge was resolved by first week of July 2013 with 131 474 full NC(V) certificates for Level 2 to 4 issued to candidates

• The results for the 2012 November examinations were released on 19 April 2013 with those with late registration released on 6 June 2013

• The Department should sustain the solution to the challenge in order to issue results on time to enable students to proceed to the next level and for those who exit the system to look for employment

4. DELAYS IN ISSUING OF CERTIFICATES

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• Colleges provided varying levels of achievement and implementation during the 2012/13 financial year

• There is a notable achievement in relation to the investment made through the grant for refurbishment and upgrading of infrastructure

• A majority of colleges reported that they had to supplement the conditional grant budgets with own funds to install or improve ICT while others were unable to implement due to lack of funds

• Some of the FET Colleges reported satisfaction with their Management Information Systems and indicated functionality that enabled the generation of requisite reports such as student data, academic reports, salaries, financial reports and even survey reports

5. CAPITAL EXPENDITURE AND ICT INFRASTRUCTURE

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• There is significant awareness across all FET Colleges about the transfer of the FET function to the Department

• Extensive engagements already took place at provincial as well as at college level

• The Department and Provincial Education Departments established Provincial Transitional Task Teams (PTTT) to manage and oversee the process of transferring the FET function to the Department

TRANSFER OF FET COLLEGE FUNCTION

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Type of Fund 2013/14 2014/15 2015/16

FET Conditional Grant 2 442 679 2 600 296 2 758 773

FET Subsidy 3 013 189 3 195 827 3 361 001

FET Function Total Allocation

5 455 868 5 796 123 6 119 774

% Growth Rate (Year-on-Year) 12.6% 6.2% 5.6%

2013 MTEF ALLOCATIONS R’000

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Splitting of Conditional Grant in two portions:1) FET Colleges Conditional Grant Includes salaries of lecturers and support staff paid through PERSAL, and

provincial goods and servicesFunds are transferred by department to PEDs on a monthly basis as per the approved payment schedule

2) FET Colleges Subsidies Includes salaries of non-PERSAL lectures and support staff, and other

operational costs at FET College levelFunds are transferred by Department to FET Colleges on a quarterly basis as per the approved payment schedule

PAYMENTS FOR THE FET FUNCTION WITH EFFECT FROM 1 APRIL 2013

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• The objectives of the FET Schedule 4 conditional grant programme were satisfactorily achieved in an efficient and effective manner.

• Commendable performance on the programme outputs was achieved by FET Colleges commensurate with the investment made through the conditional grant.

CONCLUSION

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Thank You