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

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Umalusi’s budget review presentation to the Portfolio

Committee on Basic Education

18 April 2012Cape Town

Umalusi mandate Vision, mission, goals and KRA’s 2011/12 Revenue & Expenditure (Current) 2012/13 Budget (Forecast) Three Year Budget Forecast Conclusion

Overview

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 2011/12

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

• 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

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 providers

4. Research, diagnose and report on quality in general and further education and training supported by statistical analysis

5. Developing and maintaining management support structures and governance

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

Statement of Financial Performance as at 31 March 2012

Net surplus of R 19,9m 117% of Budgeted Revenue from operations

recognised 100% Grant from the Department of Basic

Education received with thanks 92% of the budgeted expenses incurred

EXECUTIVE SUMMARY

Statement of Financial Position, Cash flow, Debtors and Investments

Total Assets valued at R 63,3m subject to revaluation of buildings which could increase by approximately R 8m

105% of invoiced debts collected to date

Cash available at the end of the period amounted to R1,1m

Investments R 26,3m, attracting net interest of 5,49% p.a of which R 6,4m has been set aside / reserved (through National Treasury) for internal renovations to create open plan offices to accommodate staff

EXECUTIVE SUMMARY (2)

Comparative total expenditure vs 3 year average

2011/12 Revenue Budget vs ActualRevenue Streams

Budget Actual % Comment

Accreditation Fees 3 000 000 1 877 304 -37% As institutions request accreditation – cannot enforce applications

Certification Fees 36 470 400

64 220 564 176%

Early requests for certification of 2011 candidates to the value of R 20m as budgeted for the 2012/13 financial year….this should be rolled over. Extra R 8 m received due to increase in pass rates and certification tariff

Department of Basic Education Grant

18 391 000

18 391 000 100%

Grant payment transfer on schedule

Interest 1 000 000 1 733 130 173%

Due to non-use of surpluses

Reserve Funds 15 000 000

0 0% +R 8m extra income and R 6,6m under spending…excluding the R 20m certification fee for the next year

Verification Fees 5 000 000 5 931 101 119%

DPSA circular requiring all government departments to verify staff qualifications via SAQA

Other 0 631 133 100%

ETDP seta refund, provider conference fees, private telephone, etc

R 78 861 400 92 784 232

18% Above budget

As approved by the Minister of Basic Education on 24 March 2011

2011/12 Expenditure Budget vs Actual (Current)

Expenditure Budget Actual % CommentNational Operations

32 710 968 29 564 971 90 Human resource capacity requirements to fully expend budget. Council approved additional posts for 2012/13.

Corporate Services 46 150 432 42 643 943 92 Maintenance and replacement of assets unspent due to renovation programme started March 2012

R 78 861 400

R 72 208 913

92 8% unspent

•Net surplus as at 31 March 2012 is therefore R 19 929 154 due to certification fees which should have been accounted for in the next financial year only.•Revenue of R 92,7m ( if R20 m certification removed then R 72,7m …balances actual budgeted income to actual budgeted expenditure for 2011/12)

Statement of Financial Position as at 31 March 2012

Mar 2012 Mar 2011

Assets 13 199 796 13 845 961

Investments @ CPD 26 344 408 22 113 489

Current assets 23 833 938 6 856 299

R 63 378 142 R 42 815 749

Capital and Reserves 55 390 761 35 673 114

Current Liabilities 7 987 381 7 142 635

R 63 378 142 R 42 815 749

Qualifications, Curriculum & Certification

OUTCOMES PreviousBudget

CurrentBudget2012/13

Motivation

Qualifications sub-framework developed and maintainedStandards for new qualifications developedCurricula evaluated and/or developedPolicy developed and implementedLearner achievements certificatedVerification processes maintained and improved

R 2 146 000

R 4 205 234

96% increase in budget due to some functions in previous year being done together with the Statistical Information and Research unit, thus not a true indication of actual expenses.

Quality Assurance of Assessments



Motivation

Question papers moderated Marking standardizedCASS moderatedExams monitoredStandards for assessment articulated and maintained Stakeholder relations established and managedManagement, support and governance structures maintained and improved

R 18 373 953

R 20 850 000

13% increase due to increase in Moderator costs as per Ministerial approval and also increase in moderation/monitoring sample sizes

Evaluation and Accreditation



Motivation

Accreditation and monitoring system for providers of education and training maintained and extendedProvisional accreditation and monitoring maintainedProvider site visits conductedMonitoring reports developedPolicy developed and implementedStakeholder relationshipsAccreditation and monitoring system for assessment bodies maintained and extended New and existing assessment bodies monitored and reported on

R 4 508 000

R 5 184 200

15 % increase due to increase in the number of institutional site visits.

Statistical Information and Research



Motivation

Reporting (Printing of Reports) Research is planned, managed and implemented Statistical supports provided to other unitsResearch forum/committee maintainedStrategic support provided Stakeholders consulted on strategic researchStakeholders engaged with through conferences and published documentsResource centre maintained /improved

R 4 306 250

R 3 900 000

9% decrease in budget due to work done with QCC in previous financial year .

Management Support Structures



Motivation

Organisational planning and implementation reviewedOrganizational governance maintained Stakeholder relations established and managedPublic relations programme implemented

R 2 841 765

R 3 268 030

15% increase due to administrative costs for travel, accommodation and flights of all governance structures

Corporate Services: Information Technology



Motivation

Information technology systems established, maintained and improvedCertification IT program effectively implemented Adequate computer hardware and software installed and maintained to support operations

R 5 178 616 R 6 602 488

27 % increase required due to increase in computer costs mainly for replacement of hardware and software., including the development of an electronic document management system

Corporate Services: Finance and Supply Chain Management



Motivation

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

R 38 868 736

R 45 504 887

17 % increase due to additional posts approved by Council, as per the HR review and approximately 5% towards cost of inflation increases

Corporate Services: Human Resource Management and Development



Motivation

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

R 2 138 080 R 3 437 161 61 % increase due to HR development strategies with staff workshops and implementation of records management services

GRAND TOTAL R 78 861 400

R 92 952 000

18% increase in the budget for 2012/13

Total Income 2000/1 (actual) to 2014/15 (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 78 861 400 R 18 391 000 23

2012/13 R 92 952 000 R 44 207 000 48

2013/14 R 105 893 081 Possible move to fully fund certification

90

2014/15 R 118 831 138 Possible move to fully fund certification

90

3 Year Budget Forecast

2011/12 2012/13 2013/14 2014/15

R 78 861 400 R 92 952 000 R 105 893 081 R 118 831 138

2012/13 Budget approved by the Minister of Basic Education on 8 February 2012. Grant improved from R 18,3m to R 44m including improvement in conditions of service (R 859K)

Y/Y Percentage Increase

15% 18% 14% 12%

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

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

submitted

Challenges

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 MS Rakometsi

THANK YOU

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

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