strategic plan and annual performance plan: 2013/14

STRATEGIC PLAN AND ANNUAL PERFORMANCE PLAN: 2013/14

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Presentation to the Portfolio Committee on Higher Education and Training – 24 April 2013

Presentation LayoutPresentation Layout

Objectives of the NQF SAQA Governance Structures Strategic Planning Context

– Changes in the environment– Highlights from 2012/13

Budget and Funding– Current Budget and MTEF Projections– Analysis of Income and Expenditure– Funding for new mandates and priorities– Summary

Annual Performance Plan for 2013/142

Objectives of the NQFObjectives of the NQF are to: Create a single integrated national

framework for learning achievements

Facilitate access, mobility and progression within education, training and career paths

Enhance equality of education and training

Accelerate redress of past unfair discrimination in education, training, and employment opportunities

Contribute to the full personal development of each learner and the social and economic development of the nation at large

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Objectives of the NQFSAQA and the QCs must seek to achieve the objectives of the NQF by:

Developing, fostering and maintaining an integrated and transparent framework for

the recognition of learning achievements

Ensuring that South African Qualifications meet appropriate criteria, determined by the Minister and are internationally comparable

Ensuring that South African Qualifications are of an acceptable quality

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SAQA GOVERNANCE STRUCTURES

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Board and Committees StructureBoard and Committees Structure

Board comprises– 12 members nominated from the ETD

Sector and appointed by the Minister in their personal capacities

– 4 CEO’s of SAQA and the Quality Councils by virtue of their Offices

Committees’ Membership – – At least two Board members – Sufficient expertise in the Committee to

advise the Board6


10 Committees – – Executive Committee– Audit and Risk Committee– Remuneration Committee– Finance Committee– I & IT Committee– Advocacy and Communication Committee– Career Advice Services Committee– Research Committee– Foreign Qualifications Committee– Qualifications and Standards Committee

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Functioning of the Committees– All Committees:

– Have Terms of Reference, reviewed and approved by the Board annually

– Report to every Board Meeting– Conduct an annual self-assessment that is

considered by the Board

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Strategic Planning ContextChanges in the environment

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Changes in the environmentChanges in the environment

Ministerial Priorities

– Green Paper for Post-school Education and Training

– Ministerial Guidelines on Strategy and Priorities for the NQF

– Determination of the Sub-frameworks

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Priorities from the Ministerial Guidelines

– Ensure “Sufficient Articulation” within the NQF

– Provide advice on Sub-frameworks– Allocate Qualifications to Sub-frameworks– Do scoping exercise and report on SAQA

organisational trajectory– Develop a Standard Glossary of Terms

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Priorities from NQF Determination– Coordinate the Sub-framework Policy amendments and

publication in Gazette– Provide advice on the clarification of the relationship

between Sub-framework and professional designations– Provide advice on a qualification type at NQF level 5 for

Umalusi– Study and Report on Occupational Qualifications from

level 7 – 10 on the OQCSF– Provide a draft policy on the principles that should direct

articulation pathways on the NQF

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Tasks from meeting with Minister

– Development of a Fraud Combat Strategy including whistle blowing process

– Lead recognition of NCV and Occupational Qualifications

– Independent evaluation of the CAS project– Expand database on community organisations

delivering Career Advice Services

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Requests from DHET– Assistance with Apply Now! Campaign– Assistance with Central Applications Clearing

House– Taking on of the Joint Matriculation Board

Function

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Strategic Planning Context

Highlights from 2012/13

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Highlights from 2012/13Highlights from 2012/13

SAQA’s focus was on boldly serving lifelong learners through:

– CC = Careers advice service = Careers advice service– AA = Articulation = Articulation– RR = RPL = RPL– SS = Staff development = Staff development

To achieve this SAQA needed to:– Be Be visiblevisible– Provide bold Provide bold leadershileadershipp

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NLRD Information 2012/13

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NLRD Information 2012/13

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Foreign Qualification Evaluation

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Verification of Qualifications

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Individuals about selves 2010-2011 2011-2012 2012-2013People completed 3 272 3 611 5 564

Third-party 2010-2011 2011-2012 2012-2013 People received 11 700 13 358 14 817People completed 9 639 10 439 13 702People in progress at year-end 4 433 2 918 8 841Records completed 14 677 14 842 22 069Average records per person completed 1.5 1.4 1.6

Bulk 2010-2011 2011-2012 2012-2013Records received and processed: 18 493 136 090 44 622Found 10 055 90 086 28 478Not found 8 438 46 004 16 144Received but could not process (client errors or pre-1992 Matric) 59 789 15 700 15 792Total received 78 282 151 790 60 414

Career Advice Project

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Activities regarding articulation related to:- Convened aConvened a Think Tank Workshop with with

experienced expertsexperienced experts- Prepared a Prepared a draft draft Articulation Policy- HostedHosted a Research Conference with with

articulation and RPL as themearticulation and RPL as theme- Allocated qualifications to to

the sub-frameworks the sub-frameworks - Provided advice to MinisterProvided advice to Minister

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Assisted DHET with-Developing Framework for Co-operationfor Co-operation-Developing National Careers Advice Portal Developing National Careers Advice Portal (NCAP)-Apply now! CampaignCampaign-CACH ProjectProject-Mandela Day Careers FestivalDay Careers Festival

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Activities regarding RPL related to:- Supported the Supported the Ministerial RPL

Task TeamTask Team- Finalised the Finalised the Revised Policy and Criteria for RPL- RPL Research and and support to individual projects- Published SAQA Bulletin on RPLon RPL- Set up Reference Groups for CAT and for CAT and

Assessment establishedAssessment established

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In respect of staff development:- Implemented Employee Wellness ProgrammeProgramme- Implemented Learning and Development

Opportunities (including Leadership development (including Leadership development and Lifelong Learning Course)and Lifelong Learning Course)

- Conduct regular Product Awareness Training- Retained the Investors In People Standard

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Highlights from 2012/13Highlights from 2012/13In respect of visibility (public positioning) of SAQA:- EstablishedEstablished Integrated communication strategy- Mandela Day and other Careers exhibitionsand other Careers exhibitions- Held Events (Road Shows on level descriptors , Launch of (Road Shows on level descriptors , Launch of

Professional Professional Bodies, Chairperson’s Lecture, Seminars, and other Bodies, Chairperson’s Lecture, Seminars, and other events)events)

- Produced Publications and advertisements (Bulletins, (Bulletins, policies, etc)policies, etc)

- Delivered Khetha Radio Programmes- Established the Advocacy Communication the Advocacy Communication

and Support and Support (ACS) Directorate

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In respect of Leadership:- Advised the Minister on the Advised the Minister on the determination of the Sub-

frameworks- Implemented the Policy on the Policy on Professional BodiesProfessional Bodies- Completed the Completed the Policy on Registration of

Qualifications and Part Qualifications- Completed the Completed the Revised Policy on RPL- Prepared a Prepared a draft Articulation Policy- Developed proposal to establish a Developed proposal to establish a counter fraud unit- 15 consecutive clean audit reports

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Budget and Funding

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Current Budget and MTEF ProjectionsCurrent Budget and MTEF Projections

2012/13R ‘000

2013/14R ‘000

2014/15R ‘000

2015/16R ‘000

Scenario 3 Budget

Scenario 4 Budget

Projected Projected

Income

Non-tax revenue•Evaluation Fees•Verification Fees•Prior year Rollover•Other

14,3109,5409,6009,970

17,0007,0005,3006,486

18,0004,000

013,336

19,0004,500

013,219

Transfers received•Government grant•NSF Funding for CAS project

45,72341,625

49,401 31,000

52,008 0

54,4870

Total Revenue 130,768 116,187 87,344 91,206 29

Current Budget and MTEF ProjectionsCurrent Budget and MTEF Projections

2012/13 R ‘000

2013/14 R ‘000

2014/15 R ‘000

2015/16 R ‘000

Expenditure Scenario 3 Budget

Scenario 4 budget

Projected Projected

Current

Compensation of employees

64,331 60,907 51,581 54,087

Goods and services 62,247 53,534 32,448 33,652

Capital Assets

Property, Plant & Equipment and Intangible Assets

4,190 1,746 3,315 3,467

Total Expenditure 130,768 116,187 87,344 91,20630

Budgetary ConstraintsBudgetary Constraints Scenario 3 and 4 budgets used, due to insufficient income for Scenario 3 and 4 budgets used, due to insufficient income for

Scenario 1 budget. Results in not all activities being undertaken.Scenario 1 budget. Results in not all activities being undertaken. SAQA has never had a fully funded budget from SAQA has never had a fully funded budget from

Government to fully implement its mandate. Fundraising Government to fully implement its mandate. Fundraising and and partnerships used in the past to fund certain functionspartnerships used in the past to fund certain functions Prior years used accumulated funds to supplement income. Prior years used accumulated funds to supplement income.

No longer have accumulated funds. As per 2012/13 financial No longer have accumulated funds. As per 2012/13 financial year, need R10 million per annum to stay on same base. For year, need R10 million per annum to stay on same base. For Scenario 1 budget to be implemented, R20 million per annum Scenario 1 budget to be implemented, R20 million per annum neededneeded

CAS project ends 31 August 2013 – No provisions in MTEF from CAS project ends 31 August 2013 – No provisions in MTEF from that point forwardthat point forward

Cost of compliance e.g. Increase of 8% Cost of compliance e.g. Increase of 8% in AG fees vs 5.6 % provided by National in AG fees vs 5.6 % provided by National Treasury Treasury

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Analysis of Income & Expenditure

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Government Grant IncomeGovernment Grant Income

-

1

2

3

4

5

6

7

8

9

10

11

-

10 000

20 000

30 000

40 000

50 000

60 000

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

Government Grant

% Increase over prior year

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15Government Grant 35 691 37 566 39 080 41 335 41 435 45 723 49 401 52 008 % Increase over prior year -8.50% 5.25% 4.03% 5.77% 0.24% 10.35% 8.04% 5.28%DPSA Salary Increases 7.50% 10.50% 11.50% 7.50% 6.80% 7.00% ? ?SAQA Salary Increase 7.50% 9.00% 10.50% 7.00% 5.30% 6.50% ? ?

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Government GrantGovernment Grant

Government Grant average annual increase from Government Grant average annual increase from 2008/09 to 2012/13 is 5,01%2008/09 to 2012/13 is 5,01%

Negotiated salary increases for SAQA staff over the Negotiated salary increases for SAQA staff over the corresponding period have been on average 7,63%corresponding period have been on average 7,63%

DPSA average increase over the same period is 8,47%DPSA average increase over the same period is 8,47% Funding deficit on average of 2,62% per annum - Funding deficit on average of 2,62% per annum -

clearly not sustainable considering clearly not sustainable considering that this is single largest cost item that this is single largest cost item of a service organisationof a service organisation

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Analysis of Income and Expenditure -Expenditure excluding CAS project

Actual 08/09 Actual 09/10 Actual 10/11 Actual 11/12 Budget 12/13 Budget 13/14Personnel Costs 31 011 34 560 40 539 45 234 51 141 53 334 Admin + Capital Exp 38 376 28 156 25 523 29 816 38 248 32 073

-

10 000

20 000

30 000

40 000

50 000

60 000

Actual 08/09 Actual 09/10 Actual 10/11 Actual 11/12 Budget 12/13 Budget 13/14

Personnel Costs

Admin + Capital Exp

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Income & Expenditure AnalysisIncome & Expenditure Analysis

In 2008/09 personnel costs comprise 44,7% of total cost In 2008/09 personnel costs comprise 44,7% of total cost (Admin + Capital costs exceed personnel costs)(Admin + Capital costs exceed personnel costs)

In 2013/14 budget, personnel costs comprise 62,5% of total In 2013/14 budget, personnel costs comprise 62,5% of total cost. (Personnel costs far exceed Admin + Capital costs)cost. (Personnel costs far exceed Admin + Capital costs)

In 2013/14 budget Admin + Capital costs lower than in In 2013/14 budget Admin + Capital costs lower than in 2012/13 budget by R6,2 million.2012/13 budget by R6,2 million.

To balance 2013/14 budget, SAQA had to:To balance 2013/14 budget, SAQA had to: cut 6 permanent staffing posts (current staff over stretched)cut 6 permanent staffing posts (current staff over stretched) not fill current vacancies to rollover surplus fundsnot fill current vacancies to rollover surplus funds no staff incentive provision no staff incentive provision start charging fees for conference fee attendance and start charging fees for conference fee attendance and

publications. Initiatives to raise fundspublications. Initiatives to raise funds further cuts in operating budgets, affecting the achievement further cuts in operating budgets, affecting the achievement

of performance objectivesof performance objectives36

Analysis of Income and Expenditure -Analysis of Income and Expenditure -Personnel Costs vs Government GrantPersonnel Costs vs Government Grant

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14Personnel Costs excl CAS 31 011 34 560 40 539 45 234 51 141 53 334 Government Grant 37 566 39 080 41 335 41 435 45 723 49 401

20 000

25 000

30 000

35 000

40 000

45 000

50 000

55 000

60 000

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

ActualCost exclCAS

Government Grant

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Income & Expenditure AnalysisIncome & Expenditure Analysis

Fairly flat increase in Government Grant received. Fairly flat increase in Government Grant received. Average increase over the years to 2013/14 of 5,25%Average increase over the years to 2013/14 of 5,25% Average increase in personnel costs over the same Average increase in personnel costs over the same period is 12% (partly due to inflationary increases and period is 12% (partly due to inflationary increases and partly due to increase in staff numbers)partly due to increase in staff numbers) In 2008/09 the grant received exceeded the personnel In 2008/09 the grant received exceeded the personnel

costs. From the 2011/12 financial year this is the costs. From the 2011/12 financial year this is the inverseinverseBy implication therefore, SAQA’s own revenue By implication therefore, SAQA’s own revenue generated generated funds the operationsfunds the operations

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Income & Expenditure Analysis Income & Expenditure Analysis ConclusionConclusion

Accumulated surplus funds in prior years was used to Accumulated surplus funds in prior years was used to supplement SAQA income. supplement SAQA income.

From 2013/14 onwards this will not be the case. From 2013/14 onwards this will not be the case. Personnel costs as a percentage of total costs rising to a Personnel costs as a percentage of total costs rising to a

percentage that will not be sustainable in the future. percentage that will not be sustainable in the future. Additional funding of R10 million per annum needed just Additional funding of R10 million per annum needed just

to sustain the same base of expenditure as in the 2012/13 to sustain the same base of expenditure as in the 2012/13 financial year but R20 million needed for the financial year but R20 million needed for the Scenario 1 budget.Scenario 1 budget.

Expected outputs and deliverables continue to Expected outputs and deliverables continue to increase each year without the commensurate increase each year without the commensurate additional resources.additional resources.

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Additional functions under the Additional functions under the NQF ActNQF Act

In terms of the NQF Act, SAQA required to have a more In terms of the NQF Act, SAQA required to have a more expansive view of the NQFexpansive view of the NQF

New functions added New functions added -Recognition of professional bodies and registration of Recognition of professional bodies and registration of

designationsdesignations-Coordination of the 3 sub frameworksCoordination of the 3 sub frameworks-Informing the public about the NQFInforming the public about the NQF-Functions consistent with the NQF e.g. Verifications ProjectFunctions consistent with the NQF e.g. Verifications Project

Priorities assigned as per the Ministerial guidelinesPriorities assigned as per the Ministerial guidelines

(Note: The Standards Setting and Quality Assurance functions under the (Note: The Standards Setting and Quality Assurance functions under the SAQA Act that were moved to the QC’s were undertaken with funds raised from SAQA Act that were moved to the QC’s were undertaken with funds raised from Donor organisations and JIP partnerships with the SETA’s)Donor organisations and JIP partnerships with the SETA’s)

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Funding SummaryFunding Summary

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Total Funding RequirementsTotal Funding Requirements

Project FundingProject Funding•Digitisation of Data – 3 year projectDigitisation of Data – 3 year project R 24,7 milR 24,7 mil•NQF & CAS Helpline – 43 monthsNQF & CAS Helpline – 43 months R133,0 R133,0 milmilTotal project fundingTotal project funding R157,7 R157,7 milmil

Ongoing FundingOngoing Funding•To maintain current service levelsTo maintain current service levels R10,0 milR10,0 mil•Verification of qualificationsVerification of qualifications R 7,3 milR 7,3 mil•Inform the Public (Advocacy)Inform the Public (Advocacy) R27,0 milR27,0 mil•Counter fraud strategyCounter fraud strategy R 5,0 milR 5,0 mil•Further development & implementationFurther development & implementation R 4,5 milR 4,5 mil•Support directoratesSupport directorates R 2,5 milR 2,5 milTotal ongoing fundingTotal ongoing funding R56,3 milR56,3 mil 42

Unfunded APP Activities (1)Unfunded APP Activities (1)

Impact of the current approved budget, (R10 million shortfall) is as follows:

SAQA’s outreach programme to deep rural communities will not take place Coverage in the media, including the print media but especially radio and television will be limited SAQA’s Board approved Integrated Communication Strategy project will be adversely affectedNot be able to assess and raise awareness of the NQF and its benefits, Not able to conduct a planned effectiveness survey, Impact studies and deeper research will be limited or not doneMarket research to establish needs and trends and to identify strategic challenges may not be done

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Impact of the current approved budget, (R10 million shortfall) is as follows: Research activities, notably conferences and printing will be limited – which will directly impact on the RPL programme Capacity and ability to function as a high technology organisation will be affected The Verifications project will not be sufficiently staffed and

funded to deliver on the directive by the DPSA New staffing posts needed, not funded.

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Impact of not being able to raise an additional R10 million above the R10 million shortfall:

Fees charged for services rendered will need to be increased to amounts that will be out of line in terms of economic benefits received. Broadbanding incentives for staff will not be able to be implemented. 7 staff posts will be affected and staff either forced to retire or positions left vacant and unfilled which will have an effect on the overall performance of the organisation. Insufficient funds to be able to establish the fraud detection unit. No NQF website, only a SAQA website.

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Impact of not being able to raise an additional R10 million above the R10 million shortfall: Cuts in IT Capital infrastructure and hardware costs will curtail SAQA’s ability to operate at a high level in terms of Information Technology. No support will be able to be given to the SADC regional process. Travel costs will be cut which will cause SAQA’s influence and advocacy of the NQF to the learners and stakeholders to be less effective. SAQA will most certainly not be able to achieve all of the objectives as set out in this Annual Performance Plan. Activities and objectives will in that instance have to be prioritised and then only these will be able to be carried out by SAQA.

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Annual Performance Plan (APP):Annual Performance Plan (APP):2013/142013/14

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APP – 2013/14The APP focuses on the Strategic Imperatives:The APP focuses on the Strategic Imperatives:

Provide bold leadership in the transition to the NQF Act (including interaction with the Green and White Papers), and future operations, so that all NQF partner organisations can ensure effectiveness in the system to the advantage of lifelong learners

Publicly position SAQA as a value adding organisation through the further development of the NQF as a roadmap for learning and as a transformative mechanism for society.

Enhance the capacity and value the contributions of staff towards ensuring organisational effectiveness.48

APP – 2013/14The APP focuses on the Strategic Imperatives:

Ensure research credibility to direct and steer policy, legislative and conceptual debates on key NQF-related priorities and to impact on national and international practice.

Work towards a system of recognised, quality, articulated learning and career paths, which removes systemic barriers to access and progression, and enables easy navigation.

Ensure effective governance, and develop human, financial, information and communication technology and infrastructural resources to support achievement of organisational objectives

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Leadership : Implement all requirements of the NQF

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Leadership: Enhance Relationships with stakeholders

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Publicly Position SAQAIntegrated Communication Strategy:

Audiences (1) Policy Makers, (2) Policy Implementers, (3) Policy Beneficiaries (4) Staff

Seminars and Events, ConferencesPublications and BrochuresSAQA WebsiteSocial MediaSupport collateralExhibitions, festivals and outreach initiativesAdvertisements including advertorialsPress/media relations, all media Data baseResearch, monitoring and evaluation. Tracking impact and needs in terms of awareness, understanding and appreciation.

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Research Credibility Conduct / Commission / disseminate research together with Conduct / Commission / disseminate research together with

partnerspartners Host and participate in research events, nationally and Host and participate in research events, nationally and

internationallyinternationally Publish and disseminate research reportsPublish and disseminate research reports NQF Impact study, CAT, Assessment, RPLNQF Impact study, CAT, Assessment, RPL Recognition of SA qualifications abroadRecognition of SA qualifications abroad Liaise with International Counterparts Liaise with International Counterparts Assist Countries in development of their NQFsAssist Countries in development of their NQFs SADC Qualifications FrameworkSADC Qualifications Framework New and critical thinking - analysis of international trendsNew and critical thinking - analysis of international trends

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Staff Performance

Management System implemented

Planned learning and development implemented

Fair and affordable remuneration and benefits structure

Employee wellness initiatives

Professional Development:Seminars / workshops/ exposure to new and critical thinking / assistance to understand SAQA’s mandateAssisting Directorates with the research aspects of their workSpecialised training, e.g fraud combating

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Articulation

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Support and GovernanceFinancial:•Budget scenarios•Unqualified audit•Management accounts

and quarterly Reports•Adherence to PFMA and SCM requirements•Healthy working environment

IT:•Uptime of systems•Information security

Governance:•Legislative compliance•Policy reviews•IT Governance•Business continuity•Effective management of the Board and Committees•Plans and reports as required•Good governance

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Presentation to the Portfolio Committee on Presentation to the Portfolio Committee on Higher Education and TrainingHigher Education and Training

Thank you!

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Presentation to the Portfolio Committee on Higher Education and Training – 24 April 2013

strategic plan and annual performance plan: 2013/14

Documents

board meetingconduct

board annuallyreport

higher education

south african qualifications

occupational qualifications

nqf level

nqfprovide advice

gazetteprovide advice