Umalusi’s budget review presentation to the Portfolio

Committee on Basic Education

8 July 2014

Cape Town

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• Umalusi mandate• Vision, mission, goals and KRA’s• 2013/14 Revenue & Expenditure • 2014/15 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 2013/14

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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 report ing 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 2014

Net surplus of R 19 099 301 109% of Budgeted Revenue from operations recognized

due to certification income from previous year and increase in interest income

100% Grant from the Department of Basic Education received with thanks

92% of the budgeted expenses incurred with vacancy rate at 9% and rollout of full accreditation of private providers only in full swing in 2014/15

EXECUTIVE SUMMARY

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

Total Assets valued at R 88 959 125 94% of invoiced debts collected to date Cash available at the end of the period amounted

to R 5 130 374 Investments R 41 604 663, attracting net interest

of 5.71% p.a. from Reserve Bank CPD

EXECUTIVE SUMMARY (2)

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Comparative total expenditure vs 3 year average

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2013/14 Revenue Budget vs Actual

Revenue Streams

Budget Actual % Comment

Accreditation Fees 3 800 000 8 279 812 -118 As institutions request accreditation – cannot predict number of applications

Certification Fees 2 400 000 5 239 945 --118

Payments for certificates requested in March 2012/13 received in this financial year

Department of Basic Education Grant

97 662 000 97 662 000 100 Grant payment transfer per schedule

Interest 230 000 2 489 612 -982 Due to non-use of reserves

Reserve Funds 0 0 0 Nil

Verification Fees 6 612 500 6 865 662 -4 Verification of matric qualifications on request from private verification companies

Other 0 367 893 100 ETDP seta refund, private telephone, T-shirt sales, rental income , proceed on disposal of assets, etc

R 110 704 500 R 120 904 924 9 Above budget

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2013/14 Expenditure Budget vs Actual (Current)

Expenditure Budget Actual % Comment

National Operations

45 552 486 45 593 540 101 Per mandate

Corporate Services

65 152 014 56 211 784 86 Salaries for posts to be filled and appointment of additional contract accreditation staff for roll out

R 110 704 500 R 101 805 623 92 8 % unspent

•Net surplus as at 31 March 2014 is therefore R 19 099 301

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Statement of Financial Position as at 31 March 2014

Mar 2014 Mar 2013

Assets 37 640 497 27 002 083

Cash and cash equivalents 46 737 706 35 302 803

Current assets 4 580 922 2 422 236

R 88 959 125 R 64 727 122

Capital and Reserves 73 185 665 54 086 362

Current Liabilities 15 773 460 10 640 760

R 88 959 125 R 64 727 122

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Budget for 2014/15

The revised budget for 2014/15 of R 134 808 098 was approved by the Minister of Basic Education on 27 April

2014.

The grant approved is R 107 354 000.

Includes approval to utilize R 10 854 098 from Umalusi reserves to fund operations.

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Budget for 2014/15

Reserve approved by Minister of Basic Education to fund 2014/15 budget

10 854 098

Internal renovations / upgrade to additional premises transferred onto Umalusi name in January 2014

10 000 000

Payment for accrued expenses and creditors not paid at year end

10 336 288

Reserve for possible litigation 15 547 320

TOTAL R 46 737 706

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Qualifications, Curriculum & CertificationOUTCOMES Previous

Budget

Current

Budget

2014/15

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 7 700 000 R 7 890 000 2,5% increase due to the development of: NASCA ;GETCA ;NIC ; and Advocacy

Ongoing review of the CAPS curriculum for all phases

Development of certification systems for new qualifications

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Quality Assurance of Assessments

OUTCOMES Previous

Budget

Current

Budget

2014/15

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 24 100 000 R 34 700 000 44% increase due to increase in the scope of work:

Increased samples for external moderation of marking; QA interventions i.r.o marking

Increased external moderation of VET qualifications etc.

Increased ISAT moderation

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Evaluation and Accreditation

OUTCOMES Previous

Budget

Current

Budget

2014/15

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 7 900 000 R 10 890 000 38% increase due to the implementation of new accreditation processes for private providers:

Initially 500 schools,

240 Colleges and

60 AET Centres plus 500 new applications.

Additional HR capacity

Advocacy

New assessment bodies monitored and quality assured (2)

Provider conference (AVET)

Reporting system developed

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Statistical Information and Research

OUTCOMES Previous

Budget

Current

Budget

2014/15

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 3 800 000 R 4 908 840 29% increase due to increase in research projects namely: 8 new projects and 8 reports for printing including 3 seminars

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Public Relations & Communications

OUTCOMES Previous

Budget

Current

Budget

2014/15

Motivation

• Public relations programme implemented

R 2 052 486 R 2 300 000 12% increase due to administrative costs for travel, accommodation and flights

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Governance and Office of the Chief Executive Officer

OUTCOMES Previous

Budget

Current

Budget

2014/15

Motivation

• Organizational plans developed and implemented

• Planning and implementation reviewed

• Organizational governance maintained

• Stakeholder relations established and managed

R 1 705 749 R 1 961 311 15% increase due to administrative costs for travel, accommodation and flights

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Corporate Services: Information Technology

OUTCOMES Previous

Budget

Current

Budget

2014/15

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 7 332 861 R 8 170 091 11% 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 Previous

Budget

Current

Budget

2014/15

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 52 314 571 R 59 779 911 14 % increase due to additional posts approved by Council, as per the HR review 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

2014/15

Motivation

• Administration of Human resources carried out

• HR development plans implemented

• General services provided• Records Management Services

provided

R 3 798 833 R 4 207 945 11% increase due to HR development programmes, staff workshops and implementation of records management services

GRAND TOTAL R 110 704 500 R 134 808 098 22% increase

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Total Income 2000/1 (actual) to 2016/17 (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 202012/13 R 81 527 016   R 42 330 000 522013/14 R 120 904 924   R 97 662 000 81

2014/15   R 134 808 098 R 106 488 297 79

2015/16 

R 148 972 637R 112 705 000 (R18 097 637)

76 (88)

2016/17 

R 167 949 880R 118 678 000 (R 28 376 380)

71 (88)

3 Year Budget Forecast

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

• Strengthening of the marking process

• The proposed amendments and extension of the Senior Certificate

• Development of certification systems for new qualifications

Challenges

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Thanks to Ms N Gina, 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 former members of 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, despite the ever increasing escalation in administrative and travel costs.

We look forward to working with this new Portfolio Committee on Basic Education under the leadership of Ms Gina.

Dr MS Rakometsi

THANK YOU

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