FIVEYEAR STRATEGIC PLAN ANNUAL PERFORMANCE PLAN AND BUDGET

FIVE-YEAR STRATEGIC PLAN, ANNUAL PERFORMANCE PLAN AND BUDGET PRESENTATION TO THE PORTFOLIO COMMITTEE ON BASIC EDUCATION Dr Mafu S Rakometsi 19 May 2020

Presentation Outline SECTION 1: BACKGROUND…………… 2 SECTION 2: STRATEGIC PLAN…………… 8 SECTION 3: ANNUAL PERFORMANCE PLAN……. 19 SECTION 4: BUDGET 2020/21 – 2022/23………… 28 2

Section 1: Mandate Presentation Outline • Background and Legislative Mandate • Role of Umalusi • Mandate Summarised 3

Background: Umalusi’s mandate is determined by: Chapter 2: Everyone has a right to education Establishment of Umalusi as a Quality Council Assigns Umalusi the responsibility for quality assurance of general and further education and training 4

Role of Umalusi is the quality Council responsible for qualifications registered on the general and further education and training qualifications sub-framework (GFETQSF) on the National Qualifications Framework (NQF). The Council ensures that the providers of education and training have the capacity to deliver and assess qualifications and learning programmes and are doing so to expected standards of quality. 5

Mandate summarised Develop and manage a sub-framework of qualifications in collaboration with SAQA and the other two Quality Councils (QCs) supported by the necessary quality assurance policies and processes. Develop and implement the necessary quality assurance policies in respect of quality assurance of provision. Maintain a database of learner achievements and related matters; and submit such data in a format determined in consultation with the SAQA for recording on the national learners’ records database. 6

Mandate summarised… Commission and publish research related to the development and implementation of the sub-framework of qualifications. Formalisation of relationships which include: § advice to the relevant Minister on matters GFET sub-framework of qualifications; relating to the § collaboration with the SAQA and other QCs in terms of the NQF; and § advocacy of the sub-framework and its qualifications. 7

Section 2: Strategic Plan Presentation outline Situational Analysis Stakeholder Analysis Strategic Intent (Vision, Mission, Values) Strategic Priorities Delivery on Priorities Measuring Performance: Impact, Outcomes Outcome Targets Risk Management 8

Situational Analysis Strengths Weaknesses Strong policy environment Growth of accredited institutions Growth in certification High NSC demand in SADC Strong research and benchmarking – credibility of our qualifications Quality Assurance of SASL Adequate internal policy environment ICT Network health: over 95% Adoption of Cloud technology 7 platforms for communication Experienced and knowledgeable staff Strengths Loss of staff Dependence on contract workers Inability to quality assure NSC offered outside RSA Outdated NATED programmes Inadequate budget and lack of alternative funding models Inadequate office space Shortage of education professionals to handle all new qualifications Weaknesses 9

Situational Analysis… Opportunities Alternate curricula: more options for learners Technological advancements – use of social media for communication Stakeholder engagement forums Research collaborations – new perspective and trends Opportunities Threats Legislative Gaps Inadequate staffing to carry out mandates e. g. monitoring Expanded mandate Inadequate funding to handle new qualifications (GEC, NASCA, GETCA) Verification revenue diverted Threats 10

Our Stakeholders Quality Assurance -SAQA -CHE -QCTO Public Assessment Bodies -DBE -DHET Education Institutions -Private Education Institutions -Higher education Institutions Private Assessment Bodies -IEB -SACAI -BAA Others -Verification Clients -Members of the public -The Media 11

Strategic Intent A trusted authority in fostering high educational standards in general and further education and training. We are the quality council that assures education standards in the General and Further Education and Training Qualifications Subframework. • • • Transparency Professionalism Integrity Reliability Impartiality 12

Values Value Behaviour Transparency Our processes are available for public scrutiny Professionalism Umalusi employees provide services and interact with stakeholders with great rapport. Integrity Umalusi conducts its operations honestly and ethically. Reliability Umalusi uses consistent procedures in its quality assurance processes. Impartiality We maintain equal treatment of standards for all stakeholders. 13

Strategic Priorities Reviewing the quality assurance of assessment approach so as to accommodate new qualifications Evaluating and appraising new qualifications – e. g. GEC Amending the founding Acts to accommodate new qualifications and desired extensions in the mandate of quality assurance Intensify research on educational developments to innovate and advise the Ministers of Education Intensify advocacy on qualifications within the sub-framework Seeking for an alternative funding model to increase revenue 14 7

Delivery of priorities Priority How/What/Why? Reviewing the quality assurance of assessment approach q q Evaluating and appraising new qualifications q Evaluation of the GEC and review of its curricular q Appraising intended and assessed curricular Amending the founding Acts q Reviewing the GENFETQA Act q Reviewing Policies and Directives q To cater for a number of issues not covered by the Acts Intensify research on educational developments q Research Colloquia q Research seminars Intensify advocacy on qualifications on the subframework q Career exhibitions q Advocacy to Unions and Legislatures q Increase communication platforms Seeking for an alternative funding model q To augment the organisational structure q To cater for additional work as a result of new qualifications To accommodate NASCA, GETCA, GEC and ECD Strengthening training of external moderators Automation of moderation and reporting instruments Intensifying the monitoring of accredited institutions and assessment bodies 15 8

Measuring Performance Outputs • Evaluated curricula *Accredited institutions • Verified qualifications *Standardised results • Moderated assessments *Printed certificates Outcome • Enhanced educational Standards Impact • Relevant and credible qualifications 16

Outcome targets MTSF Priority 2: Education, skills and health Outcome indicator Baseline Five-year target Efficient and effective administrative systems 1. 1 Improved audit outcomes Unqualified audit opinions with no material findings Enhanced educational standards Percentage compliance to prescribed requirements to deliver and assess qualification on the GFETQSF Unqualified audit opinions - 95% 17

Risks Outcome Risk Description Risk Management Efficient and effective administrative systems Unreliable MIS data Mitigation strategies are on page 22 Enhanced educational standards Limited budget to carry out ad hoc activities High staff turnover rate Lack of alternative funding model Reliance on independent Contractors for execution and reporting on processes may compromise the confidentiality of organisational information Non-availability of independent contractors to perform the duties when needed Institutions offering qualifications without being accredited There is a Risk Management Committee to monitor risk management Risk analysis is reported to the Audit and Risk Committee Examination irregularities 18

Section 3: APP Presentation Outline Programme 1 sub-programmes Programme 1 outputs, indicators and targets Programme 2 sub-programmes Programme 2 outputs, indicators and targets Programme 3 sub-programmes Programme 3 outputs, indicators and targets 19

PROGRAMME 1: ADMINISTRATION Programme Purpose To provide strategic leadership, management and administrative services to the organisation Sub-programmes: • Strategy and Governance (S&G) • Public Relations and Communications (PR&COMS) • Information and Communication Technology (ICT) • Human Capital Management (HCM) • Finance and Supply Chain Management (F&SCM) 20

Programme 1 Targets Output Indicators Annual Target Q 1 Q 2 Q 3 Q 4 Advocacy exhibitions 1. 1. 1 Number of advocacy exhibitions conducted 12 4 3 1 4 Achieved ICT network health score 1. 2. 1 ICT Network health score maintained at ≥ 95% ≥ 95% Minimised vacancy rate 1. 3. 1 Vacancy rate maintained at ≤ 10% ≤ 10% Paid invoices 1. 4. 1 Percentage of valid invoices of creditors and suppliers paid within 30 days 100% 100% 21

Programme 2: Qualifications and Research Programme Purpose: The purpose of the programme is to develop and manage an efficient and effective GFETQSF within the NQF and to undertake strategic research in support of that goal. Sub-Programmes Sub-Programme 2. 1: Qualifications, Curriculum and Certification (QCC) The purpose of the QCC sub-programme is to manage the GFETQSF qualifications. Sub-Programme 2. 2. : Statistical Information and Research (SIR) The purpose of the SIR sub-programme is to provide a platform for research, statistical support and maintenance of learner databases to inform the Council’s professional work and organisational strategy. 22

Programme 2 Targets Output Indicators Reports on 2. 1. 1 Number of reports produced management of on the management of qualifications in the subframework Printed 2. 2. 1 Percentage of error-free certificates learner records for which a certificate is printed Completed 2. 3. 1 Percentage of verification requests received that are requests completed in terms of the service level agreement: two working days Completed 2. 4. 1 Number of research reports completed in various formats Annual Target Q 1 Q 2 Q 3 Q 4 1 - - - 1 100% 100% 96% 96% 96% 5 - - - 5 23

Programme 3: Quality Assurance and Monitoring Programme Purpose To ensure that the providers of education and training have the capacity to deliver and assess qualifications registered on the GFETQSF and are doing so to the expected standards and quality. Sub-Programmes Sub-Programme 3. 1: Quality Assurance of Assessment: School Qualifications Purpose of this sub-programme is to ensure credibility of assessment and examination results of school qualifications registered on the GFETQSF. Sub-Programme 3. 2: Quality Assurance of Assessment: Post-School Qualifications Purpose: To ensure credibility of assessment and examination results of post-school qualifications registered on the GFETQSF. Sub-Programme 3. 3: Evaluation and Accreditation Purpose: To quality assure the delivery of qualifications registered on the GFETQSF at private education institutions and the capacity of private assessment bodies to assess those qualifications.

Programme 3 Targets Output indicators Published QAA reports 3. 1. 1 Number of quality assurance of assessment reports published for qualifications registered on the GFETQSF Approved question papers 3. 2. 1 Percentage of question papers approved per qualification Audited Assessment bodies for SOR 3. 3. 1 Number of assessment bodies audited for their state of readiness to conduct examinations Verified subjects 3. 4. 1 Number of subjects for which verification of marking is conducted Annual Target Q 1 Q 2 Q 3 Q 4 10 - 2 1 7 100% - - - 100% 13 - - 13 - 84 - - - 84 25

Programme 3 Targets Output Indicators Moderated subjects 3. 5. 1 Number of subjects for which moderation of internal assessment is conducted Accredited outcomes for private education institutions 3. 6. 1 Percentage of accreditation outcomes for private education institutions finalised within 12 months of the site visit Monitored private 3. 7. 1 Percentage of identified education private education institutions monitored after being granted accreditation Annual Target Q 1 Q 2 Q 3 Q 4 125 - - - 125 82% - - - 82% 92% - - - 92% 26

The impact of COVID-19 on the 2020/21 APP • An analysis of the approved APP has been done in relation to the COVID-19 restrictions • Out of 15 indicators, 8 indicators have been affected (53%) • Management has revised the affected indicators and targets for the year • NB. Q 1 and Q 2 targets will be the most affected – implementation taking place before the revision of the APP • Awaiting DPME guidelines on the review of the APP and its re-tabling 27

Section 4: Budget Presentation Outline BUDGET 2020/21 – 2022/23 • Budget cuts • Revenue • Expenditure • Surplus Funds • Expenditure per program • Cost drivers • Estimated Changes: COVID-19 • Legal Cases 28

Budget cuts • • • As part of the general savings process of the Budget cut of 2. 0% has been implemented over the MTEF period in December 2019. R 7, 07 million baseline allocation less from DBE. In total increase in allocation only 3, 3% in 2020/21. With increase in number of question papers, new qualifications and curricula, budget under great pressure. 29

Revenue R’ 000 2019/20 2020/21 2021/22 2022/23 R 134 634 R 139 172 R 146 826 R 154 158 Accreditation fees R 11 375 R 6 945 R 7 321 R 7 715 Certification fees R 5 926 R 5 383 R 5 706 R 6 049 R 10 661 R 11 192 R 11 472 R 11 759 R 8 185 R 12 928 R 12 874 R 12 881 R 170 782 R 175 620 R 184 199 R 192 562 Percentage Increase Total Revenue 2, 83% 4, 88% 4, 54% Percentage Increase Government Allocation 3, 37% 5, 50% 4, 99% Government funds - DBE Verification services Other Income Total Revenue 30

Revenue R 160 000 R 150 000 R 140 000 R 130 000 R 120 000 R 110 000 R 100 000 R 90 000 R 80 000 R 70 000 R 60 000 R 50 000 R 40 000 R 30 000 R 20 000 R 10 000 R 0 Government funds DBE 2019/20 Accreditation fees 2020/21 Certification fees 2021/22 Verification services Other Income 2022/23 31

Expenditure OPERATIONAL & CAPITAL EXPENDITURE Compensation of employees 2019/20 2020/21 2021/22 2022/23 R 81 438 R 84 985 R 89 234 R 93 696 Goods and services R 105 035 R 104 350 R 106 312 R 110 929 Capital expenditure: R 3 500 R 1 000 R 1 500 R 1 327 R 189 973 R 190 335 R 197 046 R 205 952 4, 355% 5, 000% 0, 19% 3, 53% 4, 52% Total Expenditure Compensation to Employees Increase Total Expenditure Percentage Increase 32

Surplus Funds National Treasury and DBE approved Umalusi’s request to retain surpluses for the following projects: Renovations of purchased building Contingency expenditure Enterprise Content Management system The balance of the surplus funds is utilised to balance the budget shortfall. 33

Expenditure per Programme 1: Administration 15% 35% 2. 1 Qualification, Curriculum & Certification 2. 2 Statistical Information & Research 13% 3. 1 Quality Assurance of Assessment - School 20% 10% 7% 3. 1 Quality Assurance of Assessment - Post School 3. 2 Evaluation and Accreditation 34

Cost Drivers 3% 4% Compensation of employees 5% 2% Honorarium & Consultants Travel and subsistence 15% 46% Communication Computer services 25% Property payments Other 35

Estimated Changes: COVID-19 Revenue 2020/21 R 000 Estimated (savings)/ changes Approved Budget Restated Budget Estimate Revenue Entity revenue 51 163 (6 732) 44 431 23 520 (6 048) 17 472 5 383 (2 153) 3 230 Verification of certificates 11 192 (3 895) 7 297 Accreditation of Providers 6 945 Sale of goods and services Certification Entity revenue other than sales Interest Unsecured funding- Reserve funds 27 643 (684) 26 959 4 000 14 715 Other income: Rental and Sundry Income 8 928 Transfers received: Basic Education Grant 139 172 Total revenue 6 945 190 335 (684) 8 244 139 172 (6 732) 183 603 36

Estimated Changes: COVID-19 2020/21 EXPENDITURE Summary R 000 Compensation of employees Goods and services Administration Expenses Board costs Catering: internal activities Communication Computer services Consultants Travel and subsistence Venues and facilities Honorarium: Personal Protection Equipment Capital Expenditure: Non fixed assets Total Expenditure Net Budget (shortfall Surplus 1 000 (3 605) (913) (5 996) 2 332 1 500 Restated Budget Estimate 84 985 96 117 13 199 269 136 5 693 9 030 7 406 20 426 3 652 33 975 2 332 2 500 190 335 (6 733) 183 602 - 0 0 Approved Budget 84 985 104 350 13 199 323 272 4 554 10 030 7 406 24 030 4 565 39 971 Estimated (savings)/ changes (8 233) (54) (136) 1 139 (1 000) 37

Legal Cases Umalusi vs Kabini Joint Venture (JV) • -Case related to the renovations of the new building in 2018/19. Reported prev. year • -Umalusi issued summons against JV for repayment of funds as JV was illegal. (R 10 m) • All parties agreed to refer to Arbitration • Arbitration agreement signed • Arbitrator appointed • Awaiting date 38

Legal Cases (Cont. ) Umalusi vs Independent Examinations Board (IEB) • -Umalusi issued summons against IEB for non payment of assessment fees. (R 2, 9 m) • -IEB issued action to review charging of these fees and amounts. • -Parties agreed to combine cases with one judge. • - Case set down to be heard in July 2020. 39

Concluding Remarks Senior and Executive Managers have signed a pledge with the CEO to obtain a clean audit. Achievement of APP targets is part of the SMS members’ Performance Agreements. Performance outputs are verified on a quarterly basis by an internal committee (PIVC) and monitored at quarterly review meetings, and reported to oversight structures (Audit and Risk Committee, Executive Committee of Council and Council). Executive Management will monitor the implementation of the APP and delivery of service and the utilization of the budget within the constraints of the COVID-19 pandemic and report to the Umalusi Council accordingly during the year. 40

THANK YOU We would like to convey our sincere appreciation to our Council for their continued support. Thank you very much to the Chairperson of the Portfolio Committee, Ms Mbinqo-Gigaba, and the Honourable members for this opportunity to present Umalusi’s five-year’s strategic plan, 2020/21 Annual Performance Plan and Budget. Dr MS Rakometsi 41