Umalusi

1
Umalusis budget review presentation to the
Portfolio Committee on Basic Education

• 8 July 2014
• Cape Town

2

• Overview

• Umalusi mandate
• Vision, mission, goals and KRAs
• 2013/14 Revenue Expenditure
• 2014/15 Budget
• Three Year Budget Forecast
• Conclusion

3

• Umalusi Mandate 2013/14

• 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

4

• Vision Mission

• Umalusi Council is the cornerstone on which
  the countrys 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

5

• Goals

• 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 Umalusis
  mandate.

6

• 7 Key Result Areas

• Establishing and maintaining a system to develop,
  evaluate and certify qualifications (and
  curriculum)
• Improving and maintaining the system for quality
  assuring assessment for certification
• Establishing and implementing a system for
  evaluation and accreditation of private providers
  schools, colleges and adult learning centres as
  well as private assessment bodies
• 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
• Developing and ensuring good corporate governance
  and management of the office of the Chief
  Executive Officer
• Ensuring that Information Technology systems are
  established, maintained and improved
• Ensuring that finance, human resources and
  administrative support systems are maintained and
  improved

7

• EXECUTIVE SUMMARY

• 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

8

• EXECUTIVE SUMMARY (2)

• 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

9
Comparative total expenditure vs 3 year average
10

• 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 110 704 500 R 120 904 924 9 Above budget

11

• 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 Net surplus as at 31 March 2014 is therefore R 19 099 301 Net surplus as at 31 March 2014 is therefore R 19 099 301 Net surplus as at 31 March 2014 is therefore R 19 099 301 Net surplus as at 31 March 2014 is therefore R 19 099 301
12

• 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 88 959 125 R 64 727 122
13

• 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.
14

• 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
15

• Qualifications, Curriculum Certification

OUTCOMES 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
16

• 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
17

• 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
18

• 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
19

• 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
20

• 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
21

• 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
22

• 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
23

• 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
24

• Total Income 2000/1 (actual) to 2016/17 (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 93 219 718   R 18 391 000 20
2012/13 R 81 527 016   R 42 330 000 52
2013/14 R 120 904 924   R 97 662 000 81
2014/15   R 134 808 098 R 106 488 297 79
2015/16   R 148 972 637 R 112 705 000 (R18 097 637) 76 (88)
2016/17   R 167 949 880 R 118 678 000 (R 28 376 380) 71 (88)
25

• 3 Year Budget Forecast

2013/14 2014/15 2015/16 2016/17
R 110 704 500 R 134 808 098 R 148 972 637 R 167 949 880
Budget for 2014/15 is approved for R 134 808 098. The grant approved is R 107 354 000. Budget for 2014/15 is approved for R 134 808 098. The grant approved is R 107 354 000. Budget for 2014/15 is approved for R 134 808 098. The grant approved is R 107 354 000. Budget for 2014/15 is approved for R 134 808 098. The grant approved is R 107 354 000.
Y/Y Percentage Increase Y/Y Percentage Increase Y/Y Percentage Increase Y/Y Percentage Increase
14 22 11 13
26

• Challenges

• 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

27

• THANK YOU

• Thanks to Ms N Gina, Chairperson of the
  Portfolio Committee, and Honorable members for
  this opportunity to present Umalusis 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