STRATEGIC PLAN AND ANNUAL PERFORMANCE PLAN: 2013/14

1. STRATEGIC PLAN AND ANNUAL PERFORMANCE PLAN: 2013/14 Presentation to the Portfolio Committee on Higher Education and Training – 24 April 2013

2. Presentation 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 2013/14

3. Objectives of the NQF Objectives 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

4. Objectives of the NQF SAQA 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

5. SAQA GOVERNANCE STRUCTURES

6. Board 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 Board

7. Board and Committees Structure • 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

8. Board and Committees Structure • 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

9. Strategic Planning Context Changes in the environment

10. Changes 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

11. Changes in the environment • 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

12. Changes in the environment • 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

13. Changes in the environment • 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

14. Changes in the environment • Requests from DHET • Assistance with Apply Now! Campaign • Assistance with Central Applications Clearing House • Taking on of the Joint Matriculation Board Function

15. Strategic Planning Context Highlights from 2012/13

16. Highlights from 2012/13 • SAQA’s focus was on boldly serving lifelong learners through: • C = Careers advice service • A = Articulation • R = RPL • S = Staff development • To achieve this SAQA needed to: • Be visible • Provide bold leadership

17. NLRD Information 2012/13

18. NLRD Information 2012/13

19. Foreign Qualification Evaluation

20. Verification of Qualifications

21. Career Advice Project

22. Highlights from 2012/13 Activities regarding articulation related to: • Convened aThink Tank Workshop with experienced experts • Prepared a draft Articulation Policy • Hosteda Research Conference with articulation and RPL as theme • Allocated qualifications to the sub-frameworks • Provided advice to Minister

23. Highlights from 2012/13 • Assisted DHET with • Developing Frameworkfor Co-operation • Developing National Careers Advice Portal (NCAP) • Apply now! Campaign • CACHProject • MandelaDay Careers Festival

24. Highlights from 2012/13 Activities regarding RPL related to: • Supported the Ministerial RPL Task Team • Finalised the Revised Policy and Criteria for RPL • RPL Research and support to individual projects • Published SAQA Bulletin on RPL • Set up Reference Groups for CAT and Assessment established

25. Highlights from 2012/13 In respect of staff development: • Implemented Employee Wellness Programme • Implemented Learning and Development Opportunities (including Leadership development and Lifelong Learning Course) • Conduct regular Product Awareness Training • Retained the Investors In People Standard

26. Highlights from 2012/13 In respect of visibility (public positioning) of SAQA: • EstablishedIntegrated communication strategy • Mandela Day and other Careers exhibitions • Held Events(Road Shows on level descriptors , Launch of Professional Bodies, Chairperson’s Lecture, Seminars, and other events) • Produced Publications and advertisements (Bulletins, policies, etc) • Delivered Khetha Radio Programmes • Establishedthe Advocacy Communication and Support (ACS) Directorate

27. Highlights from 2012/13 In respect of Leadership: • Advised the Minister on the determination of the Sub-frameworks • Implemented the Policy on Professional Bodies • Completed the Policy on Registration of Qualifications and Part Qualifications • Completed the Revised Policy on RPL • Prepared a draft Articulation Policy • Developed proposal to establish a counter fraud unit • 15 consecutive clean audit reports

28. Budget and Funding

29. Current Budget and MTEF Projections

30. Current Budget and MTEF Projections

31. Budgetary Constraints • Scenario 3 and 4 budgets used, due to insufficient income for Scenario 1 budget. Results in not all activities being undertaken. • SAQA has never had a fully funded budget from Government to fully implement its mandate. Fundraising and partnerships used in the past to fund certain functions • Prior years used accumulated funds to supplement income. No longer have accumulated funds. As per 2012/13 financial year, need R10 million per annum to stay on same base. For Scenario 1 budget to be implemented, R20 million per annum needed • CAS project ends 31 August 2013 – No provisions in MTEF from that point forward • Cost of compliance e.g. Increase of 8% in AG fees vs 5.6 % provided by National Treasury

32. Analysis of Income & Expenditure

33. Government Grant Income

34. Government Grant • Government Grant average annual increase from 2008/09 to 2012/13 is 5,01% • Negotiated salary increases for SAQA staff over the corresponding period have been on average 7,63% • DPSA average increase over the same period is 8,47% • Funding deficit on average of 2,62% per annum - clearly not sustainable considering that this is single largest cost item of a service organisation

35. Analysis of Income and Expenditure -Expenditure excluding CAS project

36. Income & Expenditure Analysis • In 2008/09 personnel costs comprise 44,7% of total cost (Admin + Capital costs exceed personnel costs) • In 2013/14 budget, personnel costs comprise 62,5% of total cost. (Personnel costs far exceed Admin + Capital costs) • In 2013/14 budget Admin + Capital costs lower than in 2012/13 budget by R6,2 million. • To balance 2013/14 budget, SAQA had to: • cut 6 permanent staffing posts (current staff over stretched) • not fill current vacancies to rollover surplus funds • no staff incentive provision • start charging fees for conference fee attendance and publications. Initiatives to raise funds • further cuts in operating budgets, affecting the achievement of performance objectives

37. Analysis of Income and Expenditure - Personnel Costs vs Government Grant

38. Income & Expenditure Analysis • Fairly flat increase in Government Grant received. Average increase over the years to 2013/14 of 5,25% • Average increase in personnel costs over the same period is 12% (partly due to inflationary increases and partly due to increase in staff numbers) • In 2008/09 the grant received exceeded the personnel costs. From the 2011/12 financial year this is the inverse • By implication therefore, SAQA’s own revenue generated funds the operations

39. Income & Expenditure Analysis Conclusion • Accumulated surplus funds in prior years was used to supplement SAQA income. • From 2013/14 onwards this will not be the case. • Personnel costs as a percentage of total costs rising to a percentage that will not be sustainable in the future. • Additional funding of R10 million per annum needed just to sustain the same base of expenditure as in the 2012/13 financial year but R20 million needed for the Scenario 1 budget. • Expected outputs and deliverables continue to increase each year without the commensurate additional resources.

40. Additional functions under the NQF Act • In terms of the NQF Act, SAQA required to have a more expansive view of the NQF • New functions added • Recognition of professional bodies and registration of designations • Coordination of the 3 sub frameworks • Informing the public about the NQF • Functions consistent with the NQF e.g. Verifications Project • Priorities assigned as per the Ministerial guidelines • (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 Donor organisations and JIP partnerships with the SETA’s)

41. Funding Summary

42. Total Funding Requirements • Project Funding • Digitisation of Data – 3 year project R 24,7 mil • NQF & CAS Helpline – 43 months R133,0 mil • Total project funding R157,7 mil • Ongoing Funding • To maintain current service levels R10,0 mil • Verification of qualifications R 7,3 mil • Inform the Public (Advocacy) R27,0 mil • Counter fraud strategy R 5,0 mil • Further development & implementation R 4,5 mil • Support directorates R 2,5 mil • Total ongoing funding R56,3 mil

43. 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 affected • Not 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 done • Market research to establish needs and trends and to identify strategic challenges may not be done

44. Unfunded APP Activities (2) • 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.

45. Unfunded APP Activities (3) • 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.

46. Unfunded APP Activities (4) • 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.

47. Annual Performance Plan (APP): 2013/14

48. APP – 2013/14 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.

49. APP – 2013/14 The APP focuses on the Strategic Imperatives: • 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 research credibility to direct and steer policy, legislative and conceptual debates on key NQF-related priorities and to impact on national and international practice. • Ensure effective governance, and develop human, financial, information and communication technology and infrastructural resources to support achievement of organisational objectives

50. Leadership : Implement all requirements of the NQF