annual report - national government...8 annual report 2014/15 council on higher education sahepsc...
TRANSCRIPT
Annual Report 2014/15
ii
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Annual Report2014/15
2
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
CONTENTS: PART A 5General Information 6List of Acronyms 7Chairperson’s Message 9CEO’s Overview – The year in perspective 12Statement of Responsibility and Confirmation of Accuracy 15Strategic Overview 16Legislative Mandates 17Strategic Imperatives 18Strategic Goals and Objectives 19Organisational Structure 21
PART B 23Performance by Programme 24Advice to the Minister 24Monitoring of the State of Higher Education 25Higher Education Performance Indicators 25Review of the State of Higher Education 1994 – 2014 25Research Projects 25Private Higher Education Management Information System 26Publications 27Conferences 27HEQSF Alignment and Linked Alignment Project 27Standards Development 28HEQCIS 29Institutional Audits 29Quality Enhancement 30Programme Accreditation 31National Reviews 34Quality Promotion and Capacity Development 35Human Resources 37Administration and Finance 41Overview of the CHE’s Performance 43
3
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
PART C: GOVERNANCE 53 Portfolio Committee on Higher Education and Training 54Executive Authority 54The Accounting Authority 54Governance Structure 55Committees and Sub-committees 60Remuneration of Council Members 64Risk Management 64Materiality Framework 64Internal Audit 65Auditors 65Compliance with Laws and Regulations 65Audit Report Matters in the Previous Year 65Fraud and Corruption 65Subsequent Events 65Minimising Conflict of Interest 65Code of Conduct 66Health, Safety and Environmental Issues 66Social Responsibility 66Audit Committee Report 66Council Members 67
PART D: HUMAN RESOURCE MANAGEMENT 73Overview 74Human Resources Oversight Statistics 74
PART E: ANNUAL FINANCIAL STATEMENTS 79
A
4
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Part A:General
Information
6
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
GENERAL INFORMATIONRegistered Name: Council on Higher EducationPhysical Address: 1 Quintin Brand Street Persequor Technopark Pretoria 0020Postal Address: P O Box 94 Persequor Park 0020 South AfricaTelephone Number +27 012 349 3840Fax Number +27 012 349 3942Email [email protected] www.che.ac.zaExternal Auditors: Auditor-General South AfricaBank: Standard Bank, Brooklyn Branch, Fehrsen Street, Brooklyn, Tshwane
7
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
LIST OF ACRONYMSASB Accounting Standards BoardAPP Annual Performance PlanARC Audit and Risk CommitteeBSW Bachelor of Social WorkCEO Chief Executive OfficerCFO Chief Financial OfficerCESM Classification of Educational Subject MatterCHE Council on Higher EducationDHET Department of Higher Education and TrainingENE Estimates of National ExpenditureEXCO Executive CommitteeGAAP Generally Accepted Accounting PracticeGRAP Generally Recognised Accounting PracticeHELTASA Higher Education Learning and Teaching Association of South AfricaHEMIS Higher Education Management Information SystemHEQC Higher Education Quality CommitteeHEQCIS Higher Education Quality Committee Information SystemHEQSF Higher Education Qualifications Sub-FrameworkHR Human ResourcesHRRC Human Resources and Remuneration CommitteeIAC Independent Actuaries and ConsultantsIAS International Accounting StandardsIASB International Accounting Standards BoardIFRS International Financial Reporting StandardsLLB Bachelor of LawsMBA Master of Business AdministrationMEC Monitoring and Evaluation CommitteeMTEF Medium Term Expenditure FrameworkNIHSS National Institute for the Humanities and Social SciencesNBT National Benchmark TestNLRD National Learners’ Records DatabaseNQF National Qualifications Framework Act 67 of 2008NRF National Research FoundationPAA Public Audit Act of South Africa, Act 25 of 2004PFMA Public Finance Management Act 1 of South Africa, Act 1 of 1999PPPFA Preferential Procurement Policy Framework ActQCTO Quality Council for Trades and OccupationsQEP Quality Enhancement Project
A
8
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
SAHEPSC South African Higher Education Platform in Sport Coaching SAQA South African Qualifications AuthoritySARS South African Revenue ServicesSASCOC South African Sports Confederation and Olympic CommitteeSRC Students’ Representative CouncilUIF Unemployment Insurance FundUMALUSI Council for Quality Assurance in General and Further Education and TrainingVAT Value Added Tax
9
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
CHAIRPERSON’S MESSAGEThe Council on Higher Education remains a key player, in partnership with other stakeholders, in shaping the higher education system in South Africa. I have been honoured to steer the work of the Council in the 2014/15 financial year, and to oversee the induction of new members of Council appointed in December 2014 by the Minister. It is gratifying to have been working with Council members with vast experience and expertise in higher education and other sectors. In order to fulfil our fiduciary duties and ensure that there is good governance at the CHE, Council underwent an independent external evaluation of its performance, the results of which were pleasing to see. It was evident from the results that the CHE takes its role very seriously. Regular attendance of meetings, robust engagements in meetings, the quality of advice to the Minister and interactions in the higher education sector in various forms characterised the work of the CHE in the 2014/15 financial year. I am pleased to report that in this period, the administrative, financial and governance systems of the organisation continued on a sound footing already laid in previous years which enabled the work of the CHE to grow and develop as it implemented a range of new and exciting projects as outlined in this Annual Report. Although the projects are exciting and relevant to the development of the higher education system, there were a few challenges that affected the progress in some of the research projects. The time it takes to complete some of the projects is a challenge faced by Council. The CHE depends to a large extent on the expertise and willingness of peers in the sector to contribute to the work of the entity. There are instances where there are inordinate delays in completing the projects, and consequently an overlap into the next financial year.
The improvement of quality in teaching and learning has been at the centre of many of the CHE’s projects. The first phase of the Quality Enhancement Project which was implemented in this financial year focused the attention of public universities, and to a lesser extent, private higher education institutions on improving four key aspects that underpin good teaching and learning and hence student success. The CHE is concerned about low throughput rates and is cognisant of a range of interventions put in place by institutions of higher learning together with the Department of Higher Education and Training through the Teaching and Development Grants to address this challenge. The CHE played a crucial role in these interventions through HELTASA, particularly in recognizing excellence in teaching at universities in this country.
One of the legislative requirements for the CHE is to conduct institutional audits through its permanent Committee, the Higher Education Quality Committee (HEQC). In the 2014/15 financial year there was also extensive engagement with those institutions still busy implementing the recommendations of their institutional quality audits. The Improvement Plans are closely monitored, and some of the universities that encountered governance and management challenges were assisted to focus on their Improvement Plans in 2014/15. The challenge faced by Council was the closure of the first cycle of audits at some universities for various reasons.
A
10
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
A robust accreditation system of the CHE has enabled the processing of 427 new applications, the accreditation of 324 programmes and 36 site visits across the country. In addition to this, a total of 53 programmes were re-accredited. As a result of the rigour involved in accrediting academic programmes, the CHE encountered legal challenges from higher education providers who had their accreditation withdrawn in the financial year 2014/15. As the custodian of quality assurance mechanisms, the CHE continues to preserve the integrity of the system by ensuring that our qualifications are beyond reproach. The legal challenges that purport variations and/or deviations from the well-considered criteria to assess the quality of provisioning at some private higher education institutions put a strain on the human and financial resources of the CHE. Council is, however, resolute that quality of teaching and learning shall not be compromised by legal threats and actions.
In the year under review there were structural re-arrangements within the Council on Higher Education. The National Reviews Directorate was merged with the Standards Development Directorate to enhance interactions and synergies in setting standards and reviewing certain professional programmes. The Capacity Development and Quality Promotion Unit was housed within the office of the Chief Executive Officer to pull together projects across the organisation and maximise our output. The accreditation system, the national reviews, the quality promotion activities and the alignment of qualifications with the Higher Education Qualifications Sub-Framework (HEQSF) all contributed to the HEQC’s sharper focus on bringing about improvements in the quality of teaching and learning and in the offerings of our higher education system.
The strategic direction signalled in the 2014 workshop of Council to strengthen the CHE’s relationship with other stakeholders, notably the Department of Higher Education and Training, other Quality Councils, institutions of higher learning and the Portfolio Committee on Higher Education and Training was aimed at enhancing the visibility and impact of the CHE as it executes its quality assurance functions, and provides advice to address the key challenges in the higher education system. This is still work in progress that overlaps into the 2015/16 financial year, but certainly one of the medium to long term goals of the CHE to increase its visibility and impact nationally and internationally. This strategic direction has been reiterated by the new Council. The level of engagement of the CHE with higher education institutions has, however, increased through its quality enhancement and promotion activities and through ongoing consultation processes regarding the CHE’s proposal for undergraduate curriculum reform. The latter informed the CHE’s comprehensive and proactive advice to the Minister to introduce an extended and flexible curriculum structure in undergraduate qualifications to address the major challenge of poor throughput and graduation rates in higher education. Advice on a number of policy-related matters was also provided in this period.
As indicated above, one of the medium to long term goals is to increase the visibility and impact of the Council on Higher Education and playing a crucial role in the implementation of the plan to be crafted for the post school education and training sector. Adequate funding for the CHE to deliver on its mandate, within the shortest possible time, form part of the medium to long term goals of the entity. Roll-over funds from projects are not sustainable.The Council’s relationships and work with the South African Qualifications Authority, the
11
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Council for Quality Assurance in General and Further Education, and the Quality Council for Trades and Occupations have continued to be strengthened, and the priorities related to the NQF identified by the Minister for 2014/15 were advanced significantly, particularly through the near-completion of the HEQSF-alignment project. International linkages were also pursued through ongoing collaboration with other quality agencies in the Southern African region, with the Scottish Quality Assurance Agency, with a number of international projects and through participation in conferences and a number of international speakers at the CHE’s events.
The CHE improved the rate at which it retained its staff through various human resources strategic interventions, and I am pleased to report that there is a stable work force dedicated to deliver on the mandate of Council. Attracting and retaining staff with superior intellectual capabilities remains a challenge that we hope can be mitigated by providing competitive remuneration and benefits in the medium to long term.
The outcome of the audit by the Auditor-General of South Africa attests to compliance with legal requirements of the Public Finance Management Act. I would like to express my appreciation to the Audit and Risk Committee together with the management and staff for working hard and ensuring that the CHE had a clean audit in 2014/2015.
In conclusion, I would like to thank all our partners who supported the work of the CHE in various ways in 2014/15. Higher education is confronted by many challenges, some of which if not addressed in a collaborative manner could reverse all the gains we have realised since the dawn of democracy. Diminishing resources and an expanded mandate of the post- school education and training system begs of all role players to “do more with less.” As I thank the Portfolio Committee on Higher Education and Training for the oversight role and support in resourcing the CHE in 2014/15, I commit the CHE to fulfil its mandate and utilise the scarce resources which we hope will improve in the next financial year. Thanks to the Minister,the Deputy Minister, Director-General and all the staff of the Department of Higher Education and Training for their support during the 2014/15 financial year.
Professor N. Themba MosiaChairperson
A
12
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
CHIEF EXECUTIVE OFFICER’S OVERVIEW
The Year in PerspectiveThe past year has seen the CHE focusing on the implementation of the plans and projects that characterise its activities as both an advisory body on higher education matters, and as a Quality Council. The execution of its quality assurance and quality promotion functions have taken centre stage, while the CHE’s contribution to the policy discourse on higher education has been strengthened through its research and information dissemination activities.
One of the most pressing challenges of higher education, the enduring problem of poor throughput rates, has been on the CHE’s radar for some time. That less than half of the students taking diploma and degree programmes currently graduate, even allowing for extra years to do so, is an unsustainable situation, costly both in human and subsidy terms.Such a challenge requires an imaginative and bold response at a system level to turn it around. A CHE Task Team put forward a proposal based on extensive research for reform in the undergraduate curriculum structure in 2013, and, after extensive consultation, further research and refinement of the proposal, the CHE submitted advice on this matter to the Minister in December 2014.
A comprehensive review of the higher education system, undertaken by a number of working groups, continued to be worked on and refined for publication in the next financial year; it has the potential to lead to further advice to the Minister. In the year under review, advice and comment was also provided on a number of policy matters at the Minister’s request. The CHE continued to provide audited data on the higher education system through a third and expanded edition of the successful publication VitalStats, and carried out work on a number of other research projects which are designed to reach fruition and publication in the next financial year.
The Quality Enhancement Project (QEP), which was launched in 2014, gained traction in both the public and private higher education institutions as it entered into the first major phase of implementation. The aim of the QEP is to contribute to enhancing learning and teaching in order to improve student success, which is understood as increasing the number of graduates with attributes that are personally, professionally and socially valuable. The work of the Directorate has been enhanced by the active involvement of Deputy Vice-Chancellors (DVCs) Academic of the universities both within their institutions in their preparation of submissions on their current activities in four areas that underpin teaching and learning, and nationally, in assisting with the design and oversight of a number of collaborative learning opportunities. Their support is essential to making the QEP a success.
The 2014/15 year also saw the major project of aligning all 10 000 or so existing qualifications in higher education with the Higher Education Qualifications Sub-Framework (HEQSF) reach a point of near-completion. Apart from the ongoing process of accrediting new programmes as they are developed to replace those that do not align with the HEQSF,
13
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
A
which will form part of the routine accreditation process at the CHE going forward, all existing programmes have been evaluated and aligned with the HEQSF. This process has facilitated an intensive rationalising and reorganising of offerings in higher education to promote quality, coherence and articulation within the sector.
A milestone was reached in this year with the development of the first five draft qualification standards to be piloted for curriculum development, accreditation and national reviews. The functions of developing standards and the carrying out of national reviews were amalgamated in order to ensure that national reviews are carried out in relation to standards developed and agreed to within academic groupings. The National Review of Social Work was completed, and ongoing monitoring of the implementation of accreditation conditions will be part of the work of the CHE for some time. A national review of the LLB qualification was launched as the next major project in this regard.
In terms of the overall financial performance of the CHE, the 2014/15 year continued some of the healthy developments noted in 2013/14 and less under-expenditure than in previous years; at 17% it is, however, still short of the target of 5%.
There was ongoing focus on governance and accounting policy reviews and enhance-ments in order to ensure compliance with the applicable guidelines from National Treasury, Accounting Standards and best practices.
Further, there was enhancement of current procedures and processes to address internal control deficiencies, identified by both the internal and external auditors, in finance and supply chain which included the development of both month and year-end close processes. By the introduction of Goods Receipt Vouchers transactions are now recognised in the correct period as they are expensed immediately when the goods or services are delivered or rendered.
The CHE ended the 2014/15 financial year with an audited surplus of R14 228 860 after adjusting for non-cash items relating to depreciation and bad debts written off amounting to R2 257 810. A request for roll-over of funds was submitted to National Treasury for approval.
A consolidated strategic audit action plan was developed and implemented and this resulted in 13 audit findings from the internal auditors and 22 audit findings from external auditors being addressed. Efforts were made to continue enhancing internal controls and procedures to ensure an excellent audit outcome – which indeed was the case, as the CHE achieved a clean audit for 2014/15.
As is evidenced in the financial data, with an average of 90% of posts filled throughout the year all existing Directorates were appropriately staffed and carrying out all their functions, while an intensified focus on quality promotion and policy development was facilitated through the appointment of a new Director in this area. The implementation of a new flexible remuneration framework for senior staff, approved by the Minister of Higher Education and Training and the Minister of Finance, assisted in achieving stability in staffing at that level and ensured continuity and progression in the work of the CHE.
14
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
We are grateful to the members of the outgoing Council for exercising keen oversight of the work of the CHE and for providing input on its strategic direction. The HEQC has continued to demonstrate its commitment to improving quality through its careful consideration of quality matters and sensible decision-making. Our thanks go to four members whose terms of office came to an end in this period for their dedication and wise input: Professor Narend Baijnath, Dr. Felicity Coughlan, Mr. Thami Ledwaba and Ms. Kuselwa Marala. A special word of gratitude is extended to Professor Yunus Ballim, whose term similarly came to an end, for chairing the Committee in a manner that was both thoughtful and decisive.
After five successful years at the helm of the CHE, Mr Ahmed Essop decided not to pursue a second term in the Chief Executive Officer’s post. He has left a legacy of good governance, sound principles applied in policy-making, and an organisation that has both consolidated and extended its important role in higher education. Our appreciation is extended to him for his strong leadership, his wise counsel, his extensive support to the Directors of the CHE as they carried out their programmes and projects, for his insights and for his somewhat acerbic sense of humour.
Finally, the CHE’s Directors and staff are commended for their hard work and commitment to ensuring that the CHE’s advice and quality assurance functions are professionally carried out in the furtherance of the long-term health of South Africa’s higher education system.
Denyse Webbstock (Dr)Acting Chief Executive Officer
15
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACYTo the best of our knowledge and belief, we confirm the following:
All information and amounts disclosed in the annual report are consistent with the annual financial statements audited by the Auditor-General.
The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the annual report guidelines as issued by National Treasury.
The Annual Financial Statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board applicable to the Council.
The accounting authority is responsible for the preparation of the annual financial statements and for the judgements made in this information.
The accounting authority is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.
The external auditors are engaged to express an independent opinion on the annual financial statements.
In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the entity for the financial year ended 31 March 2015.
Prof N. Themba Mosia Dr Denyse WebbstockChairperson ActingChiefExecutiveOfficer31 July 2015 31 July 2015
A
16
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
STRATEGIC OVERVIEW
Vision The CHE as an independent statutory body strives to be an organisation nationally and internationally recognised for the quality of its intellectual contribution to and its impact on the development of the South African higher education system through its core functions of advising the Minister of Higher Education and Training, monitoring trends in the higher education system and assuring and promoting the quality of higher education.
Mission The mission of the CHE is to contribute to the development of a transformed, equitable, high quality higher education system capable of responding to the intellectual, ethical and human resource challenges of a democratic society based on social justice principles which operates in a global context.
Values In pursuit of its vision and mission the CHE is committed to and guided by the following values:
• Independence • Transformation • Integrity • Public Accountability
17
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
LEGISLATIVE MANDATEThe CHE is a statutory body established under the Higher Education Act (Act 101 of 1997), as amended, and is the Quality Council for Higher Education in terms of the National Qualifications Framework Act (Act 67 of 2008). As a statutory body, the CHE is a Schedule 3A National Public Entity in terms of the Public Finance Management Act (Act 29 of 1999) and the applicable Treasury Regulations.
Higher Education ActIn terms of the Higher Education Act, the mandate of the CHE includes the following:
• To provide advice to the Minister of Higher Education and Training on all higher education matters on request and proactively.
• To promote quality and quality assurance in higher education through its permanent committee, the HEQC, including auditing the quality assurance mechanisms of, and accrediting programmes offered by, higher education institutions.
• To monitor the state of higher education and publishing information regarding developments in higher education on a regular basis, including arranging and co-ordinating conferences on higher education issues.
National Qualifications Framework ActIn terms of the National Qualifications Framework Act, as the Quality Council for Higher Education the CHE’s mandate includes the following:
• To develop and manage the qualifications sub-framework for higher education, namely, the Higher Education Qualifications Sub-Framework (HEQSF), including ensuring the relevance and currency of qualifications.
• To advise the Minister of Higher Education on matters relating to the HEQSF.• To develop and implement policy and criteria for the development, registration and
publication of qualifications, as well as for assessment, recognition of prior learning and credit accumulation and transfer in the context of the policy and criteria developed by the South African Qualifications Authority (SAQA).
• To contribute to the development of level descriptors and to ensure their relevance.• To maintain a database of learner achievements in higher education and to submit the
data to the National Learners’ Records Database, which SAQA maintains.• To conduct and publish research, which facilitates the development and implementation
of the sub-framework.• To inform the public of the sub-framework.
A
18
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
STRATEGIC IMPERATIVESThe CHE, in interpreting and giving effect to its mandate, has adopted five strategic imperatives, which inform the development of its strategic goals and objectives:
• To contribute to informing and influencing the public debate on the policy framework for the transformation of the higher education system.
• To contribute to developing the role of the quality assurance system as a steering tool in conjunction with planning and funding to enhance the quality of higher education and to enable the achievement of national policy goals and objectives.
• To contribute to ensuring the currency and relevance of the Higher Education Qualifications Sub-Framework to meet the human resource and knowledge needs of South Africa, including the development and maintenance of standards to enhance the quality of higher education.
• To contribute to building the intellectual capability of the CHE. • To contribute to the development of an enabling and effective organisational climate.
19
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
STRATEGIC GOALS AND OBJECTIVESThe strategic imperatives have been translated into four strategic goals and eleven linked strategic objectives, which inform the CHE’s strategic plan for 2012-2017 and the framework for the CHE’s Annual Performance Plan (APP). These are outlined below:
Goal One
To contribute to informing and influencing the public debate on the policy framework for the transformation of the higher education system and to become a recognised centre for information and policy analysis on higher education. Objective One To provide advice to the Minister of Higher Education and Training on all higher education matters on request and on the CHE’s own initiative. Objective Two To monitor the state of higher education, including publishing information and convening conferences, seminars and workshops on developments in higher education.
Goal Two
To contribute to the development of qualification standards to ensure the relevance, comparability and currency of qualifications. Objective Three To develop and manage the HEQSF, including the articulation of qualifications between the three sub-frameworks, namely, the HEQSF, the General and Further Education and Training Qualifications Sub-Framework and the Trades and OccupationsQualificationsSub-Framework. Objective Four To develop and implement policy, criteria and standards for higher education qualificationstoinformandguidethedevelopment,registrationandpublicationof qualifications. Objective Five To maintain a database of learner achievements in higher education and to submit the data to the National Learners’ Records Database (NLRD), which is maintained by SAQA.
A
20
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Goal Three
To promote quality and quality assurance in higher education, including enhancing the quality of higher education. Objective Six To audit the quality assurance mechanisms of higher education institutions. Objective Seven To accredit new programmes submitted by public and private higher education institutions and to re-accredit existing programmes offered by private higher education institutions. Objective Eight Toundertakenationalreviewsofexistingprogrammesinspecificsubjectfieldsand qualificationlevelsofferedbypublicandprivatehighereducationinstitutions. Objective Nine To promote quality and to develop capacity and understanding of the role of quality assurance in improving quality in higher education at both the systemic and institutional levels.
Goal Four
To ensure the efficient and effective provision of corporate services – administrative, financial, technical and professional, to support the discharge of the core mandate of the CHE. Objective Ten To ensure the development of human resources management environment that enables staff to develop their full potential. Objective Eleven Toensurethatfinancial,administrationandsupplychainmanagementiscompliant with the requirements of the PFMA, relevant Treasury regulations and laws.
Objective Twelve To ensure effective governance and compliance of ICT with statutory requirements.
21
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
ORGANISATIONAL STRUCTURE
Council Structure
Management Structure
A
Council
Human Resources and Remuneration
Committee
Audit and Risk Committee
Executive Committee
Higher Education
Quality Committee
Monitoring and
Evaluation Committee
Council
Chief Executive Officer
Denyse Webbstock (Acting)
Corporate Services
Vuyo Matsam
Chief Financial Officer
ThulaganyoMothusi
Monitoring and
EvaluationGenevieve
Simpson (Acting)
Programme AccreditationKethamonie
Naidoo
Institutional AuditsDiane
Grayson
National Standards
and Reviews
Olivia Mokgatle
Quality Assurance
and Promotion
Co-ordinationAmani Saidi
22
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Part B:Performance
Information
24
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
PERFORMANCE INFORMATION BY PROGRAMME
Strategic Goal OneTo contribute to informing and influencing the public debate on the policy framework for the transformation of the higher education system and to become a recognised centre for information and policy analysis on higher education.
Objective One
To provide advice to the Minister of Higher Education and Training on all higher education matters on request and on the CHE’s own initiative.
Advice to the Minister
The CHE has a dual advisory function; providing advice at the request of the Minister of Higher Education and Training and providing advice on its own initiative in response to critical issues and challenges identified by the Council that impact on the higher education system.
In the year under review, the Council provided the Minister with advice and comment at his request on the following:
• Draft Policy on the Policy and Procedures for Measurement of Research Outputs of Public Higher Education Institutions.
• Draft Articulation Policy.
In addition, the Council provided the Minister with advice on its own initiative on the Reform of the Undergraduate Curriculum. This advice was based on the report of the Task Team established by the Council to investigate the desirability and feasibility of restructuring the duration of the current three- and four-year undergraduate diplomas and degrees, as a mechanism for both enhancing academic success and for enabling students to engage with the changing role of knowledge in contributing to social and economic development in the 21st century. In finalising its advice, the Council took into account the responses received as part of the consultation process on the Task Team report from higher education institutions and other stakeholders.
Objective Two
To monitor the state of higher education, including publishing information and convening conferences, seminars and workshops on developments in higher education.
25
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Monitoring of the State of Higher Education
The CHE is responsible for monitoring and interpreting trends and progress towards achieving national policy goals and objectives in higher education.
Higher Education Performance Indicators
VitalStats 2012, the third in the annual series of VitalStats booklets to provide audited data on key aspects of the public higher education system, was published in December 2014. It provides student and staff data in public higher education for the period 2007 to 2012, including cohort data for the 2007 student intake, and, for the first time, cohort data on postgraduate qualifications. It has also been expanded to include data on higher education funding and research.
Review of the State of Higher Education 1994-2014
A review of the state of higher education to mark the first two decades of democracy was launched in 2013. Eight working groups were formed to identify and engage with the key challenges in the main focus areas to be covered by the review, namely:
• Context• Regulation;• Management and governance;• Teaching and Learning;• Research;• Community engagement;• Academic staffing; and • Funding.
The various chapters of the review are being finalised and, after engagement with Council, will be published.
Research Projects
Restructuring the Undergraduate Curriculum
This project has been completed and advice has been provided to the Minister as reported above.
Student Governance in Public Higher Education Institutions
This project, which was initiated in the light of the ongoing unrest and disputes relating to different aspects of student governance in public higher education institutions, is making steady progress. It focuses on the participation of student political organisations in Student Representative Council (SRC) elections, as well as the role, function and structure of SRCs in higher education institutions. The empirical research, including interviews with SRC members and Deans of Students at 8 institutions across the country was undertaken in 2013 and is
26
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
currently being analysed. The findings have fed into the 20-year review of higher education discussed above.
Governance and Management in Public Higher Education
The research on governance and management challenges in higher education, which focuses on the size, composition and role of Councils, including comparative international experience on codes of conduct for Councils, has been completed. A draft discussion document, which proposes a new institutional governance model in relation to the size, composition, role and modus operandi of Councils of public higher education institutions, is being finalised.
ReflectionsonAcademicLeadershipinSouthAfrica
The role of academic leadership has become increasingly important in the context of the changing nature of higher education world-wide in terms of the pressures for access, the impact of new technologies and funding constraints. In South Africa there is the added complexity of the transformation imperative and the inequities of the past. It is against this background that a project on reflections on academic leadership was initiated with the aim of publishing a book on the reflections of a selected group of retired senior leaders in higher education sharing their insights, knowledge and experience for the benefit of current and future leaders in higher education. Nine contributions have been received and the book is being prepared for publication in mid-2015.
Placement Mechanisms
A background paper on placement mechanisms and practices, such as the National Benchmark Test, in public higher education institutions has been prepared to inform further research. Placement mechanisms are particularly important in the context of the CHE Task Team’s Report, A proposal for undergraduate curriculum reform in South Africa: the case foraflexiblecurriculumstructure,which suggests extending degree and diploma study by 120 credits as the norm, with flexible options depending on students’ levels of preparedness. The CHE will review whether further research is required based on the Minister’s response to its advice on the Task Team’s proposals.
Private Higher Education Management Information System
The development of the framework for a private higher education management information system that would facilitate the monitoring of trends in private higher education and enable comparative analysis with the public higher education system was completed at the end of 2013. The framework was developed jointly with DHET, SAQA and representatives of private providers. The development of the system software for the framework has been completed and is in the testing phase. It is anticipated that it will go online in the course of 2015.
27
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Publications
The following publications were produced in the year under review:
Distance Higher Education Programmes in a Digital Era: Good Practice Guide was published in August. This is the outcome of a project initiated in 2012 to assist programme evaluators and designers in interpreting and applying the HEQC accreditation criteria to distance education programmes.
VitalStats: Public Higher Education 2012 was published in December 2014. It provides public higher education student and staff data for the period 2007 to 2012, including cohort data for the 2007 student intake, and for the first time, cohort data on postgraduate qualifications. It has been expanded to include data on higher education funding and research.
Conferences
An Information and Communications Technology (ICT) colloquium, Moving the Teaching and Learning System in South African Higher Education into the Digitally-Mediated Era took place in October 2014. It was attended by approximately 100 delegates from public universities, private institutions and regulatory bodies. The purpose of the Colloquium was to engage with the latest trends and developments in ICT in higher education.
Strategic Goal TwoTo contribute to the development of qualification standards to ensure the relevance, comparability and currency of qualifications.
Objective Three
To develop and manage the HEQSF, including the articulation of qualifications between the three sub-frameworks, namely, the HEQSF, the General and Further Education and Training Qualifications Sub-Framework and the Trades and OccupationsQualificationsSub-Framework.
HigherEducationQualificationsSub-Framework(HEQSF)AlignmentProject
The purpose of the alignment project is to align existing programmes and qualifications offered by public and private institutions of higher education with the requirements of the revised HEQSF. The alignment of Category A programmes, that is, programmes that required minimal change, was completed in the 2013/14 financial year.
The Accreditation Directorate received 1268 applications for Category B HEQSF-alignment during the 2014/15 financial year. Category B programmes are those programmes that require less than 50% changes to the curricula in order for them to be aligned with the requirements of the HEQSF. Of these submissions, all have been evaluated and reviewed and
28
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
all recommendations were tabled at the HEQC meeting of 11 March 2015. The outcomes of this meeting have been communicated to the institutions and relevant stakeholders.
In addition, a total of 3 781 Category C programmes were tabled at the HEQC meeting of 11 March 2015 for noting. Category C programmes are those that require more than a 50% change to the curricula in order to align with the requirements of the HEQSF and therefore will be taught-out. The outcomes of this meeting have been communicated to the institutions and relevant stakeholders.
Further to the release of the outcomes of approved Category A programmes in July 2014, the Accreditation Directorate received applications for title changes to 261 approved programmes from 15 institutions. The recommendations of these applications were tabled at the HEQC Meeting of 11 March 2015, and the outcomes of this meeting have been communicated to the institutions and relevant stakeholders.
As previously reported, the alignment process has been beneficial, as it has enabled higher education institutions to rationalise their offerings, including removing outdated and discontinued programmes from their records.
Objective Four
To develop and implement policy, criteria and standards for higher education qualificationstoinformandguidethedevelopment,registrationandpublicationof qualifications.
Standards Development
The development of pilot qualification standards has been completed and draft standards statements are ready for public comment for the following qualifications:
• Bachelor of Social Work.• Master of Business Administration (MBA).• Bachelor of Laws (LLB).• Bachelor of Engineering.• Bachelor of Science in Engineering.• Diploma in Engineering.
The Framework for Qualification Standards in Higher Education will be reviewed in the light of experience gained during the pilot phase. This will be done during the first quarter of 2015/16. The scope of standards development will be expanded to include other fields of study and qualification types. Tentative approaches have been made with the Pharmacy Council with regard to developing qualification standards for the Higher and Advanced Certificates in Pharmacy, and with the South African Council of Quantity Surveying Practitioners (SACQSP) to develop standards in the field of quantity surveying.
29
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Objective Five
To maintain a database of learner achievements in higher education and to submit the data to the National Learners’ Records Database (NLRD), which is maintained by SAQA.
HEQCIS
There was continued progress in collecting data on student enrolment and achievement data in private higher education through the Higher Education Quality Committee Information System (HEQCIS), which has been developed in conjunction with SAQA. The number of unique, currently registered private providers that have submitted at least one data load increased from 114 of 116 (98%) in the previous financial year to 113 of 114 (99%) in this financial year. Within the December 2014 cycle, 88% of all unique private higher education institutions each successfully submitted at least one full data load.
Strategic Goal ThreeTo promote quality and quality assurance in higher education, including enhancing the quality of higher education.
Objective Six
To audit the quality assurance mechanisms of higher education institutions.
Institutional Audits
Although the first cycle of institutional audits was completed in mid-2011, there is ongoing monitoring of those institutions that are still in the process of implementing the recommendations flowing from their institutional audit reports. The monitoring of the institutional audits is the responsibility of the Institutional Audits Committee, which is a sub-committee of the HEQC. In the year under review, the Institutional Audits Committee comprised the following members:
• Prof Usuf Chikte, Chairperson, Executive Head, Department of Interdisciplinary Health Sciences, Stellenbosch University
• Prof Rocky Ralebipi-Simela, CEO and National Librarian, National Library of South Africa• Prof Nan Yeld, Director University Teaching and Learning Development, Department of
Higher Education and Training• Prof Bennie Anderson, Chief Executive Officer, Da Vinci Institute• Prof Xikombiso Mbhenyane, Professor and Head of Human Nutrition Division, Stellenbosch
University• Ms Judy Favish, Director, Institutional Planning, University of Cape Town• Prof Renuka Vithal, Deputy Vice-Chancellor Teaching and Learning, University of
KwaZulu- Natal• Prof Tinyiko Maluleke, Professor of African Spirituality and Culture, University of Pretoria
30
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Audits Closed
• University of South Africa• University of Venda
Progress Reports (still under consideration)
• Mangosuthu University of Technology• North-West University• University of Zululand • Walter Sisulu University
Quality Enhancement
In the year under review, the main focus was on the implementation of the Quality Enhancement Project (QEP), which was launched in February 2014 and which focuses on enhancing learning and teaching, specifically, student success, which is conceptualised as increasing the number of graduates with attributes that are personally, professionally and socially valuable.
In September 2014, all public universities (barring the two universities that opened in 2014) produced institutional submissions in which they provided baseline information about how they were engaging with the four focus areas for Phase 1 of the QEP, namely, enhancing academics as teaching, enhancing student support and development, enhancing the learning environment and enhancing course and programme enrolment management. A content analysis of the 23 institutional submissions was finalised and published in May 2015.
As part of the QEP, the Deputy Vice-Chancellors for Teaching and Learning, or DVCs Academic from all universities have been asked to be co-leaders of the project. At a meeting of DVCs on 5 November 2014 they agreed to constitute the QEP DVC Forum, to be coordinated and facilitated by the CHE. The main purpose of the forum is to provide reflection and guidance on the QEP process and to action issues that arise from the QEP that need to be addressed at a national level. For some issues the DVCs may initiate actions, while other issues may be referred to other stakeholders, such as HESA or the DHET.
Two QEP institutional workshops were held in March 2015, each one attended by participants from approximately half the public universities to, “discuss good practices related to each focus area, suggest how good practices could be more widely adopted, adapted and improved, share challenges, generate ideas for addressing common challenges, propose concrete steps that can be taken to bring about improvements, identify opportunities for collaboration and begin to identify elements of what could become codes of good practice.”
The facilitators’ reports and the recommendations arising from the workshops will form the basis for a publication in the new financial year as a further step in the QEP process. A voluntary participation process in the QEP was initiated for the private providers. In June 2014,
31
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
58 private providers submitted baseline information, and a further 11 did so in November 2014. Thus more than half the private providers completed a submission. A workshop for participating institutions was held on 28 October 2014, the focus of which was QEP Focus Area 1: Enhancing academics as teachers. The workshop was attended by 67 participants from 38 institutions. Two further workshops will be held for participating private providers in August 2015 on Focus Area 2: Enhancing student support and development and Focus Area 3: Enhancing the learning environment respectively.
Objective Seven
To accredit new programmes submitted by public and private higher education institutions and to re-accredit existing programmes offered by private higher education institutions.
Programme Accreditation
The programme accreditation function is facilitated by the Accreditation Committee, which is a sub-committee of the HEQC and in 2014/15 comprised of the following members:
• Dr Felicity Coughlan, Chairperson, Director and Head, The Independent Institute of Education
• Dr Rolf Becker, Executive Director, South African Council for Natural Scientific Professions• Ms Gloria Castrillón, Director, Quality Assurance and Regulatory Affairs, Milpark Business
School• Mr Colin Daniels, Associate Dean, Faculty of Informatics and Design, Cape Peninsula
University of Technology• Prof Sabiha Essack, Dean, Faculty of Health Sciences, University of KwaZulu-Natal• Prof Marvin Kambuwa, Principal, Regent Business School• Prof Wendy Kilfoil, Director, Department for Education Innovation, University of Pretoria• Prof Lesley le Grange, Vice-Dean, Research, University of Stellenbosch• Prof Gugu Moche, Executive Dean, College of Science, Engineering and Technology,
University of South Africa• Prof Relebohile Moletsane, Professor and JL Dube Chair in Rural Education, University of
KwaZulu-Natal• Mr Vincent Morta, Director, Quality Assurance and Management Information Systems,
Institutional Planning Office, University of the Western Cape• Ms Nicolene Murdoch, Executive Director, Teaching, Learning and Quality Assurance,
Monash South Africa• Prof Martin Oosthuizen, Deputy Vice-Chancellor, Teaching and Learning, North-West
University• Dr Shaheeda Essack, Deputy Director, Private Higher Education, DHET• Dr Whitfield Green, Acting Chief Director, Teaching and Learning Development, DHET• Ms Jean Skene, Director, Higher Education, Management Information Systems, DHET
32
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Accreditation of New Programmes
Submissions for the accreditation of programmes are received and evaluated on an on-going basis throughout the year and therefore applications submitted in one financial year may only receive an HEQC outcome in the following financial year.
There were 427 applications submitted for accreditation of new programmes in 2014/15. These applications are disaggregated per NQF level in Table 1 and per CESM category in Table 2 below.
In the same period, 2014/15, the HEQC approved a total of 324 outcomes which included applications for the accreditation of new programmes, representations and deferrals related to both accreditation and re-accreditation. It should be noted that this includes some programmes submitted in the previous financial year and processed in the current financial year. This is reflected in Table 3 below. Of the 324 outcomes, 231 programmes were accredited (with or without conditions, or deferred) and 93 programmes were not accredited. Poorly designed curricula and unsatisfactory teaching and learning approaches were among the most common reasons for programmes not being accredited. The majority of applications submitted were for programmes at National Qualifications Framework (NQF) levels 7 and 8, as indicated below in Table 1.
Table 1: New applications for programme accreditation per NQF level
Level 5 Level 6 Level 7 Level 8 Level 9 Level 10 TOTAL
Number of Applications
46 60 122 122 69 8 427
Similarly, as in the previous year, the majority of the applications for programme accreditation were in business, commerce and management sciences, health care and health sciences, education, visual and performing arts, and computer sciences , as shown in Table 2 below.
33
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Table 2: New applications for programme accreditation per CESM category
CESM Category Number of applications
Agriculture, Agricultural Operations and Related Sciences 5
Architecture and the Built Environment 5
Visual and Performing Arts 17
Business, Economics and Management Studies 97
Communication, Journalism and Related Studies 2
Computer and Information Sciences 19
Education 104
Engineering 14
Health Professions and Related Clinical Sciences 82
Family Ecology and Consumer Sciences 2
Languages, Linguistics and Literature 0
Law 7
Life Sciences 8
Physical Sciences 8
Mathematics and Statistics 0
Military Sciences 0
Philosophy, Religion and Theology 23
Psychology 4
Public Management and Services 17
Social Sciences 13
Total 427
Table 3: HEQC Decisions and outcomes for accreditation
Item TOTAL
Total number of applications for new / relocated site of delivery
324
Programmes accredited / accredited with conditions / deferred
231
Programmes not accredited 93
Total number of applications for new / relocated site of delivery
36
Total number of sites of delivery visited 36
34
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Re-accreditation of Private Higher Education Institutions
On an annual basis the programmes of private higher education institutions, which are due for re-registration with the Department of Higher Education and Training, need to be re-accredited. In 2014/15, as indicated in Table 4 below, 51 programmes for re-accreditation were tabled at an HEQC meeting. There were 12 programmes that were not aligned to the HEQSF and the accreditation of these programmes was extended to allow them to be taught out. There were 29 programmes that were re-accredited and 10 that were not re-accredited.
Table 4: HEQC Decisions and outcomes for re-accreditation
Item TOTAL
Total number of programmes for re-accreditation 53
Programmes re-accredited 29
Programmes not re-accredited 10
Programmes with accreditation status extended 12
Programmes deferred pending additional information 2
Objective Eight
Toundertakenationalreviewsofexistingprogrammesinspecificsubjectfieldsand qualificationlevelsofferedbypublicandprivatehighereducationinstitutions.
National Reviews
National reviews focus on the re-accreditation of existing programmes with a view to improving programme quality. The national reviews function is facilitated by the National Reviews Committee, which is a sub-committee of the HEQC and comprises the following members:
• Prof Theo Andrew, Chairperson, Executive Dean: Faculty of Engineering and the Built Environment, Durban University of Technology
• Prof Jean Baxen, Dean: Education, University of the Witwatersrand• Prof Dhiro Gihwala, Dean, Faculty of Health Sciences, Cape Peninsula University of
Technology• Prof Ken Harley, Emeritus Professor, University of KwaZulu-Natal (resigned In October 2014)• Ms Kuselwa Marala, Academic Administration, Registrar’s Office, Cape Peninsula
University of Technology• Dr Matete Madiba, Director: Student Affairs, University of Pretoria• Dr Paul Steyn, Academic Head, Akademia Konkordia• Prof Völker Wedekind, Deputy Dean, Continuing Education, University of KwaZulu-Natal
35
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
In the year under review the main focus was on finalising the National Reviews Committee’s (NRC) findings and recommendations regarding the national review of the Bachelor of Social Work (BSW). The recommendations were approved by the HEQC in November 2014 following representations submitted by institutions.
Of the BSW programmes from 16 institutions that were reviewed; 3 were Accredited; 8 Accredited with Conditions; and 5 were put on Notice of Withdrawal of Accreditation.
Institutions accredited with conditions and those on notice of withdrawal of accreditation are required to put measures in place to address the conditions set out in their respective reports as follows:
• Short-term conditions should be addressed within 90 days, but no longer than 6 months of receipt of the report.
• Long-term conditions require an Improvement Plan (IP) with clear targets, milestones and timeframes to facilitate the implementation of the IP. The deadline for the submission of IPs was 31 March 2015.
Institutions on notice of withdrawal of accreditation were required to submit an Improvement Plan (IP) by 31 March 2015 taking into consideration all the recommendations and conditions stipulated in the report, for evaluation by the HEQC. The final stage in the national review process is the publication of a national report addressing the findings, strengths, shortcomings and concerns from the review. A draft report on the “The State of the Provision of the Bachelor of Social Work in South Africa” was prepared and is in the process of finalisation.
In addition, in this period, there was ongoing monitoring related to the previous review of teacher education programmes, which should be closed in the course of 2015. Preparations for the launch of the Bachelor of Laws (LLB) national review in April 2015 were finalised.
Objective Nine
To promote quality and to develop capacity and understanding of the role of quality assurance in improving quality in higher education at both the systemic and institutional levels.
Quality Promotion and Capacity Development
In the year under review, the appointment of a Director: Quality Assurance Promotion and Co-ordination, facilitated the development of quality promotion activities, which had been undertaken on an ad hoc basis in prior years because of a lack of capacity. In this regard, the Directorate has co-ordinated the development of two projects:
• The role of the Higher Education Quality Committee (HEQC) and (Statutory) Professional Councils in Programme Accreditation.
36
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
In response to concerns raised by public higher education institutions regarding the role of the (statutory) professional councils in programme accreditation, a background paper was developed and discussed at a joint workshop with the DHET, HESA and the statutory professional councils in June 2014. A small working group was subsequently established to develop draft guidelines on the roles of the HEQC and professional bodies and to develop a national framework that transcends the separate regulatory frameworks of the statutory professional councils. It met in September 2014 and March 2015.
The latter meeting developed principles that will anchor the required national framework whose purpose is to clarify the roles of the different parties. A draft framework is planned to be discussed by the working group at its meeting in September 2015.
• Continuing Education Courses
A project on short courses to develop a framework and guidelines for good practice to ensure that short-courses offered by higher education institutions meet minimum standards was initiated in late 2013. As a first step, a questionnaire-based survey of public and private institutions to collect baseline data about the nature, quantity, quality assurance and management of short courses was undertaken and a background report prepared. The latter will inform the next phase of the project, which is to develop a framework and guidelines for good practice for the quality assurance, governance and management of short courses across the higher education sector. It is anticipated that that the framework and guidelines will be finalised in the latter half of 2015.
• Further capacity development activities
There were two quality assurance forums convened, the purpose of which is to exchange information on quality assurance issues and developments; one for statutory professional bodies in June 2014, and a combined forum for public and private higher education institutions in February 2015. Furthermore, the CHE participated in the Awards Committee for the sixth CHE-HELTASA (Higher Education Learning and Teaching Association of Southern Africa) National Excellence in Teaching and Learning Awards, which were announced in November 2014 at the annual HELTASA conference.
Name Category of Award Institution
Lindsay Clowes National Excellence in Teaching University of the Western Cape
Ian Malcom-Rijsdijk National Excellence in Teaching University of Cape Town
Simon Mukwembi National Excellence in Teaching University of KwaZulu-Natal
June Pym Leadership in Excellent Teaching
University of Cape Town
Sunitha Srinivas Leadership in Excellent Teaching
Rhodes University
37
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Name Category of Award Institution
Sibusiso Mdletshe Commendation University of Johannesburg
Ismail Nabbi Commendation Mangosuthu University of Technology
Robert Pattman Commendation University of Stellenbosch
Herman Viviers Commendation North-West University
Thea de Wet Commendation University of Johannesburg
• Regional network
In July the CEO attended a Southern African Sub-Regional Conference on Quality Assurance in Higher Education, which was hosted by the Zimbabwe Council for Higher Education. The purpose of the workshop was to work towards establishing a regional network, which was accepted in principle. The Conference appointed a Task Team to formalise the establishment of sub-regional quality assurance network for Southern Africa, which consists of the CEOs of higher education quality assurance bodies of Botswana, Lesotho and Namibia, South Africa and Zimbabwe. The Task Team met in December 2014 in Windhoek, Namibia and agreed to develop a draft Constitution, which was circulated to higher education quality agencies in the SADC region for comment in January 2015.
It is expected that the regional network body will be officially launched as the next Southern African Sub-Regional Conference on Quality in Higher Education which will be held in Botswana in October 2015. The CHE is actively participating in this regional initiative.
Strategic Goal Four To ensure the efficient and effective provision of corporate services – administrative, financial, technical and professional, to support the discharge of the core mandate of the CHE.
Objective Ten
To ensure the development of a human resources management environment that enables staff to develop their full potential.
Human Resources
The Human Resources function continued to make progress in operationalising and giving effect to one of the CHE’s key strategic imperatives, namely, to build the CHE’s intellectual capability and to ensure that the CHE has the human capacity and capability to execute its mandate and strategy. The human resources function is overseen by the Human Resources and Remuneration Committee, which is a sub-committee of Council.
38
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
The focus on ensuring that the CHE has appropriate human capacity and capability has been given effect through a range of interventions in the year under review that are outlined below.
Staff Turnover, Recruitment and Retention
The CHE’s approved structure provides for 51 positions and 46 of these are filled. The process of replacing the CEO has been delayed owing to the appointment of the new Council in December 2014. However, attempts are underway to finalise this process in the near future. In the interim, Dr Denyse Webbstock has been appointed as Acting CEO effective from 1 March 2015.
There has been an increase in staff turnover from 10.86% in 2013/14 to 21.73% in 2014/15 (this includes expiry of contracts and a dismissal) but the staff retention rate is 90%. Nevertheless, staff retention remains a challenge for the CHE. This is largely due to the small size of the organisation which limits the opportunities for career progression for mid-level staff. The new Attraction and Retention Framework was implemented during the year under review after a comprehensive and consultative process, and this should contribute to facilitating the recruitment and retention of senior staff in the organisation, which to date has been a major risk and challenge. This will promote stability at the senior levels so that the CHE can successfully carry out its functions.
CHE Competency Framework
The CHE introduced and adopted a new Competency Framework. This was important to ensure that the organisation achieves its objective of professionalising the CHE.
The Competency Framework will assist in ensuring consistency in performance throughout the organisation and help to drive and support all Human Resources initiatives. In developing the Competency Framework, emphasis was placed on the core and process competencies that employees would be expected to possess, rather than the functional/technical competencies essential to a specific directorate or a specific job.
The Competency Framework includes five core competencies that communicate what is expected of CHE employees. It also includes five process competencies that assist in driving the decisions around the core competencies, and provide focus on how these core competencies are to be successfully achieved.
This framework seeks to establish a shared understanding of the critical success factors of performance for employees. It will inform the recruitment and selection process, performance management and the identification of development needs of employees in the CHE.
The Competency Framework has emerged from an extensive process of interviews, desktop studies and analysis. Interviews were held with the CEO and Directors for the purpose of gathering information regarding the CHE’s strategy, competencies and possible pitfalls. The
39
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
review further included an analysis of existing Key Performance Areas and Key Performance Indicators of respective Directorates.
The adoption and implementation of the CHE Competency Framework has necessitated changes in some of the Human Resource policies and processes to align them with the Framework, e.g. the development of comprehensive Job Descriptions for all positions at the CHE and the review of naming conventions (Job Titles) to align them better with the functions of employees and general usage in the sector.
The Recruitment and Selection Policy has since been reviewed and all managers involved in the recruitment of employees were trained in competency-based interviewing processes. The Council’s Human Resources and Remuneration Committee played a significant oversight role in the development and implementation of this framework.
Staff Training and Development
In line with the CHE’s Staff Training and Development Policy, the provision of focused training programmes to address skills gaps within the organisation remains a priority. In the past year, 30 training programmes covering office management, finance administration and management, health and safety, information technology and qualitative research methods were attended by members of staff. However, it has not been possible to implement the full training plan as work pressures have had an impact on the availability of staff for training events.
In addition, personal career development through pursuing formal qualifications is encouraged, and seven staff members received bursaries.
Employee Wellness Programme
The Wellness Programme continues to yield positive results for the CHE. During the year under review the following has taken place:
• EAP Referrals
A number of employees were either self-referred or referred by the employer to the Employee Assistance Programme for counselling sessions with Counselling Psychologists, an Occupational Therapist, Wellness Expert and Ergonomist.
• Wellness Day
A Wellness Day took place on 30 January 2015 with the theme “Drive Towards Life”. The objective was to enhance and continue motivating employees regarding the importance of managing a holistic balance between work and life. Activities included an industrial theatre, motivational speakers, a laughter workshop, corporate massages, ergonomic advice and counselling, fun exercises and general coaching and counselling.
40
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
• Wellness Awareness
Weekly wellness snippets and information articles on different wellness aspects e.g. stress management, nutrition, productivity and ergonomic tips, fatigue management etc. are circulated amongst staff via the CHE intranet to reinforce wellness.
• Sick Leave Days and Costs
The annual average sick leave days per employee have declined from 8.5 since the implementation of the programme in July 2013 to 4.78 at the end of the financial year, and an associated reduction in the cost of sick leave days from R341 342.68 to R75 731.02. This is significantly lower than the national normative rates that range from 6.16 and 8.5 for organisations employing less than 50 and more than 50 employees, respectively. The challenge going forward is to measure changes in employee productivity related to the programme. Plans are underway to include this measurement in the new financial year.
Performance Management
The Performance Management process for the financial year was concluded on 31 March 2015 and bonus awards were paid out to deserving employees.
The Performance Moderation Committee meeting held on 20 March 2015 noted that the CHE had reached a point of stability, with all directorates staffed and carrying out their functions. The organisational and individual employee performance has significantly improved over the last few years. The organisation is embracing performance excellence as a core element of the CHE culture. All directorates performed well above average. In individual cases of underperformance, plans have been put in place to address these cases accordingly.
A total of forty-one (41) out of forty-six (46) employees participated in the process and a total of R860 395.95 was paid out to deserving employees on 30 March 2015.
Future Human Resources plans/goals
The CHE will continue to develop and revise policies focused on developing the critical leadership competencies required in this sector. Plans are underway to implement an organisation-wide cultural diversity intervention that will entail revisiting the CHE’s vision, mission and values to embed an organisational culture that embraces high performance, diversity, collaboration, teamwork and integrity.
Objective Eleven
Toensurethatfinancial,administrationandsupplychainmanagementiscompliant with the requirements of the PFMA, relevant Treasury regulations and laws.
41
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Administration and Finance
In the financial year under review, there was ongoing focus on governance and accounting policy reviews and enhancements in order to ensure compliance with the applicable guidelines from National Treasury, Accounting Standards and best practices.
Further, there was ongoing enhancement of current procedures and processes to address internal control deficiencies, identified by both the internal and external auditors, in finance and supply chain which included the development of both month and year-end close processes. By the introduction of Goods Receipt Vouchers transactions are now recognised in the correct period as they are expensed immediately when the goods or services are delivered or rendered.
Summary of financial information
2014/15 2013/14
Sources of Revenue
Estimate Actual Amount
Collected
(Over)/Under
expenditure
Estimate Actual Amount
Collected
(Over)/ Under
expenditure
R’000 R’000 R’000 R’000 R’000 R’000DHET 42 689 42 689 - 41 888 41 888 -
Rollover Funds 12 971 12 971 - 13 854 13 854 -
Deferred Income Recognised(Standards Development)
2 177 1 239 (938) 2 179 1 297 (882)
Accreditation 1 900 3 549 1 649 1 641 3 861 2 220
Investment 250 1 263 1 013 525 812 287
TOTAL 59 987 61 711 1 724 60 087 61 712 1 625
B
42
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
2014/15 2013/14
Programme/ Directorate
Name
Estimates Actual (Over)/ Under
expenditure
Estimates Actual (Over)/ Under
expenditure
R’000 R’000 R’000 R’000 R’000 R’000Administration Goods and
Services15 605 1 366 2 039 12 303 10 288 (16%)
Personnel 12 022 12 248 -226 8 563 9 203 (7%)
Quality Promotion and Capacity Development
Goods and Services
3 357 3 620 (8%)
Personnel 2 388 436 82%
Monitoring and Evaluation
Goods and Services
4 536 3 197 1 339 5 173 3 218 38%
Personnel 3 665 2 962 703 2 441 3 636 (49%)
Programme Accreditation
Goods and Services
4 673 5 455 -782 8 215 6 857 16%
Personnel 5 621 4 558 1 063 5 717 5 016 12%
National Reviews
Goods and Services
2 836 567 2 269 2 082 407 80%
Personnel 2 303 1 342 961 2 040 1 925 6%
Institutional Audits
Goods and Services
2 483 1 195 1 288 1 928 1 971 (22%)
Personnel 3 697 3 411 286 3 278 2 588 21%
Standards Development
Goods and Services
400 872 -472 1 450 667 54%
Personnel 2 146 367 1 780 1 698 930 45%
TOTAL 59 987 49 740 10 248 60 087 50 762 14%
Objective Twelve To ensure effective governance and compliance of ICT with statutory requirements.
Information and Communication Technology (ICT) is playing an ever-increasing role as a strategic enabler of service delivery. The Department of Public Service and Administration, in collaboration with the Government Information Technology Officer Council (GITOC), developed a policy framework for the Corporate Governance of ICT. A three-year implementation guideline was also developed to support all departments/ public entities. Phases 1 and 2 were to be implemented by March 2014 and March 2015 respectively.
(i) All entities were also to include this in the Annual Performance Plan for 2015/16 with a description and indicator of how it will be monitored.(ii) The CHE included ‘Compliance with the Corporate Governance of ICT Framework of the D.P.S.A’ as its Strategic Objective 12.
43
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
OVE
RVIE
W O
F TH
E C
HE’s
PER
FORM
AN
CE
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Ad
visin
g th
e M
inist
er o
n an
y as
pect
of
hig
her
educ
atio
n in
line
with
th
e Hi
gher
Ed
ucat
ion
Act
(A
ct N
o 10
1 of
199
7), a
s am
end
ed
Ad
vise
the
Min
ister
at
his
requ
est o
r on
own
initi
ativ
e
Num
ber o
f re
spon
ses t
o re
ques
ts fo
r ad
vice
with
in
the
timef
ram
e re
ques
ted
100%
510
0%10
0%2
Targ
et a
chie
ved
.Th
e nu
mbe
r of r
espo
nses
can
not b
e pr
edet
erm
ined
as i
t is d
epen
den
t on
the
num
ber o
f req
uest
s rec
eive
d fr
om
the
Min
ister
. i)
Ad
vice
on
DHE
T’s P
olic
y an
d
Proc
edur
es fo
r Mea
sure
men
t of
Rese
arch
Out
puts
of P
ublic
Hig
her
Educ
atio
n In
stitu
tions
.ii)
C
omm
ent o
n th
e Re
port
of
the
Min
ister
ial C
omm
ittee
on
Arti
cula
tion.
Num
ber o
f pi
eces
of
advi
ce o
n ow
n in
itiat
ive
on is
sues
id
entifi
ed a
s re
leva
nt fl
owin
g fro
m th
e ac
tiviti
es
of th
e C
HE
12
2Ta
rget
ach
ieve
d.
Ad
vice
pro
vid
ed:
i) Re
form
of t
he u
nder
grad
uate
cu
rricu
lum
.ii)
A
dvi
ce o
n Un
accr
edite
d
Prog
ram
mes
offe
red
by
Publ
ic a
nd
Priv
ate
High
er E
duc
atio
n In
stitu
tions
.
44
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Mon
itorin
g th
e st
ate
of h
ighe
r ed
ucat
ion
Rese
arch
Pro
ject
sPr
oduc
tion
of
perfo
rman
ce
ind
icat
ors r
epor
t (o
n-go
ing
proj
ect)
11
1Ta
rget
ach
ieve
d.
Perfo
rman
ce in
dic
ator
s to
asse
ss th
e st
ate
of th
e hi
gher
ed
ucat
ion
syst
em.
Vita
lSta
ts 2
012
publ
icat
ion
and
web
site
dat
a up
dat
ed.
Proj
ects
in
prog
ress
2
44
Targ
et a
chie
ved
.Th
ese
proj
ects
are
long
-term
pro
ject
s w
hich
will
run
thro
ugho
ut th
e ye
ar a
nd
som
e w
ill st
rad
dle
fina
ncia
l yea
rs. T
he
cum
ulat
ive
tota
l will
rem
ain
cons
tant
at
4.
i) Un
der
grad
uate
Dip
lom
a an
d
Deg
ree
Stru
ctur
eii)
Re
view
of t
he S
tate
of H
ighe
r Ed
ucat
ion:
199
4-20
14iii)
Refl
ectio
ns o
n A
cad
emic
Le
ader
ship
iv)
Gov
erna
nce
Cha
lleng
es in
Pub
lic
High
er E
duc
atio
n
Diss
emin
atio
n of
re
sear
ch fi
ndin
gsN
umbe
r of
publ
icat
ions
22
2Ta
rget
ach
ieve
d.
Publ
icat
ion
of re
sear
ch re
ports
.i)
Dist
ance
Ed
ucat
ion
in a
Dig
ital A
geii)
V
italS
tats
201
2
45
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Dev
elop
men
t an
d
man
agem
ent
of th
e HE
QSF
*
Alig
nmen
t of
exis
ting
prog
ram
mes
with
th
e HE
QSF
Perc
enta
ge o
f pr
ogra
mm
es
with
an
HEQ
C
outc
ome,
as p
er
HEQ
C m
inut
es.
0%
Cat
egor
y B
80%
of
Subm
issio
ns
for C
ateg
ory
B
100%
Ta
rget
exc
eed
ed.
It sh
ould
be
note
d th
at th
e ta
rget
w
as se
t at 8
0% to
take
into
acc
ount
th
e tim
e-la
g be
twee
n th
e re
ceip
t of
appl
icat
ions
and
a fi
nal d
ecisi
on b
eing
m
ade
by th
e HE
QC
.
*The
Hig
her E
duc
atio
n Q
ualifi
catio
ns
Fram
ewor
k (H
EQF
was
pro
mul
gate
d in
O
ctob
er 2
007
(Gov
ernm
ent G
azet
te
No
3035
3 of
5 O
ctob
er 2
007)
. Giv
en
the
CHE
’s e
xpan
ded
man
dat
e as
the
Qua
lity
Cou
ncil f
or H
ighe
r Ed
ucat
ion
in te
rms o
f the
Nat
iona
l Qua
lifica
tions
Fr
amew
ork
Act
of 2
008
(Act
No
67 o
f 20
08),
the
CHE
initi
ated
a re
view
of t
he
HEQ
F in
Oct
ober
201
0. A
s det
erm
ined
by
the
Min
ister
of H
ighe
r Ed
ucat
ion
and
Tra
inin
g th
e na
me
of th
e HE
QF
was
am
end
ed to
the
High
er E
duc
atio
n Q
ualifi
catio
ns S
ub-F
ram
ewor
k (H
EQSF
) an
d th
e Fr
amew
ork
was
pub
lishe
d
as p
olic
y of
the
Cou
ncil o
n Hi
gher
Ed
ucat
ion
by S
AQ
A in
Gov
ernm
ent
Gaz
ette
No.
367
21, N
otic
e 54
9, 2
A
ugus
t 201
3).
This
gaze
tte w
as re
calle
d a
nd it
was
re
-gaz
ette
d b
y th
e C
HE o
n 17
Oct
ober
20
14, N
o. 3
8116
.
1 26
8 pr
ogra
mm
es w
ere
proc
esse
d.
816
App
rove
d40
0 D
efer
red
52 N
ot a
ligne
dIn
stitu
tions
may
subm
it re
pres
enta
tions
.
46
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Dev
elop
men
t, re
gist
ratio
n an
d
publ
icat
ion
of
qual
ifica
tions
Dev
elop
men
t of
qua
lifica
tions
st
and
ard
s
Dev
elop
men
t of
tem
plat
es
for q
ualifi
catio
n ty
pes (
QT)
an
d fi
eld
/su
bjec
t spe
cific
st
and
ard
s (FS
)
n/a
20
It w
as n
ot p
ossib
le to
und
erta
ke
cons
ulta
tion
as th
e pi
lots
are
still
in
prog
ress
as r
epor
ted
bel
ow.
Dev
elop
men
t of
pilo
t sta
ndar
ds
04
(4Q
TV; 4
FS)
55
dra
ft pi
lot s
tand
ard
s hav
e be
en
appr
oved
by
the
HEQ
C fo
r sen
din
g ou
t to
high
er e
duc
atio
n in
stitu
tions
for
com
men
t.i)
Bach
elor
of S
ocia
l Wor
kii)
M
aste
r of B
usin
ess A
dm
inist
ratio
niii)
Bac
helo
r of L
aws
iv)
Bach
elor
of E
ngin
eerin
gv)
D
iplo
ma
in E
ngin
eerin
g
NLR
D
Dat
abas
eC
olle
ctin
g d
ata
from
priv
ate
inst
itutio
ns
Num
ber o
f pr
ivat
e pr
ovid
ers
that
will
be
cont
ribut
ing
to th
e HE
QC
IS
dat
abas
e
98%
80%
99%
114
priv
ate
prov
ider
s up
load
ed
info
rmat
ion
Targ
et a
chie
ved
.
Aud
iting
in
stitu
tiona
l qu
ality
as
sura
nce
mec
hani
sms
Ana
lyse
and
ap
prov
e
inst
itutio
nal
impr
ovem
ent
plan
s and
pro
gres
s re
ports
bas
ed o
n re
com
men
dat
ions
m
ade
in a
udit
repo
rt
Mon
itorin
g of
pr
ogre
ss re
ports
100%
3 au
dits
wer
e cl
osed
and
6
cont
inue
to
be
mon
itore
d.
100%
m
onito
ring
of
all p
rogr
ess
repo
rts
rece
ived
100%
2 au
dits
wer
e cl
osed
and
4
inst
itutio
ns
cont
inue
to
be
mon
itore
d.
Targ
et a
chie
ved
.It
is an
ticip
ated
that
the
4 re
mai
ning
au
dits
repo
rts w
ill be
clo
sed
in th
e 20
15/1
6 fin
anci
al y
ear.
47
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Impl
emen
t in
stitu
tiona
l qua
lity
enha
ncem
ent
fram
ewor
k.
Inst
itutio
nal
Qua
lity
enha
ncem
ent
fram
ewor
k im
plem
ente
d.
n/a
100%
100%
Targ
et a
chie
ved
.
Stra
tegi
c O
bjec
tive
Six
in th
e cu
rrent
st
rate
gic
plan
stat
es: T
o au
dit
the
qual
ity a
ssur
ance
mec
hani
sms o
f hi
gher
ed
ucat
ion
inst
itutio
ns. W
ork
had
com
men
ced
in 2
011/
12 o
n th
e d
evel
opm
ent o
f a fr
amew
ork
for t
he
seco
nd c
ycle
of a
udits
whi
ch w
ould
ha
ve ru
n be
twee
n 20
13 a
nd 2
017.
In
201
2 a
dec
ision
was
take
n by
the
High
er E
duc
atio
n Q
ualit
y C
omm
ittee
(H
EQC
) and
Cou
ncil r
athe
r tha
n ru
n a
seco
nd c
ycle
aud
it on
the
sam
e lin
es a
s the
firs
t cyc
le a
udits
a Q
ualit
y En
hanc
emen
t Pro
ject
wou
ld b
e im
plem
ente
d. I
n th
e fir
st p
hase
of t
his
proj
ect T
each
ing
and
Lea
rnin
g w
ould
be
the
mai
n fo
cus.
100%
refe
rs to
pla
nned
act
iviti
es:
• Q
EP w
orks
hop
for s
tud
ents
hel
d.
• Q
EP u
pdat
e re
ports
rece
ived
from
23
pub
lic H
EIs.
• V
olun
tary
onl
ine
subm
issio
ns
rece
ived
from
58
priv
ate
HEIs.
• In
stitu
tiona
l sub
miss
ions
rece
ived
fro
m 2
3 pu
blic
hig
her e
duc
atio
n in
stitu
tions
(HEI
s)•
QEP
Inku
ndla
hel
d fo
r re
pres
enta
tives
from
pub
lic H
EIs
• Q
EP w
orks
hop
held
for
repr
esen
tativ
es fr
om p
artic
ipat
ing
priv
ate
HEIs
• D
VC
s for
um h
eld
for D
VC
s ac
adem
ic a
nd te
achi
ng a
nd
lear
ning
from
pub
lic H
EIs
• 2
QEP
wor
ksho
ps h
eld
in M
arch
20
15.
48
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Inst
itutio
nal
prog
ram
me
accr
edita
tion
and
re-
accr
edita
tion
Acc
red
itatio
n of
ne
w p
rogr
amm
es
subm
itted
by
publ
ic a
nd p
rivat
e hi
gher
ed
ucat
ion
inst
itutio
ns
Perc
enta
ge o
f ne
w p
rogr
amm
es
with
an
appr
oved
HEQ
C
outc
ome
tabl
ed
with
in 6
mon
ths
of su
bmiss
ion
for
publ
ic u
nive
rsiti
es
and
with
in 6
m
onth
s of r
elea
se
from
Fin
ance
af
ter p
aym
ent
has b
een
proc
esse
d, a
s per
HE
QC
min
utes
.
93%
398
dec
ision
s 75
% o
f ap
plic
atio
ns
rece
ived
76%
324
prog
ram
mes
Targ
et a
chie
ved
The
num
ber o
f app
licat
ions
rece
ived
va
ries a
nnua
lly.
The
perc
enta
ge is
cal
cula
ted
as t
he
num
ber o
f dec
ision
s tak
en b
y th
e HE
QC
(exc
lud
ing
def
erra
ls) in
rela
tion
to th
e nu
mbe
r of r
ecom
men
dat
ions
fro
m th
e A
ccre
dita
tion
Com
mitt
ee
tabl
ed a
t the
HEQ
C.
It sh
ould
be
note
d th
at fo
llow
ing
disc
ussio
ns a
fter t
he 2
012/
13 a
udit,
the
targ
et w
as c
hang
ed to
75%
to ta
ke
into
acc
ount
the
time-
lag
betw
een
the
rece
ipt o
f app
licat
ions
and
a fi
nal
dec
ision
mad
e by
the
HEQ
C.
Perc
enta
ge o
f ne
w /
ad
diti
onal
sit
es o
f del
iver
y pr
oces
sed
in
clud
ing
site
visit
s with
an
appr
oved
HEQ
C
outc
ome
tabl
ed
with
in 6
mon
ths
of su
bmiss
ion
for
publ
ic u
nive
rsiti
es
and
with
in 6
m
onth
s of r
elea
se
from
Fin
ance
af
ter p
aym
ent
has b
een
proc
esse
d, a
s per
HE
QC
min
utes
.
100%
75
site
s75
% o
f ap
plic
atio
ns
rece
ived
100
%36
site
visi
tsTa
rget
exc
eed
ed.
The
targ
et se
t was
75%
as i
t is n
ot
alw
ays p
ossib
le to
com
plet
e sit
e vi
sits
from
the
time
requ
este
d w
ithin
a
spec
ific
finan
cial
yea
r.Si
te v
isits
wer
e un
der
take
n fo
r ac
cred
itatio
n an
d re
-acc
red
itatio
n pu
rpos
es.
49
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
B
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Re-a
ccre
dita
tion
of p
rogr
amm
es
offe
red
by
priv
ate
high
er e
duc
atio
n in
stitu
tions
Perc
enta
ge o
f pr
ogra
mm
es w
ith
an a
ppro
ved
HE
QC
out
com
e ta
bled
with
in
18 m
onth
s afte
r pa
ymen
t has
be
en p
roce
ssed
.
100%
82 d
ecisi
ons
75%
49%
53
prog
ram
mes
The
targ
et w
as c
hang
ed to
75%
to ta
ke
into
acc
ount
the
time-
lag
betw
een
the
rece
ipt o
f app
licat
ions
and
a fi
nal
dec
ision
mad
e by
the
HEQ
C.
The
targ
et re
ache
d w
as lo
wer
as a
la
rge
num
ber o
f app
licat
ions
wer
e d
e-fe
rred
by
the
Acc
red
itatio
n C
omm
ittee
(A
C) p
end
ing
site
visit
s. W
here
an
inst
itutio
n ha
d n
ot b
een
visit
ed in
the
past
five
yea
rs, t
he A
C re
com
men
ded
d
efer
rals
to v
erify
the
qual
ity a
rrang
e-m
ents
repo
rted
on.
Thi
s has
incr
ease
d
the
scru
tiny
on th
e qu
ality
of h
ighe
r ed
ucat
ion
prog
ram
mes
.
The
perc
enta
ge is
cal
cula
ted
as
num
ber o
f dec
ision
s tak
en b
y th
e HE
QC
(exc
lud
ing
def
erra
ls) in
rela
tion
to th
e nu
mbe
r of r
ecom
men
dat
ions
fro
m th
e A
ccre
dita
tion
Com
mitt
ee
tabl
ed a
t the
HEQ
C.
Nat
iona
l Re
view
s, i.e
. re-
accr
edita
tion
of p
rogr
amm
es
in sp
ecifi
c fie
lds a
nd
qual
ifica
tion
leve
l
Dev
elop
men
t and
im
plem
enta
tion
of
natio
nal r
evie
ws:
Bach
elor
of S
ocia
l W
ork
(BSW
)
Fina
lisat
ion
of
Nat
iona
l Rep
ort
of B
ache
lor o
f So
cial
Wor
k pr
ogra
mm
e
n/a
10
Dra
ft re
port
has b
een
pres
ente
d to
the
HEQ
C.
The
repo
rt w
ill be
fina
lised
ear
ly in
20
15/1
6.
Dev
elop
men
t and
im
plem
enta
tion
of
natio
nal r
evie
ws:
Bach
elor
of L
aws
(LLB
)
Esta
blish
crit
eria
fo
r rev
iew
.n/
a1
0C
urre
ntly
und
er d
iscus
sion
with
the
Dea
ns o
f Law
.
50
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Stra
tegi
c O
bjec
tive
Prog
ram
me
Perfo
rman
ce
Indi
cato
rA
nnua
l C
umul
ativ
e
Out
put
2013
/201
4
Ann
ual
Targ
et a
s pe
r St
rate
gic
Plan
20
14 -
2015
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Qua
lity
prom
otio
n an
d c
apac
ity
build
ing
Trai
ning
of
eval
uato
rs fo
r pr
ogra
mm
e ac
cred
itatio
n an
d
re-a
ccre
dita
tion
Num
ber
of tr
aini
ng
wor
ksho
ps fo
r ev
alua
tors
, d
iscip
line
grou
ps/
repo
rt w
ritin
g
82
7Ta
rget
exc
eed
ed d
ue to
an
incr
ease
in
acc
red
itatio
n ap
plic
atio
ns a
nd
need
to tr
ain
and
retra
in e
valu
ator
s an
d re
com
men
dat
ion
writ
ers.
It al
so in
clud
ed e
nd-u
ser t
rain
ing
for
Inst
itutio
nal A
dm
inist
rato
rs fo
r the
HE
QSF
-Cat
egor
y B
and
the
2014
re-
accr
edita
tion
proc
esse
s.
Qua
lity
assu
ranc
e fo
rum
s for
pub
lic
and
priv
ate
inst
itutio
ns a
nd
prof
essio
nal b
odie
s
Num
ber o
f fo
rum
s4
32
Inst
ead
of h
old
ing
sepa
rate
QA
For
a ea
ch fo
r pub
lic a
nd p
rivat
e in
stitu
tions
re
spec
tivel
y, o
ne w
as h
eld
com
bini
ng
both
pub
lic a
nd p
rivat
e in
stitu
tions
. Th
e co
mbi
ned
QA
For
um a
lso ra
n fo
r 2 d
ays,
17 a
nd 1
8 M
arch
201
5 w
hich
is d
oubl
e th
e no
rmal
tim
e fo
r a
sepa
rate
For
um. T
he c
ombi
ned
QA
Fo
rum
ther
efor
e ac
hiev
ed th
e sa
me
(if n
ot m
ore)
out
com
es a
s wou
ld h
ave
been
exp
ecte
d fr
om tw
o se
para
te Q
A
Fora
, one
eac
h fo
r pub
lic a
nd p
rivat
e in
stitu
tions
resp
ectiv
ely.
A se
para
te fo
rum
was
hel
d fo
r pr
ofes
siona
l bod
ies.
Hum
an
Reso
urce
s M
anag
emen
t
Skills
Dev
elop
men
t Pl
anD
evel
opm
ent
and
im
plem
enta
tion
of th
e Sk
ills P
lan
50%
30 tr
aini
ng
inte
rven
tions
100%
Impl
emen
ta-
tion
of th
e pl
an
68%
53 T
rain
ing
even
ts
Due
to th
e nu
mbe
r of t
rain
ing
inte
rven
tions
per
em
ploy
ee, t
he
accu
mul
ated
tota
l num
ber o
f em
ploy
ees t
rain
ed is
107
(thi
s is m
ade
up o
f 35,
23,
19,
30
empl
oyee
s tra
ined
in
Q1,
Q2,
Q3
and
Q4,
resp
ectiv
ely)
. To
tal n
umbe
r of e
mpl
oyee
s at t
he
CHE
is a
ppro
ximat
ely
46 a
nd 5
1 w
ere
train
ed (i
nclu
din
g te
rmin
atio
ns).
It w
as n
ot b
een
poss
ible
to im
plem
ent
the
full t
rain
ing
plan
due
to th
e un
avai
labi
lity
of st
aff d
ue to
wor
k pr
essu
res.
51
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
trate
gic
Obj
ectiv
ePr
ogra
mm
ePe
rform
ance
In
dica
tor
Ann
ual
Cum
ulat
ive
O
utpu
t 20
13/2
014
Ann
ual T
arge
t as
per
Stra
tegi
c Pl
an
2014
- 20
15
Ann
ual
Cum
ulat
ive
Out
put
2014
- 20
15
Com
men
ts
Recr
uitm
ent
and
rete
ntio
n st
rate
gy
Fillin
g of
all
vaca
nt p
ositi
ons,
incl
udin
g re
duc
ed
turn
arou
nd ti
me
– m
axim
um th
ree
mon
ths
87%
95%
of
vaca
ncie
s fille
d90
%
Dur
ing
the
year
und
er re
view
, the
re
wer
e ch
ange
s to
the
CHE
org
anisa
tiona
l st
ruct
ure.
The
se w
ere
due
to a
mer
ger
of tw
o d
irect
orat
es (n
amel
y St
and
ard
D
evel
opm
ent a
nd N
atio
nal R
evie
ws)
. The
to
tal s
taff
com
plem
ent (
appr
oved
pos
ts)
subs
eque
ntly
cha
nged
from
53
to 5
1 by
end
of
Mar
ch 2
015.
*The
Cou
ncil a
gree
d th
at 1
pos
t sho
uld
no
t be
fille
d u
ntil d
icta
ted
by
oper
atio
nal
requ
irem
ents
(Ins
titut
iona
l Aud
its
Dire
ctor
ate)
.*It
shou
ld b
e no
ted
that
at t
he e
nd o
f Mar
ch
2015
46
post
s wer
e fil
led
.*T
his r
epre
sent
s 90%
of t
he p
osts
fille
d a
t the
en
d o
f the
fina
ncia
l yea
r bas
ed o
n 51
pos
t st
ruct
ure.
Ach
ieve
or
gani
satio
nal
grow
th a
nd
sust
aina
bilit
y
Func
tioni
ng
perfo
rman
ce
man
agem
ent
syst
em
100%
100%
of
perfo
rman
ce
agre
emen
ts
signe
d
100%
Targ
et a
chie
ved
.
Empl
oym
ent
Equi
tyIm
plem
enta
tion
of e
mpl
oym
ent
equi
ty (E
E) st
rate
gy
and
pla
n
21.5
%25
%
impl
emen
tatio
n of
the
EE p
lan
22%
Dur
ing
the
year
und
er re
view
ther
e w
ere
10
empl
oym
ent e
quity
can
did
ates
app
oint
ed
(22%
). Th
ere
has b
een
an im
prov
emen
t in
the
num
ber o
f mal
es a
ppoi
nted
dur
ing
the
year
. The
recr
uitm
ent o
f peo
ple
with
d
isabi
litie
s rem
ains
a c
halle
nge.
Con
tract
s M
anag
emen
tSu
pplie
r pe
rform
ance
as
sess
men
t
100%
60%
133%
Targ
et e
xcee
ded
.
A la
rger
num
ber o
f sup
plie
r per
form
ance
as
sess
men
ts w
ere
com
plet
ed th
an in
itial
ly
plan
ned
.
B
52
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Part C:Governance
54
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAININGThe Annual Performance Plan and MTEF Budget for 2014/15 – 2016/2017 was presented to the Portfolio Committee on Higher Education and Training in the National Assembly on 2 July 2014.
The Annual Report for the 2013/14 financial year was presented to the Portfolio Committee on Higher Education in the National Assembly on 16 October 2014.
In both cases, the presentations were well-received and there were no major issues of concern raised regarding the discharge of the CHE’s mandate by the portfolio committee.
Executive AuthorityThere was no meeting between the Minister of Higher Education and Training and the Council in the year under review.
The Accounting AuthorityMandates and Objectives of the Council on Higher Education
The CHE is established as a juristic person in terms of section 4 of the Higher Education Act (Act 101 of 1997), as amended, and as the Quality Council for Higher Education in terms of section 25 and 27 of the National Qualifications Act (Act 67 of 2008). In summary, the main areas of work of the CHE are:
• To provide advice to the Minister of Higher Education and Training on all higher education matters, at the Minister’s request and at its own initiative;
• To develop and implement a system of quality assurance for all higher education institutions, including private providers of higher education, which includes programme accreditation, institutional audits, national reviews, and capacity development and quality promotion;
• To develop and manage the Higher Education Qualifications Sub-Framework (HEQSF) and the development of higher education qualifications;
• To monitor the state of the higher education system in relation to national policy goals and international trends;
• To contribute to the development of higher education through facilitating intellectual engagement on key issues in partnership with relevant stakeholders.
Roles and Responsibilities
The CHE is a public entity listed under Schedule 3A of the Public Finance Management Act (PFMA) (Act 1 of 1999), as amended. In this regard, the Council fulfils the role of the
55
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
Accounting Authority in terms of section 49 of the Public Finance Management Act (PFMA) (Act 1 of 1999), as amended.
As the Accounting Authority, the Council adheres to principles of good governance, financial and performance management and acts in a fiduciary capacity. Its responsibilities include:
• Effective, efficient and transparent systems of financial and risk management and internal control, internal audit and procurement;
• Effective and appropriate steps to collect revenue due, prevent irregular, fruitless and wasteful expenditure, losses from criminal conduct and expenditure as a result of non-compliance with operational policies;
• Management, including safeguarding, of the assets, liabilities, revenue and expenditure of the CHE;
• Compliance with applicable legislation and regulations; and • An effective and appropriate disciplinary system for failure to comply with the PFMA and
the internal control system.
Governance Structure
The Council comprises a Chairperson appointed for five (5) years and thirteen (13) ordinary Council members appointed by the Minister of Higher Education and Training for a period of four (4) years following a public nomination process. Eight (8) non-voting members are appointed by the Minister from nominations respectively by the Director-General of the Department of Higher Education and Training, the Provincial Heads of Education, the Director-General of the Department of Science and Technology, the Director-General of the Department of Labour, the National Research Foundation and the Chief Executive Officers of the South African Qualifications Authority (SAQA), the General and Further Education and Training Quality Assurance Council (Umalusi) and the Quality Council for Trades and Occupations (QCTO), in their official capacities. Three members can be co-opted by the Council.
The term of office of the Council ended on 14 December 2014, except for the Chairperson whose term of office ends on 14 July 2018. The Minister appointed a new Council with effect from 15 December 2014 for a four-year term. The members of the previous and the new Council are outlined below.
56
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
COUNCIL1 April 2014 - 14 December 2014
Name Designation Appointed in own right Appointed Number of
meetings attended
Fees(in
rands)
Prof Themba Mosia
Chairperson Vice Principal, Student Affairs and Residence Affairs and Accommodation, University of Pretoria
July 2013 3 of 3 27 648
Prof Yunus Ballim
Member University of the Witwatersrand
Re-appointed December
2010
1 of 3 NR
Dr Yvonne Dladla
Member Consultant Re-appointed May 2013
0 of 3 0
Prof Magda Fourie-Malherbe
Member University of Stellenbosch, Centre for Higher and Adult Education, Department of Curriculum Studies, Faculty of Education
Re-appointed December
2010
3 of 3 21 504
Ms Malebo Ledwaba
Member Lecturer, Waterberg Further Education and Training College
December 2010
3 of 3 21 504
Dr Nyambeni Luruli
Member Principal Scientist, Sasol Polymers, PTC
December 2010
2 of 3 14 336
Dr Bandile Masuku
Member Chris Hani Baragwanath Hospital, Gauteng Department of Health
Re-appointed May 2013
3 of 3 21 504
Dr Letticia Moja
Member Rob Ferreira Hospital, Mpumalanga Department of Health
Re-appointed May 2013
3 of 3 21 504
Prof Shireen Motala
Member Director: Postgraduate Centre for Education and Innovation, University of Johannesburg
December 2010
2 of 3 14 336
Ms Dora Ndaba
Member Consultant December 2010
3 of 3 21 504
Mr Edmund Nxumalo
Member Consultant December 2010
3 of 3 21 504
Dr Zilungile Sosibo
Member Head of Department, Further Education and Training, Cape Peninsula University of Technology
December 2010
3 of 3 21 504
57
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
COUNCIL1 April 2014 - 14 December 2014
Name Designation Appointed in own right Appointed Number of
meetings attended
Fees(in
rands)
Prof Beverley Thaver
Member Faculty of Education, University of the Western Cape
December 2010
3 of 3 21 504
Dr Molapo Qhobela
Co-opted Member
Vice-Principal Institutional Development, University of South Africa.
October 2012
2 of 3 0
Prof Sophie Mogotlane
Co-opted Member
Consultant October 2012
2 of 3 14 336
Non-voting members Representing organisation
Ms Joyce Mashabela
QCTO Chief Executive Officer, Quality Council for Trades and Occupations
n/a 3 of 3 NR
Mr Joe Samuels
SAQA Chief Executive Officer, South African Qualifications Authority
n/a 3 of 3 NR
Dr Diane Parker
DHET Acting Deputy Director General, Department of Higher Education and Training
n/a 1 of 3 NR
Dr Thomas Auf der Heyde
DST Deputy Director General: Human Capital and Knowledge Systems, Department of Science and Technology
n/a 2 of 3 NR
Dr Mafu Rakometsi
Umalusi Chief Executive Officer, the Council for Quality Assurance in General and Further Education and Training (Umalusi)
n/a 3 of 3 NR
Dr Albert van JaarsveldRepresented by Andrew Kaniki
NRF President and Chief Executive Officer National Research Foundation
n/a 1 of 3 NR
58
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
COUNCIL15 December 2014 - 31 March 2015
Name Designation Appointed in own right
Appointed Number of meetings attended
Fees(in
rands)Prof Themba Mosia
Chairperson Vice Principal, Student Affairs and Residence Affairs and Accommodation, University of Pretoria
July 2013 0 of 1 0
Mr Luzuko Buku Member Secretary GeneralSASCO
15 December
2014
1 of 1 7 168
Prof Christiaan de Beer
Member University of Pretoria 15 December
2014
1 of 1 7 168
Prof André Keet Member Director Institute for Reconciliation and Social Justice, University of the Free State
15 December
2014
1 of 1 7 168
Mr Casper Kruger
Member Chief Executive OfficerFalse Bay TVET College
15 December
2014
1 of 1 NR
Dr Pamela Maseko
Member LecturerRhodes University
15 December
2014
1 of 1 7 168
Dr Bandile Masuku
Member Chris Hani Baragwanath Hospital, Gauteng Department of Health
Re-appointed May 2013
1 of 1 7 168
Prof Shireen Motala
Member Director: Postgraduate Centre for Education and Innovation, University of Johannesburg.
December 2010
1 of 1 7 168
Ms Nombulelo Nxesi
Member Chief Executive OfficerEducation, Training and Development Practices (ETDP) SETA
15 December
2014
1 of 1 NR
Dr Kimberley Porteus
Member Executive Director,Nelson Mandela Institution for Education and Rural Development
15 December
2014
1 of 1 7 168
Prof Selby Ripinga
Member Independent Consultant
15 December
2014
1 of 1 7 168
59
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
COUNCIL15 December 2014 - 31 March 2015
Name Designation Appointed in own right
Appointed Number of meetings attended
Fees(in
rands)Prof Ratnamala Singh
Member Independent Consultant
15 December
2014
1 of 1 7 168
Prof Beverley Thaver
Member Faculty of Education, University of the Western Cape
December 2010
1 of 1 7 168
Prof Mvuyo Tom Member Vice-ChancellorUniversity of Fort Hare
15 December
2014
1 of 1 7 168
Dr Molapo Qhobela
Co-opted Member
Vice-Principal Institutional Development, University of South Africa
October 2012
1 of 1 NR
Prof Sophie Mogotlane
Co-opted Member
Independent Consultant
October 2012
1 of 1 7 168
Non-voting members Representing organisationMs Joyce Mashabela
QCTO Chief Executive Officer, Quality Council for Trades and Occupations
n/a 1 of 1 NR
Mr Joe Samuels SAQA Chief Executive Officer, South African Qualifications Authority
n/a 1 of 1 NR
Dr Diane Parker DHET Deputy Director General, Department of Higher Education and Training
n/a 1 of 1 NR
Representative DST Deputy Director General: Human Capital and Knowledge Systems, Department of Science and Technology
n/a 0 of 1 NR
Dr Mafu Rakometsi
Umalusi Chief Executive Officer, the Council for Quality Assurance in General and Further Education and Training (Umalusi)
n/a 1 of 1 NR
Representative NRF President and Chief Executive Officer National Research Foundation
n/a 0 of 1 NR
60
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
The details of Council members, including their qualifications, areas of expertise and directorships/membership of other organisations are listed in the table on page 38.
Committees and Sub-Committees
Permanent Committee
The Council has one (1) permanent committee, the Higher Education Quality Committee (HEQC) established in terms of section 7 (3) of the Higher Education Act. The HEQC has executive responsibility in terms of section 5 (1) (c) of the Higher Education Act and the NQF Act for quality promotion and quality assurance in higher education, specifically to:
• promote quality in higher education• audit the quality assurance mechanisms of higher education institutions• accredit programmes of higher education.
The term of office of the HEQC ends on 31 March 2105. The Council in the interest of continuity has re-appointed 8 members who are eligible to serve a second term from 1 April 2015 to 31 March 2018.
HIGHER EDUCATION QUALITY COMMITTEE (HEQC)Name Designation Appointed in
own rightAppointed Resigned Number
of meetings attended
Fees(in
rands)
Prof Yunus Ballim
Chairperson University of the Witwatersrand
April 2012 December 2014
3 of 5 0
Prof Theo Andrew
Member Executive Dean: Faculty of Engineering and the Built Environment, Durban University of Technology
April 2012(Reappointed
for second term)
6 of 7 43 008
Prof Narend Baijnath
Member Pro Vice-Chancellor, University of South Africa
April 2012 March 2015
Completed two terms
3 of 7 23 552
Prof Usuf Chikte
Member Executive Head: Interdisciplinary Health Sciences, University of Stellenbosch.
April 2012(Reappointed
for second term)
7 of 7 50 176
Dr Felicity Coughlan
Member Director and Head: The Independent Institute of Education
April 2012 March 2015
Completed two terms
5 of 7 35 840
61
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
HIGHER EDUCATION QUALITY COMMITTEE (HEQC)Name Designation Appointed in
own rightAppointed Resigned Number
of meetings attended
Fees(in
rands)
Dr Andrew Kaniki
Member Executive Director: Knowledge Management and Strategy, National Research Foundation
April 2012(Reappointed
for second term)
2 of 7 NR
Mr Thamsanqa Ledwaba
Co-opted member
Independent Consultant
April 2012 March 2015
Completed two terms
7 of 7 50 176
Ms Kuselwa Marala
Member Director: Academic Administration, Cape Peninsula University of Technology.
April 2012 March 2015
Completed two terms
5 of 7 35 840
Prof John Mubangizi
Member Deputy Vice-Chancellor and Head of the College of Law and Management Studies, University of KwaZulu-Natal
April 2012(Reappointed
for second term)
7 of 7 50 176
Ms Nicolene Murdoch
Member Executive Director Teaching, Learning and Quality Assurance, Monash University, South Africa.
April 2012(Reappointed
for second term)
7 of 7 50 176
Prof Nthabiseng Ogude
Member Vice-Chancellor, Tshwane University of Technology
April 2012(Reappointed
for second term)
2 of 7 14 336
Prof Martin Oosthuizen
Member Deputy Vice Chancellor: Teaching and Learning, North-West University
April 2012(Reappointed
for second term)
6 of 7 43 008
62
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
HIGHER EDUCATION QUALITY COMMITTEE (HEQC)Name Designation Appointed in
own rightAppointed Resigned Number
of meetings attended
Fees(in
rands)
Prof Rocky Ralebipi-Simela
Member Regional Director: University of South Africa, Limpopo Region
April 2012(Reappointed
for second term)
4 of 7 NR
Dr Diane Parker
Ex-officio Member
Deputy Director General: Universities, DHET
6 of 7 NR
Sub-committees
The Council has four (4) sub-committees, namely:
• Executive Committee (EXCO) established in terms of section 13 of the Higher Education Act;
• Audit and Risk Committee (ARC);• Human Resources and Remuneration Committee (HRRC);• Monitoring and Evaluation Committee (MEC).
The members of sub-committees are appointed for the specific knowledge and skills relating to the work the sub-committees.
The Council and its sub-committees, including its permanent committee responsible for quality assurance, the HEQC, have functioned effectively in terms of the CHE’s statutory mandate and adherence to principles of good governance.
63
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
EXECUTIVE COMMITTEE
Members Designation Appointed Resigned Number of
meetings attended
Fees (in rands)
Prof Themba Mosia
Chairperson July 2013 - 2 of 2 18 432
Prof Yunus Ballim Council Member
Re-appointed June 2011
- 1 of 2 NR
Dr Bandile Masuku
Council Member
Re-appointed June 2011
- 2 of 2 14 336
Dr Letticia Moja Council Member
Re-appointed June 2011Acting-Chair until July 2013
- 0 of 2 0
Dr Diane Parker Council Member
Re-appointed June 2011
- 1 of 2 NR
AUDIT AND RISK COMMITTEEMembers Designation Appointed in
own rightAppointed Resigned Number
of meetings attended
Fees(in
rands)
Dr Doeke Tromp
Chairperson Independent Consultant
Re-appointed June 2011Chairperson from September 2013
- 5 of 5 35 840
Mr Malson Chilenge
Expert Member
Independent Consultant
April 2013 - 5 of 5 21 760
Mr Joe Samuels
Council Representative
Chief Executive Officer, SAQA
March 2012 - 3 of 5 NR
Prof Quintus Vorster
Expert Member
Director Finance, University of Pretoria
May 2014 - 4 of 4 17 408
Ms Vuyo Memani-Sedile
Expert Member
Executive Director: Finance, UNISA
May 2014 - 3 of 4 13 056
64
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
HUMAN RESOURCES AND REMUNERATION COMMITTEEMembers Designation Appointed in
own rightAppointed Resigned Number of
meetings attended
Fees(in
rands)Dr Yvonne Dladla
Chairperson June 2011 - 2 of 2 14 336
Ms Jennie Browning
Expert Member
Independent Consultant
June 2011 - 2 of 2 8 704
Ms Tina Georgoulakis
Expert Member
Independent Consultant
August 2012 - 2 of 2 8 704
Ms Dora Ndaba
Council Member
June 2011 - 2 of 2 8 704
Mr Edmund Nxumalo
Council Member
August 2013 - 1 of 2 4 352
MONITORING ANAND EVALUATION COMMITTEE
Members Designation Appointed in own right
Appointed Resigned No of meetings attended
Fees(in rands)
Dr Nyambeni Luruli
Council Member
June 2011 - 1 of 2 0
Prof Shireen Motala
Council Member
June 2011 - 1 of 2 0
Mr Edmund Nxumalo
Council Member
June 2011 - 2 of 2 0
Prof Beverley Thaver
Council Member
June 2011 - 2 of 2 0
Remuneration of Council Members
Members of Council and its permanent and sub-committees who are not CHE employees or government officials qualify for daily allowances for services rendered to the CHE in accordance with the Treasury Regulations and Directives.
Risk Management
The CHE has reviewed its risk profile during the course of the year to consider the extent to which potential events may have an impact on the achievement of the organisation’s objectives. Emerging events were assessed from two perspectives – likelihood and impact – and a number of risks, predominantly on a strategic level, were identified and weighed.
Materiality Framework
As required by the Treasury Regulations, the Council has developed a materiality and significance framework appropriate to its size and circumstances.
65
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
Internal Audit
The internal audit function is contracted out as the Council does not consider it appropriate to establish an in-house internal audit function due to the nature and size of the CHE. However, the ARC is responsible for monitoring the internal audit function and for evaluating the effectiveness of the internal controls in place, including recommending improvements to Council where appropriate.
Auditors
As required by the PFMA, the external auditor of the CHE is the Auditor-General of South Africa.
Compliance with laws and regulations
The ARC is responsible for monitoring compliance with applicable laws and regulations regarding financial matters and management and other related matters.
Audit Report Matters in the Previous Year
A consolidated strategic audit action plan was developed and implemented and this resulted in 13 audit findings from the internal auditors and 22 audit findings from external auditors being addressed.
Supply Chain Management
There were no unsolicited bids.
Fraud and Corruption
The CHE has policies in place on fraud prevention, detection and reporting.
No cases of fraud occurred during the year under review. However, the Council was made aware of fraud, which occurred in the 2007/08 financial year as a result of information provided by SARS in November 2012. This was reported to the South African Police Services and a criminal case was opened on 14 March 2014.
An investigation is currently being conducted.
Subsequent events
The Council is aware of one subsequent event arising after the end of the financial year which is disclosed in note 25 of the Financial Statements.
Minimising Conflict of Interest
Council and sub-committee members are required to declare any conflict of interest for the record at the beginning of each Council or sub-committee meeting.
66
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Code of Conduct
There is a code of conduct in place for staff but not Council and sub-committees members. The Council recognises that this is a shortcoming and is committed to developing a Code of Conduct for members going forward.
Health, Safety and Environmental Issues
The CHE regards the health and safety of its employees and people affected by the organisation’s operations to be of vital importance. The CHE’s primary objective is therefore to achieve and maintain the highest practicable level of health and safety control.
In line with this and in fulfilment of the requirements stipulated in the Occupational and Safety Act, 1993 (Act No. 85 of 1993), the CHE has established a Health and Safety Committee that monitors the health and safety of employees in the work environment and identifies potential health and safety threats that require addressing.
The CHE is also cognisant of the need to ensure that the work environment is environmentally sustainable. In this regard, efforts have been made to ensure that lights and other appliances are switched off appropriately at the end of the working day and paper is recycled. The Council is, however, aware that the actions taken to date are limited and require further development.
Social Responsibility
The CHE has been involved in two corporate social responsibility initiatives during the year under review.
These are:• Cell C’s Take a Girl Child to Work initiative held on 29 May 2014. The CHE hosted 14 girls
as part of the programme that aims to inspire girls and expose them to the world of work.• Nelson Mandela Day initiative held on 18 July 2014. The CHE staff spent the day at an
orphanage, Dimponyana Tsa Lapeng in Olievenhoutbosch, Centurion painting the home. The CHE has undertaken to adopt the home and will continue to provide support where possible, on an ongoing basis.
Audit and Risk Committee Report
See page 82, in Part E, for the full report.
67
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Cou
ncil M
embe
rs (A
ppoi
nted
by
the
Min
ister
of H
ighe
r Edu
catio
n an
d Tr
aini
ng)
Nam
eDe
signa
tion
Oth
er C
HE
com
mitt
ees
Qua
lifica
tion
Are
a of
Exp
ertis
eDi
rect
orsh
ips
/ C
ounc
il M
embe
rshi
psPr
of T
hem
ba
Mos
iaC
hairp
erso
nEX
CO
PhD
• M
edic
al e
duc
atio
n•
Gov
erna
nce
• Q
ualit
y as
sura
nce
• M
anag
emen
t•
Lead
ersh
ip
• N
SFA
S
Prof
Yun
us
Ballim
M
embe
rEX
CO
HEQ
C -
C
hairp
erso
n
PhD
• C
ivil e
ngin
eerin
g ed
ucat
ion
• Hi
gher
ed
ucat
ion
lead
ersh
ip a
nd
man
agem
ent
• N
one
Mr B
uku
Luzu
koM
embe
rM
aste
r of
Soc
ial
Scie
nces
• Hi
gher
Ed
ucat
ion
• M
edia
Man
agem
ent a
nd S
tud
ies
• Pu
blic
Rel
atio
ns•
Urba
n St
udie
s
• N
one
Prof
Chr
istia
an
de
Beer
Mem
ber
LL.D
• Hi
gher
Ed
ucat
ion
• N
one
Dr Y
vonn
e D
lad
laM
embe
rHR
RC -
C
hairp
erso
nPh
D S
ocio
logy
an
d S
ocia
l W
ork
• O
rgan
isatio
nal d
evel
opm
ent
• So
cial
pol
icy
adm
inist
ratio
n•
Hum
an re
sour
ce m
anag
emen
t•
Rese
arch
• Pr
oduc
tivity
man
agem
ent
• St
rate
gy d
evel
opm
ent a
nd
Impl
emen
tatio
n
• Th
ebe
Tour
ism G
roup
(Pty
) Lt
d•
Theb
e Fo
und
atio
n•
Kelly
Gro
up (P
ty) L
td•
YD C
onsu
lting
(Pty
) Ltd
.•
YAM
E Un
ique
Cra
fts (P
ty)
Ltd
Prof
Mag
da
Four
ie-
Mal
herb
e
Mem
ber
PhD
• Hi
gher
Ed
ucat
ion
man
agem
ent a
nd
lead
ersh
ip.
• Te
achi
ng a
nd le
arni
ng, s
tud
ent s
ucce
ss
• Um
alus
i
C
68
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Nam
eDe
signa
tion
Oth
er C
HE
com
mitt
ees
Qua
lifica
tion
Are
a of
Exp
ertis
eDi
rect
orsh
ips
/ C
ounc
il M
embe
rshi
psPr
of A
ndré
Kee
tM
embe
rPh
D –
Ed
ucat
ion
Man
agem
ent,
Law
and
Po
licy.
• Hi
gher
Ed
ucat
ion
Tran
sfor
mat
ion
• So
cial
Jus
tice,
Soc
ial C
ohes
ion
and
Re
conc
iliatio
n.•
Hum
an R
ight
s and
Hum
an R
ight
s Ed
ucat
ion.
• C
hair
of B
oard
, Cen
tre
for E
duc
atio
n Ri
ghts
and
Tr
ansf
orm
atio
n, U
nive
rsity
of
Joh
anne
sbur
g•
Cou
ncil M
embe
r, IN
SETA
• C
omm
ittee
Mem
ber,
Cen
tre fo
r Ed
ucat
ion
Law
an
d P
olic
y, U
nive
rsity
of
Pret
oria
• EE
CA
Con
sulti
ng,
Shar
ehol
der
• C
ounc
il Mem
ber,
Stel
lenb
osch
Uni
vers
ity
Mr C
aspe
r Kr
uger
Mem
ber
BEd
Ed
ucat
ion
Man
agem
ent
• Te
chni
cal,
voca
tiona
l ed
ucat
ion
and
tra
inin
g•
Trus
tee,
Acc
ess T
rust
.•
Boar
d M
embe
r, SA
So
ciet
y of
Co-
oper
ativ
e Ed
ucat
ion
(SA
SCE)
re
pres
entin
g th
e na
tiona
l So
uth
Afri
can
Col
lege
Pr
inci
pals
Org
anisa
tion.
Ms M
aleb
o Le
dw
aba
Mem
ber
BTec
h M
anag
emen
t •
Man
agem
ent
• Q
ualit
y as
sura
nce
• N
one
Dr N
yam
beni
Lu
ruli
Mem
ber
MEC
PhD
(Pol
ymer
Sc
ienc
e)•
Ana
lytic
al c
hem
istry
• Po
lym
er sc
ienc
e•
Poly
mer
con
vers
ion
• St
uden
t tra
inin
g
• N
one
Dr P
amel
a M
asek
oM
embe
rPh
D•
Soci
olin
guist
ics a
nd so
ciol
ogy
of
lang
uage
• La
ngua
ge P
olic
y an
d P
lann
ing
in
Educ
atio
n (F
ocus
on
Afri
can
cont
ext)
• N
one
Dr B
and
ile
Mas
uku
Mem
ber
EXC
OFe
llow
of t
he
Col
lege
of
Obs
tetri
cs a
nd
Gyn
aeco
logy
(F
CO
G)
• C
omm
unic
atio
ns•
Polic
y d
evel
opm
ent
• C
omm
unity
wor
k•
Med
ical
skills
• Le
ader
ship
• Ts
hwan
e Un
iver
sity
of
Tech
nolo
gy
69
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
Nam
eDe
signa
tion
Oth
er C
HE
com
mitt
ees
Qua
lifica
tion
Are
a of
Exp
ertis
eDi
rect
orsh
ips
/ C
ounc
il M
embe
rshi
psD
r Let
ticia
Moj
aM
embe
rEX
CO
MM
ed
• He
alth
pro
fess
ions
ed
ucat
ion
and
tra
inin
g•
Man
agem
ent o
f hea
lth p
rofe
ssio
n’s
train
ing
• M
edic
al e
duc
atio
n
• N
one
Prof
Shi
reen
M
otal
aM
embe
rM
ECPh
D
• Hi
gher
ed
ucat
ion
polic
y•
Non
e
Ms D
ora
Nd
aba
Mem
ber
HRRC
BTec
h Tr
ansp
ort a
nd
Logi
stic
s
• Bu
sines
s and
eco
nom
y•
Ind
ustri
al re
latio
ns•
Rese
arch
and
mar
ketin
g
• W
ater
Res
earc
h C
omm
issio
n•
Nat
iona
l Reg
ulat
or fo
r C
ompu
lsory
Spe
cific
atio
ns•
Agr
icul
tura
l Res
earc
h C
ounc
il
Ms N
ombu
lelo
N
xesi
Mem
ber
Mas
ters
in
Busin
ess
Lead
ersh
ip
• St
rate
gy a
nd le
ader
ship
• G
over
nanc
e•
Polic
y an
alys
is
• N
one
Mr E
dm
und
N
xum
alo
Mem
ber
MEC
HRRC
Mas
ters
Pub
lic
Ad
min
istra
tion
• Q
ualit
y as
sura
nce
• Sk
ills d
evel
opm
ent t
rain
ing
• Hu
man
reso
urce
man
agem
ent
• Hu
man
reso
urce
dev
elop
men
t
• Te
chno
logy
D
emon
stra
tion
Cen
tre•
Tshw
ane
Sout
h C
olle
ge
Dr K
imbe
rley
Porte
usM
embe
rD
octo
r of
Philo
soph
y,
Educ
atio
n
• Pe
dag
ogic
al in
nova
tion
in h
ighe
r ed
ucat
ion
• Te
ache
r pro
fess
iona
l dev
elop
men
t•
Rela
tions
hip
betw
een
high
er e
duc
atio
n an
d ru
ral c
omm
unity
dev
elop
men
t
• N
one
Prof
Sim
eon
Ripi
nga
Mem
ber
D.E
d•
Lead
ersh
ip a
nd G
over
nanc
e•
Teac
hing
and
Stu
den
t Lea
rnin
g•
Aca
dem
ic T
rain
ing
and
Dev
elop
men
t
• M
anag
ing
Dire
ctor
Th
inkS
ucce
ss P
ty L
td
70
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Nam
eDe
signa
tion
Oth
er C
HE
com
mitt
ees
Qua
lifica
tion
Are
a of
Exp
ertis
eDi
rect
orsh
ips
/ C
ounc
il M
embe
rshi
psPr
of R
atna
mal
a Si
ngh
Mem
ber
D.P
hil
Philo
soph
y•
Inte
rnat
iona
l and
Com
para
tive
High
er
Educ
atio
n Po
licy
• Q
ualit
y A
ssur
ance
• Hi
gher
Ed
ucat
ion
and
Soc
iety
• Sc
ienc
e Po
licy
• N
one
Dr Z
ilung
ile
Sosib
o M
embe
rPh
D (A
dul
t Ed
ucat
ion)
• Te
ache
r ed
ucat
ion
(T&
L)•
Cur
ricul
um d
evel
opm
ent
• Re
sear
ch
• Um
alus
i
Prof
Bev
erle
y Th
aver
Mem
ber
MEC
PhD
(E
duc
atio
n)•
High
er e
duc
atio
n•
Non
e
Dr M
vuyo
Tom
Mem
ber
M.F
am M
ed•
Stra
tegi
c Le
ader
ship
and
Gov
erna
nce
• Pu
blic
Pol
icy
Dev
elop
men
t and
M
anag
emen
t
• D
irect
or –
Nel
son
Man
del
a In
stitu
te•
Dire
ctor
– F
ore
Hare
Tr
adin
g So
lutio
ns•
Mas
ibum
bane
D
evel
opm
ent
Org
anisa
tion
• Tr
uste
e –
Fort
Hare
Fo
und
atio
n•
Trus
tee
– Se
nzw
a Fa
mily
Tr
ust
Prof
Sop
hie
Mog
otla
ne
Co-
opte
d
mem
ber
PhD
• C
omm
unity
hea
lth•
Rese
arch
• N
one
Dr M
olap
o Q
hobe
laC
o-op
ted
m
embe
rPh
D•
High
er e
duc
atio
n•
Gov
erna
nce
• Pl
anni
ng
• Tr
uste
e –
Cra
dle
of H
uman
Ki
nd•
Dire
ctor
– S
outh
Afri
can
Act
uarie
s Dev
elop
men
t Pr
ogra
mm
e•
Trus
tee
– UN
ISA
Fo
und
atio
n
Dr E
dm
und
Zin
guC
o-op
ted
m
embe
rHE
QC
PhD
(Phy
sics)
•
Phys
ics
• Ed
ucat
ion
• N
one
71
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
C
Nam
eDe
signa
tion
Oth
er C
HE
com
mitt
ees
Qua
lifica
tion
Are
a of
Exp
ertis
eDi
rect
orsh
ips
/ C
ounc
il M
embe
rshi
psN
on-V
otin
g
Dr T
hom
as A
uf
der
Hey
de
(DST
)D
epar
tmen
t of
Scie
nce
and
Te
chno
logy
PhD
(C
hem
istry
)•
High
er e
duc
atio
n an
d sc
ienc
e an
d
tech
nolo
gy m
anag
emen
t and
pol
icy
• A
frica
Inst
itute
of S
outh
A
frica
Mr A
hmed
Ess
op
CHE
- C
EOM
aste
rs in
In
tern
atio
nal
Dev
elop
men
t Ed
ucat
ion
• Hi
gher
ed
ucat
ion
• Um
alus
i•
SAQ
A•
QC
TO•
Old
Mut
ual E
duc
atio
n Tr
ust
Ms J
oyce
M
asha
bela
(Q
CTO
)
Qua
lity
Cou
ncil f
or
Trad
es a
nd
Occ
upat
ions
MA
• Ed
ucat
ion
and
ad
min
istra
tion
• Um
alus
i•
SAQ
A•
QC
TO
Dr D
iane
Par
ker
(DHE
T)D
epar
tmen
t of
Hig
her
Educ
atio
n an
d
Trai
ning
EXC
OHE
QC
PhD
• Te
ache
r ed
ucat
ion
• Hi
gher
ed
ucat
ion
• M
athe
mat
ics e
duc
atio
n
• Pe
ta S
ourc
e cc
(50%
pa
rtner
ship
)
Dr M
afu
Rako
met
si (U
mal
usi)
Umal
usi
PhD
• G
ener
al a
nd fu
rther
ed
ucat
ion
and
tra
inin
g –
curri
culu
m a
nd e
xam
inat
ions
• Um
alus
i Cou
ncil
• SA
QA
•
QC
TO•
Held
erbe
rg C
olle
ge
Cou
ncil
Mr J
oe S
amue
ls (S
AQ
A)
Sout
h A
frica
n Q
ualifi
catio
ns
Aut
horit
y
ARC
MPh
il•
Ad
ult e
duc
atio
n•
Con
tinui
ng e
duc
atio
n po
licy
• Q
ualifi
catio
ns
• Q
ualit
y as
sura
nce
• SA
QA
• Q
CTO
• Um
alus
i
Dr A
lber
t van
Ja
arsv
eld
(N
RF)
Nat
iona
l Re
sear
ch
Foun
dat
ion
PhD
• Zo
olog
y•
Ang
elfis
h In
vest
men
ts
334
(Dor
man
t)
72
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Part D:Human Resource
Management
74
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
OVERVIEWFor an overview of the human resources section please see page 37 Part B.
Human Resources Oversight StatisticsPersonnel cost by programme
Directorate Total Expenditure
for the entity
Personnel Expenditure
Personnel expenditure
as a % of total
expenditure
Number of employees
Average personnel cost per
employee
(R’000) (R’000) (R’000) (R’000)Administration* 24 811 12 093 49% 20 605
Monitoring and Evaluation
7 129 3 944 55% 7 563
Programme Accreditation
10 028 4 239 42% 10 424
National Standards and Reviews
3 144 1 482 47% 3 494
Institutional Audits 4 606 3 241 70% 6 540
TOTAL 49 718 24 999 50% 46 543*AdministrationreferstoCorporateServices,theChiefExecutiveOfficer’sofficeandQualityPromotionandCapacityDevelopment
Personnel cost by salary band
Level Personnel Expenditure
% of personnel expenditure to total personnel
cost
Number of employees
Average personnel cost per employee
(R’000)Top Management 1 348 5% 0 0
Senior Management 5 270 21% 7 753
Professional qualified 7 464 30% 14 533
Skilled 10 641 43% 23 463
Unskilled 276 1% 2 138
TOTAL 24 999 100% 46 543
75
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
D
Performance Rewards
Level Performance rewards
Personnel Expenditure
% of performance rewards to total personnel cost
Top Management 0 1 348 0%
Senior Management 356 5 270 7%
Professional qualified 238 7 464 3.18%
Skilled 255 10 641 2.39%
Unskilled 12 276 4.34%
TOTAL 861 24 999 3.44%
Training Costs
Directorate Personnel Expenditure
Training Expenditure
Training Expenditure
as a % of personnel cost
Number of employees
trained
Average training cost per
employee(R’000) (R’000)
Administration* 12 093 366 3% 23 16
Monitoring and Evaluation 3 944 140 4% 7 20
Programme Accreditation 4 239 172 4% 11 16
National Standards and Reviews 1 482 29 2% 5 6
Institutional Audits 3 241 66 2% 5 13
TOTAL 24 999 773 3% 51 15*AdministrationreferstoCorporateServices,theChiefExecutiveOfficer’sofficeandQualityPromotionandCapacityDevelopment# excludes accommodation and travelling
76
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Employment and vacancies
Directorate 2013/2014 Number of Employees
2014/2015 Approved
posts
2014/2015 Number of Employees
2014/2015 Vacancies
% of vacancies
Administration* 18 22 20 2 9%
Monitoring and Evaluation
7 7 7 0 0
Programme Accreditation
10 11 10 1 9%
**National Standards and Reviews
5 4 3 1 25%
Institutional Audits 6 7 6 1 14%
TOTAL 46 51 46 5 9.8%*AdministrationreferstoCorporateServices,theChiefExecutiveOfficer’sofficeandQualityPromotionandCapacityDevelopment** Due to the merging of two directorates, one position was removed the organisational structure
Employment and vacancies (continued)
Level 2013/2014 Number of Employees
2014/2015 Approved
Posts
2014/2015Number of Employees
2014/2015 Vacancies
% of Vacancies
Top Management 1 1 0 1 100%
Senior Management 7 7 7 0 0%
Professional qualified 12 14 14 0 0%
Skilled 24 27 23 4 14.8%
Semi-skilled 0 0 0 0 0%
Unskilled 2 2 2 0 0%
TOTAL 46 51 46 5 9.8%
77
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
D
Employment Changes
Level Employment at beginning
of period
Appointments Terminations Employment at end of the
periodTop Management 1 0 1 0
Senior Management 7 2 2 7
Professional qualified 12 4 2 14
Skilled 24 5 5 23
Semi-skilled 0 0 0 0
Unskilled 2 0 0 2
TOTAL 46 11 10 46Note: The lines above do not add up horizontally There have been internal transfers/promotions of staff members and two directorates merged
Reasons for Staff Leaving
Reason Number % of total number of staff leaving
Death 0 0%
Resignation 7 15.21%
Dismissal 1 2.17%
Retirement 0 0%
Ill Health 0 0%
Expiry of contract 1 2.17%
*Other 1 2.17%
TOTAL 10 21.73%* Due to the merging of two directorates, one position was removed from the organisational structure
Labour Relations: Misconduct and disciplinary action
Nature of disciplinary Action NumberVerbal Warning 1
Written Warning 0
Final Written Warning 0
Dismissal 1
78
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Equity Target and Employment Equity Status
Levels MaleAfrican Coloured Indian White
Current Target Current Target Current Target Current TargetTop Management 0 0 0 0 0 0 0 0
Senior Management 2 0 0 0 0 0 0 0
Professional qualified 3 0 0 1 0 0 1 0
Skilled 7 0 1 0 0 0 0 0
Semi-skilled 0 0 0 0 0 0 0 0
Unskilled 0 0 0 0 0 0 0 1
Total 12 0 1 1 0 0 1 1Levels Female
African Coloured Indian WhiteCurrent Target Current Target Current Target Current Target
Top Management 0 0 0 0 0 0 0 0
Senior Management 2 0 0 0 1 0 2 0
Professional qualified 5 0 1 0 0 0 4 0
Skilled 13 0 0 0 0 0 2 0
Semi-skilled 0 0 0 0 0 0 0 0
Unskilled 2 0 0 1 0 0 0 0
Total 22 0 1 1 1 0 8 0
Equity Target and Employment Equity Status (continued)
Levels Disabled StaffCurrent Target
Top Management 0 0
Senior Management 0 0
Professional qualified 0 1
Skilled 0 0
Semi-skilled 0 0
Unskilled 0 0
TOTAL 0 1
Part E:Annual Financial
StatementsIndex PageStatement of Responsibility 80Audit and Risk Committee Report 82Accounting Authority Report 87Statement of Financial Position 90Statement of Financial Performance 93Statement of Changes in Net Assets 92Cash Flow Statement 93Statement of Comparison of Budget and Actual Amounts 94-95Accounting Policies 96-108Notes to the Annual Financial Statements 109-125
80
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
STATEMENT OF RESPONSIBILITYThe Council is required to maintain adequate accounting records and is responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is the responsibility of the Council to ensure that the annual financial statements fairly present the state of affairs of the Council on Higher Education (CHE) as at the end of the financial year and the results of its operations and cashflows for the period then ended. The external auditors were engaged to express an independent opinion on the annual financial statements and were given unrestricted access to all financial records and related data.
The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.
The annual financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.
The Council acknowledges that it is ultimately responsible for the system of internal financial control established by the CHE and places considerable importance on maintaining a strong control environment. To enable the members to meet these responsibilities, the Council sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the CHE and all employees are required to maintain the highest ethical standards in ensuring the CHE’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the CHE is on identifying, assessing, managing and monitoring all known forms of risk across the CHE. While operating risk cannot be fully eliminated,the CHE endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.
The Council is of the opinion, based on the information and explanations given by management in response to the internal and external audit reports, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements. Where deficiencies were noted, the controls are being strengthened. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.
The CHE is financially dependent on a transfer payment from the Department of Higher Education and Training for the continued funding of its operations. The annual financial statements are prepared on the basis that the CHE is a going concern and that the
81
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Department of Higher Education and Training will transfer the payment as listed in the Estimates of National Expenditure (ENE) to the CHE.
The Council is primarily responsible for the financial affairs of the CHE.
The external auditors are responsible for independently reviewing and reporting on the CHE’s annual financial statements. The annual financial statements have been examined by the CHE’s external auditors and their report is presented on page 84.
The annual financial statements set out on page 87 to 125 which have been prepared on the basis that it is a going concern, were approved by the Council on 29 July 2015 and were signed on its behalf by:
Prof N. Themba Mosia Dr Denyse WebbstockChairperson ActingChiefExecutiveOfficer
82
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
AUDIT AND RISK COMMITTEE REPORTAudit and Risk Committee members and attendance
The Audit and Risk Committee consists of the members listed here under and should meet four times per annum in accordance with its approved terms of reference. During the current year five meetings were held.
Name of member Number of meetings attendedDr D Tromp (Chairperson) 5 of 5Mr M Chilenge 5 of 5Mr J Samuels 3 of 5Prof Q Vorster* 4 of 4Ms V Memani-Sedile* 3 of 4
* Appointed May 2014
Audit and Risk Committee responsibility
The Audit and Risk Committee reports that it has complied with its responsibilities arising from section 55(1)(a) of the PFMA and Treasury Regulations section 27.1.
The Audit and Risk Committee also reports that it has adopted appropriate formal terms of reference through its audit and risk committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.
The effectiveness of internal control
In line with the PFMA requirements, Internal Audit provides the Audit and Risk Committee and management with assurance that the internal controls are appropriate and effective. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes. From the various reports of the Internal Auditors, the audit report on the annual financial statements, and the management report of the Auditor-General of South Africa (AG SA), it was noted that some matters were reported that indicate some minor deficiencies in the system of internal control and deviations there from. Accordingly, we can report that the system of internal control over financial reporting for the period under review was satisfactory. Assurance was obtained that the identified problems are receiving the necessary attention.
Evaluation of annual financial statements
The Audit and Risk Committee has:
• reviewed and discussed the audited annual financial statements to be included in the annual report, with the AG SA and the Council;
• reviewed the AG SA’s management report and management’s response thereto;
83
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
• reviewed changes in accounting policies and practices;• reviewed the entity’s compliance with legal and regulatory provisions;• reviewed significant adjustments resulting from the audit.
The Audit and Risk Committee concurs with and accepts the AG SA’s report on the annual financial statements, and is of the opinion that the audited annual financial statements should be accepted and read together with the report of the AG SA.
Internal audit
The Audit and Risk Committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the CHE and its controls.
Auditor-General of South Africa
The Audit and Risk Committee has met with the AG SA to ensure that there are no unresolved issues.
Recommendation
At its meeting held on 27July 2015, the Audit and Risk Committee recommended the adoption of the financial statements to the Council.
Dr D TrompChairperson of the Audit and Risk Committee
84
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
REPORT OF THE AUDITOR-GENERAL TO THE PARLIAMENT ON THE COUNCIL ON HIGHER EDUCATION
Report on the Financial Statements
Introduction
1. I have audited the financial statements of the Council on Higher Education (CHE) set out on pages 90 to 125, which comprise the statement of financial position as at 31 March 2015, the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget information with actual amounts for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.
Accounting authority’s responsibility for the financial statements
2. The board of directors, which constitutes the accounting authority, is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practices (SA Standards of GRAP)and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA), and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-general’s responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
85
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the CHE as at 31 March 2015 and its financial performance and cash flows for the year then ended, in accordance with SA Standards of GRAP, and the requirements of the PFMA.
Report on other Legal and Regulatory Requirements
7. In accordance with the Public Audit Actof South Africa, 2004 (Act No. 25 of 2004)and the general notice issued in terms thereof. I have a responsibility to report findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, non-compliance with legislation as well as internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.
Predetermined objectives
8. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programmes presented in the annual performance report of the public entity for the year ended 31 March 2015:• Programme 1: Advise the Minister at his request or on own initiative on page 43• Programme 2: Research Projects on page 44• Programme 3: Dissemination of research findings on page 44• Programme 10: Accreditation of new programmes submitted by public and private
higher education institutions on page 48• Programme11: Re-accreditation of programmes offered by private higher education
institutions on pages 49• Programme 15: Training for programme accreditation and re-accreditation on
page 50• Programme 16: Quality assurance forums for public and private institutions and
professional bodies on page 50
9. I evaluated the reported performance information against the overall criteria of usefulness and reliability.
10. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).
E
86
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
11. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
12. I did not identify any material findings on the usefulness and reliability of reported performance information for the following programmes:• Programme 1: Advise the Minister at his request or on own initiative• Programme 2: Research Projects• Programme 3: Dissemination of research findings• Programme 10: Accreditation of new programmes submitted by public and private
higher education institutions• Programme 11:Re-accreditation of programmes offered by private higher education
institutions• Programme 15:Training for programme accreditation and re-accreditation• Programme 16: Quality assurance forums for public and private institutions and
professional bodies
Compliance with legislation
13. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters.
14. I did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.
Internal control
15. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. I did not identify any significant deficiencies in internal control.
Pretoria29 July 2015
87
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
ACCOUNTING AUTHORITY REPORTThe Council submits its report for the year ended March 31,2015.
1. Mandate and Objectives of the Council on Higher Education
The Council on Higher Education (CHE) is a public entity listed under Schedule 3A of the Public Finance Management Act (PFMA) (Act 1 of 1999), as amended. It adheres to principles of good governance, financial and performance management and is held accountable for these to the Parliament of the Republic of South Africa.
The CHE was established as a juristic person in terms of section 4 of the Higher Education Act (Act 101 of 1997), as amended and as the Quality Council for Higher Education in terms of the National Qualifications Framework Act (Act 67 of 2008). In summary, the main areas of work of the CHE are:
• To provide advice to the Minister of Higher Education and Training on all higher education matters, at the Minister’s request and proactively.
• To develop and implement a system of quality assurance for all higher education institutions, including private providers of higher education, which includes programme accreditation, institutional audits, national reviews, and capacity development and quality promotion.
• To develop and manage the Higher Education Qualifications Sub-Framework (HEQSF)and the development of higher education qualifications.
• To monitor the state of the higher education system in relation to national policy goals and international trends.
• To contribute to the development of higher education through facilitating intellectual engagement on key issues in partnership with relevant stakeholders.
2. Role and responsibilities
The Council fulfils the role of the Accounting Authority in terms of section 51 of the Public Finance Management Act (PFMA) (Act 1 of 1999), as amended.
As the Accounting Authority, the Council acts in a fiduciary capacity and its responsibilities include:
• overseeing effective, efficient and transparent systems of financial and risk management and internal control, internal audit and procurement;
• taking effective and appropriate steps to collect revenue due, to prevent irregular, fruitless and wasteful expenditure, and prevent losses from criminal conduct and expenditure as a result of non compliance with operational policies;
• managing and safeguarding the assets, liabilities, revenue and expenditure of the CHE;• ensuring compliance with applicable legislation; and• ensuring that there is an effective and appropriate disciplinary system for failure to
comply with the PFMA and the internal control system.
E
88
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
3. Going concern
The CHE is financially dependent on a transfer payment from the Department of Higher Education and Training. On the basis that the transfer payment has been listed in the Estimates of National Expenditure, the Council believes that the CHE will continue to be a going concern in the year ahead. For this reason, the Council has prepared the annual financial statements on the basis that it is a going concern.
4. Governance of the Council on Higher Education
Council
The Council comprises a Chairperson appointed for five (5) years and thirteen (13) ordinary Council members each appointed for a period of four (4)years. Eight (8) non-voting members are appointed to the Council, nominated respectively by the Director-General of the Department of Higher Education and Training, the Provincial Heads of Education, the Director-General of the Department of Science and Technology, the Director-General of the Department of Labour, the National Research Foundation and the Chief Executive Officers of the: South African Qualifications Authority (SAQA), the General and Further Education and Training Quality Assurance Council (Umalusi) and the Quality Council for Trades and Occupations (QCTO) in their official capacities. Three members can be co-opted by the Council.
All members who served on the Council during the year under review were appointed in terms of the Higher Education Act (Act101 of 1997) as amended.
Committees and Sub-committees
Permanent Committee
The Council has one (1) permanent committee, the Higher Education Quality Committee (HEQC). The HEQC has executive responsibility for quality promotion and quality assurance in higher education. The functions of the HEQC in terms of the Higher Education Act are to:
• promote quality in higher education;• audit the quality assurance mechanisms of higher education institutions; and• accreditation of programmes of higher education.
Sub-committees
On 31 March 2015 four (4) Council sub-committees were in place and were fully functional, namely:
1. Executive Committee (EXCO);2. Audit and Risk Committee (ARC);
89
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
3. Human Resources and Remuneration Committee (HRRC); and4. Monitoring and Evaluation Committee (MEC).
The members of sub-committees are appointed for the specific knowledge and skills they bring to their respective Sub- Committees.
During the year, the Council and its sub-committees, including its permanent committee responsible for quality assurance, the HEQC, have functioned effectively in terms of the CHE’s statutory mandate and have adhered to principles of good governance.
5. Subsequent events
The Council is aware of one subsequent event arising after the end of the financial year which is disclosed in note 25 of the Financial Statements.
6. Controlling entity
The CHE has reviewed its risk profile during the course of the year to consider the extent to which potential events may have an impact on the achievement of the organisation’s objectives. Emerging events were assessed from two perspectives – likelihood and impact– and a number of risks, predominantly on a strategic level, were identified and weighed.
7. Economic entity
As required by the Treasury Regulations, the Council has developed and agreed on a materiality and significance framework appropriate to its size and circumstances.
8. Internal audit
The internal audit function is under the direction of the Audit and Risk Committee and ultimately the Council, to evaluate the effectiveness of the CHE’s systems of internal controls, and to recommend improvements where appropriate. The internal audit function is currently outsourced.
9. Auditors
As required by the PFMA,the current external auditor of the CHE is the Auditor General of South Africa.
90
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Statement of Financial Position as at March 31,2015 Figures in Rand Note(s) 2015 2014
AssetsCurrent AssetsCash and cash equivalents 3 19,102,406 19,730,204Receivables from exchange transactions 2 143,745 386,447Prepayments 4 290,122 136,501
19,536,273 20,253,152
Non-Current AssetsProperty, plant and equipment 5 32,108,926 32,751,660Intangible assets 6 3,490,468 3,291,036
35,599,394 36,042,696
Total Assets 55,135,667 56,295,848
Liabilities
Current LiabilitiesPayables from exchange transactions 7 6,074,259 5,069,491Provisions 9 762,351 687,931
6,836,610 5,757,422
Non-Current LiabilitiesUnspent conditional grants and receipts 10 3,992,329 5,231,439
Total Liabilities 10,828,939 10,988,861
Net Assets 44,306,728 45,306,987
ReservesRevaluation reserve 4,914,475 4,914,475Accumulated surplus 39,392,253 40,392,512
Total Net Assets 44,306,728 45,306,987
91
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Statement of Financial Performancefor the year ended 31 March 2015 Figures in Rand Note(s) 2015 2014
RevenueExchange Revenue 3,548,825 3,861,005Interest received- investment 11 1,263,195 812,263Non exchange revenue 12 43,928,110 43,184,847
Total revenue 48,740,130 47,858,115
ExpenditurePersonnel 13 (24,998,707) (23,476,432)Depreciation and amortisation (2,250,810) (1,858,963)Interest paid 20 (990) (154,532)Debt impairment (7,000) (126,553)Repairs and maintenance (1,036,292) (2,193,240)Loss on disposal of assets - (35,825)General expenses 14 (21,446,590) (22,916,603)
Total expenditure (49,740,389) (50,762,148)
Deficit for the year (1,000,259) (2,904,033)
92
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Statement of Changes in Net Assetsfor the year ended 31 March 2015
Figures in Rand Revaluation reserve
Accumulated surplus
Total net assets
Balance at April 01, 2013 - 43,296,538 43,296,538Changes in net assetsRevaluation of Land and Building 4,914,475 - 4,914,475Net income (losses) recognised directly in net assets
4,914,475 - 4,914,475
Restated Deficit for the year - (2,904,032) (2,904,032)Total recognised income and expenses for the year
4,914,475 (2,904,032) 2,010,443
Total changes 4,914,475 (2,904,032) 2,010,443
Balance at April 01, 2014 4,914,475 40,392,512 45,306,987Changes in net assetsDeficit for the year - (1,000,259) (1,000,259)
Total changes - (1,000,259) (1,000,259)
Balance at March 31, 2015 4,914,475 39,392,253 44,306,728
93
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Cash Flow Statementfor the year ended 31 March 2015
Figures in Rand Note(s) 2015 2014
Cash flows from operating activities
ReceiptsGrants 43,928,110 43,246,953Interest income 1,263,195 812,263Other receipts 3,548,825 3,861,005
48,740,130 47,920,221
PaymentsEmployee costs (24,998,708) (23,476,432)Suppliers (22,561,712) (23,311,034)Finance costs - (173,102)
(47,560,420) (46,960,568)
Net cash flows from operating activities 15 1,179,710 959,653
Cash flows from investing activities
Purchase of property, plant and equipment 5 (1,163,007) (2,201,150)Proceeds from insurance claims on property, plant and equipment
- 24,359
Purchase of other intangible assets 6 (644,501) (1,077,188)
Net cash flows from investing activities (1,807,508) (3,253,979)
Net increase/(decrease) in cash and cash equivalents
(627,798) (2,294,326)
Cash and cash equivalents at the beginning of the year
19,730,204 22,024,530
Cash and cash equivalents at the end of the year
3 19,102,406 19,730,204
94
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Statement of Comparison of Budget and Actual Amountsfor the year ended 31 March 2015
Budget on Cash Basis
Figures in Rand Approved budget
Adjustments Final Budget
Actual amounts on
comparable basis
Difference between
final budget
and actual
Reference
Statement of Financial Performance
RevenueRevenue from exchange transactionsExchange revenue 1,900,000 370,000 2,270,000 3,548,825 1,278,825
Interest received- investment
250,000 - 250,000 1,263,195 1,013,195
Total revenue from exchange transactions
2,150,000 370,000 2,520,000 4,812,020 2,292,020
Revenue from non-exchange transactionsNon exchange revenue 44,866,000 (370,000) 44,496,000 43,928,110 (567,890)
Transfer revenueRoll-over funds - 12,971,309 12,971,309 12,971,309 -Total revenue from non- exchange transactions
44,866,000 12,601,309 57,467,309 56,899,419 (567,890)
Total revenue 47,016,000 12,971,309 59,987,309 61,711,439 1,724,130
ExpenditurePersonnel (27,313,000) - (27,313,000) (24,998,707) 2,314,293Depreciation and amortisation
(2,250,039) - (2,250,039) (2,250,810) (771)
Finance costs - - - (990) (990)Debt impairment - - - (7,000) (7,000)Repairs and maintenance
(1,036,292) - (1,036,292) (1,036,292) -
General expenses (16,416,669) (12,971,309) (29,387,978) (21,446,590) 7,941,388Total expenditure (47,016,000) (12,971,309) (59,987,309) (49,740,389) 10,246,920Reconciliation for non cash items2015 Surplus 11,971,050-Depreciation and amortisation
2,250,810
-Bad debts written off 7,000Funds available for Roll over
14,228,860
95
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Statement of Comparison of Budget and Actual Amounts (continued)for the year ended 31 March 2015
Budget differences
Revenue from exchange transactions was higher than budget due to more applications for accreditation being received from private institutions.
Revenue from non-exchange transactions is lower than budget due to the standards development pilot phase only being completed at the end of the current year. The late completion of the pilot phase meant the Directorate was not operating at full capacity. This Directorate has now been merged with National reviews in order to effectively carry out the CHE mandate.
Employee costs are under budget due to vacancies that are in the organogram being unfilled during the financial year.
General expenses were under budget due to delayed projects in directorates. These projects have been carried forward into the new financial year and completion is expected in the new financial year.
96
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Accounting Policies1. Presentation of Annual Financial Statements
The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), including any interpretations, guidelines and directives issued by the Accounting Standards Board.
These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African Rand.
A summary of the significant accounting policies, which have been consistently applied in the preparation of these annual financial statements, are disclosed below.
1.1 Significant judgements and sources of estimation uncertainty
In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include:
Trade receivables
The CHE assesses its loans and receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the CHE makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.
The impairment for loans and receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and industry-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio.
Provisions
Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in note 9-Provisions.
Effective interest rate
The CHE used the prime interest rate to discount future cash flows.
97
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
1.1 Significant judgements and sources of estimation uncertainty (continued)
Allowancefordoubtfuldebts
On debtors an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. The impairment is measured as the difference between the debtors carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition.
1.2 Property, plant and equipment
Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used for more than one financial reporting period.
The cost of an item of property, plant and equipment is recognised as an asset when:
• it is probable that future economic benefits or service potential associated with the item will flow to the CHE; and
• the cost of the item can be measured reliably.
Property, plant and equipment are initially measured at cost.
The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.
Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.
Where an item of property, plant and equipment is acquired in exchange for a non- monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, its deemed cost is the carrying amount of the asset(s) given up.
When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.
98
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
1.2 Property, plant and equipment (continued)
The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.
Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management.
Major spare parts and standby equipment which are expected to be used for more than one period are included in property, plant and equipment. In addition, spare parts and standby equipment which can only be used in connection with an item of property, plant and equipment are accounted for as property, plant and equipment.
Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaining inspection costs from the previous inspection are derecognised.
Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses.
Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses except for Land and Building which are carried at revalued amount being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.
Any increase in an asset’s carrying amount, as a result of a revaluation, is credited directly to a revaluation surplus. The increase is recognised in surplus or deficit to the extent that it reverses a revaluation decrease of the same asset previously recognised in surplus or deficit.
Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in surplus or deficit in the current period. The decrease is debited in revaluation surplus to the extent of any credit balance existing in the revaluation surplus in respect of that asset.
An impairment loss is only recognised when the recoverable amount of an asset is less than its carrying amount and is measured as the amount by which the carrying amount of an asset exceeds its recoverable amount.
Subsequent to the recognition of an impairment loss on an asset, the related depreciation or amortisation charge should be adjusted for future periods.
99
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
1.2 Property, plant and equipment (continued)
An impairment loss is recognised immediately in the surplus or deficit, except where an asset is carried at a revalued amount in accordance with another GRAP standard on property, plant and equipment. Such an impairment loss is treated as a revaluation decrease to the extent of the revaluation surplus available.
The useful lives of items of property, plant and equipment have been assessed as follows:
Item Average useful lifeLand Indefinite Buildings 30 years Furniture and fixtures 1-21 years Office equipment 1-15 years IT equipment 1-13 years
The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.
Reviewing the useful life of an asset on an annual basis does not require the CHE to amend the previous estimate unless expectations differ from the previous estimate.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.
The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.
Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.
The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplusor deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.
RevaluationofLandandBuilding
Land and Buildings held for administrative purposes are carried at their revalued amounts, being the fair value at the date of revaluation less any subsequent accumulated depreci-ation and subsequent impairment losses.
100
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
1.2 Property,plant and equipment (continued)
Revaluations are done by an independent valuer every 3 years so that the carrying amounts do not differ materially from those that would be determined using fair values at the reporting date. The fair value of Land and Buildings measured using the valuation model is based on market values.
Change in estimate
After the revaluation of Land and Buildings, the useful lives of all category of assets related to the building are re-assessed.
1.3 Intangible assets
An asset is identifiable if it either:
• is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable assets or liability, regardless of whether the entity intends to do so; or
• arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.
A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the form of a contract.
An intangible asset is recognised when:
• it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the entity; and
• the cost or fair value of the asset can be measured reliably.
The entity assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.
Where an intangible asset is acquired through an exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.
Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.
101
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
1.3 Intangible assets (continued)
An intangible asset arising from development (or from the development phase of an internal project) is recognised when:
• it is technically feasible to complete the asset so that it will be available for use or sale.• there is an intention to complete and use or sell it.• there is an ability to use or sell it.• it will generate probable future economic benefits or service potential.• there are available technical, financial and other resources to complete the development
and to use or sell the asset.• the expenditure attributable to the asset during its development can be measured
reliably.
Subsequent to initial recognition intangible assets are carried at cost less any accumulated amortisation and any impairment losses.
An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided ona straight line basis over their useful life.
The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.
Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.
Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.
Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:
Item Usefullife Computer software 1-8 years Internally generated intangible assets 10-20 years
Intangible assets are derecognised:
• on disposal; or• when no future economic benefits or service potential are expected from its use or
disposal.
102
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
1.4 Financial instruments
Financial assets and financial liabilities are recognised on the CHE’s Statement of Financial Position when the CHE becomes a party to the contractual provisions of the instrument.
Financial instruments are initially measured at fair value, including transactional costs.Subsequent to initial recognition these instruments are measured as set out below:
Financial Assets
The CHE’s principal financial assets are accounts receivable and cash and cash equivalents.
• Accounts receivables are subsequently measured at their amortised costs using the effective interest rate method and reduced by appropriate allowances for estimated irrecoverable amounts which represents fair value.
• Cash and cash equivalents are measured at fair value.
Financial assets or a portion thereof are derecognised when the contractual rights to the benefits specifies in the contract expire and the CHE surrenders those rights or otherwise loses control of the contractual rights that comprise the financial asset. On derecognition, the difference between the carrying amount of the financial assets and the sum of the proceeds receivable and any prior adjustment to reflect the fair value of the asset that had been reported in net assets is included in surplus or deficit for the period.
Trade and other payables
Trade and other payables are stated at amortised cost using the effective interest rate method.
1.5 Leases
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
Financeleases-lessee
Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balanceof the liability.
103
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
1.5 Leases (continued)
Any contingent rents are expensed in the period in which they are incurred.
Operatingleases-lessee
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.
1.6 Employee benefits
Short-termemployeebenefits
The cost of all short-term employee benefits is recognised during the period in which the employee renders the related service to the CHE.
The provisions for employee entitlements to wages, salaries and annual leave represent the amount that the CHE has a present obligation to pay as a result of employees’ services provided to the statement of financial position date. The provisions have been calculated at undiscounted amounts on current wages and salary rates.
The expected cost of compensated absence is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.
The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payment as a result of past performance.
Definedcontributionplans
Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.
Payments made to industry-managed (or state plans) retirement schemes are dealt with as defined contribution plans where the entities obligation under the schemes is equivalent to those arising in a defined contribution retirement plan.
1.7 Provisions and contingencies
Provisions are recognised when the CHE has a present obligation as a result of a past event, for which it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate can be made of the obligation. All the provisions of the CHE are short-term in nature and thus ignore the effect of discounting.
104
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
1.7 Provisions and contingencies (continued)
Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.
Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the CHE settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.
Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as an interest expense.
A provision is used only for expenditures for which the provision was originally recognised. Provisions are not recognised for future operating deficits.
1.8 Revenue from exchange transactions
Revenue from exchange transactions refers to revenue that accrued to the CHE directly in return for services rendered, the value of which approximate the consideration received or receivable.
The CHE receives exchange revenue from the Private institutions as indicated below:
• Private institutions’ applications for accreditation: Institutions pay a non-refundable fee which is recognised as revenue based on the stage of completion;
• Site Visits: Site visit fees, including the associated costs incurred, are invoiced to the institutions and recognised in revenue on accrual basis; and
• Other revenue such as conditions, representations, reaccreditation and referrals for private institutions are recognised as revenue on accrual basis.
Interest received
Interest received from favourable bank deposits is recognised as revenue from exchange transactions through the statement of financial performance in the period it is received.
1.9 Revenue from non-exchange transactions
The transfer from DHET is recognised when it is probable that future economic benefits will flow to the CHE and when the amount can be measured reliably. A transfer is recognised as revenue to the extent that there is no further obligation arising from the receipt of transfer payment.
105
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
1.9 Revenue from non-exchange transactions (continued)
Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transfer or.
Unspent conditional grant
Unspent conditional grants are disclosed as liabilities and only realised as revenue through the statement of financial performance when the conditions related to the grant are met.
1.10 Translation of foreign currencies
Foreigncurrencytransactions
A foreign currency transaction is recorded, on initial recognition, in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
At each reporting date:
• foreign currency monetary items are translated using the closing rate;• non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rate at the date of the transaction; and• non-monetary items that are measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous annual financial statements are recognised in surplus or deficit in the period in which they arise.
When a gain or loss on a non-monetary item is recognised directly in net assets, any exchange component of that gain or loss is recognised directly in net assets. When a gain or loss on a non-monetary item is recognised in surplus or deficit, any exchange component of that gain or loss is recognised in surplus or deficit.
Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cashflow.
1.11 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.
106
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
1.11 Fruitless and wasteful expenditure (continued)
All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.
1.12 Irregular expenditure
Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including-
(a) The PFMA; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968),or any regulations made in terms of the Act; or(c) any provincial legislation providing for procurement procedures in that provincial government.
All expenditure relating to irregular expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of expenses and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.
National Treasury practice note no.4 of 2008/2009 which was issued in terms of sections 76 (1) to 76 (4) of the PFMA requires the following (effective from 1 April 2008):
Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the register and the disclosure note to the financial statements must be updated with the amount condoned.
1.13 Budget information
The CHE is typically subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent), which is given effect through authorising legislation, appropriation or similar.
General purpose financial reporting by the CHE shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.
The financial statements and budget are not presented on the same basis as the financial statements are prepared on accrual basis and the budget on a cash basis of accounting. A reconciliation between the surplus/(deficit) for the period as per statement of financial performance and the budgeted surplus/(deficit) is included in the statement of comparison of budget and actual amounts.
107
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
1.14 Related parties
The CHE operates in an economic sector currently dominated by entities directly or indirectly owned by the South African Government. As a consequence of the constitutional independence of the three spheres of government in South Africa, only entities within the national sphere of government are considered to be related parties.
Management are those persons responsible for planning, directing and controlling the activities of the CHE, including those charged with the governance of the CHE in accordance with legislation, in instances where they are required to perform such functions.
Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by management in their dealings with the CHE.
Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.
1.15 Standards of GRAP not yet effective
The following standards have been approved but are not effective at 31 March 2015:
• GRAP 105 on Transfers of Functions between Entities under Common Control; • GRAP 106 on Transfers of Functions Between Entities not under Common Control; and• GRAP 20 on Related Party Disclosures.
1.16 Events after reporting date
Events after the reporting date are those events, both favourable and unfavourable, that occur betweenthe reporting and the date when the financial statements are authorised for issue. Two types of events can be identified:
• those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date) and;
• those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).
Adjustingeventsafterthereportingdate
The CHE shall adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting date.
Non-adjustingeventsafterthereportingdate
The CHE shall not adjust the amounts recognised in its financial statements to reflect non-adjusting events after the reporting date.
108
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
1.16 Events after reporting date (continued)
The CHE shall disclose the following for each material category of non-adjusting event after the reporting date:
a) The nature of the event; andb) An estimate of its financial effect, or a statement that such an estimate cannot be made.
109
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014 2. Receivables from exchange transactions
Trade debtors 111,455 411,142Less: Provision for doubtful debts - (96,553)Deposits 7,045 22,580Over payment to supplier 9,000 45,225Staff loans 16,245 4,053
143,745 386,447
Trade and other receivables pledged as security
Trade and other receivables were not pledged as security for any financial liability.
Credit quality of trade and other receivables
The credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates:
Fairvalueofreceivablesfromexchangetransactions
The fair value of short term receivables approximates the carrying amount of the balance due to their short term maturity.
Trade and other receivables past due but not impaired
Trade and other receivables which are less than 3 months past due are not considered to be impaired. At March 31,2015, R0.00 (2014: R123,841) were past due but not impaired.
The ageing of amounts past due but not impaired is as follows:
1 month past due - 18,0002 months past due - 13,0003 months past due - 97,208
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable stated above. The CHE does not hold any collateral as security.
Trade receivables have not been discounted as the amount is not considered material.
110
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014
3. Cash and cash equivalents
Cash on hand 2,609 1,932Standard Bank: Current Account 1,825,936 1,427,266Investec Investment Account 17,026,565 8,415,193South African Reserve Bank Account 19,006 17,922Standard Bank: Private Accreditation Funds 228,290 9,867,891
19,102,406 19,730,204
Credit quality of cash at bank and short term deposits, excluding cash on hand
The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or historical information about counter party default rates.
The CHE holds a short term investment account at Investec Bank where surplus cash is held during the year earning an average interest of 6% pa. This investment is accessible on a day’s notice.
4. Prepayments
Prepaid insurance and Licence feesOpening balance 136,501 160,213Amounts realised to expenses during the year (136,501) (160,213)Additions for the period 290,122 136,501
290,122 136,501
111
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
5. Property, plant and equipment
2015 2014Cost/
ValuationAccumulated depreciation
and accumulated
impairment
Carrying value
Cost/ Valuation
Accumulated depreciation
and accumulated
impairment
Carrying value
Land 6,360,120 - 6,360,120 6,360,120 - 6,360,120Buildings 27,865,363 (5,081,952) 22,783,411 27,665,650 (4,125,769) 23,539,881Furniture and fixtures
1,977,409 (1,223,262) 754,147 1,820,324 (1,072,053) 748,271
Office equipment
2,347,109 (840,783) 1,506,326 1,743,624 (526,025) 1,217,599
IT equipment 2,919,261 (2,214,339) 704,922 2,716,540 (1,830,751) 885,789
Total 41,469,263 (9,360,337) 32,108,926 40,306,259 (7,554,599) 32,751,660
Reconciliationofproperty,plantandequipment-2015
Opening balance Additions Depreciation TotalLand 6,360,120 - - 6,360,120Buildings 23,539,881 199,714 (956,183) 22,783,411Furniture and fixtures 748,271 157,086 (151,210) 754,147Office equipment 1,217,599 603,485 (314,759) 1,506,326IT equipment 885,789 202,722 (383,587) 704,922
32,751,660 1,163,007 (1,805,739) 32,108,926 Reconciliationofproperty,plantandequipment-2014
Opening balance
Additions Disposals Revaluations Depreciation Total
Land 5,314,747 - - 1,045,373 - 6,360,120Buildings 19,756,271 754,668 - 3,869,103 (840,161) 23,539,881Furniture and fixtures 701,191 251,434 (49,420) - (154,934) 748,271Office equipment 582,458 816,490 (3,336) - (178,013) 1,217,599IT equipment 858,506 378,558 (7,428) - (343,847) 885,789
27,213,173 2,201,150 (60,184) 4,914,476 (1,516,955) 32,751,660
During the year, assets with a cost price of R2,170,782 (2014: R1,395,394) had fully depreci-ated, but were still in use.
112
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
5. Property,plant and equipment (continued)
Details of properties
The 7580 square metre property is located at 1 Quintin Brand, Persequor Technopark, Pretoria. The title deed number is T4934/2009. The property was revalued at 31st March 2014 by Onyx Valuation Services under Mr Barry Richardson, a professional valuer, registration number 4500/7.
Revalued amount as at 31 March 2014 29,900,000- Acquisitions after revaluation 199,714- Depreciation (956,183)
Carrying Amount 29,143,531
Change in estimate
After the revaluation of Land and Buildings at the end of the last reporting date, the useful lives of all category of assets related to the building that were previously recorded with useful lives of 10 years were revised such that they are aligned to the main building which has a useful life of 30 years.
It is the CHE policy to revalue Land and Buildings every three years.
As at 31 March 2014, the remaining estimated useful life of the building was 23 years and 8 months.
6. Intangible assets
2015 2014Cost/
ValuationAccumulated
amortisation and
accumulated impairment
Carrying value
Cost/ Valuation
Accumulatedamortisation
and accumulated
impairment
Carrying value
Internally generated
4,158,202 (1,073,786) 3,084,416 3,783,320 (786,509) 2,996,811
Computer software, other
1,096,052 (690,000) 406,052 826,431 (532,206) 294,225
Total 5,254,254 (1,763,786) 3,490,468 4,609,751 (1,318,715) 3,291,036
113
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
6. Intangible assets (continued)
Reconciliationofintangibleassets-2015
Opening balance
Additions Amortisation Total
Internally generated 2,996,811 374,881 (287,277) 3,084,416Computer software, other 294,225 269,620 (157,794) 406,052
3,291,036 644,501 (445,071) 3,490,468 Reconciliationofintangibleassets-2014
Opening balance
Additions Amortisation Total
Internally generated 2,386,874 843,441 (233,504) 2,996,811Computer software, other 168,982 233,747 (108,504) 294,225
2,555,856 1,077,188 (342,008) 3,291,036
Pledged as security
No intangible assets are pledged as security.
Internally generated Intangibles
Internally generated intangible assets (Software) relates to development costs of the Higher Education Quality Committee (HEQC) and the Higher Education Qualifications Sub-Framework (HEQSF) online systems. These two systems are owned by the CHE and were developed to enhance the CHE’s process of receiving and processing applications for accreditation from institutions and meet the definition of internally generated intangible assets according to GRAP 31 on Intangibles.
These systems are continuously developed with additional functionality and these development costs are capitalised as soon as they meet the Intangibles criteria.
114
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014
7. Payables from exchange transactions
Trade payables 1,922,794 4,403,203Accreditation fees received in advanced 2,748,255 637,250Accrued bonus 21,534 29,038Accruals 1,381,676 -
6,074,259 5,069,491
CHE pays all its trade and other payables within 30 days of receipt of invoice in accordance with the terms of the PFMA and Treasury Regulations.
The fair value of payables approximate the carrying amount due to their short term nature.
8. Operating lease liability
Current liabilities 125,940 186,730Over payment to supplier - (45,225)
125,940 141,505
9. Provisions
Reconciliationofprovisions-2015
Opening balance
Additions Utilised during the year
Total
Leave pay provision 687,931 277,074 (202,654) 762,351
Reconciliationofprovisions-2014
Opening balance
Additions Utilised during the year
Total
Leave pay provision 492,400 195,531 - 687,931SARS interests and penalties (Note 20)
316,531 - (316,531) -
808,931 195,531 (316,531) 687,931
115
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014
9. Provisions (continued)
Leavepayprovision The leave pay provision relates to vesting leave pay to which employees may become entitled upon leaving the employment of the CHE. The provision is utilised when employees are paid for their accumulated leave. There are no expected reimbursements of this provision.
10. Unspent conditional grants and receipts
In 2010, the National Treasury granted approval to the DHET to transfer an additional R9 million to the CHE for the implementation of the Standards Development directorate which is part of the expanded mandate of the CHE resulting from the promulgation of the NQF Act.
Unspent conditional grants and receipts comprises of:
Unspent conditional grants and receiptsDeferred Income 3,992,329 5,231,439
Movement during the yearBalance at the beginning of the year 5,231,439 6,528,286Income recognition during the year (1,239,110) (1,296,847)
3,992,329 5,231,439
11. Investment revenue
Interest revenueInterest earned 1,263,195 812,263
12. Non exchange revenue
Operating grants
Grants received from DHET 42,689,000 41,888,000Deferred Income - Standards development 1,239,110 1,296,847
43,928,110 43,184,847
116
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014
13. Employee costs
Basic 20,209,687 20,072,077Bonus 860,396 786,719Medical aid- company contributions 807,624 746,753UIF 156,750 58,722Arbitration awards 188,648 -Leave paid 202,654 78,313NEHAWU 8,635 7,920Other short term costs 13,190 9,990Defined contribution plans 2,037,208 1,392,256Provident Fund: Administration fees 513,915 323,682
24,998,707 23,476,432
Included in employee costs are two CCMA arbitration awards relating to the resignation and dismissal of two employees respectively. The CHE won both cases.
The first employee resigned and opened a case of constructive dismissal. The applicant was seeking R500,000 but the CCMA awarded the employee R30,000.
The second employee was dismissed on the grounds of breach of employment contract and breach of performance management policy. The case was heard at the CCMA and finalised on the 31st March 2015. A settlement equivalent to five months’ remuneration (R158,648) of the employee was awarded.
117
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014
14. General expenses
Assessment rates & municipal charges 182,540 172,046Auditors’ remuneration 1,545,062 1,349,525Bank charges 38,650 38,385Cleaning 385,604 390,786Consulting and professional fees 8,329,592 7,739,273Consumables 129,192 124,790Outsourced services 83,780 61,471Sundry expenses - 495Garden services 38,402 39,522Insurance 246,619 247,691Conferences and seminars 47,619 9,599Bursaries 38,980 46,040IT expenses 1,092,924 2,450,611Lease rentals on operating lease 280,921 277,941Promotions 164,321 116,786Levies 35,109 23,919Magazines, books and periodicals 6,287 23,122Recruitment costs 900,579 414,153Office supplies - 495Postage and courier 94,098 91,560Printing and stationery 495,673 719,397External meetings - workshops 41,115 348,115Security services 190,065 235,959Employee welfare 353,860 553,382Subscriptions and membership fees 170,674 56,687Telephone and fax 266,335 233,738Training 772,728 362,291Travel - local 2,365,555 3,674,036Travel - overseas 68,997 100,701Electricity 528,465 413,978Honoraria 434,502 449,900Venue & catering 673,037 978,918Small assets below R5000 expensed - 933Remuneration of Council and Committee members 890,624 941,659Legal fees 554,681 228,699
21,446,590 22,916,603
118
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014
14. General expenses (continued)
Priorperiodreclassification
A reclassification between Employee costs and General expenses in the comparative year has been made. Employee welfare expenses amounting to R258,418 were incorrectly disclosed under employee costs last year and have now been reclassified and disclosed under General expenses.
15. Cash generated from operations
(Deficit) surplus (1,000,259) (2,904,033)Adjustments for:Depreciation and amortisation 2,250,810 1,858,963Loss on disposal of assets - 35,825Debt impairment 7,000 126,553Movements in provisions 74,420 (121,000)Changes in working capital:Receivables from exchange transactions 235,699 172,960Prepayments (153,621) 23,712Payables from exchange transactions 1,004,771 3,063,520Unspent conditional grants and receipts (1,239,110) (1,296,847)
1,179,710 959,653
16. Auditors’ remuneration
External Auditors 1,068,586 744,267Internal Auditors 476,476 605,258
1,545,062 1,349,525
17. Commitments
Operating leases - as LesseeMinimum lease payments due- Within one year 125,940 141,505- In second to fifth year inclusive 251,880 -
377,820 141,505
119
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand 2015 2014
17. Commitments (continued)
Operating lease payments represent rentals by the Council for photocopying machines. These leases are negotiated for periods ranging from 12 months to 120 months. The operating lease liability at the end of the period is R377,820 (2014: R141,505)
The Council has capital commitments (PPE) of R491,850 (2014: R120,610) for the forthcoming year.
Other commitments of R3,678,048 (2014: R5,734,233) relates to contracts and orders made by the Council for goods or services that have yet to be received.
18. Related parties`RelationshipsExecutive Authority DHET
Public Entities under the DHET SAQAMembers of Key Management Refer to note 19
Related party balances:
Unspent conditional owed to related partiesDHET (3,992,329) (5,231,439)
Related party transactions:
Consulting fees paid to related partiesSAQA 1,577,315 1,285,708
Grant received from related partiesDHET (42,689,000) (41,888,000)
120
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
19. Members of Key Management and Council Emoluments
Executive Management
2015Emoluments Bonuses&
performance related
payments
RetentionAllowance
ActingAllowance
Total
Chief Executive Officer * 1,240,921 - - - 1,240,921Chief Financial Officer** 984,558 66,950 - - 1,051,508Acting Chief Financial Officer***
186,293 - - - 186,293
Director: Corporate Services 964,902 72,368 90,058 - 1,127,328Director: Institutional Audits 964,902 72,368 67,543 - 1,104,813Director: Accreditation**** 241,226 12,785 68,226 - 322,237Director: National Reviews and Standards*****
507,152 59,119 - - 566,271
Director: Quality Assurance Promotion and Coordination******
471,963 - - - 471,963
Director: Monitoring and Evaluation*******
964,902 72,368 90,058 10,629 1,137,957
6,526,819 355,958 315,885 10,629 7,209,291
* Resigned February 2015** Appointed June 2014*** April 2014 to May 2014**** On secondment between April 2014 to December 2014. Joined CHE on a permanent basis from January 2015***** Appointed Sept 2014 (internally)****** Appointed October 2014******* Acting CEO from March 2015
121
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
19. Members of Key Management and Council Emoluments (continued)
2014Emoluments Bonuses &
performance related
payments
Total
Chief Executive Officer 1,280,730 - 1,280,730Chief Financial Officer 1,117,758 64,830 1,182,588Director: Corporate Services 908,571 70,869 979,440Director: Institutional Audits 908,571 70,869 979,440Director: National Reviews 191,326 - 191,326Director: Standards Development 83,837 - 83,837Director: Monitoring and Evaluation 908,571 70,869 979,440
5,399,364 277,437 5,676,801
Council Members Remuneration
2015
Emoluments TotalFor services as Council and Committee members 890,624 890,624
2014
Emoluments TotalFor services as Council and Committee members 941,659 941,659
20. Fruitless and wasteful expenditure
2015 2014
Opening balance 471,063 316,531Current year 990 154,532Condoned (990) -
471,063 471,063
122
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
20. Fruitless and wasteful expenditure (continued)
Fruitless and wasteful expenditure for the current year relates to interest charged on Telkom invoices for late payment. The Financial Misconduct Committee conducted a disciplinary hearing and the CEO approved its recommendation that no negligence was found on the part of employees responsible for payments.
FraudCase
Prior year charges relate to SARS penalties and interest on late payment incurred on Employee tax from 2007. This outstanding SARS liability was only discovered and settled in the previous financial year.
The CHE discovered a fraudulent incident that occurred in February 2007 involving a cheque written out to SARS meant for Employee tax (PAYE). The cheque for R270,874.26 was drawn in favour of SARS but was deposited into an unknown account.
A fraud case was opened with SAPS and investigations are currently being conducted.
21. Financial instruments disclosure
Categories of financial instruments
2015
Financial assets
At cost TotalTrade and other receivables from exchange transactions 134,745 134,745Cash and cash equivalents 19,102,406 19,102,406
19,237,151 19,237,151Financial liabilities
Trade and other payables from exchange transactionsProvisions
At cost6,074,266
762,351
Total6,074,266
762,351
6,836,617 6,836,617
123
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
21. Financial instruments disclosure (continued)
2014
Financial assets
Trade and other receivables from exchange transactionsAt cost386,447
Total386,447
Cash and cash equivalents 19,730,204 19,730,204
20,116,651 20,116,651
Financial liabilities
Trade and other payables from exchange transactionsAt cost
5,069,487Total
5,069,487Provisions 687,931 687,931
5,757,418 5,757,418
22. Taxation
The CHE is exempt from normal income tax as more than 80% of its income is defrayed from funds voted by Parliament. The CHE is exempted from the payment of Value Added Tax (VAT) on the transfer received. As a result, any VAT paid by the CHE is also not refundable by SARS.
23. Risk management
Financial risk management
Liquidityrisk
The CHE is only exposed to liquidity risk with regards to the payment of its trade payables.These trade payables are all due within the short-term. The CHE manages its liquidity risk by holding sufficient cash in its bank account, supplemented by cash available in a money market account.
124
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
23. Risk management (continued)
The table below analyses the CHE’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the date of the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
At March 31, 2015 Less than 1 year
Between1 and 2 years
Between 2 and 5 years
Over 5 years
Payables from exchange transactions 6,074,266 - - -
At March 31, 2014 Less than 1 year
Between1 and 2 years
Between 2 and 5 years
Over 5 years
Payables from exchange transactions 5,069,487 - - -
Interest rate risk
As the CHE has no significant interest-bearing assets, the CHE’s income and operating cash flows are substantially independent of changes in market interest rates.
Credit risk
Credit risk consists mainly of cash deposits with banks and the Corporation for Public Deposits, staff loans and other receivables. The CHE only deposits cash with institutions with high quality credit standing and limits exposure to only one counter-party.
The receivables are exposed to a high credit risk and their exposure to credit risk at year end were as follows:`Financial instrument 2015 2014Bank 2,056,831 11,297,089Trade debtors 111,455 411,142Short term deposits 17,045,571 8,433,115
Trade Debtors age analysis as at 31st March 2015.
Over 90 Days 60 Days 30 Days Current Total- - - 111,455 111,455
125
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
E
Notes to the Annual Financial Statementsfor the year ended 31 March 2014
Figures in Rand
24. Contingent Liability
On the 9th of April 2014, the CHE was cited as a respondent in a case brought against North-West University by an applicant to the University who was not granted exemption from courses obtained in a prior degree by the University. Aside from the CHE, the respondents include the Minister of Higher Education and Training, SAQA and Higher Education South Africa.
The applicant was seeking compensation for damages to the value of R10.9 million plus 15.5% interest from the date of the filing of papers from the respondents. The CHE, together with other respondents, were opposing the application.
On the 26th of May 2015, the Judge ordered the case to be dismissed and each party to bear its own legal costs.
The contingent liability is therefore CHE’s contribution to the legal costs, the amount of which is yet to be determined.
25. Events after the reporting date
On the 3rd July 2015, the CHE was cited as a fourth respondent by SANTS Private Higher Education Institution(Pty) Ltd. Aside from the CHE, the respondents include the Chairperson of the HEQC; Registrar: Private Higher Education Institutions; SAQA; the Minister of Higher Education and Training and the MEC of the Department of Education: KwaZulu-Natal.
The applicant wants an order reviewing and setting aside the decision of the HEQC taken on the 10th June 2015 withdrawing the accreditation of the applicant for its BEd (Foundation Phase) and BEd (Intermediate Phase) programmes.
The CHE will be opposing the application. The costs of the legal fees are not yet known.
126
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
127
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
128
ANNUAL REPORT 2014/15
COUNCIL ON HIGHER EDUCATION
Notes..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
.............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
..............................................................................................................................................................................
Published byThe South African Council on Higher Education
Telephone: +27 (12) 349 3840
1 Quintin Brand Street,Persequor Technopark
PretoriaSouth Africa
P O Box 94
Persequor Park0020
South Africa
www.che.ac.za
ISBN: 978-1-919856-98-8
Design, Layout and Printing by Tirommoho Communications