FROM POLICY DEVELOPMENT TO POLICY IMPLEMENTATION · in keeping with these rights, the nqF Act includes the following provisions: 5. (1) The objectives of the NQF are to: (a) Create

FROM POLICY DEVELOPMENT TO POLICY IMPLEMENTATION

ANNUAL INTEGRATED REPORT

2014 § 2015

FROM POLICY DEVELOPMENT TO POLICY IMPLEMENTATION Inte

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The South African Qualifications Authority is a statutory body established in accordance with of the South African Qualifications Authority Act, 58 of 1995 and continues under the National Qualifications Framework Act, 67 of 2008. In terms of the Public Finance Management Act, SAQA is a Schedule 3A National Public Entity.

AbouT This RePoRT...

This Annual Integrated Report is prepared to comply with:

• Section 13 (2) of the NQF Act;

• Section 55 of the PFMA; and

• King III Report on Corporate Governance in South Africa.

The 2014/15 AnnuAl inTegRATed RePoRT…

This is the fourth time that SAQA is producing an annual integrated report. We regard integrated reporting as a journey, and in each successive year we try to improve the report to make it easier to read and more meaningful to our stakeholders.

Our aim is to provide a balanced and reasonable view of SAQA, so that our stakeholders can make an informed assessment of our performance.

AbOuT SAQA...

FROM POLICY DEVELOPMENT TO POLICY IMPLEMENTATIONInte

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1. statement of Responsibility for Performance information ........... 24

2. Predetermined objectives ................................................................. 25

3. overview of sAqA’s Performance .................................................... 25

3.1. Service Delivery Environment and Strategic Outcome Oriented Goals ........................................................................... 25

Leadership ................................................................................. 26

Valuing our People ..................................................................... 34

Public Positioning ....................................................................... 36

3.2. Organisational Environment ....................................................... 38

3.3. Key Policy Developments and Legislative Changes .................. 38

4. Performance information by Programme ........................................ 39

5. summary of Financial information ................................................... 54

PART C: goVeRnAnCe ...................................................................57

1. introduction ........................................................................................ 58

2. Portfolio Committee ........................................................................... 58

3. executive Authority ............................................................................ 59

4. The sAqA board ................................................................................ 59

4.1. Introduction ................................................................................ 59

4.2. Functions of the SAQA board .................................................... 59

PART A: geneRAl inFoRMATion ....................................................5

1. sAqA’s general information ............................................................... 6

2. list of Abbreviations and Acronyms .................................................. 7

3. strategic overview ............................................................................... 8

3.1. Vision ........................................................................................... 8

3.2. Mission ......................................................................................... 8

3.3. Principles...................................................................................... 8

3.4. Strategic Oriented Goals .............................................................. 8

4. legislative and other Mandates ......................................................... 9

4.1. Legislative Mandates ................................................................... 9

4.2 Policy Mandates ......................................................................... 10

5. organisational structure ................................................................... 12

5.1. Board Structure .......................................................................... 12

5.2. Management Structure............................................................... 13

5.3. What Drives us .......................................................................... 13

6. Foreword by the Chairperson of the sAqA board .......................... 14

7. Chief Executive Officer’s Report ...................................................... 17

PART b: PeRFoRMAnCe inFoRMATion .......................................23

TAbLE OF CONTENTS


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1.3. Workforce Planning .................................................................... 80

1.4. Performance Management Framework...................................... 80

1.5. Policy Development ................................................................... 80

1.6. Future Human Resources Plans ................................................ 80

2. human Resources oversight statistics ........................................... 81

2.1. Personnel Costs by Programme ................................................ 81

2.2. Personnel Costs by Salary band ............................................... 82

2.3. Training Costs ............................................................................ 83

2.4. Employment and Vacancies ....................................................... 84

2.5. Employment Changes ................................................................ 86

2.6. Reasons for Staff Leaving .......................................................... 86

2.7. Labour Relations: Misconduct and Disciplinary Action............... 86

2.8. Equity Targets and Employment Equity Information .................. 87

PART e: FinAnCiAl inFoRMATion ................................................89

1. statement of Responsibility .............................................................. 90

2. Audit and Risk Committee Report .................................................... 91

3. Auditor general Report ...................................................................... 94

4. Annual Financial statements ............................................................ 97

4.3. Activities of the SAQA board and its Committees ...................... 60

5. Risk Management ............................................................................... 65

5.1. Key Developments in the Year ................................................... 65

5.2. Our Risk Management Process ................................................. 65

5.3. Major Strategic Risks ................................................................. 66

6. internal Control and Audit Committees ........................................... 68

7. Compliance with laws and Regulations .......................................... 69

8. Fraud and Corruption ........................................................................ 69

9. Code of Conduct ................................................................................ 69

10. sustainability Report ......................................................................... 70

10.1. Economic Viability ...................................................................... 70

10.2. Environmental Sustainability ...................................................... 70

10.3. Social and Transformation Matters ............................................ 72

11. Communication with stakeholders .................................................. 72

PART d: huMAn ResouRCe MAnAgeMenT ...............................79

1. introduction ........................................................................................ 80

1.1. Overview of Human Resources Matters at SAQA...................... 80

1.2. Human Resources Priorities for the Year under Review ............ 80


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PART

A general information


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TelePhone nuMbeR/s: +27 12 431 5000

FAX nuMbeR: +27 12 431 5147

eMAil AddRess: [email protected]

WebsiTe AddRess: www.saqa.org.za

eXTeRnAl AudiToRs: Auditor-General of South Africa

bAnKeRs: Standard bank

RegisTeRed nAMe: South African Qualifications Authority (SAQA)

PhYsiCAl AddRess: SAQA House

1067 Arcadia Street

Hatfield

Pretoria

0083

PosTAl AddRess: PostNet Suite 248

Private bag X06

Waterkloof

Pretoria

0145

1. SAQA’S GENERAL INFORMATION


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AbbReViATion / ACRonYM

eXPlAnATion

NQF National Qualifications FrameworkNQF Act National Qualifications Framework ActOQSF Occupational Qualifications Sub-frameworkPDMS Performance and Development Management SystemRPL Recognition of Prior LearningSANC South African Nursing CouncilSAICA South African Institute of Chartered AccountantsSAQA South African Qualifications AuthoritySAQA Act South African Qualifications Authority ActSETA Sector Education and Training AuthorityQC Quality CouncilQCTO Quality Council for Trades and OccupationsQ & S Committee Qualifications & Standards CommitteeuWC university of the Western CapeW&RSETA Wholesale and Retail Sector Education and Training

AuthorityWP PSET White Paper for Post - School Education and Training WSP Workplace Skills Plan

AbbReViATion / ACRonYM

eXPlAnATion

APP Annual Performance PlanAQVN African Qualifications Verification NetworkCAT Credit Accumulation and TransferCAS Career Advice ServicesCDS Career Development ServicesCEO Chief Executive OfficerCHE Council on Higher EducationCHIETA Chemical Industries Education and Training AuthorityCPD Continuous Professional Development DbE Department of basic EducationDHET Department of Higher Education and TrainingDFQEAS Directorate Foreign Qualifications Evaluation and

Advisory ServiceDPSA Department of Public Service and AdministrationECM Enterprise Content ManagementEWSETA Energy and Water Sector Education and Training

AuthorityFPI Financial Planning InstituteHEMIS Higher Education Management Information SystemICS Integrated Communication StrategyICT Information and Communications TechnologyPDP Personal Development PlanPFMA Public Finance Management ActNCAP National Career Advice PortalNLRD National Learners’ Records Database

2. LIST OF AbbREVIATIONS AND ACRONYMS


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SAQA, as the oversight body of the National Qualifications Authority (NQF) and the custodian of its values, will boldly serve lifelong learners by:

�� Demostrating leadership and co-ordination;�� Growing and valuing its people; and�� being visible through education and advocacy interventions.

3.4. sTRATegiC oRienTed goAls

SAQA set the following goals for the 2014/15 financial year:

Leadership Provide bold and competent leadership in the implementation of the NQF Act to the advantage of lifelong learners.

Staff Development

Enhance capacity, and encourage and value the contributions of staff towards organisational effectiveness and excellence in service delivery.

Public Positioning

Publicly position SAQA as a value adding organisation through the further development of the NQF as a roadmap for learning and progression and as a transformative mechanism for society.

3.1. Vision

Aworld-classNationalQualificationsFrameworkforSouthAfrica

3.2. Mission

Oversee the further development and implementation of the NQF and advance its objectives which contribute to the full development of each lifelong learner and to the social and economic development of the nation at large

3.3. PRinCiPles

SAQA, in advancing the NQF:

�� Ensures effectiveness to the advantage of lifelong learners, especially those in poor and rural communities;

�� Embraces social justice, environmental sustainability and diversity; and�� Aligns its focus with government’s national imperatives and priorities,

such as the Human Resource Development Strategy (HRDS), Strategic Integrated Projects (SIP) and the National Development Plan (NDP).

SAQA recognises the NQF as a framework for communication, collaboration and co-ordination across education, training, development and work that supports:

�� Career Advice Services (CAS);�� Articulation;�� Recognition of Prior Learning (RPL); and�� Staff development.

3. STRATEGIC OVERVIEW


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3. Everyone has the right to establish and maintain, at their own expense, independent education institutions that:

a. Do not discriminate on the basis of race;

b. Are registered with the state; and

c. Maintain standards that are not inferior to standards at comparable public education institutions.

4. Subsection (3) does not preclude state subsidies for independent education institutions.

in keeping with these rights, the nqF Act includes the following provisions:

5. (1) The objectives of the NQF are to:

(a) Create a single integrated national framework for learning achievements;

(b) Facilitate access to, and mobility and progression within, education, training and career paths;

(c) Enhance the quality of education and training; and

(d) Accelerate the redress of past unfair discrimination in education, training and employment opportunities.

(2) The objectives of the NQF are designed to contribute to the full personal development of each learner and the social and economic development of the nation at large.

4.1. legislATiVe MAndATes

SAQA is a statutory body established in terms of the South African Qualifications Act, No. 58 of 1995. It continues to exist under the National Qualifications Framework Act, No. 67 of 2008.

The Constitution of the Republic of south Africa, 1996

The bill of Rights, in section 29 of the Constitution of the Republic of south Africa, 1996, provides for education:

1. Everyone has the right:

a. To a basic education, including adult basic education; and

b. To further education, which the state, through reasonable measures, mustmakeprogressivelyavailableandaccessible.

2. Everyonehas the right to receiveeducation in theofficial languageorlanguages of their choice in public education institutions where that education is reasonably practicable. In order to ensure the effective access to, and implementation of this right, the state must consider all reasonable education alternatives, including single medium institutions, takingintoaccount:

a. Equity;

b. Practicability; and

c. The need to redress the results of past racially discriminatory laws and practices.

4. LEGISLATIVE AND OTHER MANDATES


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�� Is responsible for conducting or commissioning research into NQF-related matters, to collaborate with international counterparts, and to initiate and drive a clear, co-ordinated communication and advocacy strategy to assist providers, learners and the public at large to understand the new NQF architecture and the implications for them of the changes; and

�� Must perform any function consistent with the NQF Act that the Minister: HET may determine.

The Public Finance Management Act, 1 of 1999 (PFMA), Treasury Regulations (2005), and the Framework for strategic Plans and Annual Performance Plans (2010):

In terms of the PFMA, SAQA is a Schedule 3A National Public Entity. SAQA therefore complies with the PFMA, applicable Treasury Regulations, and the provisions of the Framework for Strategic Plans and Annual Performance Plans.

4.2. PoliCY MAndATes

SAQA’s work is informed and guided by the following policies:

�� The White Paper for Post-school Education and Training, 2013; and�� Ministerial Guidelines on Strategy and Priorities for the NQF and other

directives received from the Minister: HET.�� The 2014/15 Ministerial Guidelines to Address Priorities for the NQF and

other directives received from the Minister:HET mandated SAQA to focus on the following priorities during the financial year under review:�- Finalising the Policies on CAT and on Assessment; �- Completing the NQF Impact Study and submitting the report to the

Minister:HET;�- Implementing the NQF System of Collaboration; �- Advising the Minister:HET on how the specific issues and

recommendations raised in the White Paper for Post-school Education and Training will be dealt with; and

(3) SAQA and the Quality Councils must seek to achieve the objectives of the NQF by:

(a) Developing, fostering and maintaining an integrated and transparent national framework for the recognition of learning achievements;

(b) Ensuring that South African qualifications meet appropriate criteria, determined by the Minister as contemplated in section 8, and are internationally comparable; and

(c) Ensuring that South African qualifications are of an acceptable quality.

The NQF Act positions SAQA as the oversight body of the NQF and the custodian of its values. SAQA therefore co-ordinates the work of the QCs and other NQF partners. This enables SAQA to engage with high-level strategic issues that enhance the coherent implementation of the NQF.

The functions of SAQA are set out in sections 5(3) and 13 of the NQF Act, which became effective on 1 June 2009. In summary, SAQA:

�� Must advise the Minister: Higher Education and Training (HET) and decision-makers on NQF matters, oversee the implementation of the NQF, and liaise and consult with the QCs on matters relating to implementing the NQF;

�� Is mandated to develop policies and criteria for the registration of qualifications and part-qualifications, assessment, RPL and credit accumulation and transfer, recognising a professional body and registering a professional designation, and the development and maintenance of the content of level descriptors;

�� Is required to maintain a National Learners’ Records Database (NLRD) to ensure that South African qualifications are of an acceptable quality, and to provide an evaluation and advisory service with respect to foreign qualifications;


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The following national policy documents are relevant to the work of SAQA:

�� National Development Plan 2030;�� Strategic Integrated Projects;�� Human Resource Development Strategy for South Africa (2010 – 2030);�� National Integrated Human Resources Development Plan (2014 – 2018);

and�� National Skills Development Strategy III and the Declaration signed at the

Skills Summit

�- Developing a list of misinformation about qualifications and institutions in SA operating outside of the NQF.

Considering the provisions of the WP PSET, SAQA will in the new financial year continue to focus on:

�� The simplification of the NQF through:�- NQF Policies; and�- Communication of messages on the NQF.

�� Addressing the over-production and non-use of qualifications by:�- Managing the proliferation of qualifications, and the registration of

large numbers of qualifications;�- Reducing duplication and not re-registering unused qualifications

and part- qualifications; and�- Recognising on the NQF, programmes based on unit standards

and substantial skills programmes that have legal weight and meaning in the workplace.

�� The further development and implementation of articulation through:�- Implementing and monitoring the implementation of the Articulation

Action Plan; and�- Promoting articulation and quality assurance by ensuring that the

NQF Policies on CAT, Assessment and RPL are implemented.�� Facilitating the work of the QC’s through:

�- Finalising the configuration and remit of QCs;�- Strengthening assessment and quality assurance systems

institutionally within the context of criteria and guidelines developed by SAQA; and

�- Ongoing support to the Quality Council for Trades and Occupations (QCTO) to build its capacity to become fully operational in terms of its quality assurance role and to reduce the quality assurance work carried out by the SETAs.


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5.1. boARd sTRuCTuRe

bOARD

Executive Committee

Remuneration Committee

Audit and Risk Committee

Finance Committee

Information and Information

Technology Committee

Qualifications and Standards

Committee

Career Advice Services

Committee

Advocacy and Communication

Committee

Research Committee

Foreign Qualifications

Committee

5. ORGANISATIONAL STRuCTuRE

back row from left to right: Mr JS Samuels (SAQA CEO), Dr V Toni Penxa (Deputy Chairperson), Mr MJN Njeke (Chairperson of the board), Mr SFA Mokonane, Dr CF barnes, Prof. TG Schultz, Adv. KS Malunga, Ms GJ Mashabela, Mr D Adler

Front row from left to right: Ms CS Müller, Mr O Sipuka, Ms ND Moodley, Ms MM Maboye, Ms CT Duba, Dr M Rakometsi, Dr D Webbstock

* The Career Advice Services Committee had its last meeting on 18 November 2014.


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�� Implemented a comprehensive leadership and staff development programme

�� Ensured that staff understand SAQA’s

mandate to enhance organisational

effectiveness and service excellence

5.3. WhAT dRiVes us5.2. MAnAgeMenT sTRuCTuRe

Deputy Chief Executive Officer

Chief Executive Officer

SAQA Board

Director: Office of the CEO

Deputy Director: Verifications

Director: Human Resources

Director: Finance and Administration

Director: Advocacy, Communication and Support

Director: Information Technology

Director: International Liaison

Director: Research

Director: National Learners’ Records Database

Director: Foreign Qualifications Evaluation and

Advisory Services

Director: Registration and Recognition

�� Expanded SAQA’s social media presence�� Collaborated with one of the recognised professional bodies to inform the public about the NQF and its benefits

enhance capacity and

value staff contributions

�� Finalised the last two NQF Policies in the full suite of NQF Policies that provide an enabling platform for articulation�� Hosted a two-day International Seminar on building Trust: Promoting Genuine Qualifications in the African Continent. This seminar culminated in the adoption of a joint declaration and agreement to establish an African Qualifications Verification Network

demonstrate bold and

competent leadership in

the nqF landscape

Publicly position

sAqA’s value-add in serving the

lifelong learner


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ConTeXT And bACKgRound

The 5th board began its tenure quite dramatically in January 2011. The previous board’s term had ended three months earlier, and delays in the announcement of the new board had caused further anxiety. The Chief Executive Officer (CEO) at the time was on extended sick leave, so I had to work with the Acting CEO to bring the new board together and set up the various committees.

The new board was constituted against a backdrop of dramatic shifts and transformation in the broader context. The NQF Act and related legislation was promulgated on 19 February 2009. The new legislation was designed to address the allocation of responsibility, thus resolving tensions amongst key role players, and simplifying the NQF apparatus in order to fast-track the achievement of the NQF objectives. The executive responsibility for the NQF was also moved to be the sole responsibility of the Minister of Education. The NQF Act was to be implemented from 1 June 2009.

New government structures were created following General Elections on 22 April 2009. The Ministry of Education was split into two entities, thus establishing the Ministry of Higher Education and Training and the Ministry of basic Education. The 4th SAQA board and the Minister : HET were unable to meet during their remaining term of office.

CoMPosiTion oF The sAqA boARd

The NQF Act made provision for a smaller, more professional board of 16 members (12 members who are appointed by the Minister: HET, as well as

inTRoduCTion

It is with a sense of pride that I reflect on my tenure as Chairperson of SAQA’s board. In March 2015, the 5th SAQA board gathered for its last strategic planning session. It was thus appropriate for us to reflect on what we had achieved, what we should be focussing on for the remaining eight months and what we wanted to hand over to the incoming 6th SAQA board.

6. FOREWORD bY THE CHAIRPERSON OF THE SAQA bOARD

MJn njeke, Chairperson


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Technology Committees that experienced difficulties with being quorate on a few occasions. These matters were successfully addressed and resolved.

ChAllenges

In the broader context, the WP PSET highlighted some of the challenges with the NQF and provides a framework for addressing the issues. We support the implementation of the WP PSET and we committed SAQA to the speedy implementation of the elements that it is responsible for. We believe that we have laid a good foundation for the next board to continue on this path.

neXT sTePs

The board’s focus for its remaining term of office is to continue building strong partnerships within the NQF family, including enhancing our relationship with the Minister: HET and the leadership of the Quality Councils.

Plans are being developed to ensure that there is a proper handover to the new board. We are also hopeful that the new board will be appointed before the 5th board’s term of office expires so that the handover is smooth.

ConClusion

I can confidently state that we did our work to the best of our ability. We took our governance and oversight roles seriously. All our board meetings were quorate, we worked diligently, our committees functioned well bar one, we ensured that policies required by the NQF Act were developed, and during our last year we begin to oversee the further implementation of the NQF. We have taken the NQF forward and we are leaving SAQA in a better position than where we found it.

I sincerely thank the Minister: HET, SAQA board members, the CEO and SAQA Staff for their valuable contributions during the last five years. The SAQA board

the 4 CEOs of the CHE, QCTO, SAQA and umalusi) as opposed to previous boards of 29 members comprising different stakeholder groups. The new structure still allowed for union representation. The Minister: HET also appoints the Chairperson of the board. This new board had to find its feet and started to function within the context outlined above.

sAqA boARd AChieVeMenTs oVeR The PeRiod

Despite its unorthodox start, the 5th board made significant progress over the last four years. We succeeded in:

�� Consolidating the NQF Forum and CEO Committee;�� Developing and implementing the NQF Implementation Framework 2011-

2015 and the System of Collaboration that guides how the DHET, DbE, SAQA and the Quality Councils work together;

�� Appointing a new CEO and ensuring a smooth transition from the out-going to the in-coming CEO;

�� Continuing the tradition of good governance by achieving consecutive unqualified audits;

�� Overseeing the appointments of several high level positions including the Deputy Chief Executive Officer;

�� Ensuring the negotiation of multiple-year wage agreements with the union;

�� Meeting the employment equity target for disability during the 2014/15 financial year;

�� Overseeing the completion of NQF policy development so that the new board can focus on implementing these policies; and

�� Overseeing the completion of the third comprehensive Impact Study.

The board in general functioned very well as we kept our focus on governance matters and left the management of the organisation to the CEO and his staff. All our board meetings were quorate. All committees of the board functioned well except for the Foreign Qualifications and Information and Information


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also takes this opportunity to wish the incoming board well during their term of office.

MJn nJeKeChAiRPeRson oF The sAqA boARd

We support the implementation of the WP PSET and we committed SAQA to the speedy implementation of the elements that it is responsible for. We believe that we have laid a good foundation for the next Board to continue on this path.”

“”


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PoliCY deVeloPMenT

I am proud to report that SAQA completed development of the full suite of policies required by the NQF. In the last year, we completed the Policy for Credit AccumulationandTransferwithintheNationalQualificationsFramework (CAT Policy) and the National Policy and Criteria for Designing and Implementing Assessment for NQFQualifications and Part-Qualifications and ProfessionalDesignations in South Africa (Assessment Policy). After being vetted by the legal advisors of DHET, these new policies were published in the Government Gazette on 28 November and 2 December 2014 respectively. We also published the National Policy for the Implementation of the Recognition of Prior Learning (RPL Policy) in the Government Gazette on 10 October 2014.

Work has commenced on two other documents which address matters that SAQA, as the custodian of the NQF, believes require leadership and direction. In line with our strategy to enhance the credibility of the Foreign Qualifications Evaluation function and to distinguish SAQA’s role from other national recognition bodies, SAQA developed a draft Policy and Criteria for Evaluating Foreign Qualificationswithin theSouthAfricanNationalQualifications Framework. In response to the wide media coverage focussed on qualifications fraud, we included SAQA’s position on fraud and the role of verification in combating this problem in the Policy.

The second document is a set of good practice principles and guidelines for learning that does not lead to a qualification or part-qualification. We critically reviewed the CriteriaandGuidelinesforShortCoursesandSkillsProgrammes (June 2004) in order to develop the Guidelines for Good Practices for Learning not Leading to aQualification orPart-Qualification registered on theNQF inSouth Africa.

The theme of SAQA’s 2014/15 Annual Integrated Report ... from policy development to policy implementation … is an apt description, especially as SAQA’s operations during the year under review were largely aimed at finalising our NQF policy development work, while beginning to embrace our role of facilitating and monitoring the implementation of those policies that were finalised in previous years.

7. CHIEF EXECuTIVE OFFICER’S REPORT

Js samuels, Ceo


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CAReeR AdViCe seRViCes

I reported previously that the Ministerial flagship project on Career Advice Services came to an end on 31 August 2013 and that we entered into an agreement with the DHET to extend the project to deliver Career Development Services until the end of September 2014.

As agreed, SAQA continued to provide this service during the first six months of the financial year and handed over the project to DHET on 1 October 2014.

During the six months that we were responsible for the Career Advice Services, we responded to 32 090 queries. SAQA will continue to provide information from the NLRD to populate the NCAP with new information on learning pathways and career paths.

I pause here to thank the Career Advice Services Committee of the board that concluded its work on 18 November 2014, the SAQA/DHET Career Advice Services Steering Committee and the SAQA Management and staff for their commitment to this project. SAQA proudly incubated, established, nurtured and grew this service to the point where it was viable to be incorporated into the wider career development strategy of DHET.

Following the handover of the project, focus shifted to the development of the NQF Advisory Service.

ARTiCulATion

The WP PSET, approved by Cabinet in November 2013, requires SAQA to facilitate and monitor the implementation of an articulation framework while promoting articulation and quality assurance.

In finalising the basket of NQF policies, we completed the policy framework needed to facilitate articulation. SAQA and the QCs discussed these policies

The SAQA board approved the publication of both draft documents for public comment on 13 March 2015.

PoliCY iMPleMenTATion

The NQF Act assigns SAQA the responsibility to register qualifications and part-qualifications on the NQF if they meet the policy and criteria for registration. During this year, SAQA registered 222 new qualifications. In addition to the PolicyandCriteriafortheRegistrationofQualificationsandPart-QualificationsontheNationalQualificationsFramework, all qualifications were also assessed against the agreed LevelDescriptorsfortheSouthAfricanNationalQualificationsFramework policy.

Similarly SAQA is responsible for recognising professional bodies and registering professional designations. In the year under review, SAQA recognised 8 professional bodies and registered 19 professional designations that complied with SAQA’s Policy and Criteria for recognising a Professional Body and Registering a Professional Designation for the purposes of the National QualificationsAct,Act67of2008.

It is very important for professional bodies not only to comply with the Policy and Criteria at the point of recognition, but that they continue to adhere to the requirements. We therefore introduced a process to conduct follow-up assessments two years after recognition by SAQA, to monitor whether professional bodies sustained their standing. We assessed 37 of the 40 professional bodies that were recognised during the 2012/13 financial year. Assessments of professional bodies that were recognised in the 2013/14 financial year will continue in 2015.

While good progress was made in developing and implementing policy and criteria in the different fields of the NQF, we still sustained our mandated services and retained our focus in the four areas of Career Advice, Articulation, RPL and Staff Development.


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sTAFF deVeloPMenT

Our staff is our most valuable asset and during this past year we continued our efforts towards staff development. The most important initiative in the year was the extensive leadership and staff development programme aimed at equipping managers and developing employees at all levels of the organisation.

During the year, we started a review of our performance management framework and it is pleasing to report that we finalised performance contracts for all of our employees and assessed them against these contracts.

The next step is to review our current model for recognition and reward to ensure that it is affordable, fair and sustainable.

An important principle that underlies the NQF and SAQA’s work, which we also adhere to internally, is that of transformation. We are addressing transformation issues through our business principles and procurement practices and also in our staff employment practices. We have done very well against our employment equity targets especially in respect of the appointment of people with disabilities. 2.9% of our staff complement are people with disabilities. We also managed to improve demographic representivity at top and senior management level, where 50% are now female (compared to 33 % in March 2014), and 66% of managers are black, compared to 42 % the previous year. The overall profile remained fairly constant with 87% black and 63% of SAQA staff are women.

inTeRnATionAl eXPosuRe

SAQA has made a significant contribution in the international arena during the reporting period. We were commissioned by uNESCO to work on a study of world reference levels and contributed to the development of a possible global convention on the recognition of higher education qualifications. Two SAQA staff members were also part of an official government delegation led by the

extensively during CEO Committee meetings and SAQA also provided comment to the QCs on their respective articulation related policies to ensure that the respective policies are aligned.

SAQA met with the CHE and the QCTO to discuss articulation within and across the sub-frameworks and to address the issue of the proliferation of qualifications on the NQF raised in the WP PSET.

We also assisted the QCTO, mainly with expertise on international comparability and articulation, to develop qualifications that met the policy and criteria requirements for registration on the NQF. We also implemented our part of the Articulation Action Plan and reported progress to the Minister: HET through the Articulation Progress Report.

ReCogniTion oF PRioR leARning (RPl)

SAQA had already embraced its leadership role in the implementation of RPL in the previous financial year when we assisted organisations to implement RPL in the workplace. This activity, together with our commissioned research on RPL, fed into the 2013 National RPL Conference, where practical tools for implementing RPL were shared. In 2014/15 we continued to provide focused support to organisational RPL cases. We also concluded the pilot of two internal cases of RPL in the workplace that had started in the previous financial year. The lessons learned were incorporated into our internal RPL processes and provided valuable insights to inform the implementation of the national policy.

The National Policy for the Implementation of the Recognition of Prior Learning provides for the establishment of a RPL Policy Co-ordination Sub-committee as part of the CEO Committee. The CEO Committee adopted the proposal developed to set up this Sub- committee. The DHET informed us that the Minister will be developing an overarching strategy to implement a national system for RPL and SAQA is well positioned to assist the Minister as required.


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Deputy Minister: HET, Deputy Minister Manana, to the final adoption and signing of the Revised Arusha Convention (now called the Addis Convention). These international activities will have significant impact on the future of the recognition of qualifications globally.

ConClusion

With the completion of the NQF Policy Framework in 2014/15, our focus from 2015/16 onward will be on leading the drive to simplify the NQF while coordinating the implementation of the NQF policies to the benefit of lifelong learners and the country as a whole.

I thank the Minister: HET and the DHET for their assistance and support in our work. We remain committed to working with them to further advance the NQF to benefit society.

My sincere appreciation goes to Mr Njeke, Chairperson of the board, and to all members of the 5th SAQA board, whose term will end on 31 December 2015. Their steadfast and able leadership set a positive tone as we embarked and progressed on our journey from policy development to policy implementation, while their unwavering support and guidance inspired us to do our best.

I also thank Dr Julie Reddy, Deputy CEO, the management and staff for their work and commitment to boldly serve lifelong learners.

Js sAMuelsChieF eXeCuTiVe oFFiCeR: sAqA

NQF Implementation Framework 2011-2015

2013

/NQ

F/IF

The South African Qualifications Authority

higher education & trainingDepartment:Higher Education and TrainingREPUBLIC OF SOUTH AFRICA

The South African Qualifications AuthoritySystem of Collaboration

2013

/SO

C higher education & trainingDepartment:Higher Education and TrainingREPUBLIC OF SOUTH AFRICA

NQF IMPLEMENTATION FRAMEWORK

AND SYSTEM OF COLLAbORATION


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OVERVIEW OF ACHIEVEMENTS FOR 2014/15

3NQF policies

published

222 new qualifications

registered

32 000

CDS enquiries Serviced

Hosted international seminar to

promote genuine qualifications

Seminar on learning

outcomes

Recorded incidents of

misinformation about

qualifications

Research into learning pathways

African Qualifications Verifications

Network endorsed

Hosted workshops on

Relational Agency

8 professional bodies

recognised

1 NQF Impact Study

19 professional designations registered

Suite of NQF policies

completed

10 563 transcripts

issued

32 381 applications

for evaluation of foreign

qualifications

LEADERSHIP VALuING OuR PEOPLE

R 1 162 309 was spent on staff

development

17 staff members

received education assistance

Leadership and staff development

programme

Monthly wellness clinic

168 344 social media

users

757 387 social media impressions

17 publications and

brochures

2.2 million

listeners reached per week via the

Khetha Radio shows 352 133

visits to website and mobi-site

face-to-face interactions

with 25 083 stakeholders

PubLIC POSITIONING


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SuITE OF NQF POLICIES

THE SOUTH AFRICAN QUALIFICATIONS AUTHORITYPolicy for Credit Accumulation and Transfer within the

National Qualifications Framework

THE SOUTH AFRICAN QUALIFICATIONS AUTHORITYNational Policy and Criteria for Designing and Implementing Assessment for NQF Qualifications and Part-Qualifications

and Professional Designations in South Africa

THE SOUTH AFRICAN QUALIFICATIONS AUTHORITYPolicy and Criteria for the Registration of

Qualifications and Part-qualifications on theNational Qualifications Framework

2013

/Q&

PQ

Helpdesk: 086 010 3188

Facsimile: 012 431 5147

Website: www.saqa.org.za

Email: [email protected]

THE SOUTH AFRICAN QUALIFICATIONS AUTHORITYLevel Descriptors for the South African

National Qualifications Framework

Telephone: 012 431 5000

Facsimile: 012 431 5147

Helpdesk: 086 010 3188



2012

/LD

THE SOUTH AFRICAN QUALIFICATIONS AUTHORITYPolicy and Criteria for Recognising a Professional Body

and Registering a Professional Designation for the Purposes of the National Qualifications

Framework Act, Act 67 of 2008

2012

/PB

Telephone: 012 431 5000

Facsimile: 012 431 5147

Helpdesk: 086 010 3188



THE SOUTH AFRICAN QUALIFICATIONS AUTHORITYNational Policy for the Implementation

of the Recognition of Prior Learning

2013

/RPL

Helpdesk: 086 010 3188

Facsimile: 012 431 5147




PART

b Performance information


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The CEO is responsible for the preparation of the public entity’s performance information and for the judgments made in this information.

The CEO is responsible for establishing and implementing an internal control system designed to provide reasonable assurance of the integrity and reliability of performance information.

In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indicators and targets as per the strategic and annual performance plan of the public entity for the financial year ended 31 March 2015.

SAQA’s performance information for the year ended 31 March 2015 has been examined by the external auditors and their report is presented on page 94.

The performance information of the entity as set out on pages 25 to pages 49 was approved by the SAQA board.

Js sAMuels ChieF eXeCuTiVe oFFiCeR

1. STATEMENT OF RESPONSIbILITY FOR PERFORMANCE INFORMATION FOR THE YEAR ENDED 31 MARCH 2015


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objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the Auditor’s Report.

The Auditor-General currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined

2. PRE-DETERMINED ObJECTIVES

3.1. seRViCe deliVeRY enViRonMenT And sTRATegiC ouTCoMe oRienTed goAls

SAQA is charged with overseeing the further development and implementation of the NQF Act, a key national policy for the transformation and integration of the education and training system in South Africa.

As part of an overall strategy to foster a culture of lifelong learning, SAQA focuses on upholding the objectives of the NQF, including access, mobility and progression. SAQA aims to enable all individuals – especially those in poor and rural communities – to value, have access to, and succeed in quality, lifelong education and training as envisioned by the NQF Act.

In advancing the NQF objectives, SAQA embraces social justice, environmental sustainability and diversity. SAQA bases its strategic imperatives on its understanding of the NQF as a framework for communication, co-ordination and collaboration across education, training, development and work.

3. OVERVIEW OF SAQA’S PERFORMANCE

SAQA aimed to address three broad areas during the reporting period:

Leadership: providing decisive leadership and co-ordination

Value our People: enhancing capacity, encouraging and valuing staff contributions

Public Positioning: being visible through education and advocacy

SAQA’s performance in these three areas is discussed on the following pages.


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our leadership goal: To provide bold and competent leadership in the implementation of the nqF Act to the advantage of lifelong learners

AChieVeMenTsWe:�� Published three NQF policies (RPL, Assessment and CAT) in the

Government Gazette;�� Completed the required suite of NQF policies;�� Implemented a strategy to enhance the credibility of the foreign

qualifications evaluation and advisory services function and clarify its role with regard to other recognition agencies in the country;

�� Hosted a successful two-day International Seminar on “building Trust: Promoting Genuine Qualifications in the African Continent” on 24 and 25 November 2014. SAQA took the lead in obtaining commitment to a Joint Declaration and reaching consensus to establish the African Qualifications Verification Network (AQVN);

�� Occupied numerous radio spots and were quoted in a number of newspapers and online articles, especially with regards to our verification of national qualifications and the evaluation of foreign qualifications services;

�� Published for public comment, a draft “Guidelines for Good Practice for Learning that does not Lead to a Qualification or Part-Qualification” document;

�� Reached agreement with the QCTO and CHE on how to address the issue of the proliferation of qualifications on the NQF;

�� Advised the QCTO on matters pertaining to the Occupational Qualifications Sub-framework (OQSF) Policy and assisted with the development of qualifications that meet the criteria for registration on the NQF;

�� Provided leadership in regulatory and policy debates, through public SAQA events that focused on SAQA as a relational agency, learning outcomes, combating qualifications fraud and career development;

�� Developed a costing model to ensure full cost recovery for services rendered by the Foreign Qualifications Evaluation as well as the Verifications functions;

�� uploaded substantial information onto the NLRD from umalusi, the Kha Ri Gude Project, HEMIS and SANC;

�� Serviced more than 32 000 enquiries through the Career Development Services (CDS) unit for the first half of the financial year ( the CDS Project was transferred to the DHET on 1 October 2014); and

�� Finalised the NQF Impact Study 2014.

Achievement of our objectives under the leadership goal

objective: implement all the requirements of the nqF Act

We:

�� Published the following NQF Policies in the Government Gazette:�� National Policy for the Implementation of the Recognition of Prior Learning

(RPL) on 10 October 2014;�� Policy for Credit Accumulation and Transfer within the National

Qualifications Framework (CAT) on 28 November 2014; and�� National Policy and Criteria for Designing and implementing Assessment

for NQF Qualifications and Part-Qualifications and Professional Designations in South Africa (Assessment) on 2 December 2014;

LEADERSHIP


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�� Continued with RPL work; and:�� Supported several organisations with their RPL cases.

objective: Monitor and report on implementation of the nqF Act through appropriate mechanisms

SAQA:

�� Continued to monitor, through the CEO Committee, the progress made in achieving the priorities for the implementation of the NQF (as described in the NQF Implementation Framework 2011-2015 and the Ministerial Guidelines on Strategy and Priorities for the NQF 2012/13 and 2014/15 respectively); and

�� Developed, new priorities for the 2015 – 2020 NQF Implementation Framework for consideration by the CEO Committee.

objective: Further enhance relationships with the Ministry of higher education and Training, and other relevant government departments, entities and partner organisations

We:

�� Developed a briefing document on SAQA’s roles and responsibilities in the event of a new Minister:HET being appointed after the May 2014 General Election;

�� Regularly communicated with the Minister: HET and DHET. While many of these interactions related to the CDS project, there were also regular exchanges relating to SAQA’s role in implementing the NQF;

�� utilised the CEO Committee to enhance relationships within the NQF family;

�� Met periodically with DPSA to discuss SAQA’s ongoing work relating to the verification of government employee qualifications;

�� Hosted quarterly Partners Forum meetings with the SETAs, and the QCs for progress discussions on data loads of learner records on the NLRD; and

�� Interacted regularly with the DbE, especially with regards to their national and regional Exam Irregularities Committees.

objective: ensure research credibility to direct and steer policy, as well as legislative debates

We:

�� Obtained approval from the SAQA board to publish the NQF Impact Study 2014;

�� Concluded long term research partnership projects with uWC and Rhodes university; and

�� Started a process to engage new research partnerships.

222 new qualifications were registered: (27

occupational and 195 higher education

qualifications)

8 professional bodies recognised

19 professional designations registered

32 381 applications for evaluation of foreign qualifications received

and processed

4 717 verification of national qualifications

batches processed; and

10 563 individual transcripts issued


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26.3%

10.9%

8.8%

8.1% 4.3%

3.9%

3.3%

2.1% 2.0%

1.6% 1.5% 1.5% 1.5% 1.4%

1.2% 1.2%

1.2% 1.2%

1.1%

1.0%

1.0%

0.9%

0.9%

0.8%

0.7% 11.8%

Qualifications per country as a percentage of the total 1 Zimbabwe - 8502 2 India - 3520 3 United Kingdom - 2857 4 Nigeria - 2613 5 Democratic Republic of Congo - 1382 6 Lesotho - 1265 7 United States of America - 1084 8 Ghana - 684 9 Swaziland - 648 10 Pakistan - 519 11 Thailand - 486 12 Angola - 481 13 Germany - 481 14 Kenya - 457 15 Namibia - 392 16 Zambia - 384 17 Australia - 380 18 Botswana - 380 19 Cameroon - 355 20 France - 330 21 Malawi - 325 22 Peoples Republic of China - 284 23 Netherlands - 278 24 Uganda - 247 25 Ethiopia - 222 26 Other combined - 3825

objective: secure sustainable funding

SAQA:

�� Developed a costing model that ensured full cost-recovery for with: verification and evaluation services;

�� Prioritised activities to contain costs, as far as possible;�� Approached donor agencies to establish long-term relationships to secure

funding for specific projects; and�� Continued to engage with the DHET to increase our baseline voted

funds and secure additional funding for specific projects, such as the digitisation of learner records, particularly those related to the pre-1992 school-leaving certificates and teacher qualifications, and to establish a credible counter fraud initiative.

objective: oversee the implementation of a credible system of recognised, quality, articulated learning and career paths, which removes systemic barriers to access and progression, and enables easy navigation

SAQA implemented a strategy to enhance the credibility of the Foreign Qualification Evaluation and Advisory Service function and position SAQA as the preferred service provider in SA. In this regard we:

�� Re-engineered the operating systems, processes and procedures to improve the quality of delivery;

�� Introduced an online applications system to streamline and strengthen the applications process;

�� Developed a policy and criteria for evaluating foreign qualifications within the South African NQF context, which includes SAQA’s position on misinformation about qualifications;

�� Invited representatives from 14 African countries to a seminar focusing on countering fraudulent qualifications with a view to building stronger relationships between countries to speed up the qualification verification process;

�� Further developed a draft concept document on creating the African Qualifications Verification Network and started approaching donor organisations for start-up capital to establish the Network;

�� Attended the conference on the Revised Arusha Convention. The Convention raised a number of important issues around international good practice which SAQA will use to streamline its own evaluation processes;

�� began recording cases of misinformation about qualifications, and �� Advised the Minister: HET on the legal constraints and requirements for

establishing and publishing a Register of Fraudulent Qualifications.

We:

�� Provided a national multi-channel, accessible and sustainable Career Development Service to the public through the:


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�- Telephone and SMS service;�- Online services (the website, mobi-site, and Facebook); �- The Khetha weekly radio programmes on 11 African Languages

radio stations; and�- Walk-in facility and postal services.

�� Worked with the Energy and Water SETA, the Chemical Industries Education and Training Authority (CHIETA) and the Wholesale and Retail SETA on sector specific projects.

Objective: Assist and support the QCs to further the objectives of the NQF

�� Continued to assist and support the three QCs to further the objectives of the NQF and reported progress achieved at CEO Committee meetings;

�� Met with the QCTO and CHE to discuss articulation within and across the sub-frameworks and address the proliferation of qualifications on the NQF; and

�� Advised the QCTO on :�- The OQSF Policy; and

�- The development of occupational qualifications that meet the criteria for registration on the NQF, especially with regards to international comparability and articulation.Delegates attending the seminar on the verification of

foreign qualifications

Qualifications and part-qualifications registered on the NQF:1 650 occupational qualifications; 8 449 higher education qualifications; and

11 499 unit standards.

Provider Accreditation:13 706 providers accredited to offer 12 981 qualifications; and13 063 providers accredited to offer 9 925 unit standards.

Professional bodies:73 professional bodies recognised;

260 professional designations registered;67 722 people recorded against 99 registered professional

designations; and of these,29 626 hold the CA(SA) designation.

learners and Achievements:15 740 718 Learners recorded; 17 582 125 qualification enrolments and achievements captured;

28 634 of these achievements are via RPL; 39 321 unit standard enrolments captured; and

65 481 514 higher education modules achievements recorded.

An extract from the

nlRd shows the following information:


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Provide leadership in the regulatory and policy debates, and influence and contribute to the formulation of government policy

SAQA hosted:�� A Chairperson’s Lecture on 10 September 2014 that featured Dr Tony

Watts, an international career development expert;�� Workshops on Relational Agency by Professor Anne Edwards, from

Oxford university, on 29 and 30 September 2014. The workshops focused on the underlying principles of collaboration and cooperation across practice boundaries and innovative ways of working in partnership with others to reach shared goals and objectives;

�� A successful two-day International Seminar on building Trust: Promoting Genuine Qualifications in the African Continent on 24 and 25 November 2014. Delegates from 14 countries who attended agreed to a Joint Declaration and to the establishment of an African Qualifications Verification Network (AQVN), which aims to bring together key stakeholders and strengthen relationships on the African continent, so that qualifications can be verified quicker and fraudulent practices combated in a more coordinated and effective manner;

�� The ben Parker Memorial Lecture on 22 January 2015 led by Professor Heila Lotz-Sisitka and Ms Presha Ramsarup. The lecture focussed on learning pathways in a transforming society; and

�� A seminar and workshops in February 2015, led by Mr Stephen Adam, an international expert on learning outcomes.

SAQA facilitated discussions on policy matters during the CEO Committee meetings. The committee discussed:

�� Progress achieved in implementing the priorities of the NQF; �� Progress towards the implementation of the WP PSET;�� Standardising Certification in Higher Education;

�� Establishing a sub-committee on RPL as envisaged in Section 49 (e) of the National Policy for the Implementation of the Recognition of Prior Learning; and

�� Developing a NQF Implementation Framework for 2015-2020;

SAQA responded to public interest in combating fraudulent qualifications by:

�� The CEO being interviewed on numerous radio stations and quoted in a range of newspaper articles regarding our work around evaluating qualifications and identifying misinformation about qualifications;

�� Advising the Minister:HET on the legal implications of establishing and publishing a Register of Fraudulent Qualifications;

�� Establishing a working group to develop “Guidelines for Good Practices for Learning that does not Lead to a Qualification or Part-Qualification registered on the NQF in South Africa”; and

�� On request from the French Embassy, establishing a task team to drive a process to accredit European Language courses that can benefit South African diplomatic staff in embassies around the world.


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WoRK in PRogRess

We:

�� Made some in-roads towards simplifying the NQF, but require a broader strategy in collaboration with the QCs, to take the process even further;

�� Ensured that all qualifications that are registered on the NQF include articulation pathways, but we will need to monitor the process to ensure that articulation is possible in practice; and

�� Need additional funding to implement the NQF Advisory Service, fulfil our obligations in overseeing the implementation of RPL, as well as for establishing a dedicated unit to focus on qualifications.

Professor Anne edwards from oxford university delivering the presentation on Relational Agency

2.2 Million weekly radio listeners

15 393 Likes on Facebook

103 348 Visitors to website

255 851 pages viewed

248 785 Mobi-site visits. The mobi-site attracted

145 437 more visitors than the website

19 489 Telephone callers

2 262 Email cases

580 Walk-in clients

9 521 SMS

25 083 People reached during exhibitions and information sessions

Cds interface statistics


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CReATing neW KnoWledge in 2014/15

SAQA is mandated to conduct and commission research, and publish the findings, on matters relating to the implementation and further development of the NQF. SAQA uses a collaborative partnership model and to date has worked with seven long-term research partnerships.

In the 2014/15 financial year:

sAqA/Rhodes university partnership

Research into learning pathways was completed

sAqA/university of the Western Cape (uWC) partnership

Data-gathering for research towards supporting working learners in Higher Education was concluded

sAqA/university of KwaZulu-natal (uKZn) partnership

A book on research into TVET College lecturers was produced

nqF impact study The 2014 NQF Impact Study was completed

1. The sAqA/Rhodes university research into learning pathways

This research focused on learning and other articulation pathways involving occupations in the area of sustainable development. The study revealed an absence of learning pathways at the elementary occupational levels; inadequate systemic level interventions at the intermediate levels, and a proliferation of specialisation options at high skills levels which are currently not integrated into the systems that enable learning pathways for sustainable development.

Importantly, learning pathways can be understood in at least three ways.

Learning pathways can consist of ‘linked’

qualifications and learning opportunities

1They can be seen as either

‘systemic articulation’ or a ‘joined up’ system. Elements aligned to and

supportive of learning pathways such as RPL and

CAT are included here.

2Learning pathways

can be individualised for the learner as s/he

“transitions” from training to work, or vice versa, from school to Higher Education Institutions,

and so on

3

The research findings showed that learning pathways need to consider both micro-level career story studies, and macro-level policy studies. These findings are relevant to other emerging areas seeking accommodation in the NQF. A comprehensive set of seven reports detailing the findings of this study, has been produced.

2. The sAqA / university of the Western Cape research into lifelong learning

Networks of education and training institutions are key for enabling lifelong learning. The SAQA/university of the Western Cape (uWC) research addressed the question: “How can the university respond meaningfully to the real circumstances of students to enhance prospects for their success and professional development?” The study was about understanding the working lives of students, engaging with their workplaces, and influencing the teaching, learning and administrative environment of the university.

The key contradiction, to which the research responded, is that access is being limited, through the partial closure of after-hours or evening classes, at a time and in a place where access for working and first generation students is a core


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part of the university’s historic mission. The research developed an argument and approach for the university to move beyond the traditional binaries of part- and full-time provision, and day and night-time classes, to flexible learning and teaching provision for the diversity of students across the different ages and stages of life. The project used uWC as a case study to track, and included the actual institutional transformation that is necessary to enhance lifelong learning. A booklet highlighting the main findings of the study will be published in due course.

3. sAqA/university of KwaZulu-natal research into FeT College lecturers

The SAQA/university of KwaZulu-Natal (uKZN) partnership research project (2008-2011) sought to understand the impact of the post-1994 vocational education and training system, and vocational qualifications on lecturers in public TVET colleges. The study also examined the ways in which these lecturers’ lives were shaped by, and served to shape, the new system. This project was located in a context in which there had been little training or support for college lecturers, and even less known about this group of educators. The key research findings which show that national data on the system is limited and that there is little detailed research into the lives, careers and experience of college lecturers are still relevant. SAQA and the uKZN partners developed a book on these research findings in the 2014/15 reporting year.

4. Assessing the impact of the nqF

SAQA is mandated to assess the impact of the NQF at periodic intervals. The central question addressed in the 2014 Impact Study was: What impact has the NQF had? Included in the research were sub-questions relating to specific NQF objectives. In instances where it was possible to analyse direct impact, documentary analysis and first-level analyses were conducted using readily-available data. Given that the NQF is a complex construct, it was not always

possible to draw direct lines of cause and effect.

The findings of the study track shifts in understandings of, and developments relating to, systemic integration and articulation, redress, learner access, success and progression, quality and transparency, communities of practice in education and training, and the tools used in the system, over time. The first-level analyses show trends per sub-sector while the meta-analysis makes clear that the NQF has had a profound impact on the education and training system as a whole.

Importantly, the NQF Impact Study report integrates information that is usually held in disparate places. This comprehensive study is the result of collaborative work between SAQA and the QCs, with inputs from the two departments of education. based on its findings, the study report makes specific recommendations in relation to further enhancing understandings and developments relating to specific NQF objectives, and specific trends. Future developments and trends can be juxtaposed against those shown in the report.


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SAQA:

�� Initiated an extensive leadership and staff development programme that was customised to deliver on SAQA’s requirements. based on the Workplace Skills Plan (WSP) and Personal Development Plans (PDP), we developed learning and development plans for each directorate;

�� Ensured that staff members received feedback on their performance;�� Designed new staff induction and development programmes;�� Worked with the FPI to address staff on Women and Financial Freedom

as part of SAQA’s birthday and Women’s Month celebrations in August 2014; and

our goal: To enhance capacity, and encourage and value the contributions of staff towards organisational effectiveness and excellence in service delivery

AChieVeMenTsWe:

�� Embarked on an 18-month leadership and staff development programme that included every employee in SAQA;

�� Engaged with staff through dedicated events to ensure their understanding of our mandate and strategy;

�� Worked with the Financial Planning Institute (FPI) to educate staff on financial planning;

�� Provided a monthly wellness clinic that offered a wide range of health services to staff;

�� Ensured that staff members signed performance contracts and received feedback on their performance; and

�� began investigations into developing an appropriate model for staff recognition and reward.

Achievement of our objectives under the goal to value our people

Objective: Prioritise the professional development of staff and refine the performance recognition and reward systems

graduates celebrate with their lecturers at the lll graduation ceremony

VALuING OuR PEOPLE


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objective: ensure that the organisational design is aligned to the mandate

SAQA:

�� Allocated key tasks according to the organisation’s mandate;�� Separated the Verifications function from the NLRD Directorate and

appointed a dedicated Project Manager to lead the Verifications team; and

�� Obtained approval from the board to set up the NQF Advisory Service to respond to NQF related queries from the public.

WoRK in PRogRess

We:

�� Need to think more creatively about how to recognise staff contributions; and

�� Should put in place succession plans linked to staff learning and development plans.

�� Commenced with a review of the staff performance recognition and reward system. We developed a draft terms of reference for a service provider to investigate and recommend an appropriate model for the recognition and reward of staff.

objective: ensure that sAqA’s mandate is understood internally and aligned to the organisation’s strategy

We

�� Launched the Annual Performance Plan (APP) for 2014/15 to staff which provided the CEO with an opportunity to interact with staff. He reflected on SAQA’s achievements for 2013/14, and highlighted the strategic imperatives for 2014/15;

�� Reviewed our mid-term progress in implementing the APP. The CEO also took the opportunity to acknowledge staff who had reached different long- term service milestones with SAQA;

�� Convened Wednesday-morning sessions for strategic discussions and engagements among senior managers. Weekly Friday morning meetings focused on operational issues across directorates. In addition, the management team met quarterly to review progress against the APP and their operational plans. Special Monday morning sessions with the Executive Management team took place prior to every board, EXCO and Audit and Risk Committee meetings;

�� Conducted a series of strategic conversations with staff. The outcomes from these conversations were incorporated into management’s inputs towards the board’s Strategy Workshop; and

�� Developed inputs and draft strategic imperatives to drive SAQA’s future strategies, plans and performance, for consideration by the board at its Strategy Workshop.

12 staff members passed their formal further studies

examinations

48 staff members granted study leave

R 1 162 309 spent on staff development

17 staff members received education assistance

R


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by the target audiences (policy makers, policy implementers and policy beneficiaries) to develop action plans for the new financial year. The focus will be on: �- Improving the three target audiences’ awareness, understanding

and value of SAQA and the NQF; �- Increasing the number of people using our online media platforms;

and�- Establishing an NQF Advisory Service to further the implementation

of the NQF;�� Commissioned a study to analyse SAQA’s frontline processes to

enhance our customer focus. The manner in which we engage with our stakeholders was informed by the recommendations emerging from the research.

objective: educate and advocate so that policy makers, policy implementers and policy beneficiaries recognise and value the role of sAqA and the nqF in the establishment of recognised learning and career path systems

SAQA used various platforms to reach stakeholders. We:

�� Participated in numerous exhibitions and events during the year;�� Produced a number of thematic publications for specific target audiences�� Managed the weekly Khetha radio programmes, and were interviewed on

various radio stations on a variety of topics; �� Communicated with the media and general public through targeted media

releases on our website; �� Implemented a radio campaign for the youth that involved eleven

community radio stations. In addition, we secured 273 spots on Cape

our goal: Publicly position sAqA as a value adding organisation through the further development of the nqF as a roadmap for learning and progression and as a transformative mechanism for society

AChieVeMenTsWe:

�� Developed and implemented a focused social media strategy to drive awareness and understanding of the SAQA value proposition primarily with policy makers and policy implementers. SAQA’s website, LinkedIn, Facebook, Google+ and the SAQALive Twitter profiles all formed part of this strategy;

�� used the recommendations from the market research studies to develop action plans to promote SAQA and its products and services; and

�� Communicated key messages to stakeholders through exhibitions and events, radio programmes, publications and advertisements.

Achievement of our objectives under the goal of public positioning

objective: Review and advance the integrated Communication strategy (iCs) of key messages relating to sAqA and the nqF

SAQA:

�� used the recommendations from the market research studies on the level of awareness, understanding and value of SAQA and its brands

PubLIC POSITIONING


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Talk and 702 to promote the NQF, artisanship and Apply Now! Campaign. ; and

�� Developed and implemented a focused social media strategy to drive awareness of SAQA’s value proposition primarily with policy makers and policy implementers. SAQA’s website, LinkedIn, Facebook, Google+ and the SAQALive Twitter profiles formed part of this strategy.

SAQA:

�� Launched the new integrated SAQA portal (website) on 1 April 2014. The website and mobi-site were updated to display information on post- school options, as well as learning and work opportunities;

�� Regularly updated the SAQALive Twitter feed. This platform is gaining traction as more clients use it to raise service-related issues; and

�� Steadily increased the social media traffic.

Speakers at the seminar on the verification of foreign qualifications: Mr J samuels (Ceo, sAqA), Mr g Jeppe (director international Relations, dheT), Ms n gumbe (director, Advocacy, Communication and support, sAqA) and Adv. Ks Malunga (sAqA board member and deputy Public Protector)

WoRK in PRogRess

We:

�� Need to work more closely with the QCs and other partners to further improve their awareness, understanding and value of the NQF; and

�� Must improve our engagement with clients who make use of our services.

91.5% 92.0% 92.5% 93.0% 93.5

Policy Implementers

Policy Makers

93.0%

overall Annual Percentage Awareness, understanding and Value of the nqF and sAqA

92.0%

The Khetha radio

programmes reached

2.2 million

listeners per week

Produced

17

publications and brochures


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3.2. oRgAnisATionAl enViRonMenT

In the previous Annual Report, SAQA raised concerns over its financial ability to maintain the standard of service delivery expected by clients.

In addition to our on-going efforts to contain costs, the SAQA board approved a new cost recovery fee structure for some of the services rendered. This affects clients making use of our verification and evaluation services.

As a result of the abovementioned efforts, we were still able to render our functions optimally during the current financial year.

We continue to seek funding for our priority projects such as the digitisation of learner records, particularly those related to the pre-1992 school-leaving certificates and teacher qualifications, and to establish a counter fraud unit.

3.3. KeY PoliCY deVeloPMenTs And legislATiVe ChAnges

No revisions or alterations of SAQA’s mandate took place in the 2014/15 reporting period.

The Minister launched the WP PSET towards the end of the previous financial year. The WP PSET has multiple implications for the NQF, SAQA, the QCs and the entire education and training sector. The CEO Committee dedicated substantial time to discussing the implications and implementation of relevant sections of the WP PSET, especially the areas that pose a challenge.


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3. NATIONAL LEARNERS’ RECORDS DATAbASE is responsible for maintaining and further developing the NLRD’s functionality which serves as the key national source of information for human resource and skills development in terms of policy, infrastructure and planning;

4. FOREIGN QuALIFICATIONS, EVALuATION AND ADVISORY SERVICES is responsible for evaluating foreign qualifications against set criteria including verifying the authenticity of qualifications and comparing foreign qualifications with similar qualifications on the South African NQF;

5. CAREER ADVICE SERVICES was, until its handover to DHET on 1 October 2014, responsible for providing a comprehensive national multi-channel career advice service;

6. RESEARCH is responsible for conducting evidence-based research to evaluate the impact of the NQF and inform the development and further implementation of the NQF; and

7. INTERNATIONAL LIAISON is responsible for liaising with international partners on matters concerning qualifications frameworks and sharing best practice within the NQF family.

SAQA has seven programmes. The programmes are:

1. ADMINISTRATION, which includes the following functions: 1.1. Executive Office, responsible for the overall coordination and

organisational performance in response to SAQA’s mandate;1.2. Finance and Administration, responsible for effective financial

and infrastructural governance and resources to support SAQA’s objectives;

1.3. Human Resources, responsible for providing strategic and operational support to embrace diversity, environmental sustainability, and social justice and contribute towards the delivery of SAQA’s mandate;

1.4. Information Technology, responsible for effective ICT governance and IT infrastructural resources to support the achievement of organisational objectives and business processes; and

1.5. Advocacy, Communication and Support, responsible for informing stakeholders and the public about the NQF, SAQA and related matters;

2. REGISTRATION AND RECOGNITION is responsible for:

�� Registering nationally relevant and internationally comparable qualifications and part-qualifications that meet national criteria and articulate across sub-frameworks; and

�� Recognising professional bodies and registering professional designations on the NQF.

4. PERFORMANCE INFORMATION bY PROGRAMME


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This Report is based on the Revised Annual Performance Plan for 2014/15 that was submitted to the Executive Authority on 10 October 2014 and approved on 4 December 2014.

no sTRATegiC TARgeT PeRFoRMAnCe indiCAToRs AnnuAl TARgeTs ACTuAl PeRFoRMAnCe

1 AdMinisTRATion1.1 ExecutiveOffice

Strategic Objective: Provide bold and competent leadership in the implementation of the NQF Act to the advantage of lifelong learners1 Implement all the

requirements of the NQF ActNQF Implementation Framework for 2015–2020 (as monitoring tool) approved and implemented

Develop a new Implementation Framework for 2015–2020 (as monitoring tool)

Achieved�� Developed the draft Framework for 2015–2020 for

discussion at the February 2015 CEO Committee meeting

�� The draft framework served at the SAQA board meeting in March 2015

�� QCs are currently providing input into the documentReport on all Ministerial Guidelines to address priorities of the NQF

Report on the Ministerial Guidelines 2014-15

Achieved�� Completed the Report on progress against the

Ministerial Guidelines for 2014/152 Monitor and report on

implementation of the NQF Act through appropriate mechanisms

Number of NQF policies or guidelines implemented or reviewed and simplified and implemented

Report on monitoring and co-ordination of the implementation of the Sub-frameworks by the Quality Councils

Achieved�� SAQA developed and updated the Tracking Grid which

serves as a progress report for the CEO Committee

Report on oversight and monitoring of the implementation of SAQA NQF policies

Achieved�� Developed and updated the Report in this respect

3 Provide leadership in the regulatory and policy debates, and influence and contribute to the formulation of government policy

Input provided to legislation and policies as required

Report on advice provided to the Minister on all requested matters or as deemed necessary

Achieved �� Produced a consolidated report on the separate sets of

advice provided to the Minister �� The report included:

�- briefing Note on the priorities of the NQF and SAQA’s role

�- Comments on the Ministerial Priorities and Guidelines, both for 2014/15 and for 2015/16

�- Development of a Fraud Register and the implications of making this public


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4 Collaborate towards an articulated NQF

Implement action plan on Articulation

Implement SAQA’s contribution to the Articulation Plan and develop a final report on implementation of the Articulation Plan

Achieved�� Produced a progress report on SAQA’s contribution to

the Articulation Action Plan

5 Effective collaboration between SAQA and the QCs

Implement the System of Collaboration to guide mutual relations between SAQA and the QCs

Implement the System of Collaboration to guide mutual relations between SAQA and the QCs and engage with the QCs as required

Achieved�� Facilitated the implementation of the System of

Collaboration. This is managed through the CEO Committee

�� Collaboration is monitored through reporting recorded on the CEO Committee Tracking Grid

Annual report on effective collaboration approved

Annual report on effective collaboration approved

Achieved �� Produced the Annual Report on effective collaboration�� The Chairperson of the CEO Committee approved the

report1.2 Finance and Administration

MaintainaneffectiveandefficientFinancialManagementsystem6 Support strategic decision

making through financial scenario planning, budgeting and maintaining effective and efficient financial management

A clean audit report Receive a clean audit report Achieved�� Received a clean and unqualified audit report for

2013/14 from the Auditor-General

7 Ensure effective governance, and compliance with sustainability and statutory requirements and codes as applicable to SAQA

Percentage of compliance with National Treasury requirements

Achieve 100% compliance with National Treasury requirements

Achieved�� Aligned SAQA’s Financial policies and procedures to the

PFMA and National Treasury Regulations�� Reviewed the relevant Finance Policies to align them

with the National Treasury Instruction Note. The board approved the reviewed policies

Produce and submit timeously 12 monthly management accounts and 4 quarterly reports

Achieved�� Produced 12 monthly management accounts and

4 quarterly reports in line with National Treasury requirements


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Receive an unqualified and clean audit report

�� Received a clean and unqualified audit in the 2013/14 financial year

100% compliant to the PFMAReceive an unqualified audit report

1.3 Human Resources

Provide strategic and operational human resource support to SAQA8 Prioritise the professional

development of staff and refine the recognition and reward system

Percentage of compliance with all human resource legislation and regulations

100 % compliance Achieved �� SAQA’s Human Resources Policies fully complied with

all human resource legislation and regulations�� Reviewed all relevant HR policies and amended where

necessary, to be in line with the latest legislation�� Submitted the Workplace Skills Plan and Annual

Training Report on 27 May 2014, after an extension of 1 month was granted

�� Submitted the Employment Equity Report online to the Department of Labour on 15 January 2015

Percentage of staff performance contracts developed and approved.

100% of staff performance contracts approved

Achieved�� Developed and approved performance contracts for all

staffPercentage of staff assessed against performance contracts

100% of staff assessed Achieved�� Completed all staff assessments

Number of organisation-wide and directorate Learning and Development Plans developed and approved

Implement 95% of planned learning and development activities.

Achieved�� Fully implemented learning and development activities

across SAQAReport on implementation of Learning and Development Plans

Achieved �� Received and collated the Learning and Development

Plans for all Directorates into the Organisational Learning and Development Plan

�� Produced a report on the implementation of the Learning and Development Plans


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Refined recognition and reward system approved and implemented

Implement approved remuneration system for all staff and recognise and reward 100% of staff who qualify

Achieved�� REMCO approved the Interim Remuneration System

and it was implemented�� Developed a draft terms of reference on Recognition

and Rewards�� SAQA’s Remuneration and Human Resources

Committee approved the appointment of a service provider to investigate and recommend an appropriate Recognition and Rewards model

1.4 Information Technology

StrategicObjective:DevelopaneffectiveandefficientITSystemthatsupportsSAQA9 An effective and efficient IT

system that supports the business of SAQA

A coordinated and integrated knowledge and information system in place

Get Approval for ICT Procurement Strategy, ICT Migration Policy, ICT Enterprise Architecture

Achieved�� Approved the IT Enterprise Architecture document that

includes the ICT Procurement Strategy, Migration Plan/Policy

�� Approved the Knowledge Management Strategic Framework

uptime exceeds 95% uptime exceeds 95% Achieved�� uptime was 95%

Percentage compliance with all IT governance legislation and regulations and codes of best practice

100% compliance with all IT governance legislation and regulations and codes of best practice

Achieved�� Fully complied with all IT governance, legislation,

regulations and codes of best practice�� Compiled user Access Management Procedures and

revised and implemented the Patch Management process

�� updated the IT Policy Catalogue 1.5 Advocacy, Communication and Support

Strategic Objective: Inform the public about SAQA, the NQF and related matters10 An accessible NQF for policy

makers, implementers and beneficiaries

An NQF advisory service to further the implementation of the NQF is in place

Concept document approved Achieved�� The board approved the concept document in March

2015�� Implementation of the NQF Advisory Service to

commence on 1 April 2015


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Number of people using social media platforms

5% increase over previous year’s use: 250 00 people using SAQA/NQF social media platforms

Achieved �� SAQA’s social media platforms showed the following

activity:�- SAQA website, Facebook, Twitter, Google+, LinkedIn

had 168 344 users/followers/likes and 757 387 impressions

Percentage of the three target audiences’ awareness, understanding and valuing of the NQF

5 % increase over baseline Achieved�� The overall increase in Awareness, understanding and

Valuing was measured as follows:�- Policy Makers (18%) �- Policy Implementers (23%)

2 RegisTRATion And ReCogniTion

Strategic Objective: Provide bold and competent leadership in the implementation of the NQF Act to the advantage of lifelong learners11 Implement all the

requirements of the NQF ActPercentage of qualifications and part-qualifications recommended by the QCs registered using the Policy and Criteria for the registration of qualifications and part qualifications on the NQF

Process 100% of qualifications and part-qualifications recommended by the Quality Councils for registration on the NQF

Achieved �� Processed 100% of the qualifications and part-

qualifications recommended by the Quality Councils for registration on the NQF

�� Registered 195 Higher Education qualifications and 27 Occupational qualifications

�� In total 222 qualifications met the requirements for registration

Percentage of professional bodies and professional designations processed using the relevant professional body’s Policy

100% of professional bodies that applied and meet the criteria recognised and their respective designations registered

Achieved�� Processed 100% of the applications received for

professional bodies’ recognition and the registration of professional designations

�� Recognised 8 professional bodies and registered 19 designations


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Percentage of professional bodies monitored

30% of recognised professional bodies monitored

Achieved and exceeded�� Monitored 50.1% of the recognised professional bodies.

This equates to 37 of the 73 recognised professional bodies.

�� This target was exceeded because the Directorate wanted to include all professional bodies that were recognised in 2012/13 in the monitoring project and managed to monitor 93% of the professional bodies targeted.

3 nATionAl leARneRs’ ReCoRds dATAbAse

Strategic Objective: Maintain and further develop the National Learner Records Database12 Support and direct the

national and international mobility of lifelong learners, including workers by facilitating the recognition of their learning

Percentage of successfully submitted data from QCs that has been successfully loaded

100% of all data received from QCs that meet the criteria are successfully loaded twice per year

Achieved�� Successfully loaded 100% of all data received in July

and August 2014 from QCs. �� Successfully loaded 100% of all data received in

January and February 2015 from QCs

Percentage of successfully submitted data from professional bodies that has been successfully loaded

100% of all data received from professional bodies that meet the criteria are successfully loaded twice per year

Achieved�� Successfully loaded 100% of all data received in April

and May 2014 from professional bodies�� Successfully loaded 100% of all data received in

October and November 2014 from professional bodies

Number of Comprehensive Reports on all information in the NLRD

Annual Comprehensive Report produced

Achieved�� Produced the NLRD Annual Comprehensive Report for

2014/15

Provide a qualifications-verification service that processes a percentage of applications received

1100% of applications processed

�� Captured and processed 4 717 batches of records and issued 10 563 transcripts

�� Produced progress reports for each quarter

1 “100% of applications processed” means that all applications received electronically are checked against set information requirements and those found to be non-compliant are returned to the sender. Compliant submissions proceed to the verification stage. This target measures timeliness of first response against set quality criteria.


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4 FoReign quAliFiCATions eVAluATion And AdVisoRY seRViCes

StrategicObjective:ProvideaforeignQualificationsEvaluationandAdvisoryService13 Implement all the

requirements of the NQF ActAn approved Policy Framework for the recognition of foreign qualifications in line with the NQF Act implemented

Policy Framework completed and approved by the board

Achieved�� The board approved the Draft Policy for the Evaluation

of Foreign Qualifications for public comment�� Published the Draft Policy in the Government Gazette

on 27 March 201514 Support and direct the

national and international mobility of lifelong learners, including workers by facilitating the recognition of their learning

Percentage of applications for evaluation of foreign qualifications is processed

2100% of applications processed

Achieved100% of applications were processed In total SAQA:�� Received and registered 35 729 applications�� Declined 3 791 applications�� Compared and recognised 32 381 qualifications

15 Ensure the credibility, integrity and reliability of information regarding learner achievements by verifying and evaluating the authenticity of documentation and information

Report on fraudulent qualifications in the evaluation of foreign qualifications including the number of initiatives undertaken to counteract document fraud

Report produced, including one initiative to counter fraud

Achieved�� Produced a report on qualifications found to be

misrepresented in the evaluation of foreign qualifications and included a number of initiatives undertaken to counteract document fraud

�� During the current year, SAQA recorded 454 cases of misrepresented qualifications

�� The initiative to counteract document fraud included: �- The start of establishing a document bank�- Piloting of the online verification of Certificates of

Evaluation initiative

5 CAReeR AdViCe seRViCes

Strategic Objective: Provide bold and competent leadership in the implementation of the NQF Act to the advantage of lifelong learners16 Provide leadership in

the regulatory and policy debates, and influence and contribute to the formulation of government policy

Provide a Career Development Service (CDS) as mandated by the Minister of Higher Education and Training

Carry out the activities of the task team as mandated by the Minister of Higher Education and Training

Achieved and handed over to DHET: �� Carried out the activities of the task team as mandated

by the Minister of Higher Education and Training until the CDS project was handed over to DHET on 1 October 2015

�� Produced a handover report

2 “100% of applications processed” means that all applications received are screened against set criteria and returned if found to be non-compliant. Applications meeting the criteria proceed to the verification stage. This target measures timeliness of first response against set quality criteria.


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17 Further develop the sustainable, credible and quality national career advice service

Percentage of cases provided with information and advice on the NQF and careers by phone, e-mail, SMS, and face-to-face

Resolve 100% of helpline cases opened

Achieved�� SAQA resolved a total of 32 090 enquiries for the 2

quarters in 2014

6 ReseARCh

Provide bold and competent leadership in the implementation of the NQF Act to the advantage of lifelong learners18 Ensure research credibility

to direct and steer policy as well as legislative debates

Facilitate, maintain, finalise and report on the research

Finalise the two existing research partnership projects according to their respective schedules

Achieved �� Produced final reports on the research partnerships with

uWC and Rhodes university

NQF Impact Study completed

Finalise SAQA / QC NQF Impact Study report for printing

Achieved �� The NQF Impact Study 2014 report was finalised and

approved by the SAQA board in March 2015

Research report on ombuds function

Research commences on SAQA’s ombuds function

Achieved �� Prepared a draft concept document on SAQA’s role in

the ombuds function for further discussion

7 inTeRnATionAl liAison

StrategicObjective:Enhanceinternationalcollaborationandbenchmarking19 Report on international

regulatory and policy debates

Two documents produced informing NQF partners and other stakeholders about international best practice

NQF glossary of terms produced

Achieved�� Published the Glossary of Terms (NQFpedia) online and

in hard copyResearch Report on World Reference Levels produced

Achieved�� Completed the uNESCO Research Report on World

Reference Levels Number of SAQA bulletins produced which include at least 2 articles on international trends

At least 1 SAQA bulletin produced

Achieved �� Produced and published 2 research bulletins dealing

with the Recognition of Prior Learning (RPL) and Credit Accumulation and Transfer (CAT) (both bulletins include articles on international trends)


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20 Ensure research credibility to direct and steer policy as well as legislative debates

Number of benchmarking reports produced or benchmarking workshops held

benchmarking report with Malaysia produced

Achieved �� Completed the benchmarking exercise with Malaysia

and produced a report on the findings

Number of international forums attended in order to share best practice

Two Forums attended Achieved and exceeded

We participated in:�� The Ethiopia International NQF Conference in June

2014�� The Experts Meeting on Recognition of Studies in

Higher Education held in July 2014�� uNESCO World Reference Levels of Learning

Outcomes meeting in September 2014�� The uNEVOC global TVET forum on 13 and 14 October

2014�� The Conference of States for the re-launch of the

Revised Arusha Convention on 11 and 12 December 2014 as part of the official South African delegation

�� This target was exceeded because of SAQA’s commitment to ensuring that international best practice is inculcated into its DNA

Number of trends analyses conducted on international developments

Report on Professional Teacher Standards for the Commonwealth published

Achieved�� Published the Report on Professional Teacher

Standards for the Commonwealth

Number of workshops or seminars are hosted to inform stakeholders about relevant international development

Workshop on the use of level descriptors

Achieved�� Hosted a Workshop on the use of level descriptors in

February 2015


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21 Number of approved guidelines or policies developed or reviewed

Develop guidelines of good practice for learning that does not lead to a qualification or part-qualification registered on the NQF

Achieved and exceeded

Developed / reviewed the following guidelines / policies:

• Guidelines for good practice on learning that does not lead to a qualification was approved by the SAQA board and published in the Government Gazette for public comment at the end of this financial period

• The Credit Accumulation and Transfer (CAT) Policy and National Policy and

Criteria for Designing and Implementing Assessment for NQF Qualifications and Part-Qualifications and Professional Designations in SA were approved and published in the government gazette in December 2014

Number of learners on the Lifelong Learning and the NQF course that are SAQA staff members

3rd Intake of at least 5 SAQA staff members registered

Not achieved�� The 3rd Intake had 4 SAQA staff members registered as

learners�- This target was not achieved owing to SAQA’s

operational workload, which did not allow for a 5th staff member to be away from work for any length of time

�- 3 Staff members graduated�- The 4th member did not finish the course as she

resigned from SAQA.


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Executive Office

human Resources

Finance and Administration

information Technology


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Research

Advocacy, Communication and support

Registration and Recognition


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Verifications

national learners’ Records database international liaison


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Foreign Qualifications Evaluations and Advisory Services


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5.1. Revenue Collection

2014/2015 2013/2014

sources of revenue estimate Actual

Amount Collected

(over)/under Collection estimate

Actual Amount

Collected

(over)/under Collection

R’000 R’000 R’000 R’000 R’000 R’000

Government Grant 55 008 55 008 - 49 401 49 401 -

Evaluation Fees - DFQEAS 22 500 22 356 144 17 000 22 663 (5 663)

Verifications Fee income 5 000 4 064 936 7 000 3 267 3 733

Career Advice Services project - NSF funding 24 227 25 510 (1 283) 49 762 43 122 6 640

Interest Received 1 500 2 161 (661) 1 250 1 543 (293)

Rental Income 1 800 1 177 623 1 800 1 392 408

Sundry Income 7 420 4 984 2 436 3 436 2 232 1 204

Total 117 455 115 260 2 195 129 649 123 620 6 029

5. SuMMARY OF FINANCIAL INFORMATION


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5.2. Programme expenditure

2014/2015 2013/2014

Programme and sub-Programme name budget Actual expenditure

(over)/under expenditure budget Actual

expenditure(over)/under expenditure

R’000 R’000 R’000 R’000 R’000 R’000

1. Administration & Support

1.1 Executive Office 8 811 7 588 1 223 8 761 7 285 1 476

1.2 Finance & Administration 17 514 14 365 3 149 12 874 12 158 716

1.3 Human Resources 6 187 6 586 (399) 4 348 3 184 1 164

1.4 Information Technology 10 125 8 839 1 286 9 564 8 081 1 483

1.5 Advocacy & Communication Support 10 643 11 767 (1 124) 9 814 8 009 1 805

2. Directorate Recognition and Registration 9 930 6 989 2 941 9 101 7 649 1 452

3. National Learners’ Records Databse including Verifications Project

11 203 10 013 1 190 11 878 8 219 3 659

4. Directorate Foreign Qualifications Evaluation and Advisory Services (DFQEAS)

22 048 19 895 2 153 18 610 18 374 236

5. Career Advice Services 22 267 23 844 (1 577) 48 128 41 508 6 620

6. Research 4 807 3 910 897 5 757 5 150 607

7. International Liaison 2 520 1 197 1 323 2 114 1 886 228

Total 126 055 114 993 11 062 140 949 121 503 19 446


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5.3. Capital expenditure

2014/2015 2013/2014

Capital expenditure budget Actualexpenditure

(over)/under expenditure budget Actual

expenditure(over)/under expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Land and buildings 3 196 1 107 2 089 420 99 321

IT Equipment 1 830 1 991 (161) 1 600 1 443 157

Motor Vehicles 170 158 12 170 - 170

Furniture and Fixtures 780 736 44 626 481 145

Intangible Assets - 132 (132) - 4 164 (4 164)

Total 5 976 4 124 1 852 2 816 6 187 (3 371)


governance

PART

C


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Committees (the Rules of Procedure, Terms of Reference and other relevant governance matters), to ensure that they remain relevant and comply with legislative and governance requirements.

In addition, we continue to conduct a self-appraisal of the performance and effectiveness of the board and board Committees. We also considered the effectiveness of the improvement measures implemented after the previous assessment.

While the management structure of SAQA is somewhat different from that of a private organisation, the SAQA board is committed to the principles of openness, integrity, efficiency, accountability and compliance as reflected in the King Code of Governance Principles 2009 (King III). We therefore continuously work towards improving our already sound governance processes.

In keeping with the provisions of King III, SAQA conducted its annual review of the Governance Manual, which deals with the activities of the board and board

1. INTRODuCTION

2. PORTFOLIO COMMITTEESAQA reported to the Portfolio Committee on Higher Education and Training twice in the last financial year.

We met with the Portfolio Committee on 17 October 2014 and presented our Annual Integrated Report for 2013/14. Apart from reporting on our performance, we also reported on governance matters such as risk management, our environmental sustainability development initiatives, and communication with our stakeholders. We were pleased to report that we received an unqualified and clean audit report for 2013/14.

The second meeting with the Portfolio Committee took place on 25 March 2015, when we presented our Strategic Plan for 2015 to 2020 and the Annual Performance Plan for 2015/16. We highlighted our main strategic priorities for the next five-years. They are:

�� Decisive and coherent leadership;�� Staff development;

�� Public positioning; and �� Implementation of NQF policies.

The focus areas will be:

�� RPL; �� Articulation;�� Simplification of the NQF; and �� NQF Advisory Service.

Furthermore, in line with a directive received from the Minister: HET, we will establish a List of Misinformation about Qualifications. We noted the Committee’s request for SAQA to strengthen its focus in this respect, particularly in light of public interest in exposing fraudulent qualifications. We discussed budgetary constraints and noted concerns raised regarding the high personnel costs, and their implications for achieving our objectives. As suggested by the Committee, our relationship with DHET is very important to secure partnerships that may assist, both in alleviating the expected budgetary shortfall and achieving successful outcomes in quality assurance projects.


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submitted to the Minister: HET and DHET on 10 October 2014, and approved on 4 December 2014.

The Minister requested SAQA to investigate the possibility of establishing a fraud register. SAQA sought legal advice and advised the Minister of its findings.

SAQA also submitted quarterly reports, dealing with our compliance with the PFMA, and financial and non-financial performance. As required, these reports were submitted in July and October 2014 and January and April 2015.

We also submitted financial and performance reports to DHET for the CDS project, and after the project was handed over to the DHET in October 2014, we produced and submitted a comprehensive handover report.

The national elections took place on 7 May 2014. In anticipation of a change in administration in the Ministry of Higher Education, the SAQA board prepared and submitted a briefing document on the NQF, SAQA and its functions, as well as the priorities for the NQF going forward and SAQA’s role and progress in implementing them. We also submitted a report on progress with implementing the Ministerial Priorities and Guidelines 2012/13, which carried through to 2013/14.

Prior to issuing the Ministerial Guidelines to address priorities for the National Qualifications Framework for 2014/15, the Minister gave SAQA and the QCs the opportunity to comment on a draft version of the document. SAQA submitted comment and subsequently received the final document. We incorporated the priorities into a reworked version of SAQA’s APP for 2014/15, which was

3. EXECuTIVE AuTHORITY

4. THE SAQA bOARD

4.1. inTRoduCTion

In accordance with Section 14 (3)(a) of the NQF Act, the Minister: HET, following a public nomination process, appointed the fifth SAQA board with effect from 1 January 2011. With the exception of the CEO, all board members are independent non-executives.

4.2. FunCTions oF The sAqA boARd

The functions of the board are set out in sections 5(3), 11 and 13 of the NQF

Act. In summary, the SAQA board:

�� Must advise the Minister: HET and decision makers on NQF matters, oversee the implementation of the NQF and liaise and consult with the QCs on matters relating to implementation of the NQF;

�� Is mandated to develop policies and criteria for the development and registration of qualifications, assessment, RPL and CAT, recognising a professional body and registering a professional designation and the development and maintenance of the content of level descriptors;

�� Is required to ensure that South African qualifications are of an acceptable quality and are internationally comparable;


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Management implements the decisions made by the SAQA board and maintains systems of internal control as well as accounting and information systems. The board monitors the performance of management.

4.3. ACTiViTies oF The sAqA boARd And iTs CoMMiTTees

During the year under review, the SAQA board met four times to conduct its work, and also held a strategy workshop to plan for 2016/17.

In addition to the members, the Deputy CEO attended all board meetings while Directors attended meetings as required.

Section 16(1) of the NQF Act allows the board to establish committees to assist in the execution of its fiduciary responsibilities. The table below reflects the structure of committees utilised by the SAQA board:

CoMMiTTee ChAiRPeRson

Executive (EXCO) Mr M J N Njeke

Qualifications and Standards (Q & S) Ms S Müller

Audit and Risk Mr M brown

Finance Mr M J N Njeke

Information and Information Technology (I & IT) Mr D Adler

Remuneration and Human Resources Mr M J N Njeke

Research Prof T G Schultz3Career Advice Services (CAS) Mr O Sipuka

Foreign Qualifications Adv K S Malunga

Advocacy and Communication Mr J S Samuels

�� Is also required to maintain a NLRD and to provide an evaluation and advisory service with respect to foreign qualifications; and

�� Is further responsible for conducting or commissioning research into NQF-related matters, to collaborate with international counterparts and to initiate and drive a clear, co-ordinated communication and advocacy strategy to assist providers, learners and the public at large to understand the new NQF architecture and the implications of the changes for them.

SAQA is a National Public Entity that is listed under Schedule 3(A) of the PFMA. In addition to the responsibilities set out in the NQF Act, the board also fulfils the role of the Accounting Authority in terms of Section 49 of the PFMA.

As the Accounting Authority, the board acts in a fiduciary capacity and must ensure that:

�� Effective, efficient and transparent systems of financial and risk management, internal control, internal audit and procurement are in place;

�� Effective and appropriate steps are taken to collect revenue due and to prevent irregular, fruitless and wasteful expenditure and losses from criminal conduct and expenditure as a result of non-compliance with operational policies;

�� Effective and efficient management is in place, which includes ensuring the safeguarding of the assets of SAQA and controlling its liabilities, revenues and expenditures;

�� Applicable legislation and regulations are complied with;�� An effective and appropriate disciplinary system is in place to deal with

failures to comply with the PFMA and the internal control system;�� budgets, major contracts and other commitments are approved;�� The finances are properly controlled; and�� SAQA operates as an ethical organisation.

The SAQA board sets strategy and policy. Management formulates strategy and makes policy proposals for the SAQA board to consider and approve.


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Attendance by board members at SAQA board and board Committee meetings were as follows:

Title

surn

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Qua

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tions

an

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i & iT

Car

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omm

unic

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Fore

ign

Qua

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Res

earc

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Rem

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nd h

uman

R

esou

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isk

eXC

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Mr Adler D - 4/4 - 11/4 4/4 - 4/4 5/5 4/4 4/4 4/4Dr barnes CF - - - - 2/4 - - - - - 2/4Ms Duba CT - 2/4 - - - - - - - - 2/4Mr Essop A - - - - - - - - - - 22/3Ms Maboye M - - 2/4 - - - - - - - 3/4Adv Malunga KS - - - - 1/4 - 2/4 - 3/4 1/4 3/4Ms Mashabela GJ - - - - - - - - - - 4/4Mr Mokonane A 5/6 - 2/4 - - - - - - - 3/4Ms Moodley ND - - - 3/4 - - - - - - 3/4Ms Müller CS 6/6 - - - - - 3/4 - - 3/4 3/4Mr Njeke MJN - - - - - - 4/4 4/5 - 4/4 4/4Dr Rakometsi M - - - - - - - - - - 4/4Mr Samuels JS - 4/4 4/4 4/4 4/4 0/1 - 5/5 - 4/4 4/4Prof. Schultz TG - - - - - 1/1 4/4 - - 4/4 4/4Mr Sipuka O - - - 3/4 - - 2/4 - - 3/4 31/4Dr Toni Penxa V 6/6 - - - - 1/1 3/4 - - 4/4 4/4Dr Webbstock D - - - - - - - - - - 41/1

(Footnotes)1 Mr Adler attended the January 2015 Meeting of the Advocacy and Communications Committee on invitation2 Mr Essop opted not to have his contract as CEO of the CHE renewed, and therefore ceased to be a board member on 1 March 20153 Mr Sipuka missed some board and committee meetings owing to a prolonged commitment outside of SA. 4 Dr Webbstock attended the March 2015 board Meeting as Acting CEO of the CHE


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In accordance with Section 16(2) of the NQF Act, persons who are not members of the board have been co-opted to serve on board Committees. Attendance of co-opted members of the committees were as follows:

Title

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Qua

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an

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Adv

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Mr brown M - - - - - - 5/5 4/4

Prof Clayton PG - 2/4 - - - - - -

Prof Cooke JA 5/6 - - - - - - -

Mr Chanza E - - - - 12/2 - - -

Ms Chinje N - - 2/4 - - - - -

Mr Fisher S - 3/4 - - - - - 2/4

Ms Fordyce A - - 3/4 - - - - -

Ms Gray E - 4/4 - - - - - -

Mr Hall K 24/4 2/4 - - - - - -

Mr Isaacs SBA - - - 4/4 - - - -

Mr Leso L - - 31/4 - - - - -

Prof Kuye JO 40/2 - - - - - - -

Ms Mabaso Z - - - 1/4 - - - -

Ms Magongoa B - 2/4 - - - - - 50/2

Mr Makhaga N - - - - 61/1 - - -

Dr Mbhele B - - - - 70/0 - - -

Mr Mbokotho L - - - - - - 80/1 -


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Title

surn

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an

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Adv

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Qua

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Fina

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Aud

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Mr Mkhondo B - 0/4 - - - - - -

Mr Mockler KG 5/6 - - - - - - 4/4

Mr Moloisane J - - - - 3/4 - - -

Mr Monedi J - - - - 3/4 - - -

Mr Nepfumbada MP - - - - - - - 3/4

Mr Oosthuizen MJ - 3/4 - - - - - -

(Footnotes)1 Mr Chanza was co-opted as member of the Foreign Qualifications Committee on 13 March 2015. He attended the November 2014 and February 2015 meetings of the Committee by invitation2 Mr Hall was co-opted to the Q & S Committee on 16 July 20143 Mr Leso was co-opted to the Advocacy and Communications Committee on 6 March 20144 Prof Kuye resigned from the Q & S Committee on 16 July 20145 Ms Magongoa resigned from the Audit and Risk Committee on 27 November 20146 Mr Makhaga was co-opted as member of the Foreign Qualifications Committee on 3 December 20147 Mr Mbhele served on the Foreign Qualifications Committee in his capacity as member of HPCSA. He left the employ of the HPCSA and was therefore no longer a member of the Committee8 Mr Mbokotho resigned from the Finance Committee on 31 July 2014


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Title

surn

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q &

s

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Adv

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Fina

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Aud

it an

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Mr Ori S 4/6 - - - - - - -

Dr Parker D - - - - 10/3 - - -

Mr Patel F - - - 1/4 - - - -

Prof Pendlebury S - - - - - 1/1 - -

Prof Potgieter C - - - - - 1/1 - -

Dr Pretorius JA - 3/4 - - - - - -

Dr Reddy J - - - - - - 4/5 -

Ms Samuels M - - - 2/4 - - - -

Prof Sehoole MT - - - - - 1/1 - -

Ms Starr N 21/4

Ms Tabata T 31/2

Ms Vieira A - - - - - - 3/5 3/4

Dr Vasuthevan S - - - - 40/4 - - -

Prof Walters S - - - 4/4 - 1/1 - -

(Footnotes)1 Dr Parker resigned as member of the Foreign Qualifications Committee on 19 November 20142 Ms Starr was co-opted to the Q & S Committee on 16 July 20143 Ms Tabata was co-opted to the Finance Committee on 1 October 20144 Dr Vasuthevan resigned as member of the Foreign Qualifications Committee on 6 March 2015

All board committees operate within approved Terms of Reference. Apart from the members, the Deputy CEO and relevant Directors also attended meetings of board Committees.


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step 1: identify and define risk

step 2: Assess and

rate the risks

step 3: Monitoring and

reporting on risks

Directorate identifies and defines strategic and operational risks

Risks are rated according to

likelihood of occurring and impact if they

do occur, on a scale of 1 (low likelihood / impact) to 5 (very strong likelihood / great impact).

The risk rating is the product of the

likelihood and impact scores.

Risk ratings of 1-8: managed through routine operations;

Risk ratings of 9-15: staff member

assigned to manage risk; Risk ratings of 16-25: Specific action plans are

developed to mitigate against these

risks. Action Plans are incorporated into Directorate

Operational Plans.

Detailed Risk Management Plans of each directorate (irrespective of risk

ratings) collated into Organisational Risk Management Plan

Audit & Risk Committee of the

board: recommends the Risk Managment Plan tot he board for approval annually;

ensures on a quarterly basis that the risk assessment and management

procedures followed, are satisfactory; reports progress to the board on a quarterly basis.

Risk Managemant Steering Committee comprising the CEO, DCEO and Directors: Reviews Risk Plan annually; submits Plan to the Audit & Risk Committee;

assesses risks with ratings of 16-25

quarterly by reviewing impact of mitigation

strategies and making adjustments where

necessary to the risk ratings and mitigation strategies; identifies

new areas of risk

Risks are recorded on a Risk Management

template

Figure 1: sAqA’s Risk Management Process

There is no opportunity without risk. We have the right structures in place to identify, monitor and manage our risks effectively. Risk is managed at three distinct levels in the organisation – the line managers at operational level, oversight by the governance structures and assurance by third parties.

5.1. KeY deVeloPMenTs in The YeAR�� Conducted a review of our Risk Management Plan and Risk Register, and

took steps to align them with the strategic objectives for the financial year. Risks and risk mitigation plans were categorised as follows:�- Risks related to SAQA’s leadership role;�- Risks related to staff development;�- Risks related to the public positioning of SAQA; and �- Risks of a governance nature.

by actively managing the mitigation plans and implementing mitigation strategies, we were pleased with our success in decreasing the risk rating on some risks.

5.2. ouR RisK MAnAgeMenT PRoCess

The SAQA board, in the execution of its fiduciary duties, and in compliance with Sections 50(a) and 51(c) of the PFMA, ensures that a detailed Risk Management Plan is developed annually. This Plan includes strategies to mitigate identified risks. The Risk Management Plan includes identified strategic and operational risks, and is structured per Directorate.

5. RISK MANAGEMENT


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5.3. MAJoR sTRATegiC RisKs

Risk ContextMitigation:

Mitigation strategy our successesPrioritised risk relating to SAQA’s Leadership roleLack of understanding of SAQA’s role to evaluate foreign qualifications and the increasing prevalence of fraudulent qualifications as well as constraints in detecting fraud

We do not fully understand our mandate regarding the evaluation of foreign qualifications process and we are not fully able to deal with the increased prevalence of fraudulent qualifications. This risk emanates from:�� Interpretation of section 13(m) of the

NQF Act�� Current approach regarding evaluating

foreign qualifications�� Client queries of our evaluation

outcome�� Failure of internal processes to

prevent and detect misrepresented qualifications

�� increased work volume making it difficult to detect fraud

�� Increase in number of degree mills

We must:�� Review legal advice regarding the

interpretation and understanding of the NQF Act

�� Engage with staff to encourage understanding of the Act

�� Align processes and procedures with the Act

�� Take cognisance of our role in relation to other legislation e.g. Immigration Regulations

We have:�� Developed Policy and Criteria for the

Evaluation of Foreign Qualifications, which includes SAQA’s position on misrepresented qualifications

�� Learned from our international counterparts at several international events

�� Responded to the public interest in qualifications fraud

�� Started to keep statistics of misrepresented qualifications

�� Established a document bank�� Implemented online verification of

Certificates of Evaluation�� Enhanced the verification phase�� Conducted a gap analysis of current

practice�� Implemented a system to only accept

online applications�� Obtained legal advice regarding the

establishment and publication of a Register of Fraudulent Qualifications


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Mitigation strategy our successesPrioritised risk relating to staff developmentFailure to establish and enhance a performance and recognition culture, resulting in poor performance, key activities not being completed at the required level of quality and low staff satisfaction

We do not optimally manage the performance of staff and recognise their contributions. This may result in poor performance and key activities not being completed at the required level of quality. This risk emanates from:�� Management culture and behaviours

resulting in inconsistent interpretation and application of PDMS principles to contract stretch targets, conduct assessments and give feedback to staff

�� SAQA requires scarce and specialised skills in a number of areas to be able to perform tasks optimally and to the required standard

We must:�� Develop managers and capacitate them

in their leadership task�� Source the required training as

identified in the PDPs�� Prioritise the implementation of the

required core training to ensure the development of the specialised skills

We have:�� Implemented an extensive leadership

and staff development programme aimed at empowering managers to effectively demonstrate leadership behaviours and to manage performance, provide feedback and recognise and reward staff. The programme is also aimed at staff members to create greater understanding of how SAQA functions.

�� Designed new staff development and induction programmes

�� Taken steps to ensure that staff fully understand SAQA’s mandate as well as internal developments and national policies that influence their work

�� Initiated a review of the recognition and reward system

Prioritised risk relating to public positioning of SAQASAQA not meeting the expectations of stakeholders and the public to provide quality information and advice on the NQF on time

We are experiencing a lack of capacity to respond to the volume and nature of enquiries due to:�� The ratio of enquiries to expert advisors�� Lack of self-help, user-friendly online

options �� Lack of infrastructure for searchable

content

We must:�� Analyse the skills required�� Mobilise support from relevant

Directorates to increase the capacity of the NQF Advisory Service

�� Develop infrastructure for a searchable tool for NQF content to enable the provision of quality, consistent and easy-to-understand information

�� Engage with directorates in the process to create and quality assure NQF knowledge content

We have:�� Developed an implementation plan

which involves support from the relevant Directorates. The Plan was discussed by Executive Management

�� Started to draft a plan to develop a searchable tool for NQF content

�� Agreed to, early in the new financial year, convene a forum to create, review, update and quality assure the NQF knowledge content


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Mitigation strategy our successesPrioritisedriskofagovernancenatureSAQA not meeting deadlines for verification of qualifications

We are experiencing a reputational risk as we may not be able to meet the required deadlines for verification of qualifications. This risk emanates from:�� Volume of work�� Lack of capacity�� Insufficient resources�� SAQA unable to employ full staff

complement for the Verifications Project�� Staff complement present, but

necessary skills must be built�� Difficulty in locating some of the

information partners (e.g. due to closure)

�� Lack of cooperation by some information partners

We must:�� Manage the expectations of the Minister

of Public Service and Administration, (DPSA) and government departments

�� Negotiate realistic timeframes and agree on dates, as per the fee structure that includes specific priority rates

�� Ensure adequate resources for the Verifications Project

�� utilise all resources possible for locating the relevant information partners or their archived information

�� Liaise with the information partners frequently

�� Ensure that the information partners receive acknowledgement of their responses and efforts

We have:�� Capacitated the Verifications Project

with a Project Manager who has instilled renewed energy and direction into the project

�� Managed to upload substantial information from umalusi, Kha Ri Gude, HEMIS and SANC to the NLRD

�� Fully staffed the Verifications Project and are continuously training the appointed staff to build the required skills levels

�� been responding and distributing requests within one day after receiving the request

�� been in daily contact with the major information partners to ensure quality feedback and that problems are identified early and escalated when needed

based on the nature and size of the staff complement, the SAQA board deemed it inappropriate to establish an in-house internal audit function. The internal audit function was outsourced to Deloitte & Touche. The Audit and Risk Committee

reviewed the work of Deloitte & Touche, while it continued to revisit and assess the need to establish an internal audit function.

6. INTERNAL CONTROL AND AuDIT COMMITTEES


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During the year, we continued to actively manage the quality of service provided by our staff. We developed a Client Service Standards publication for all staff, and reviewed and discussed client complaints at the weekly Executive Management meetings.

We choose to be an ethical organisation, both internally and in our external interactions. Our code of ethics and our client services standards inform our business principles and provide guidance to employees on their application.

The SAQA Code of Ethics, which forms part of our Governance Manual, was reviewed in March 2015, during the annual review of the Governance Manual.

7. COMPLIANCE WITH LAWS AND REGuLATIONS

8. FRAuD AND CORRuPTION

9. CODE OF CONDuCT

As in previous financial years, we maintained a list of the major legislation, codes and rules that SAQA must comply with, as well as additional rules, codes and

standards that the board subscribed to. We provided confirmation of compliance to the Audit and Risk Committee and the board.

SAQA maintained its internal policies on Fraud Prevention and Detection as well as on Fraud Reporting during the year. No cases of fraud occurred during the financial year, but:

The investigation of a case of irregular behaviour by an employee in the Directorate: Foreign Qualifications Evaluation and Advisory Services (DFQEAS), which was initiated at the end of the previous financial year, was concluded during the year under review. The staff member was found guilty and dismissed.

This irregularity did not result in any material harm to SAQA.

SAQA subsequently uncovered that three temporary staff members, who were recommended to SAQA by an employment agency, did not hold the required minimum qualifications and their contracts were terminated. We have implemented mechanisms to ensure that the qualifications of all prospective staff are verified before any appointments are made.


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initiatives in the course of their duties, members with an interest in promoting environmental sustainability and the tenant in SAQA House.

The Committee reported to SAQA’s Audit and Risk Committee and its work and roles and responsibilities were guided by the Policy on Environmental Sustainability Development.

The theme guiding the Committee’s Work Plan for 2014/15 was: en-LIGHTEN-ment! In order to achieve its objective, activities focused on the key areas below:

�� Energy efficiency and saving;�� Environmentally friendly pest control practices;�� Improving air quality;�� Recycling and eco-friendly waste disposal and management (paper,

plastic, cans, glass and e-waste);�� bread bag tags for wheelchairs project, and �� Improving communication and sharing good practice.

below is a summary of our achievements in implementing the 2014/15 Work Plan:

�� Energyefficiencyandsaving:

During the 2014/15 financial year SAQA converted various conventional light fittings to light-emitting diode lights (LED’s). Although the conversions only involved a small percentage of the total light usage within SAQA House, significant financial savings were achieved. The initial capital outlay for the projects outlined below amounted to R 37 399.24.

10.1. eConoMiC ViAbiliTY

Economic sustainability in the public sector generally refers to “the ability of government to meet its service delivery and financial commitments, both now and in the future”.

For SAQA this is an important consideration as we are, to a large extent, dependent on government grant funding. . Given our funding challenges, we continued our efforts to reprioritise and curb costs to more effectively use the government grant to deliver optimally on our functions as mandated by the NQF Act.

SAQA supplements government funding by charging for certain services. We have now implemented a charging model that enables us to fully recover the costs of some of the services that we render. Also, we secured additional funding for specific projects, for example additional funding of approximately R 15 million, over three years, for the qualifications verification project. Going forward, we will continue to seek funding for other priority projects such as the digitisation of learner records and the establishment of a strong viable counter fraud unit.

10.2. enViRonMenTAl susTAinAbiliTY

The SAQA House Environmental Sustainability Development Committee met quarterly during the year under review and continued its efforts to reduce SAQA’s carbon footprint. Chaired by the Deputy Chief Executive Officer of SAQA, the Committee included members of the SAQA management team, staff who were responsible for coordinating and discharging the organisation’s sustainability

10. SuSTAINAbILITY REPORT


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offices and the roof of the building weekly, but this solution was not sustainable in the longer term.

In 2015/16, we will consider less onerous, environmentally-friendly options to improve the air quality in SAQA House.

�� Recycling and eco-friendly waste disposal and management

We continued with our successful initiative to recycle paper, glass, plastic and e-waste. We secured additional e-waste bins and noted that the equipment procured to dispose of e-waste materials like light bulbs, assisted us to effectively manage the safe disposal of these items.

�� The bread bag tags for wheelchairs project

This project, which was started in 2013/14, continued at a slow but steady pace. We began exploring different strategies to achieve this target sooner.

�� Improving communication and sharing good practice

The Committee regards communication as an important tool to raise staff awareness and encourage participation through the sharing of good practices and tips on environmental sustainability initiatives.

Throughout the year, the Committee implemented a multi-media communication strategy to inform staff and stakeholders about initiatives to reduce our carbon footprint and eco-friendly good practices at work and home. In addition, we introduced the concept of “Toolbox Talks” to serve as a forum to en-LIGHTEN and engage all staff and stakeholders to take personal and collective action to use the earth’s limited resources in an environmentally responsible manner.

We were pleased to report that these focused initiatives resulted in a decrease of 57 597kW in energy consumption and a saving of R 72 572.22 for the year.

basement 3rd Floor north 6th Floor Foyer Conventional lights

4.80kW 3.88kW 0.60kW

led’s 0.50kW 0.47kW 0.03kW*saving 4.30kW @

24hours3.41 kW @12hours/day= 1.705 kW @ 24hours

0.57kW @ 24hours

Figure 2: Savings made through introducing energy efficient lights

�� Environmentally friendly pest control practices

We continued to implement and monitor the alternative environmental and human friendly pest control strategy, which we introduced in November 2013. The strategy has proved to be highly effective in controlling pests and substantially reduced the number of complaints received from staff about the side effects of the chemical products that were previously used.

We also extended the use of eco-friendly cleaning products in public facilities including the kitchens and bathrooms.

Improved air quality

In 2013/14 we introduced a project to improve the air quality in SAQA House by placing Spekboom “wonder” plants in each office. unfortunately, after 18 months of implementation we were forced to terminate this project. We realised that the SAQA House infrastructure was not conducive to staff keeping these extraordinary carbon efficient plants in their offices. The plants required direct sunlight to grow and thrive, which was not possible in most of the offices. The Facilities Manager made a concerted effort to rotate the plants between the


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10.3. soCiAl And TRAnsFoRMATion MATTeRs

SAQA is committed to transformation and is actively working towards transformation in the workplace. The organisation has implemented an Employment Equity Policy, to ensure demographic representivity amongst employees and equal access to opportunities for all.

Furthermore, procurement policies that have been aligned to the objectives of black economic empowerment were measured regularly to assess progress achieved.

SAQA understands its responsibility to society, and has a longstanding involvement with community development projects. The annual generous contributions of books, clothing, food, money and utility items by staff were donated to the Tshwaraganang Orphanage in Hammanskraal.

11. COMMuNICATION WITH STAKEHOLDERS

SAQA believes that the key to successfully implementing the NQF is communicating, coordinating and collaborating with stakeholders across the education, training, work and development sectors. There are a multitude of stakeholders that we have categorised into three groups to streamline communication: policy makers, policy implementers and policy beneficiaries. We established an integrated communication strategy, which underpinned all our interactions with each of these stakeholder groups as we worked to improve the quality of our conversations and the relevance of the information that we shared.

Engaging in strategic conversations:

We held strategic discussions of a conceptual nature at the quarterly CEO Committee meetings. The QCs and the Inter-departmental NQF Steering Committee, comprising representatives of the DHET and DbE, were represented at these meetings. SAQA and the QCs reported on progress against the implementation of the Priorities for the NQF Implementation Framework 2011-2015. During the latter part of the year, we deliberated on the Ministerial Guidelines for 2014/15 and the Minister’s request for SAQA to

sAqA supporting the Tshwaraganang orphanage


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research partnership into learning pathways for selected scarce skills in the Green Economy.

Further learnings were shared with stakeholders at the ben Parker Memorial Lecture. Professor Heila Lotz-Sisitka and Presha Ramsarup lead the lecture on Learning Pathways in a Transforming Society. The public seminar on Learning Outcomes in the Context of Level Descriptors, presented by international expert Mr Stephen Adam, showcased ground-breaking international work in this field that inspired SAQA staff to re-examine our own processes and thinking.

Seekingpubliccomment

SAQA sought public comment for each of the NQF policies that were developed. During the last year, SAQA consulted a public forum for inputs into the Draft

develop a Register of Fraudulent Qualifications. The Draft Priorities for the NQF Implementation Framework for 2015–2020 stimulated further debate and discussion in the Committee.

Creating a platform for intellectual debates

SAQA created opportunities for intellectual debates and engagements with stakeholders around important topics in the education, training and development environment. The research seminars on Realising Lifelong Learning through Flexible Provision and the Implications for Teaching in Higher Education Institutions, as well as Understanding Learning Pathways in the Context of the NQF were examples of the topics that sparked lively debate. These research findings were a result of the SAQA-university of the Western Cape (uWC) research partnership into lifelong learning and the SAQA-Rhodes university

Mr stephen Adam delivering the Public seminar on learning outcomes

Professor heila lotz-sisitka and Ms Presha Ramsarup, guest speakers at the ben Parker Memorial lecture


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Collaboratingwith partners to reach policymakers, policy implementers andpolicybeneficiaries

SAQA and the Financial Planning Institute (FPI) collaborated to inform the public about the NQF and its benefits. This included the SAQA Women’s Month Celebration / Financial Planning Week, joint research on CPD and the FPI speech contest held at the Coastal FET College and KwaMakhutha in Kwa Zulu-Natal.

SAQA also collaborated with the Wholesale and Retail Sector Education and Training Authority (W&R SETA), Chemical Industries Education and Training Authority (CHIETA) and Energy and Water Sector Education and Training Authority (EWSETA). The SAQA / W&R SETA partnership conducted workshops in the Western Cape, Mpumalanga, Limpopo, Free State and the Northern Cape for life orientation educators, technical and vocational education and training college lecturers, student support officers, SETAs, DbE officials and career development practitioners.

The SAQA / CHIETA Media Campaign targeted learners, unemployed youth and parents through radio campaigns and social media. The social media campaign reached about 3 000 stakeholders while the radio campaign broadcast on 10 SAbC African language stations, drew an estimated audience of 2.2 million people.

SAQA and the Energy and Water SETA (EWSETA) collaborated to conduct research into learning pathways in the Energy and Water sector. The collaboration went further to promote scarce and critical skills, artisanship and learning programmes in the energy and water sector. Seven interviews, 14 billboards and 273 promotional spots were broadcast on popular radio stations, including Metro FM. The campaign ran for a month, was broadcast in six languages and reached an estimated audience of 12 million people.

PolicyandCriteriaforEvaluatingForeignQualificationswithintheSouthAfricanNQF. The board approved this policy, together with the Draft Guidelines for Good Practice forLearningthatdoesnotleadtoaQualification, for publication for public comment in March 2015.

Similarly, SAQA contributed to the development of policy and legislation by providing comments on various draft policies and proposed legislation that impact the education, training and development sector.

Participating in forums

SAQA’s permanent forum structures continued to allow for regular collaboration and communication around specialist areas. These structures were designed to help SAQA fulfil its mandate. Forums such as the NLRD Partners Forum which ensured that regular data loads of learner records were obtained from data sources such as the SETAs, the SAQA/DPSA Steering Committee which tracked trends in the verification of qualifications across the public sector, the Professional bodies Forum which considered topics like professional ethics, RPL and professional designations, the Advocacy and Communications Committee which discussed the most effective ways to educate the public about the NQF and the NQF Communication Practitioners Forum that promoted the NQF and empowered their members through planned continuous professional development (CPD) events, made significant strides in their areas of focus.

Interacting with learners and interested members of the community

SAQA staff interacted with the community at 40 exhibitions during the course of the year. The most prominent of these events included the Mandela Day Career Festival, the National Offender Skills Development Summit and the World of Work Expo. The exhibitions attracted about 22 000 school and post-school learners, life orientation teachers, subject advisors, unemployed youth, graduates and career development practitioners.


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Learning from and contributing to international initiatives

During the year under review, SAQA made great strides in claiming its space in the international community. Not only did SAQA participate at the Arusha Convention event in December 2014, but SAQA also led the drafting team for the revised Arusha Convention. The Arusha Convention is an important document for international engagement on the evaluation of foreign qualifications.

SAQA signed a memorandum of understanding with the Malaysian government and assisted the Lesotho Ministry of Education with NQF related matters.

SAQA also facilitated the adoption of a Joint Agreement by 14 African countries, at the seminar hosted by SAQA in November 2014, on the Verification of Foreign Qualifications. This agreement will go a long way to accelerating the process of verifying foreign qualifications and combating qualifications fraud.

SAQA further formed an alliance with the Groningin Declaration to gain access to information about qualifications in the European union.

Figure 3 below shows SAQA’s influence across the NQF landscape in terms of its interactions with stakeholders. The blue circles depict initiatives that were driven by SAQA. SAQA participated in all the other events that were hosted by DHET (depicted in red), DbE events (shown in grey) and those hosted by other organisations (shown in orange). CHE driven events are in green, umalusi in pink and QCTO in purple. The table on page 64 lists the actual events that are represented in Figure 3.


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Figure 3: SAQA’s influence on the NQF Landscape

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Council of higher education

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quality Council for

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learners records

Professional bodies

Recognition of Prior learning

nqF Policies & guidelines

Fraud detection & prevention

international best practice

nqF Advocacy

Qualifications & standards

lifelong learning

Research

Teachers & early childhood development

Articulation

dheTdbe

nqF Partners Ceo Forum

other organisations

nqF lAndsCAPe

KeY DHET driven initiative DbE driven initiative CHE driven initiative Other organisation driven SAQA driven initiative umalusi driven initiative QCTO driven intiative


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sAqA’s PARTiCiPATion in ACTiViTies ThAT inFluenCed The nqF lAnsCAPe in 2014/151 NLRD Partners’ Forum 21 Joint agreement with 14 African countries on collaboration for the verification

of qualifications 2 National RPL Conference 22 Presentation on quality assurance in higher education to African countries at

meeting in Ethiopia 3 Research seminar on Realising lifelong learning through flexible

provision: what does this mean for teaching in Higher Education Institutions?

23 Drafting team of the Arusha Convention as adopted in Ethiopia

4 Research seminar on understanding learning pathways in the context of the NQF in South Africa.

24 Published a Standards Framework for Teachers and School Leaders

5 Hosted a colloqium on ‘Relational agency’ 25 Public seminar on learning outcomes as level descriptors 6 ben Parker lecture on Learning pathways in a transforming society 26 Published policies on RPL; Assessment and Credit Accumulation and Transfer 7 Work with the Department of Science & Technology in the Indigenous

Knowledge Systems Working Group27 Stakeholder engagement on Draft foreign qualifications policy and guidelines

for good practice for learning that does not lead directly to a qualification 8 Professional bodies’ Forum 28 Participate in forum on Teacher Development & Curriculum Management

hosted by the Department of basic Education (DbE) 9 Steering Committee and Working Group for Severe Intellectual Disability

(Department of basic Education)29 Project Steering Committee on Career Development Services

10 Vice Chancellor (Research Advisory Committee) Task Team on Indigenous Knowledge Systems - uKZN

30 Involvement with the Groningen Declaration Network

11 National and Western Cape Education Department Irregularities Committee

31 Assisted Ethiopia in developing the “ENQF MIS”, a learner records database similar to the National Learner Records Database of SA

12 Department of Higher Education & Training bogus Colleges’ Task Team 32 Hosted a Study tour of National Accreditation board (NAb) of Ghana 13 National Inter-departmental Early Childhood Development Training and

Curriculum Sub-committee33 Collaboration with the Financial Planning Institute (FPI) to inform the public

about the NQF 14 Qualification Development (Facilitators & Developers) Forums of the

Quality Council for Trade & Occupations34 Participation in the NQF Communicators Practitioners Forum (CPF)

15 Submitted articles regarding Professional body recognition for publication in the PRISA Newsletter and HR Focus

35 Workshops for teachers and support staff in collaboration with the W&R SETA

16 Assisted Ethiopia in the development of their NQF 36 SAQA collaborated with CHIETA on campaigns using radio and social media for the unemployed youth.

17 Signed a memorandum of understanding with Malaysia 37 Collaboration with EW SETA to promote scarce skills 18 Article on recognising genuine qualifications for publication in business

Brief38 Community engagement through exhibitions & workshops

19 Assisted the Lesotho Ministry of Education with information on NQF policies and teacher qualification documents

39 Seminar on building trust and verifying foreign qualifications

20 Joint report, with uNESCO on world reference levels 40 SAQA/DPSA Steering Committee


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human Resources Management

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Services. Also, selected staff members participated in the annual Leaders for Lifelong Learning course which was developed to ensure a deepened understanding of the South African and other NQFs and targeted at prospective future leaders in the education space. To date, sixteen SAQA staff members have successfully completed the course with three members graduating at the end of November 2014.

1.4. PeRFoRMAnCe MAnAgeMenT FRAMeWoRK

Performance contracting, reviews and assessments are conducted annually with all staff members. The recognition and rewarding of outstanding performance received attention as the organisation continues to review its approach to recognition, appreciation and reward beyond monetary considerations. A new model will be investigated in the next financial year.

1.5. PoliCY deVeloPMenT

SAQA completed a review of eight HR policies during the year, to ensure relevance and compliance with the legislative framework and SAQA’s practices.

1.6. FuTuRe huMAn ResouRCes PlAns

SAQA will continue to implement both leadership and staff development programmes to enhance the organisation’s focus on improving and optimising service delivery. A comprehensive review of the Remuneration and Reward System will be conducted in the next financial year to develop a model that is affordable and sustainable, whilst enabling the organisation to attract and retain talented and competent staff.

1.1. oVeRVieW oF huMAn ResouRCe MATTeRs AT sAqA

SAQA has a fairly stable workforce. Our industrial relations are cordial and without incident. There is a multi-term substantive agreement between SAQA and SADTu in place that will enter into its third and final year in 2015/16. Salary negotiations are therefore scheduled to take place for the 2016/2017 financial year.

1.2. huMAn ResouRCe PRioRiTies FoR The YeAR undeR ReVieW

Learning and development is a SAQA strategic imperative because competent and professional staff are key to the effective delivery of SAQA’s mandate. Every staff member has a learning and development plan that is aligned to the strategic objectives of the organisation.

During the year under review, an intensive organisation-wide leadership and staff development intervention was initiated which will continue into the next financial year. The overall objective of this multi-year intervention is to enhance the culture of effective leadership and performance as well as coaching and mentoring with a workforce that focuses on common values, quality, customers, problem solving and accountability.

1.3. WoRKFoRCe PlAnning

SAQA provided adequate and focused training to ensure development and continuity in areas where skills are scarce and critical. This related specifically to evaluators in the Directorate for Foreign Qualifications Evaluation and Advisory

1. INTRODuCTION


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2.1. PeRsonnel CosTs bY PRogRAMMe

Programme

Total expenditure for the entity

Personnel expenditure

Personnel expenditure

as a % of total expenditure

no of employees

Average personnel cost per

employee Administration and support 47 863 950 26 516 327 23% 73 363 237

Recognition and registration of qualifications and part qualifications 6 988 928 5 770 779 5% 14 412 199

National learners records database (NLRD) 9 881 465 8 385 872 7% 11 762 352

Foreign Qualification Evaluation and Advisory Services 19 894 283 14 526 144 13% 44 330 140

Career Advice Services 23 844 021 8 069 475 7% 0 - Research 3 909 886 2 468 837 2% 4 617 209 International Liaison 1 197 157 1 017 207 1% 2 508 604 Total 113 579 690 66 754 641 59% 148

*Career Advice Services shows zero employees as the project ended on the 30 September 2014 and staff was transferred with the project to DHET.

2. HuMAN RESOuRCES OVERSIGHT STATISTICS


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2.2. PeRsonnel CosTs bY sAlARY bAnd

level Personnel expenditure% of personnel exp. to total personnel cost no. of employees

Average personnel cost per employee

F Lower / E upper 1 487 178 2% 1 1 487 178

E Lower 9 987 152 16% 11 907 923

D 12 180 234 19% 14 870 017

C 31 001 125 49% 78 397 450

B 8 917 655 14% 44 202 674

A -

Total 63 573 344 100% 148

note:

This amount differs from the R65,486,691 because the following items are processed via the VIP payroll system, but are allocated to the personnel cost in the general ledger:

�� Payments to agencies for temporary staff �� Payment to COIDA �� Payments to staff for education assistance �� Payments for recruitment of staff �� Provisions raised for bonuses �� Provisions raised for leave


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2.3. TRAining CosTs

directorate / business unitPersonnel

expenditureTraining

expenditure

Training expenditure

as a % of Personnel

costsno. of

employeesAverage Training cost

per employee

Administration and Support 26 516 327 1 758 750 2.63% 73 24 092

Recognition and Registration 5 770 779 44 750 0.07% 14 3 196

National Learners’ Records Database (NLRD) 8 385 872 29 507 0.04% 11 2 682

Foreign Qualification Evaluation and Advisory Services 14 526 144 9 405 0.01% 44 214

Career Advice Services 8 069 475 70 332 0 -

Research 2 468 837 27 316 4 6 829

International Liaison 1 017 207 81 000 2 40 500

66 754 641 2 021 060 2.76% 148


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2.4. eMPloYMenT And VACAnCies

Programme

2013/2014 2014/2015 2014/2015 2014/2015 2014/2015

no of employees Approved Posts no of employees Vacancies % of vacancies

Administration and Support 111 103 54 49 47.57%

Foreign Qualifications Evaluation and Advisory Services 42 52 44 8 15.38%Recognition and Registration 14 15 14 1 6.67%National Learners’ Records Database 18 17 11 6 35.29%Verifications 0 28 24 4 14.29%

Programme 2013/2014 2014/2015 2014/2015 2014/2015 2014/2015Administration & support no of employees Approved Posts no of employees Vacancies % of vacanciesF Lower / E upper 2 2 2 0 0.00%E Lower 7 8 7 1 0.97%D 13 15 10 5 4.85%C 45 61 25 36 34.95%B 44 17 12 5 4.85%Total 111 103 56 47 45.63% Programme 2013/2014 2014/2015 2014/2015 2014/2015 2014/2015Foreign Qualifications Evaluation and Advisory services no of employees Approved Posts no of employees Vacancies % of vacancies

F Lower / E upper 0 0 0 0 0.00%E Lower 1 1 1 0 0.00%D 3 3 3 0 0.00%C 31 37 26 11 21.15%B 7 11 14 -3 -5.77%Total 42 52 44 8 15.38%


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Programme 2013/2014 2014/2015 2014/2015 2014/2015 2014/2015Recognition & Registration no of employees Approved Posts no of employees Vacancies % of vacanciesF Lower / E upper 0 0 0 0 0.00%E Lower 1 1 1 0 0.00%D 3 3 2 1 6.67%C 7 9 9 0 0.00%B 3 2 2 0 0.00%Total 14 15 14 1 6.67%

Programme 2013/2014 2014/2015 2014/2015 2014/2015 2014/2015

national learners’ Records database no of employees Approved Posts no of employees Vacancies % of vacancies

F Lower / E upper 0 0 0 0 0.00%E Lower 1 1 1 1 6.67%D 2 3 2 2 13.33%C 6 5 5 0 0.00%B 9 6 3 3 20.00%Total 18 15 11 4 26.67%

Programme 2013/2014 2014/2015 2014/2015 2014/2015 2014/2015Verifications no of employees Approved Posts no of employees Vacancies % of vacanciesF Lower / E upper 0 0 0 0 0.00%E Lower 0 0 0 0 0.00%D 0 1 1 0 0.00%C 0 10 8 2 7.14%B 0 17 15 2 7.14%Total 0 28 24 4 14.29%


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2.5. eMPloYMenT ChAnges

salary bandemployment at beginning

of Period Appointments Terminationsemployment at end

of PeriodF Lower / E upper 2 0 0 2E Lower 10 3 3 10D 18 1 10 9C 102 16 47 71B 51 12 8 55Total 183 32 68 147

2.6. ReAsons FoR sTAFF leAVing

Reason number % of total no. of staff leaving

Death 1 1.47%Resignation 17 25.00%Dismissal 3 4.41%Retirement 2 2.94%Ill Health 0 0.00%Expiry of contract 45 66.18%Other 0 0.00%Total 68 100.00%

2.7. lAbouR RelATions: MisConduCT And disCiPlinARY ACTion

nature of disciplinary action number Verbal Warning 2Written Warning 3Final Written Warning 0Dismissal 3Total 5


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2.8. equiTY TARgeTs And eMPloYMenT equiTY inFoRMATion

levels Male African Coloured indian White Current Target Current Target Current Target Current TargetF Lower / E upper 1 1 0 0 0 0 0 0E Lower 0 1 3 2 0 0 4 4D 7 8 0 1 1 2 4 3C 27 24 0 2 0 2 2 14B 13 15 1 2 0 1 1 5A 0 0 0 0 0 0 0 0Total 50 55 4 7 1 5 9 26

levels Female African Coloured indian White Current Target Current Target Current Target Current TargetF Lower / E upper 0 0 0 0 1 1 0 0E Lower 1 1 0 1 1 1 3 3D 4 4 2 2 1 1 4 5C 47 33 0 2 3 1 6 14B 31 23 0 2 0 1 1 5A 0 0 0 0 0 0 0 0Total 83 61 2 7 6 5 14 27


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levels disabled staff

Male Female Current Target Current TargetF Lower / E upper 0 0 0 0E Lower 0 0 0 0D 0 1 0 0C 0 0 4 1B 1 1 0 1A 0 0 0 0Total 1 2 4 2


Financial information

PART

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Js sAMuelsChieF eXeCuTiVe oFFiCeR

MJn nJeKeChAiRPeRson oF The boARd

statement of Responsibility for the Annual Financial statements for the year ended 31 March 2015

The Accounting Authority is responsible for the preparation of the public entity’s 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 Annual Financial Statements.

In my opinion, the financial statements fairly reflect the operations of the public entity for the financial year ended 31 March 2015.

The external auditors are engaged to express an independent opinion on the Annual Financial Statements of the public entity.

The SAQA Annual Financial Statements for the year ended 31 March 2015 have been audited by the external auditors and their report is presented on page 94.

The Annual Financial Statements of the public entity set out on page 97 to page 137 have been approved.

1. STATEMENT OF RESPONSIbILITY


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Audit Plan and budgeted audit fees for the 2014/15 financial year. The Auditor-General was not asked to provide any non-audit services.

Financial statements and Accounting Policies and Practices

The committee reviewed the accounting policies and practices and the financial statements of the organisation and was satisfied with their appropriateness and compliance with the effective Standards of Generally Recognised Accounting Practices (GRAP). This included any interpretations, guidelines and directives issued by the Accounting Standards board (ASb). No concerns or complaints in relation to the reporting practices of the organisation were received.

internal Financial Controls

The committee oversaw the process by which the internal audit function provided a written assessment of the effectiveness of SAQA’s system of internal control and risk management, including internal financial controls. This written assessment formed the basis for the committee’s recommendation to the board’s response to the External Audit Report to fulfil its reporting requirements. The board’s report on the effectiveness of the system of internal control is on page 66. The committee fully supports the opinion of the board in this regard.

Whistle blowing

No concerns or complaints were received relating to the accounting practices and internal audit, the content or auditing of the financial statements or any related matters from within or outside SAQA, during the 2014/15 financial year.

We are pleased to present our report for the financial year ended 31 March 2015.

The Audit and Risk Committee is an independent statutory committee appointed by the board. In addition to its statutory responsibilities, further duties have been delegated by the board to the committee. This report deals with all of the committee’s duties and responsibilities.

Terms of Reference

The committee adopted formal Terms of Reference that was approved by the board. The committee conducted its affairs in compliance with the Terms of Reference and discharged its responsibilities contained therein.

Role and Responsibilities

statutory duties

The committee’s role and responsibilities include the statutory duties set out in sections 76(4) (d) and 77 of the PFMA 1999 and sections 3.1 and 27.1 of the Treasury Regulations issued in terms of that Act and further responsibilities assigned to it by the board. The committee executed its duties in terms of the requirements of King III.

external Auditor

In terms of the PFMA, the external auditor is the Auditor-General. The committee, in consultation with Executive Management, agreed to the Engagement Letter,

2. AuDIT AND RISK COMMITTEE REPORT


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goVeRnAnCe oF RisK

The board assigned oversight of the risk management function to the committee. The committee reviewed the risk management process, the effectiveness of risk management activities, the key risks facing the organisation and responses to address them. The committee fulfilled its oversight role regarding financial reporting risks, internal financial controls, and fraud and information technology risks as they relate to financial reporting.

inTeRnAl AudiT

The committee ensured that the internal audit function was independent and had the necessary resources, standing and authority to enable it to discharge its duties. Furthermore, the committee oversaw co-operation between the internal and external auditors and served as the link between the board and these functions.

The committee reviewed and recommended the Internal Audit Charter for board approval and approved the Annual Audit Plan

The internal auditor reported to the committee. It reviewed and provided assurance on the adequacy of the internal control environment across all of SAQA’s operations. The head of the Internal Audit team had direct access to the committee, through its chairperson.

The committee assessed the performance of the internal audit function.

eVAluATion oF The eXPeRTise And eXPeRienCe oF The FinAnCe diReCToR And FinAnCe FunCTion

The committee satisfied itself that the Finance Director has appropriate expertise and experience.

duties Assigned by the board

In addition to the statutory duties of the committee, as reported on above, the board determined additional functions for the committee to perform as set out in the committee’s Terms of Reference. They include the following:

inTegRATed RePoRTing

The committee fulfils an oversight role regarding the integrated report and the reporting process.

The committee considered the organisation’s sustainability information as disclosed in the integrated report and assessed its consistency with operational and other information known to the Audit and Risk Committee members and, for consistency, with the Annual Financial Statements. The committee discussed the sustainability information with management and was satisfied with the information provided.

According to King iii, the committee should recommend to the board the appointment of an external assurance provider on material sustainability issues. The committee’s recommendation to the SAQA board was not to appoint an external assurance provider. This recommendation is premised on the belief that the relatively straightforward nature and extent of the information did not warrant such an appointment.

going ConCeRn

The committee reviewed a documented assessment including key assumptions, prepared by management, of the going concern status of the Authority and made its recommendation to the board. The board statement on the going concern status of SAQA is set out on page 97.


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The committee satisfied itself with the appropriateness of the expertise, adequacy of resources of the finance function and the experience of the senior members of management responsible for the finance function.

MR MJ bRoWnChAiRPeRson


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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.

3. AuDITOR GENERAL REPORT

RePoRT oF The AudiToR-geneRAl To PARliAMenT on souTh AFRiCAn quAliFiCATions AuThoRiTY

Reportonthefinancialstatements

introduction

1. I have audited the financial statements of the South African Qualifications Authority (SAQA) set out on pages 100 to 137, 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 information 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 accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Financial Management Act of South Africa, 1999 (Act No. 1 of 1999), 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.


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Predetermined objectives

10. 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 2: Registration and Recognition on pages 44 to 45�� Programme 3: National Learners’ Record Database on page 45�� Programme 4: Foreign Qualification Evaluation Advisory Services

on page 46�� Programme 5: Career Advices Services on pages 46 to 47�� Programme 6: Research on page 47�� Programme 7: International Liaison on pages 47 to 49

11. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

12. 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 objectives. 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).

13. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

14. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes:

�� Programme 2: Registration and Recognition on pages 44 to 45�� Programme 3: National Learners’ Record Database on page 45

opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of SAQA 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 Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

emphasis of matter

7. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Restatement of corresponding figures

8. As disclosed in note 25 to the financial statements, the corresponding figures for 31 March 2014 have been restated as a result of an error discovered during 31 March 2015 in the financial statements of the South African Qualification Authority at and for the year ended, 31 March 2014.

Report on other legal and regulatory requirements

9. In accordance with the Public Audit Act of 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 and 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.


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Financial and performance management

18. Although the entity has sound internal controls on the preparation of financial statements; in certain instances relating to property plant and equipment and verification income and receivable, the annual financial statements prepared by management was not supported by accurate information. As a result, material adjustments were made to the annual financial statements submitted for auditing.

Pretoria31 July 2015

�� Programme 4: Foreign Qualification Evaluation Advisory Services on page 46

�� Programme 5: Career Advices Services on pages 46 to 47�� Programme 6: Research on page 47�� Programme 7: International Liaison on pages 47 to 49��

Compliance with legislation

15. I performed procedures to obtain evidence that the public entity had complied with applicable legislation regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:

Annual financial statements

16. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 55(1)(b) of the PFMA. Material misstatements on property plant and equipment and verification income and receivable identified by the auditors in the financial statements submitted were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

internal control

17. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on non- compliance with legislation included in this report.


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ACCOuNTING AuTHORITY REPORT

SAQA is a statutory body established by the National Qualifications Framework (NQF) Act No 67 of 2008. SAQA’s main mandate is to advance the objectives of the NQF, to oversee the implementation and further development of the NQF and to co-ordinate the sub-frameworks. In terms of the Public Finance Management Act (PFMA) SAQA is a schedule 3 A National Public Entity and is listed under that Schedule in the PFMA. The SAQA board is the accounting authority for the activities of the entity.

1. nATuRe oF enTiTY

The Authority is a public entity domiciled in South Africa.

2. nATuRe oF enTiTY’s oPeRATions

The nature of the entity’s business is set out in the NQF Act No.67 of 2008, and is to oversee the development and implementation of the National Qualifications Framework (NQF) and to ensure the achievement of its objectives.

3. going ConCeRn

The board believes that SAQA will continue to be a going concern for the financial year ahead. Accordingly, it continues to adopt the going concern basis in preparing the financial statements. In arriving at this view, the board took into account the current sound financial position and the responsibility of the Minister of Higher Education and Training, in terms of the NQF Act, to fund SAQA’s activities.

4. eVenTs AFTeR The RePoRTing PeRiod

No adjusting events, or non-adjusting events requiring disclosure, occured after the reporting period.

5. PRinCiPAl ACTiViTies�� Oversee the implementation of the NQF;�� Develop a system of collaboration to guide the mutual relations of SAQA

and the Quality Councils; �� Develop, publish and maintain the suite of NQF policies required to

implement the NQF; �� Register qualifications and part-qualifications on the NQF; �� Recognise professional bodies and register professional designations on

the NQF;�� Collaborate with international counter parts on all matters of mutual

interest concerning qualifications frameworks; �� Conduct and commission research on education and training systems; �� Maintain the National Learners’ Records Database (NLRD) as the key

national source of information for human resource development in South Africa;

�� Provide a service for verifying national qualifications and evaluating foreign qualifications; and

�� Inform the public about the National Qualifications Framework (NQF).

4. ANNuAL FINANCIAL STATEMENTS


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6. PRoPeRTY, PlAnT And equiPMenT And inTAngible AsseTs

There were no changes in the nature of property, plant and equipment and intangible assets or in the policy regarding to their use during the year. Capital expenditure on property, plant and equipment and intangible assets for the year amounted to R4,123,572 (2014: R6,186,396).

Details are contained in notes 9 and 10 to the financial statements.

7. ReMuneRATion

The remuneration of the Chairperson is determined by the Minister of Higher Education and Training, with the concurrence of the Minister of Finance.

Allowances paid to other non-executive members of the board are determined by the Minister of Finance and approved by the Minister of Higher Education and Training.

Remuneration and allowances paid to the members of the board for the year under review were as follows:

Attendance fees RemunerationFees for other

services Rendered

Travel Costs Total

R R R R RexecutiveMr J Samuels - 1 487 178 - - 1 487 178

board MembersMr MJN Njeke-Chairperson - 310 846 - - 310 846Mr D Adler 99 072 - 136 160 18 140 253 372Ms CT Duba - - - 2 712 2 712Mr SFA Mokonane - - - 10 592 10 592Ms N Moodley - - - 5 763 5 763Ms S Muller 41 466 - - 303 41 769Dr V Toni-Penxa 46 848 - - 17 859 64 707Mr O Sipuka 36 864 - - 2 331 39 195Prof TG Schultz 31 680 - - 6 101 37 781

255 930 1 798 024 136 160 63 801 2 253 915


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8. FinAnCiAl sTATeMenTs

The financial statements are prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) as set out in note 1.1 to the financial statements on page 107 thereof.

9. AudiToRs

The Auditor-General will continue in office as external auditor in accordance with section 13 of the National Qualifications Framework Act.

The Auditor-General expresses an opinion on the financial statements. The audit has been performed in terms of section 188 of the Constitution of the Republic of South Africa Act 1996, read with section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004) and section 13 of the National Qualifications Framework Act (Act No. 67 of 2008). The audit is conducted in accordance with International Standards on Auditing.

10. FAiR PResenTATion

The financial statements fairly present the state of affairs of SAQA at 31 March 2015, the results of its operations and cash flow information for the year ended. These were signed by the Chairperson and the Chief Executive Officer on behalf of the board on 30 July 2015.

11. PRoJeCTs

Projects continue to play a role in the realisation of SAQA’s objectives. The board is grateful for the contributions to SAQA by the project partners for the year.

Projects1 April 2014

opening balance

Current Year income

Current Year expenditure/

Release/Refund

31 March 2015 balance

CHE 945 642 1 577 315 (1 443 803) 1 079 154DHET (9 120 585) 40 577 870 (31 785 121) (327 836) EWSETA 1 785 000 - (1 977 323) (192 323) W&R SETA - 2 500 000 (464 254) 2 035 746CHIETA - 375 143 (106 729) 268 414

(6 389 943) 45 030 328 (35 777 230) 2 863 155

below is a summary of the services provided in terms of the projects:

Council on Higher Education (CHE) - SAQA has been contracted to manage the Higher Education Quality Committee Information System (HEQCIS) on behalf of the CHE

Department of Higher Education and Training (DHET) - The project manages the Career Development Services for the DHET

The projects with the Energy and Water SETA, the Wholesale and Retail SETA and CHIETA are where SAQA is assisting the SETA’s with targeted work to enable them to meet their performance targets relating to NQF Advisory Services that are specific to their sectors.


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STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2015

note(s) 2015 2014R R

Revenue 2 113 169 752 122 076 792Operating expenses 4 (123 245 945) (119 582 110)Operating (deficit) surplus (10 076 193) 2 494 682Investment revenue 5 2 161 013 1 542 797(Deficit) surplus for the year (7 915 180) 4 037 479


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STATEMENT OF FINANCIAL POSITION as at 31 March 2015

note(s) 2015 2014R R

AssetsCurrent AssetsInventories 6 194 184 185 163Receivables from exchange transactions 7 3 194 730 11 823 127Prepaid expense 1 508 112 552 652Cash and cash equivalents 8 33 223 789 20 833 342

38 120 815 33 394 284

Non-Current AssetsProperty, plant and equipment 9 20 545 743 18 892 333Intangible assets 10 2 695 349 12 906 062Operating lease asset - 10 163

23 241 092 31 808 558Total Assets 61 361 907 65 202 842

liabilities

Current LiabilitiesDeferred Income 11 10 209 310 6 697 444Payables from exchange transactions 12 12 329 719 12 337 332VAT payable from exchange transactions 13 22 270 20 067Provisions 26 1 286 740 718 949

23 848 039 19 773 792Total liabilities 23 848 039 19 773 792net Assets 37 513 868 45 429 050

net AssetsAccumulated surplus 37 513 868 45 429 050


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STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2015

Accumulated surplus

Total net assets

R R

balance at 01 April 2013 41 391 571 41 391 571Surplus for the year 4 037 479 4 037 479balance at 01 April 2014 45 429 048 45 429 048Deficit for the year (7 915 180) (7 915 180)balance at 31 March 2015 37 513 868 37 513 868


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CASH FLOW STATEMENT for the year ended 31 March 2015

note(s) 2015 2014R R

Cash flows from operating activities

ReceiptsRendering of services 30 649 940 27 918 692Grants 55 008 000 49 401 000Interest income 2 161 013 1 542 797Project funding received 45 030 328 34 000 981

132 849 281 112 863 470

PaymentsPaid to suppliers and employees (116 474 418) (113 495 974)Net cash flows from operating activities 14 16 374 863 (632 504)

Cash flows from investing activities

Purchase of property, plant and equipment 9 (3 991 763) (2 022 551)Proceeds from sale of property, plant and equipment 139 156 160Purchase of intangible assets 10 (131 809) (4 163 845)Net cash flows from investing activities (3 984 416) (6 186 236)

net increase/(decrease) in cash and cash equivalents 12 390 447 (6 818 740)Cash and cash equivalents at the beginning of the year 20 833 342 27 652 082Cash and cash equivalents at the end of the year 8 33 223 789 20 833 342


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STATEMENT OF COMPARISON OF buDGET AND ACTuAL AMOuNTS for the year ended 31 March 2015

budget on Cash basis

Approved budget Adjustments Final budget

Actual amounts on comparable

basis

difference between final budget and

actual

Reference

R R R R R

statement of Financial Performance

Revenue

Revenue from exchange transactionsRendering of services 27 500 000 - 27 500 000 26 420 059 (1 079 941) 30Profit on sale of property, plant and equipment - - - 70 759 70 759Rent 1 800 000 - 1 800 000 1 177 398 (622 602)Sundry 7 420 000 - 7 420 000 4 983 742 (2 436 258)Interest received - investment 1 500 000 - 1 500 000 2 161 013 661 013Total revenue from exchange transactions 38 220 000 - 38 220 000 34 812 971 (3 407 029)

Revenue from non-exchange transactions

Government grants & subsidies 79 234 682 - 79 234 682 80 517 794 1 283 112Surplus funds from prior years 8 600 000 - 8 600 000 - (8 600 000)Total revenue from non- exchange transactions 87 834 682 - 87 834 682 80 517 794 (7 316 888)Total revenue 126 054 682 - 126 054 682 115 330 765 (10 723 917)


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budget on Cash basis



basis


actual

Reference

R R R R RexpenditurePersonnel (72 797 938) - (72 797 938) (64 124 922) 8 673 016Depreciation and amortisation - - - (2 946 475) (2 946 475)Repairs and maintenance (1 032 000) (110 000) (1 142 000) (727 285) 414 715General Expenses (49 664 744) 3 526 200 (46 138 544) (45 781 008) 357 536Total expenditure (123 494 682) 3 416 200 (120 078 482) (113 579 690) 6 498 792Operating deficit 2 560 000 3 416 200 5 976 200 1 751 075 (4 225 125)Loss on disposal of PPE and intangible asset - - - (9 666 002) (9 666 002)Loss on foreign exchange - - - (253) (253)

- - - (9 666 255) (9 666 255) Deficit 2 560 000 3 416 200 5 976 200 (7 915 180) (13 891 380)Actual Amount on Comparable basis as Presented in the budget and Actual Comparative statement

2 560 000 3 416 200 5 976 200 (7 915 180) (13 891 380)

Reconciliation


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basis


actual

Reference

R R R R R

statement of Financial Position

Assets

non-Current AssetsProperty, plant and equipment 2 560 000 3 416 200 5 976 200 3 991 763 (1 984 437)Intangible assets - - - 131 809 131 809

2 560 000 3 416 200 5 976 200 4 123 572 (1 852 628)


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ACCOUNTING POLICIES

Where property, plant and equipment is acquired through a non-exchange transaction, its cost is its fair value as at the date of acquisition.

SAQA regularly maintains the property, plant and equipment in such a way that it does not incur any further costs for restoration expenses.

Land is not depreciated. Depreciation is charged to the statement of financial performance on a straight- line basis over the estimated useful lives of each part of an item of property, plant and equipment. The estimated useful lives are as follows:

Asset useful life

buildings 50 years

Security and CCTV system 20 years

Computer file servers, archiving system and uPS’s 5 years

Office furniture and equipment and cameras 8 years

Motor vehicles 10 years

Photocopy machines and printers and scanners 5 years

Storage Area Network 5 years

IT equipment 4 years

IT Switches 7 years

IT Monitors and LED/LCD Screens 5 years

PAbX System and Phones 8 years

Central airconditioning system 15 years

Air conditioners and Inverters 10 years

Parking garage 50 years

1. bAsis oF PRePARATion

The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

The accounting policies set out below have been applied consistently to all periods presented in these financial statements. The financial statements have been prepared on the historical cost basis except for financial instruments stated at fair value as disclosed in the notes below. The financial statements are presented in South African Rand.

1.1 Property, plant and equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Costs include expenditure that is directly attributable to the acquisition of the assets.

SAQA recognises in the carrying amount of property, plant and equipment the cost of replacing part of such an item when the cost is incurred if it is probable that the future economic benefit or service potential embodied within the item will flow to SAQA and the cost can be measured reliably. All other costs are recognised in the statement of financial performance when incurred.


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ACCOUNTING POLICIES

The intangible asset in respect of the NLRD has been assessed as having a useful life of 10 years.

The estimated useful life of the SAQA Website is 2 years.

The estimated useful life of License fees is 1 year.

Subsequent expenditure on capitalised intangible assets is capitalised only if it increases the future benefits or service potiential embodied in the specific asset to which it relates. The carrying amounts are reviewed at financial position date to determine whether there is any indication of impairment. The estimated useful lives and residual values are reassessed annually.

1.3 Inventories

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

1.4 Provisions

Provisions are recognised in the statement of financial position when:

�� SAQA has a present legal obligation as a result of a past event and�� it is probable that an outflow of economic benefits will be required to settle

the obligation.

If the effect is material, provisions are determined by discounting the expected future cash flows at a rate which reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

Depreciation methods, estimated useful lives and residual values are assessed annually.

1.2 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.

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.

An intangible asset is recognised at cost if it is probable that future economic benefits or service potential will flow to SAQA. Amortisation is charged on a systematic basis over the estimated useful lives of the intangible assets.

The estimated useful life of intangible assets in respect of the DFQEAS Workflow system software developed is 5 years.

The estimated useful life of intangible assets in respect of the National Career Advice Portal (NCAP) software developed is 5 years.


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ACCOUNTING POLICIES

Commissioned data analysis fee income is recognised upon the completion of the analysis.

Support for the Information Administrator Learnerships is recognised in the period during which the learnerships are undertaken.

Sales of books and CD’s with published information is recognised on date of sale.

evaluation fees

Evaluation fees are recognised when the evaluation reports are delivered.

government, donor and project grants

Any Government or International donor grant is initially recognised in the statement of financial position as deferred revenue when there is reasonable assurance that the conditions attached to it will be complied with and that the grant will be received

Subsequent to initial recognition:

�� Grants for the purpose of giving immediate financial support with no future related costs are recognised in the statement of financial performance in the period in which they become receivable.

�� Grants that compensate the entity for expenses or losses incurred are recognised as revenue in the statement of financial performance on a systematic basis in the same periods in which the expenses or losses are incurred.

Provision for onerous contracts is recognised when the expected benefits to be derived from the contracts are lower than the unavoidable cost of meeting the obligations under the contracts. A provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. before a provision is established, SAQA recognises any impairment loss on the asset associated with the contract.

1.5 Employeebenefits

Short-term employee benefits

The cost of all short term employee benefits is recognised during the period in which the employee renders the related service. The provisions for employee entitlements to wages, salaries and annual leave represent the amount that SAQA 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 wage and salary rates.

Defined contribution plans

Contributions are charged against the statement of financial performance as incurred.

1.6 Revenue

nlRd services

Verification fees for learner achievements are recognised once the services have been rendered and they become due and payable.


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ACCOUNTING POLICIES

Financial assets are derecognised if the SAQA’s contractual rights to the cash flows from the financial assets expire or if SAQA transfers the financial assets to another party without retaining control or substantially all risks and rewards of the asset. Financial liabilities are derecognised if the SAQA’s obligations specified in the contract expire or are discharged or cancelled.

gains and losses on subsequent measurement

Gains and losses arising from a change in fair value of financial instruments that are not part of a hedging relationship are included in net surplus or deficit in the period in which the change arises.

Trade and other receivables

Trade and other receivables are stated at their amortised cost using the effective interest rate method less impairment losses.

Trade and other payables

Trade and other payables are stated at amortised cost using the effective interest rate method.

Cash and cash equivalents

Cash and cash equivalents consist of the balances on the current and call investment accounts and the cash on hand.

Cash and cash equivalents are measured at fair value, based on the relevant exchange rates at reporting date.

Grants received that carry any restrictions or conditions as to the use thereof are held in a deferred revenue account until such time as the conditions or stipulations related thereto have been fulfilled or a repayment has been made. Effectively each grant is assessed to determine if any liability exists and if so, the grant is recorded as deferred revenue until such time as there is no longer any liability by the entity that relates to that grant.

Rental (lease) income

Rental income is recognised in the statement of financial performance on a straight-line basis over the period of the lease. Lease incentives granted are recognised as an integral part of the total rental income.

1.7 Finance income

Interest is recognised on a time proportion basis, taking account of the principal outstanding and the effective rate over the period to maturity, when it is determined that such income will accrue to the entity.

1.8 Financial instruments

initial recognition and measurement

Financial assets and financial liabilities are recognised in SAQA’s statement of financial position when SAQA becomes party to the contractual provisions of the instrument. Financial assets and liabilities are recognised initially at fair value. In the case of financial assets or liabilities not classified at fair value through the statement of financial performance, transaction costs that are directly attributable to the acquisition or issue of the financial instrument are added to the fair value.


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ACCOUNTING POLICIES

value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

1.10 Related parties

The SAQA operates in an economic environment currently dominated by entities directly or indirectly owned by the South African Government. As a result of the constitutional independence of all three spheres of government in South Africa, only parties within the national sphere of Government are considered to be related parties.

Financial liabilities

Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments using the effective interest rate method.

offset

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position when SAQA has a legally enforcable right to set off the recognised amounts, and intends either to settle on a net basis, or to realise the asset and settle the liabilities simultaneously.

Foreign currency transactions and balances

Transactions denominated in foreign currencies are translated at the rate of exchange ruling at the transaction date. Any remaining balances denominated in foreign currencies are translated at the rate of exchange ruling at the financial position date. Gains or losses arising on translation are credited to or charged against the statement of financial performance.

1.9 Impairment of assets

The carrying amounts of SAQA’s assets, are reviewed at each statement of financial position date to determine whether there is any indication of impairment. If there is any indication that an asset may be impaired, its recoverable service amount is the higher of its fair value less costs to sell and its value in use.

Value in use is the present value of the asset’s remaining service potential. This is determinded using the depreciation replacement cost method. In assessing


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NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015

2015 2014R R

2. Revenue from exchange transactions

Grants from non-exchange transactions 80 517 794 92 522 566Evaluation fees 22 356 321 22 662 579NLRD services 230 246 255 553Verifications services 4 063 738 3 267 500Rent 1 177 398 1 392 491Profit on sale of property, plant and equipment 70 759 160Sundry 4 753 496 1 975 943

113 169 752 122 076 792

3. grants - Revenue from non-exchange transactions

Department of Higher Education and Training 55 008 000 49 401 000National Skills Fund & DHET - Career advice services 25 509 794 43 121 566 80 517 794 92 522 566


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2015 2014R R

4. Operating (deficit) surplus

Operating (deficit) surplus for the year is stated after accounting for the following:

Auditors’ Remuneration

External audit 1 301 746 1 100 438Internal audit 364 272 354 370

1 666 018 1 454 808

board Members Remuneration

Remuneration of Chief Executive officerAnnual Remuneration 1 201 379 1 137 150Contributions to Pension Fund 145 620 137 210Performance bonus 140 180 126 712

1 487 179 1 401 072

non-executive Members

Remuneration of chairpersonAnnual Remuneration 310 846 294 083

Remuneration of MembersMeeting attendance fees 255 930 233 794Travel re-imbursement 63 801 58 081Other services 136 160 185 886

455 891 477 761


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2015 2014R R

4. Operating (deficit) surplus (continued)

employee Related Costs

Remuneration 55 721 992 59 313 434Pension Fund contributions 5 922 547 5 687 467Statutory contributions 485 741 535 014Performance bonus 544 334 -

62 674 614 65 535 915

depreciation and Amortisation

buildings 65 675 56 709Furniture and fixtures 183 740 179 820Motor vehicles 13 892 12 788IT equipment 1 533 231 1 615 261Central airconditioning system 49 935 49 935Intangible assets 1 100 002 2 349 409

2 946 475 4 263 922

operating lease charges

Watercooler rental 44 335 43 450Hygiene and Sanitiser Dispensers 11 411 -

55 746 43 450


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2015 2014R R

4. Operating (deficit) surplus (continued)

otherLoss on Transfer for no consideration of NCAP asset 9 242 520 -Loss on disposal of property, plant and equipment 423 481 -Loss on exchange differences 253 1 345Printing 3 009 877 4 794 730Consulting and professional fees 6 570 637 12 689 624Advertising and advocacy 5 994 351 6 871 691Other operating expenses 28 419 467 21 753 709

53 660 586 46 111 099

Total Operating expenses 123 245 944 119 582 110

5. investment revenue

interest revenueCorporation for Public Deposits 2 161 013 1 542 797

6. inventories

Stationery 194 184 185 163


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2015 2014R R

7. Receivables from exchange transactions

Trade debtors 2 767 892 2 746 144Provision for Doubtful Debt (152 565) (101 637)DHET Career Development Services Project 327 836 9 120 585Staff debtors 59 244 58 035EW SETA 192 323 -

3 194 730 11 823 127

Credit quality of trade and other receivables

The credit quality of trade and other receivables that are neither past nor due nor impaired was assessed by reference to historical information about counterparty default rates:

Fair value of trade and other receivables

Trade and other receivables 3 194 730 11 823 127

Trade and other receivables not impaired

Trade and other receivables which are past due are not considered to be impaired as SAQA is confident that all amounts outstanding will be recovered in full.

The ageing of amounts due but not impaired is as follows:

Current due (1 month) 2 020 994 11 424 4352 months past due 189 035 1 500>3 months past due 984 701 397 192

3 194 730 11 823 127


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2015 2014R R

7. Receivables from exchange transactions (continued)The maximum exposure to credit risk at the reporting date is the value of each class of receivable mentioned above. SAQA does not hold any collateral as security.

The trade receivables have not been discounted as the effects of discounting is immaterial.

8. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 108 3 000bank balances 250 173 1 052 970Corporation for Public Deposits 32 973 507 19 777 372

33 223 788 20 833 342

The average weekly balance of funds held at the Corporation for Public Deposits over the financial year was R35.2 million (2014: R27.6 million) and the average interest rate over the same period was 5.88% (2014: 5.18%).


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9. Property, plant and equipment 2015 2014

Cost

Accumulated depreciation and

accumulated impairment

Carrying value Cost

Accumulated depreciation and

accumulated impairment

Carrying value

Land 515 455 - 515 455 515 455 - 515 455buildings 13 194 370 (3 452 461) 9 741 909 12 087 132 (3 386 786) 8 700 346Parking garage 4 047 110 (372 428) 3 674 682 4 047 110 (372 428) 3 674 682Central airconditioning system 1 973 371 (1 675 163) 298 208 1 973 371 (1 625 228) 348 143subtotal: land and building 19 730 306 (5 500 052) 14 230 254 18 623 068 (5 384 442) 13 238 626IT equipment 15 589 086 (10 979 290) 4 609 796 15 331 794 (10 895 997) 4 435 797Motor vehicles 304 287 (26 679) 277 608 199 516 (65 492) 134 024Furniture and fixtures 4 378 760 (2 950 675) 1 428 085 4 049 374 (2 965 488) 1 083 886Total 40 002 439 (19 456 696) 20 545 743 38 203 752 (19 311 419) 18 892 333

Some of the items reflected in IT equipment and furniture and fixtures have a Nil carrying amount but are still in use within SAQA. It is the intention of SAQA to replace these items as soon as it is practically possible to do so.


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9. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2015

opening balance

AdditionsCarrying

amount on disposals

depreciation Total

Land 515 455 - - - 515 455buildings 8 700 346 1 107 238 - (65 676) 9 741 908Parking garage 3 674 682 - - - 3 674 682Central airconditioning system 348 143 - - (49 935) 298 208subtotal: land and building 13 238 626 1 107 238 - (115 611) 14 230 253IT equipment 4 435 797 1 991 231 (284 001) (1 533 231) 4 609 796Motor vehicles 134 024 157 476 - (13 892) 277 608Furniture and fixtures 1 083 886 735 818 (207 879) (183 740) 1 428 085

18 892 333 3 991 763 (491 880) (1 846 474) 20 545 742


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Reconciliation of property, plant and equipment - 2014

opening balance

Additions depreciation Total

Land 515 455 - - 515 455buildings 8 657 903 99 152 (56 709) 8 700 346Parking garage 3 674 682 - - 3 674 682Central airconditioning system 398 078 - (49 935) 348 143subtotal: land and building 13 246 118 99 152 (106 644) 13 238 626IT equipment 4 608 112 1 442 947 (1 615 262) 4 435 797Motor vehicles 146 812 - (12 788) 134 024Furniture and fixtures 783 254 480 452 (179 820) 1 083 886

18 784 296 2 022 551 (1 914 514) 18 892 333

SAQA acquired the land and buildings at 1067 Arcadia Street, Hatfield, Pretoria, Erf 637 Hatfield, on 1 October 2002 for R5,400,000. Net improvements to land and buildings to date amount to R14 320 236 (2014: R13 223 068).


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2015 2014R R


details of property

Cost 5 400 000 5 400 000Improvements2002 551 259 551 2592004 5 041 314 5 041 3142005 17 222 17 2222006 59 530 59 5302007 251 754 251 7542008 3 889 380 3 889 3802009 519 855 519 8552010 54 059 54 0592011 1 897 929 1 897 9292012 154 900 154 9002013 686 714 686 7142014 99 152 99 1522015 1 107 238 -

19 730 306 18 623 068


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10. intangible assets

2015 2014

CostAccumulated amortisation

Carrying value CostAccumulated amortisation

Carrying value

DFQEAS workflow software 4 091 446 (3 376 038) 715 408 4 091 446 (3 018 334) 1 073 112NLRD software 26 882 517 (25 068 562) 1 813 955 26 750 708 (24 729 540) 2 021 168SAQA Website 331 972 (165 986) 165 986 331 972 - 331 972License fees - - - 237 290 - 237 290National Career Advice Portal - - - 10 959 650 (1 717 130) 9 242 520Total 31 305 935 (28 610 586) 2 695 349 42 371 066 (29 465 004) 12 906 062

Reconciliation of intangible assets - 2015

opening balance

AdditionsCarrying

amount on disposal

Amortisation Total

DFQEAS workflow software 1 073 112 - - (357 704) 715 408NLRD software 2 021 168 131 809 - (339 022) 1 813 955SAQA Website 331 972 - - (165 986) 165 986License fees 237 290 - - (237 290) -National Career Advice Portal 9 242 520 - (9 242 520) - -

12 906 062 131 809 (9 242 520) (1 100 002) 2 695 349


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10. intangible assets (continued)

Reconciliation of intangible assets - 2014opening balance

Additions Amortisation Total

DFQEAS workflow software 1 341 440 67 032 (335 360) 1 073 112NLRD software 2 078 431 239 656 (296 919) 2 021 168SAQA Website - 331 972 - 331 972License fees - 237 290 - 237 290National Career Advice Portal 7 671 755 3 287 895 (1 717 130) 9 242 520

11 091 626 4 163 845 (2 349 409) 12 906 062

11. deferred income 2015 2014R R

deferred income comprises of:

Foreign Qualifications Evaluation and Advisory Services 6 796 748 3 947 033Council on Higher Education 1 079 154 945 642CHIETA 268 414 - Rent received in advance 29 249 19 769EW SETA - 1 785 000W&R SETA 2 035 746 -

10 209 311 6 697 444


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2015 2014R R

12. Payables from exchange transactions

Trade payables 9 394 270 9 225 295Accrued leave pay 2 185 892 2 326 938Accrued bonus 749 557 785 099

12 329 719 12 337 332

SAQA 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.

13. VAT payable from exchange transactions

VAT payable 22 270 20 067


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2015 2014R R

14. Cash generated from (used in) operations

(Deficit) surplus before taxation (7 915 180) 4 037 479Adjustments for:Depreciation and amortisation 2 946 475 4 263 922Loss on transfer at nil value of NCAP asset and CDS Assets 9 666 002 -(Profit) on disposal of assets (70 759) (160)bad debts (recouped) / written-off 50 928 76 894Movements in operating lease assets and accruals 10 163 (47 362)Movements in provisions 567 791 550 000Changes in working capital:Inventories (9 021) (7 854)Receivables from exchange transactions 8 577 465 (9 186 942)Prepaid expense (955 460) 929 757Payables from exchange transactions (7 611) 1 635 513VAT 2 203 (15 094)Deferred Income 3 511 867 (2 868 657)

16 374 863 (632 504)


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2015 2014R R

15. operating leaseleases as lessorSAQA leases out offices in the Hatfield building under operating leases. The future minimum lease payments under non- cancelable leases are as follows:

Less than one year 393 224 252 630between one and five years - -

393 224 252 630Amount to be recognised in future periods 393 224 242 467Operating lease accrual recognised - 10 163

393 224 252 630

16. Taxation

SAQA is exempt from income tax in terms of section 10 (1) cA of the Income Tax Act.


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17. Financial instruments

Risk management

Exposure to credit risk arises in the normal course of SAQA’s business. Exposure to currency and interest rate risk is minimal. SAQA has an overall risk management plan that is approved by the board and is reviewed by the Audit and Risk Committee annually. The board has approved written policies covering specific areas such as investment policy and credit policies that SAQA’s management adheres to.

Credit risk

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Reputable financial institutions are used for investing and cash handling purposes.

At the statement of financial position date there was no significant concentration of credit risk. (Refer to note 7)

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

liquidity risk

SAQA manages liquidity risks by monitoring forecasted cash flows and ensuring that the necessary funds are available to meet any commitments which arise. SAQA further manages liquidity risk by only spending according to its approved budget which is fully funded. The budget is reviewed and approved annually by the board and by the Minister of Higher Education and Training. Cash which is not needed immediately is invested with the Corporation for Public Deposits. As funds are needed, the necessary cash is transferred to SAQA’s operations account. Creditors are paid within 30 days of receipt of invoice.

interest rate risk

SAQA’s exposure to interest rate risk relates to the call deposit held with the Corporation for Public Deposits. The interest rate is updated weekly and is linked to the Treasury bill rate. SAQA reviews the rate at regular intervals and compares the rate received to the rates available in the market from other large commercial banking institutions to ensure that it is receiving competitive rates. The funds held with the CPD are available on the same day if requested before 12h00.

On an average cash balance of R35,2 million (2014: R27,6 million), a 1% rise or fall in the interest rate would have an effect on income of either increasing income or decreasing it by R352,000 (2014: R276,000), having an effect of 0.31% (2014: 0.22%) of total income.

Fair values

The fair values of all financial instruments are substantially identical to carrying amounts reflected in the statement of financial position.


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18. Retirement benefit obligations

SAQA operates a defined contribution retirement plan covering all qualifying employees. The fund is governed by the Pension Funds Act, 1956 (Act No. 24 of 1956).

The assets of the fund are held in trust under the control of the umbrella board of Trustees of the Orion Money Purchase Pension Fund (SA). Old Mutual is the fund underwriter. Fund assets consist primarily of monthly contributions paid over to the fund on behalf of the members by the participating employers. The underlying assets are invested in listed shares, fixed income securities, cash and deposits.

The total cost charged to income of R6,068,167 (2014: R5,824,677) represents contributions payable to the scheme by SAQA according to the rates specified in the rules of the scheme.

As at 31 March 2015 all contributions had been paid over to the scheme.

19. subsequent events

No adjusting events, or non-adjusting events requiring disclosure, occurred after the reporting period.

20. Accounting estimates and judgements

After due consideration management believes that the accounting policies used are appropriate and estimates made are reasonable.

21. investment property

The Authority sub lets a portion of the SAQA House building but has decided not to treat this property as an investment property as the Authority occupies a significant portion of the building for administration purposes. Accordingly, the leased floor space is treated as an operating lease of property, plant and equipment.

22. Contingent liabilities

In terms of section 53(3) of the PFMA, a public entity may not accumulate surplus funds without approval from the National Treasury. Approval has been requested from the National Treasury to retain cash surpluses amounting to R13,5 million, however, SAQA is still awaiting approval. In the past the National Treasury has allowed the retention of surplus funds.


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23. Commitments

Committed and Contracted 2015 2014R R

SAQA has the following contractual committents that it has already entered into for the coming financial years- Council on Higher Education Database Project 1 079 154 945 642- IT Related Costs 2 494 729 2 757 093- Facilities Costs 4 097 333 3 346 615- Professional Services 2 869 768 2 203 922- Advertisements and Advocacy 1 282 379 3 106 990- Stationery & Printing 244 316 293 431

12 067 679 12 653 693

Research Proposal CommitmentsIn addition to the commitments in the table above, SAQA has entered into Research agreements with one institution. The total commitment into the future is R45,000. The commitment for the 2015/16 financial year is R45,000. Should the research partner not perform according to the terms of the agreement, then SAQA has the right to cancel the agreement and to withhold any further payments to the institutions.

operating lease as lessee 2015 2014R R

Minimum lease payments due- within one year 44 335 44 335- in second to fifth year inclusive 7 389 51 724

51 724 96 059

SAQA leases water coolers over a 24 month period. If no notice of cancellation is given within 90 days of the contract ending date, the lease is automatically renewed for a further 24 month period. The current contract expires on 31 May 2016. The current lease payment is R3,694.57 per month and there are no built in price escalations in the lease agreement.Committed but not ContractedSAQA has approved the procurement of a further R 336,392 of expenditure for professional services but has not yet contracted with the suppliers.


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24. Public Finance Management Act

The SAQA is not aware of any material losses during the year from any criminal conduct and has not incurred any irregular, unauthorised or fruitless and wasteful expenditure during the financial year. It has therefore not had to carry out any criminal or disciplinary steps in the light thereof.

The SAQA has assessed the levels of materiality to be�� any amount which arises from criminal conduct�� R10,000 and above which results from irregular, fruitless or wasteful expenditure caused by gross negligence; or�� R600,000 and above, being approximately 0,5% of gross revenue in respect of irregular, fruitless or wasteful expenditure caused by any other circumstance

No fruitless and wasteful expenditure caused by gross negligence above the value of R10,000 occurred during the year.

SAQA received R55,008,000 (2014: R49,401,000) from the government during the year. No financial commitments were made on the government’s behalf.

25. Prior period errors

It was discovered that in the previous financial year that a number of verifications of qualifications were completed before the year end but were only invoiced to clients in the 2014/15 financial year. The net effect was that Verifications services income was understated and trade debtors was understated in the prior financial year by an amount of R179,480.

In reviewing the estimated useful lives of the property, plant and equipment, SAQA realised that the useful lives being used were not aligned to the practical experience and history of usage of the assets. The useful lives of the following assets were therefore revised and the depreciation recalculated and adjusted as from 01 April 2012:- Computer file servers from 4 to 5 years- Office furniture and equipment from 5 to 8 years- Central airconditioning system from 10 to 15 years- General IT equipment from 3 to 4 years- Switches from 3 to 7 years- Monitors / Computer Screens from 3 to 5 years- The PAbX system and Telephones from 3 to 8 years- Photocopy machines and Printers from 3 to 5 years


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25. Prior period errors

The net effect of the change in estimated useful lifetimes has resulted in the depreciation for the 2012/13 financial year to decrease by an amount of R879, 550 (from R2,711,212 to R1,831,662) and the depreciation for the 2013/14 financial year to decrease by an amount of R782,274 (from R2,696,787 to R1,914,513).

The correction of the error(s) results in adjustments as follows:

2015 2014R R

Statement of financial positionIncrease in Trade debtors - 179 480Increase in Property, plant and equipment - 1 661 824

Accumulated surplus Opening Surplus as previously stated - 40 512 021Correction of error - depreciation for 2012/13 - 879 550Revised Opening Surplus - 41 391 571

Closing accumulated surpluses as previously reported - 43 587 746Correction of error - Verifications services - 179 480Correction of error - depreciation for 2012/13 and 2013/14 - 1 661 824Closing Accumulated Surplus - 45 429 050

statement of Financial PerformanceIncrease in Verifications services - 179 480Decrease in depreciation - 782 274


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26. Provisions

Reconciliation of provisions - 2015

opening balance

Additionsutilised during

the year Total

Legal Fees 50 000 - (50 000) -Staff Performance bonus 500 000 1 098 160 (500 000) 1 098 160CEO Performance bonus 168 949 188 580 (168 949) 188 580

718 949 1 286 740 (718 949) 1 286 740

Reconciliation of provisions - 2014

opening balance

AdditionsReversed during

the yearTotal

Legal fees - 50 000 - 50 000Staff Performance bonus - 500 000 - 500 000CEO Performance bonus 168 949 168 949 (168 949) 168 949

168 949 718 949 (168 949) 718 949


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27. Related parties

Identity of related parties

The entity has a related party relationship with public entities within the national sphere of government. The ultimate parent of SAQA is the government, represented by the Department of Higher Education and Training. Arms length transactions between related parties have not been reflected as per the exemption in IPSAS 20.27

Transactions with members of SAQA consists of remuneration and are disclosed in Note 3 to the financial statements and the names are detailed in the Accounting Authority Report.

Transactions with sAqA’s principal departments and their public entities:

2015 2014R R

grantDepartment of Higher Education and Training 55 008 000 49 401 000

Funds received for servicesCouncil on Higher Education 1 577 315 1 270 000DHET / National Skills Fund - Career Advice Services 40 577 870 43 121 566Energy and Water SETA - 1 785 000Wholesale and Retail SETA 2 500 000 -CHIETA 375 143 -

45 030 328 46 176 566

balance owing to sAqA by entityDHET - Career Development Services (327 836) (9 120 585)Energy and Water SETA (192 323) -

(520 159) (9 120 585)


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28. directors’ emoluments

2015

Remuneration Contribution to retirement plan

Performance bonus paid Total

Chief Executive Officer 1 201 379 145 620 140 180 1 487 179Deputy Chief Executive Officer 1 116 991 148 179 - 1 265 170Director: In the Office of the Executive Office (Appointed 24 November 2014) 240 114 33 244 - 273 358Director: International Liaison (Appointed 01 March 2015) 65 356 9 646 - 75 002Director: International Liaison (Resigned 30 September 2014) 416 983 52 708 27 409 497 100Director: Finance and Administration 1 136 251 131 838 - 1 268 089Director: Advocacy Communications and Support 747 927 90 844 - 838 771Project Director: Advocacy Communications and Support (Resigned 30 April 2014) 90 878 9 333 - 100 211Director: Foreign Qualifications Evaluations and Advisory Services 789 821 107 665 - 897 486Director: Information Technology (Retired 31 May 2014) 182 986 20 761 - 203 747Director: Information Technology (Appointed 01 July 2014) 553 449 76 975 - 630 424Director: Human Resources 912 397 115 135 - 1 027 532Director: National Learners’ Records Database 907 765 119 767 - 1 027 532Director: Registration and Recognition 789 821 107 665 - 897 486Director: Research 731 470 107 301 - 838 771

9 883 588 1 276 681 167 589 11 327 858


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28. directors’ emoluments (continued)

2014

Remuneration Contribution to retirement plan

Performance bonus paid Total

Chief Executive Officer 1 137 150 137 210 126 712 1 401 072Deputy Chief Executive Officer 986 719 130 572 - 1 117 291Director: Office of the CEO 698 301 84 135 - 782 436Project Director: Career Advice Services* 241 840 31 133 - 272 973Director: International Liaison 792 455 103 357 - 895 812Director: Finance and Administration 1 059 725 123 194 - 1 182 919Project Director: NQF Advocacy 854 628 103 891 - 958 519Director: Foreign Qualifications Evaluation and Advisory Services 736 759 100 448 - 837 207Director: Information Technology 933 983 115 611 - 1 049 594Director: Human Resources 851 725 106 794 - 958 519Director: National Learners’ Records Database 847 092 111 427 - 958 519Director: Registration and Recognition 736 759 100 448 - 837 207Director: Research 682 326 100 110 - 782 436 10 559 462 1 348 330 126 712 12 034 504

* Resigned 31 July 2013


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29. Accounting standards

The following statements and interpretations are not yet effective in preparing the financial statements of SAQA as per Directive 5 issued by the Accounting Standards board. The effect of the changes to the financial statements of SAQA, if any, once implemented, will not be material.

* GRAP 20 Related Party Disclosures No effective date* GRAP 32 Service Concession Arrangements: Grantor No effective date* GRAP 105 Transfer of Functions between Entities under Common Control No effective date* GRAP 106 Transfer of Functions between Entities Not under Common Control No effective date* GRAP 107 Mergers No effective date* GRAP 108 Statutory Receivables No effective date* IGRAP 17 Service Concession Arrangements Where a Grantor Controls a Significant Residual Interest in an Asset -

Standards of GRAP that have been issued that entities are not required to apply:* GRAP 18 Segment Reporting

30. Comments to the statement of comparison of budget and actual amounts

Income from services rendered is lower than budgeted due to:

R1,1 million less income mainly for the verification of qualifications income. Although there has been a 24,4% increase in income over the prior year, the demand is still lower than anticipated.

Rental income received is less than budgeted for by R0,6 million due to a tenant that vacated the premises after its lease had come to an end. SAQA did not let the premises due to the need by SAQA for additional office space for its own staff.

R2,4 million less sundry income received due to fund raising initiatives that generated less income than was anticipated. Investment revenue was higher than budgeted for by R0,67 million due to a higher average weekly cash balance than what was budgeted for and a higher average interest rate (0,7% more than last year).

Grant revenue is higher than budgeted for as a result of the increased spending related to the CDS project. This was as a result of the timing difference of the spend between the first 6 months and the last 6 months of the project.

Surplus funds from prior years of R8,6 million were included in the budget. Approval was received from National Treasury to retain the surplus.


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30. Comments to the statement of comparison of budget and actual amounts (continued)

Personnel costs is underspent by R8,7 million due to a number of reasons:

Some of the Senior staff members (Directors & Deputy Directors) either retired or resigned during the course of the year. The process to recruit and appoint the right staff members to the senior positions meant that the positions were vacant for a longer period of time than usual which resulted in some savings.

The DFQEAS directorate is in the process of changing and streamlining its business processes and procedures to enhance service delivery. As a result thereof, positions that were budgeted for initially were not yet filled. These vacancies will only be filled in the new year once the redesign has been finalised and completed.

Vacancies and resignations in the CDS project played a role as a result of the uncertanties experienced over the final completion date of the project. No new appointments could be made to fill the vacancies.

SAQA does not include depreciation and amortisation in its budgets and this is the only reconciling item when comparing the budgeted amounts to the actual outcomes.

All of the normal ongoing repairs and maintenance was completed during the year. Additional funds were allocated via virements for some additional repairs and maintenance to take place to the lifts, toilets and front entrance. Due to timing issues, not all of the additional repairs and maintenance was done by the year end which resulted in the under expenditure.

The general expenditure is underspent by an aggregate of R0,35 million.

1. There were savings of R0,65 million on staff training, educational assistance and staff recruitment costs.2. This included efficiency savings of R3,3 million on computer licensing and expenditure, website hosting and maintenance, photocopying costs, travelling and

accommodation, and cellphone costs. Some of the funds budgeted for research partnership costs and computer application development were not spent.3. An additional amount of R1,0 million was spent on postage as a result of the post office strike. Costs for printing, advocacy of the NQF, audit and consulting fees

were overspent by an amount of R2,6 million due to additional initiatives included for the career development services project and the NQF advisory services projects.

Property, plant and equipment (PPE) was underspent as a result of a timing difference of not having been able to spend the additional budget allocated to the PPE by year end. This included amounts that had been allocated to upgrade the lifts in the building and for the purchase of a standby generator.

The amount spent on intangible assets was to improve the functionality of the National Learners Records Database system.


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NOTES


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NOTES

SAQA House1067 Arcadia Street

HatfieldPretoria

Postnet Suite 248Private Bag X06

Waterkloof0145

Helpdesk: +27 (0) 86 010 3188Switchboard: +27 (0) 12 431 5000

Fax: +27 (0) 12 431 5147

General enquiries: [email protected]

ISBN: 978-1-920649-28-9

Documents

FROM POLICY DEVELOPMENT TO POLICY IMPLEMENTATION · in keeping with these rights, the nqF Act includes the following provisions: 5. (1) The objectives of the NQF are to: (a) Create