Continuing Education and Training Act, 2006 (Act No. 16 of 2006)

Notices

National Norms and Standards for Funding Technical and Vocational Education and Training Colleges

F. Financial Management at Public TVET Colleges

81 - 83.

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81.It is not the purpose of this policy to provide general financial management rules for public TVET Colleges. The use of GRAP, external auditors, internal audit and risk management will become entrenched across all colleges. College financial management system developed by the DHET is being used in a number of colleges. It is important for this work to continue, and for financial management requirements to become nationally standardised.

 

82.The DHET must pay particular attention to the development of accounting structures and practices that allow for a clear separation of public and private income and expenditure. Financial accounts must be arranged in such a way that the utilisation of publicly financed infrastructure for fee-for-service programmes is reflected as such, so that the financial cost of this is clear. Similarly, the utilisation of the same staff members for the offering of public and private training services should result in separate public and private accounting of the related income and expenditure.

 

83.The DHET must pay special attention to the matter of the financial reserves of colleges, and private loans taken by colleges to fund infrastructural and other development. Practices in this regard should not place the sustainability of colleges at risk, nor should they result in excessive mission drift away from the role of colleges as public providers of TVET.

 

While section 24(2) of the CET Act, says: ''A public college may not raise money by means of loans or overdraft without approval of the Minister," these norms and standards do not provide the criteria and conditions under which the Minister may approve the raising of loans. The DHET in consultation with the National Treasury will develop procedures, criteria and conditions under which the Minister may consider approval.