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 Overview of the TVET College Sector Funding

 

Where the word college is used in these norms, it refers to TVET College

 

What services are funded?

 

The emphasis is on a shift towards training that tackles skills and unemployment problems more aggressively through, for instance, more relevant training content and the cost effective use of college facilities and resources. The funding norms specify how Government, in collaboration with industry stakeholders, should determine what programmes should be offered where and to what extent, and how colleges must receive funding to respond to these needs.

 

Equity and redress

 

The funding norms are pro-poor in that they accord access to those who cannot afford to pay fees through a bursary scheme that is administered by the National Student Financial Aid Scheme (NSFAS). A means test is conducted to determine the eligibility for bursary funding. A bursary provided by the state enables poorer and academically capable students not to pay college fees.

 

The funding norms emphasise the importance of concentrating public funds on training that is not being adequately financed by the private sector, and this would to a large extent be training for the historically disadvantaged. Colleges are required to incorporate targets relating to race, gender and special needs representativity within the three-year strategic plans that they draw up in collaboration with the Department of Higher Education and Training (DHET).

 

The size of the TVET College sector

 

By international standards, the size of the Technical and Vocational Education and Training (TVET) College sector is too small for the size and level of development of South African economy. It is evident that in terms of both a proportion of the national education budget and as a percentage of GDP that TVET Colleges are underfunded especially in the light of the proposals in the White Paper on Post-School Education and Training and the National Development Plan 2030. Head-count enrolments increased from 345 566 in 2010, 688 028 in 2017 and have a target of 710 000 by 2024 though still expected to be 2.5 million by 2030. The education budget in 2018/19 financial year was divided as follows: Schooling 84%, University 11%, and TVET Colleges 4%. The correct balance between TVET College and University funding needs to be addressed incrementally over time.

 

Improved management of the sector flowing from the merger process, in conjunction with the TVET Colleges funding norms and an injection of new public funds into the sector will work together to bring about the necessary expansion, not just because more training is supplied, but also because transformation within the sector leads to stronger demand on the part of youth, employees, employers and the unemployed.

 

Governance at the national level

 

Currently, DHET strategic plan guide what happens in the public TVET Colleges sector. However, these mechanisms are inadequate to ensure that the quality and quantity of services offered by the colleges respond to social and economic needs.

 

The funding norms assign specific planning responsibilities and powers to the national and college levels. At all levels, collaboration with relevant government organs as well the private sector is emphasised. Specifically, dedicated research into the cost of delivering programmes and into the optimal service delivery targets of the college sector as a whole is the responsibility of the DHET is to work closely with colleges to develop and implement three-year strategic and annual performance plans for each college. Through this mechanism national priorities are to be translated into funded activities run by the colleges.

 

The funding formula

 

Interms of these funding norms and standards, the bulk of DHET funding of colleges is in the form of formula funding of programmes, where the formula takes into account a range of service delivery issues, including type of programme being offered (the NC(V), NATED Report 191 programmes, Pre-Vocational Learning programmes (PLP) and other Occupational programmes as approved in a national register), FTE students, cost of delivery including staff, capital infrastructure requirements, and the ability of colleges to utilise resources efficiently. The funding formula introduced a system of resourcing that is more sensitive to the actual cost of service delivery and takes into consideration outputs and quality.

 

As in many other countries, funding formulae should take into account the variable costs of programmes and the factors that disadvantage certain institutions and the students that populate them. Rural colleges clearly need a funding adjustment through an additional weighting on the formula.

 

Collaborative funding

 

In the United Kingdom, main institutional forms of further education include further education colleges and tertiary colleges, specialist colleges (mainly colleges of agriculture and horticulture and of drama and dance) and private training companies which work with colleges and employers to provide practical training and qualifications in subjects such as engineering, construction, JCT and health and social care. They usually have strong links with companies and potential employers. They are autonomous statutory corporations invariably governed by independent boards of governors. Colleges are externally regulated and quality assured and must demonstrate accountability externally to learners, employers and communities.

 

College fees and affordability

 

Three measures in the funding norms tackle the problem of excessive private cost for poorer students. Firstly, the funding formula and the college planning frameworks makes a clear link between the public funding that is available and services that must be offered. Better public funding of public priority programmes is thus envisaged. Secondly, fees are to be capped at levels that are in tune with the level of public funding and the estimated total cost of service delivery. Thirdly, a bursary will be allocated to colleges to cover college fees for academically capable students who cannot afford to pay college fees. This policy makes it the responsibility of the DHET to determine the bursary across colleges and allocate bursary funds accordingly.

 

Services to other clients

 

Colleges currently charge a variety of organisations, both public and private, for training services provided. There is currently no legal framework dealing specifically with college income from organisations other than the DHET. The use of DHET-funded capital infrastructure to cross-subsidise services for other clients has been a concern. The measures to deal with cross-subsidisation by public colleges are dealt with under Fee-for­ Service in paragraph 75 - 78.

 

Responsiveness of colleges to other clients parallel to the delivery of programmes covered by the funding formula will continue to be encouraged. However, this should support economic development and should not conflict with the core business of colleges to provide training according to agreements concluded with the DHET. This policy outlines what existing financial management and reporting regulations should be applied in this regard, and new requirements will be established where gaps exist.

 

Planning and reporting cycles

 

In terms of this policy, clear steps for planning and reporting in the sector are established. Moreover, the explicit linking of plans, budgets and service delivery through three-year performance agreements following a basic national format is intended to assist in a more transparent planning process that will involve a greater range of stakeholders.

 

Economy and Education

 

Though education provides a foundation for development, its contribution to economic and social wellbeing depends on its quality (i.e. its ability to transmit skills and knowledge) and the responsiveness of the economy in ensuring a demand for educated labour. In the economic development context in South Africa, the role of technical and vocational education and training is particularly crucial to the development of the country's manufacturing sector which at this point is seriously underdeveloped given the country's level of development.