Annual Report 2007/2008 - Umalusi

ANNUAL REPORT 2007/08

Annual Report2007/2008ContentsChairperson’s Report 3Report of the Chief Executive Officer 5Corporate Governance Report 9Report on Operations 12Report of the Audit Committee 29Annual Financial Statements 30Report of the Independent Auditors 31Report of the Council 32Statement of Financial Position 34Statement of Financial Performance 34Statement of Changes in Net Assets 35Cash Flow Statement 35Accounting Policies 36Notes to the Annual Financial Statements 40Detailed Statement of Financial Performance 45Human Resources Management and Development 47List of Acronyms 59Staff 2007/2008 601 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

2QUALITY

Chairperson’s Report“2007 proved to be both a challengeas well as a period of development andgrowth for the organisation.“It gives me great pleasure to once again affirmthe high standard of the deliverables producedby the Council in carrying out its mandate during2007. This included the annual quality assuranceof assessment and certification; accreditation ofproviders and assessment bodies; and monitoring ofthe suitability and appropriateness of qualificationsand standards in general and further education.During 2007, the Council celebrated a number ofsubstantive achievements, not least of which wasthe purchase of Umalusi House, officially opened bythe Minister of Education, Mrs Naledi Pandor, MP, onFriday, 31 August 2007. Umalusi House represents thesolid foundation and tradition of educational qualitywhich Umalusi has pursued since its inception in 2002,and confirms Umalusi’s standing in the educationsystem as the guardian of educational standards.Notably, the 2007 matriculation examination wasproblem free, indicating that both public and privateassessment agencies assessing the variousqualifications that Umalusi certifies, have the sustainedcapacity to administer credible examinations.The accreditation of independent schools, privateFurther Education and Training (FET) colleges andadult learning centres continued in greater numbers,and approaches were developed towards thequality assurance of qualifications and curriculain anticipation of the changes proposed by theresolution of the National Qualifications Framework(NQF) review.This work helped to inform Umalusi positions regardingthe proposed changes to the NQF architecture, andcreated an opportunity for Umalusi to review andconsolidate its positions and approaches, and toredefine its roles and responsibilities as a futureQuality Council.As part of its process of consultation, Umalusicontinued to raise public debates around importanteducational issues and engaged with stakeholdersand colleagues in various seminars and forums,including attendance of international conferences andconsultation with foreign examination bodies.The Chief Executive Officer, Dr Peliwe Lolwana,undertook a six-month sabbatical in the United Statesin the second part of 2007. This proved to be botha challenge as well as a period of development andgrowth for the organisation. The senior managementteam had the opportunity to demonstrate their abilityto manage and run Umalusi and did so professionallyand enthusiastically.Prof Linda Chisholm resigned from the Council inNovember 2007 after serving almost two terms.Her significant contribution as a Council memberis greatly appreciated and will be missed. She hashowever, agreed to continue serving on the ResearchForum.In conclusion, I would like to thank the CEO, seniormanagement team and the staff of Umalusi for theirenduring commitment to quality. In particular, I wouldlike to thank Mr Jeremy Thomas who stood in forDr Lolwana as CEO during her sabbatical. It is a greattribute to him and the entire Umalusi staff, that theorganisation ends 2007 in a healthy and strongposition.JOHN VOLMINKChairperson3 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report of the Chief Executive Officer“One cannot claim to be goinganywhere if there is no sense of whereone has come from.”Is Umalusi ready to be a Quality Council?It is said that one cannot know where one is goingunless one knows where one has come from. This istrue: with no sense of origin, there is no way of knowingwhere others came from, how much distance theyhave covered, and where they are in relation to theirdestination; without this knowledge, the journeyis tedious and directionless. Simply put, one cannotclaim to be going anywhere if there is no sense ofwhere one has come from – It would just be ameaningless walk and not a journey. It is for thisreason, therefore, that as we ponder the readiness ofUmalusi to be a Quality Council with all the expandedresponsibilities, we must start by looking back andtracing the milestones of achievement. In Xhosa,we would say ‘yehlisa i-emele kulondawo ukuyo’ –literally translated – ‘Put down the bucket of waterwhere you are; figuratively meaning: take stock.The question about readiness rides on the back of abigger question about the value and indispensabilityof Umalusi in education. There is almost a generationof learners who may not know that Umalusi did notalways exist in the South African education system.It is important to remind ourselves why we are hereand how we came to be here.Right from the outset, the new government had tograpple with inequalities in all spheres of societyand government, including the education system.In education, this inequality was characterisedby unequal resourcing and standards in the variousdepartments of education. The move from a myriadof education departments did not automaticallyproduce a single department of education. In 1996,the nine provincial examining bodies administered theSenior Certificate examination and new norms for thestandardisation of this examination were establishedand applied for the first time. This was a majorcontribution to equity in education and Umalusi’spredecessor, the South African Certification Council(SAFCERT) was there throughout this time.The new democratic government, being acutely awareof the inequalities and divisions in the educationsystem, prioritised its effort to equalise inputs in thesystem, remove racial divisions, and be inclusive inall decision-making structures, including the standardsetting and evaluation processes of the SeniorCertificate examination. During the period 1996-1999,the newly formed examination bodies battled withintegrity in the administration of this examination.As the practices of the ex-departments were broughttogether, irregularities loomed large and tainted theperceptions about this examination. This occurredat a time when the number of candidates writingthe Senior Certificate examination had increasedalmost one and a half times. For example, thenumbers between 1990 and 1999 increased from360 452 to 511 474, rising to 858 754 in 2007. Positiveresults were not immediate and it was only in 2000that the pendulum began to swing the other way andresults improved. However, the question of quality andstandards continued to plague this examination.It is in this context that Umalusi began to chart itspath and establish its role in standard setting andmaintenance. Over the years, we have learnt a5 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report of the Chief Executive Officer (continued)“Yes, Umalusi is ready to bea Quality Council”.by making quality criteria explicit Umalusi can claim tobe universally fairer in assessment and selection, andtherefore more congruent with democratic values; bynot being limited to specific contexts such as schoolsand not relying to the same degree on institutions,standards can be applied to workplaces and othersites; and the critics can be dismissed as conservativeand elitist, only interested in protecting special interestsand privileges.Umalusi has over the years often found itself caughtbetween the two sides of this debate. This has notbeen an easy or comfortable position, but it is exactlywhat has made the organisation uniquely qualifiedto be a Quality Council. Umalusi understands thetraditional modes as well as the new modes of qualityassurance in setting and maintaining standards.Umalusi brings to the table seven years ofunderstanding of the contexts of its provider sectors– namely schools, further education and trainingcolleges and adult education and training centresboth in the public and private domain. Umalusiunderstands assessment and assessment bodies.Umalusi understands standards in qualifications andcurriculum. Umalusi understands the inspection andaccreditation of educational institutions.It is not for Umalusi to answer the question aboutits value to the system because it, like all statutorybodies, was created through a political process.However, it is difficult to imagine a South Africaneducation system without its ‘Shepherd’.Yes, Umalusi is ready to be a Quality Council.DR PELIWE LOLWANAChief Executive OfficerInteresting FactsThe history of Umalusi is inextricably tied to the history of the Senior Certifi cate Examination (SCE). The historycan be divided into three distinct phases:The Joint Matriculation Board phase (1918 – 1992), which involved formalising the matriculationexamination in South Africa’s education system;South African Certifi cation Council (SAFCERT) phase (1992 – 2001), which saw the centralisation of qualitycontrol measures; andThe Umalusi phase, which many believe to be the third phase of the Senior Certifi cate Examinations.Umalusi, the Council for Quality Assurance in General and Further Education and Training, was establishedby an Act of Parliament, the General and Further Education and Training Quality Assurance Act (theGENFETQA Act No.58 of 2001) in December 2001. This act gave Umalusi the expanded mandate ofquality assuring the standards of qualifi cations, assessment, provision and certifi cation in schools, collegesand adult learning centres.7 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

INTEGRITYI T 8 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Corporate Governance Report“The Council and employees arerequired to observe the highest ethicalstandards to ensure that businesspractices are conducted in a mannerthat is beyond reproach.”Umalusi Council endorses the principles in the Codeof Corporate Practices and Conduct recommended bythe King Committee. The Council has adopted theprinciples of openness, integrity and accountability.The Council operates within the terms of the PublicFinance Management Act (PFMA) 1 of 1999, and thisforms the context for corporate governance in whichthe Council operates.Umalusi CouncilThe Council consists of 15 members appointed bythe Minister of Education; who also appoints theChairperson. The Council is responsible for policy andCouncil members and their meeting attendanceTABLE 1NameDateappointedMeetingsattendedGenderProfessor JD Volmink (Chairperson) 09-06-2006 4 / 4 Male ColouredMr J Pampallis (Deputy Chairperson) 09-06-2006 4 / 4 Male WhiteMr GR Agocs 09-06-2006 3 / 4 Male WhiteProfessor L Chisholm 09-06-2006 1 / 2 (*) Female WhiteDr PP Lolwana 09-06-2006 3 / 4 (**) Female BlackProfessor SG Mabizela 09-06-2006 4 / 4 Male BlackDr MA Makhafola 09-06-2006 4 / 4 Male BlackMs J Naidoo 09-06-2006 1 / 4 Female IndianMr L Nengovhela 09-06-2006 1 / 4 Male BlackDr RA Patel 09-06-2006 2 / 4 Male ColouredMr MS Rakometsi 09-06-2006 4 / 4 Male BlackDr PJN Steyn 09-06-2006 4 / 4 Male WhiteDr IL Rensburg 09-06-2006 0 / 4 Male ColouredDr ZC Sosibo 09-06-2006 4 / 4 Female BlackMs PT Tyobeka November 2006 1 / 4 Female BlackProfessor M Fourie 09-06-2006 2 / 4 Female WhiteProfessor DS Zinn 14-03-2008 0 / 0 (***) Female Coloured(*) Resigned on 16 November 2007 (**) Mr JR Thomas attended one council meeting in the capacity as Acting Chief Executive Offi cer in the offi cial absenceof Dr PP Lolwana (***) Appointed on 14 March 2008Race9 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Corporate Governance Report (continued)financial spending according to the budget;implementation of strategies and policies asapproved by the Council;adherence to the work programme;adequacy of resources and staff;compliance with relevant legislation; andany special investigations undertaken by theorganisation.The EXCO is also responsible for any other functionsdelegated to it by the Council. The EXCO met on fiveoccasions during the period under review. Table 2shows the composition of the EXCO as well asattendance at meetings.overall governance, with the day-to-day managementdelegated to the CEO.In accordance with the General and FurtherEducation and Training Quality Assurance Act, 58 of2001, the Council is appointed for a period of fouryears. Council members can be appointed for asecond term after public nominations but cannotserve more than two consecutive terms in office.Table 1 contains information on the currentCouncil members and their attendance at meetingsfor the year under review.Executive Committee of CouncilThe Executive Committee (EXCO) comprises fiveCouncil members, who are appointed for thespecific knowledge and skills that they bring tothe Committee. They are, amongst other things,responsible for monitoring the following:Internal ControlsSystems of financial and internal control are in placeto provide reasonable assurance that the assets aresafeguarded and that liabilities and working capitalare efficiently managed. The CEO is the AccountingOfficer for the Council and is charged with accountingfor moneys received, payments made and moveableproperty purchased. The internal and externalauditors liaise closely and any material weaknessesare brought to the attention of the Audit Committeeand EXCO for consideration and remedial action.Audit CommitteeThe Council has an Audit Committee which meetsat least twice a year in terms of the PFMA. TheAudit Committee met three times during the periodunder review. This committee has an advisoryfunction and meets to scrutinise the performance ofinternal and external auditors and their appointmentor retention.TABLE 2Executive Committee members and their meeting attendanceNameDateappointedMeetingsattendedGenderRaceProfessor JD Volmink (Chairperson) 09-06-2006 5 / 5 Male ColouredMr J Pampallis (Deputy Chairperson) 09-06-2006 5 / 5 Male WhiteDr RA Patel 09-06-2006 2 / 5 Male ColouredDr PJN Steyn 09-06-2006 4 / 5 Male WhiteDr PP Lolwana 09-06-2006 2 / 5 (*) Female Black(*) Mr JR Thomas attended three Executive Committee meetings in the capacity as Acting Chief Executive Offi cer in the offi cial absence of Dr PP Lolwana10 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Corporate Governance Report (continued)They Audit Committee is, amongst other things,responsible for the following:the review and scope of audits;the review of the effectiveness of internalcon trols;monitoring of the remedial action put inplace to address shortcomings;ensuring that audits address critical risk areas;ensuring that adequate measures are in placeto prevent fraud;the review of the adequacy of financial policies;andthe review and finalisation of financial statementsbefore submission.Table 3 shows the composition of the AuditCommittee as well as their attendance at meetingsfor the period under review.Risk ManagementA risk management policy and procedure is inplace to enable management to identify, evaluateand assess risks effectively. The internal auditorsmonitor the prescribed procedures. The internalauditors have direct access to the CEO, the EXCOand the Audit Committee.Environment, Health and SafetyThe Council considers that reasonable precautionsare taken to ensure a safe working environment,and conducts its business with due regard forenvironmental concerns.Code of EthicsThe Council and employees are required to observethe highest ethical standards to ensure that businesspractices are conducted in a manner that is beyondreproach. These principles are incorporated in theCode of Ethics and Service Standards which havebeen approved and implemented. These principlesprovide clear guidelines regarding expectedbehaviour of all employees.Materiality and Significance FrameworkAs required by the Treasury Regulations, the Councilhas developed and agreed on a materiality andsignificance framework appropriate to its size andcircumstances, as approved by the Minister ofEducation.Public Finance Management Act (PFMA)The PFMA focuses on financial managementwith related outputs and responsibilities. As theAccounting Authority, the Council members complywith their fiduciary duties as set out in the PFMA.The composition of the Audit Committee and their meeting attendance TABLE 3NameDateMeetings GenderRaceappointed attendedMs T Kentane (Chairperson) 31-08-2006 1 / 3 Female BlackMrs N Molalekoa 31-08-2006 2 / 3 Female BlackMr CH van der Merwe 31-08-2006 1 / 3 Male WhiteDr PP Lolwana 31-08-2006 1 / 3 (*) Female BlackMs A Albäck 31-08-2006 2 / 3 Female Black(*) Mr JR Thomas attended two Audit Committee meetings in the capacity as Acting Chief Executive Offi cer in the offi cial absence of Dr PP Lolwana11 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations“Umalusi strives to promote quality notonly through its formal quality assuranceprocesses but also by virtue of its stakeholderrelationships, through the creation of publicdebate on important educational andquality issues, and the dissemination ofinsightful research reports.”This operations report provides information onorganisational progress with respect to the plansput in place for the 2007/08 financial year. It refersvery specifically to the core work of Umalusi Councildescribed by its mandate as contained in its establishmentAct. The design and planning of its qualityassurance functions are focused on giving effect tothe mandate in the most effective manner within theboundaries of its resources.During 2007, Umalusi ensured standards throughan established but improved quality assuranceregime. The regime included moderating andmonitoring the assessment products and processes ofthe qualifications in its care; the evaluation of a selectnumber of curricula; and the monitoring andverification of the capacity of private providers tooffer quality tuition. This allowed Umalusi to haveconfidence in the integrity and credibility of thecertificates it issued.While carrying out its routine quality assuranceprocesses, Umalusi, ever aware of a changingeducational environment, continued to prepare andreview its suite of quality assurance initiatives for thenew National Senior Certificate – to be examined forthe first time in 2008, and the National Certificate:Vocational – to be examined in 2009.In order to continue ensuring the quality ofinstitutional provision, Umalusi extended its sitevisits, started in 2006, to providers of education andtraining across three sectors: independent schools;private Further Education and Training (FET)colleges; and private adult learning centres.Assessment Bodies (public and private) examiningthe qualifications that Umalusi certifies, were alsomonitored and reported on.In anticipation of the resolution of the NQF Review,Umalusi began to develop a draft sub-framework ofqualifications for general and further education andtraining and enhanced its capacity in the area ofstandard setting and evaluation of qualifications andcurricula.Throughout its work, the staff and Umalusi Councilhave actively engendered cooperative and supportiverelationships with its stakeholders and constituents,as well as other bodies in the wider education andtraining community.The staff demonstrated once again their commitmentto the continuous enhancement of education qualityin the delivery and outcomes of the general and furthereducation and training bands of the national educationand training system. More particularly Umalusi commitsitself, as an organisation, to:underpinning its work by rigour, thoroughnessand consistency, and upholding behaviours thatare ethical, reliable and honest;implementing quality processes that impactdirectly on learning and learning achievements inall of its quality assurance operations;improving its ideas and approaches in all areas ofoperations through research;developing strategic partnerships carefully, andnurturing and managing these partnershipseffectively;12 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)ongoing staff training and development toensure that staff are capacitated; andusing resources efficiently and ensuring that itswork is characterised by service excellence toboth the internal and external public.As Umalusi continues to administer its establishedquality assurance processes and maintain its highstandards, impending changes in the NQF architecturewill require a new look at its roles and responsibilitiesduring 2008. This will not slow its progress towardsfulfilling its current mandate, but will certainly enhanceand broaden Umalusi’s influence as a quality assuror ofgeneral and further education and training.Quality PromotionWhile staff continued to embrace a set of key qualityprinciples and practices developed in 2006, theorganisation moved a step forward towards greaterefficiency by providing a seamless experience forexternal users of Umalusi’s quality assurance processes.This took the form of project integration across units;workflow mapping captured in the organisationalmanagement information system, the introduction ofa uniform information management system and theformalising of the internal monitoring and evaluationprocess.This meant a substantial shift in the way theorganisation worked; units that previously workeddiscretely moved towards a model of horizontalcooperation in which boundaries were viewed astransition points rather than blockages.Externally, Umalusi has strived to promote quality notonly through its formal quality assurance processesbut also by virtue of its stakeholder relationships,through the creation of public debate on importanteducational and quality issues, and the disseminationof insightful research reports.The reports of the eight programmes that compriseUmalusi’s scope of work reflect accomplishments thatthe Council is justly proud of, and provide detail on thedeliverables achieved during the 2007/08 financial year.PROGRAMME A:PROGRAMME B:PROGRAMME C:PROGRAMME D:PROGRAMME E:PROGRAMME F:PROGRAMME G1:PROGRAMME G2:Quality Assurance of Assessment (QAA)Evaluation and Accreditation (E&A)Qualifications, Curriculum and Certification (QCC)Research and Development (R&D)Management Support Structures and Governance (MSS)Information Technology Systems (IT)Finance and Administration (F&A)Human Resources Management and Development (HR)Interesting FactsTo give effect to its quality assurance processesfor 2007, Umalusi employed the following qualityassurance processes:Quality Assurance of Assessment (QAA):152 moderators were employed to moderate2 104 question papers; andThe results of the 11 national subjects,approximately 550 provincially examinedsubjects (HG and SG), 101 subjects of theindependent assessment bodies, 160 NATEDinstructional offerings, 46 NCV subjects and23 learning areas were standardised.Evaluation and Accreditation of Providers andAssessment Bodies:150 independent schools, 104 private FETlearning sites and 50 private AET centres werevisited. Three consolidated sector reportsemanated from these site visits; andFive provincial assessment bodies and twoprivate assessment bodies were monitoredwhile two new assessment bodies were overseen in a development programme.Qualifications, Curriculum and Certification (QCC):750 836 certifi cates were issued for the SeniorCertifi cate, National Technical Certifi cate N3,National Senior Certifi cate (Colleges) and theGeneral Education and Training (GETC) (Adult).13 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)PROGRAMME A:Quality Assurance of AssessmentThe Quality Assurance of Assessment (QAA) Unit isresponsible for quality assuring assessments inschool, vocational and adult education qualifications.The year 2007 was significant for two reasons:Firstly, it marked the end of an era; the SeniorCertificate (SC) which has become a barometerof educational performance in South Africa wasexamined for the last time as a fully fledged,large-scale, high stakes examination. The SC will becompletely phased out in 2011. The National SeniorCertificate (NSC) will be administered for the first timeat Grade 12 in 2008. Secondly, 2007 heralded theintroduction of the National Certificate Vocational(NCV) Level 2 offered at Further Education andTraining (FET) Colleges. The NCV qualificationreplaced the NATED programmes which are currentlybeing phased out.During 2007, the QAA Unit initiated a process tore-engineer some of its quality assurance processesto promote effectiveness and inter-unit utility. Thestate of readiness of assessment bodies to conductassessments was evaluated through a process ofself-evaluation by the assessment bodies andverification by Umalusi. Moderation tools andinstruments were also reviewed and re-designed toensure ease of data capture, analyses and reporting.Much of 2007 was also devoted to developing thequality assurance system for the NSC. The greatestchallenge was developing the model which wouldbe used for the standardisation of results. As this is anew qualification with new subjects, there are nohistorical averages which could be used. The Unitwas pleased that the proposed statistical model wasapproved by the Council and well received byall the stakeholders (HEDCOM, the DoE, PDEs, privateassessment bodies and HESA). The other challengefor 2007 was the quality assurance of the NCV Level2. This new qualification was standardised using amodel which was developed by Umalusi with theexpertise of the Statistics Committee of Council.The model will be refined during 2008 and used tostandardise the assessment outcomes of the NCVLevels 2 and 3.The QAA Unit is currently implementing its processesfor quality assuring the NSC and NCV. One of thechallenges in this regard will be to create awarenessand understanding of the interpretation of assessmentoutcomes within these new qualifications.OutcomeKey PerformanceIndicatorTargetPerformanceResultsQuality assurance ofassessment maintainedand improved.Externally moderatedquestion papers for: SC, NCV,GETC and NSC exemplars –multiple examinations acrossassessment bodies.All papers moderated andapproved within examinationcycle timeframes.Question papers for all examinationsexternally moderated: Grade 12 SC,ABET Level 4, NCV Level 2 and NATEDN1-N3, NSC exemplars.14 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeKey PerformanceIndicatorTargetPerformanceResultsQuality assurance ofassessment maintainedand improved. (continued)Standards for assessmentarticulated and maintained.Monitoring, reviewing andreporting on quality ofassessment in the GFETBand.Stakeholder relationsestablished and managed.Management, support andgovernance structuresmaintained and improved.New external moderators forNSC and NCV appointed andtrained.Improved, expanded andmore nuanced questionpaper moderation systemdeveloped.Monitor and moderateinternal assessment i.r.o: SC,NC (V) 2 and GETC.Credible examinations.Reliable assessmentoutcomes.Moderate Common Tasks forAssessment (CTA); DoE & IEB.Post-examination analysis ofquestion papers.Policies regulating qualityassurance of assessmentdeveloped and implemented.Monitoring and reporting onthe quality of exam productsand administration of examinationsannually.Collaborative stakeholderrelations fostered andmaintained throughstakeholders’ bilateralmeetings; consultativeworkshops; and effectivecommunication.Council, management andinter unit committees supportedand maintained.Suitably qualifi ed andexperienced subject expertsappointed and trained.Ongoing analyses andimprovement.Internal assessment systemsmonitored per examinationInternal assessment of sampleof subjects across assessmentbodies moderated.The conduct of examinationsmonitored across assessmentbodies annually.Marking centers monitoredper exam.Representative sample ofscripts moderated per exam.Standardisation meetingsconvened per exam.All CTAs moderated and approvedwithin examinationcycle timeframes.Detailed analysis of questionpapers and their performancein the examination.System for quality assuring theNSC developed.Document on the qualityassurance of the GECdeveloped.Criteria for evaluatingassessment standardsestablished.Monitoring of the annualimplementation of assessmentpractices completed andreported on to stakeholders inthe GFET Band.Regular stakeholders’ bilateralmeetings conducted andattended; HESA; IPEC;ADCOM etc.Consultative workshopsconducted and attended.Statistics and AssessmentCommittee meetings maintainedper schedule.Management meetingsattended per schedule.Inter-unit committee meetingsconducted.Panels of moderatorsappointed and trained for NSC.90% of moderators for NCV Level 3appointed and trained.Revised question papermoderation tool implemented.Internal assessment for Grade 12 SC,ABET Level 4, NCV Level 2 moderatedand reports produced.Examinations monitored andreports produced.Marking moderated andresults approved forGrade 12 SC, ABET Level 4, NCVLevel 2 and NATED N1-N3.DoE and IEB CTAsmoderated and approved.Analyses of a sample of questionpapers carried out by independentsubject experts and reports produced.Policy for quality assuring theNSC approved by Council.Document on the quality assuranceof the GEC submitted to the DoE.Assessment frameworksdeveloped.Separate reports on the SC, VET andAET examinations submitted to theMinister of Education in Dec 2007.Assessment body reportsdeveloped and submitted.Regular communicationmaintained with stakeholdersthrough letters, circulars, andattendance of relevant meetingsand workshops.All meetings conducted asscheduled.15 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)PROGRAMME B:Evaluation and AccreditationThe year under review has been a busy one for theEvaluation and Accreditation (E&A) Unit. The Unitis now firmly established and its activities andresponsibilities have grown exponentially.Provisional accreditation was extended indifferent categories to independent schools, privateFurther Education and Training (FET) colleges, AdultEducation and Training (AET) centres and assessmentbodies. Further, monitoring of progress againstimprovement plans submitted to the Unit in theprevious cycle took place across all four sub-sectors.While independent schools have always had toregister with Provincial Departments of Education(PDEs), the registration of private FET colleges withthe National Department of Education came intoeffect for the first time in 2007. To this end,Umalusi, the Department and the South AfricanQualifications Authority (SAQA) agreed to a processwhereby Umalusi would verify the accreditationstatus of FET institutions and providers accredited bySector Education and Training Authorities (SETAs). Bythe end of the 2006/2007 cycle, 161 SETA providerswere referred to the Department for registration.Concurrently, Umalusi informed its provisionallyaccredited FET institutions about the Department’sregistration requirements at four workshops held inJune 2007. All eligible Umalusi institutions wererecommended to the Department for registration.The growth and improvement in quality in the privateeducation sector was evident in the number of sitevisits undertaken to independent schools, private FETcolleges and AET centres. Due to resource constraints,not all eligible institutions could be visited.Nevertheless, 150 independent schools, 104 privateFET learning sites and 50 private AET centres werevisited. Three consolidated sector reports emanatedfrom the site visits.In order to better understand its sub-sectors, the Unitundertook the following in-house studies:analysis of the NQF registered provider-basedqualifications currently offered by private FETcolleges;schools offering a foreign curriculum withthe view of developing a quality assuranceapproach appropriate for such institutions;quality indicators for primary schools; andthe role of professional bodies in assessment.The E&A Unit, in conjunction with the QualityAssurance of Assessment (QAA) Unit, visited 14public FET colleges to assess their state of readinessto assess the newly introduced National Certificate:Vocational (NCV).In order to support its schools, colleges and adultcentres, the E&A Unit conducted 10 workshops acrossthe country to inform institutions about the 2007/2008monitoring requirements. In addition, an orientationworkshop for prospective private assessment bodieswas held in November 2007.Finally, in support of the organisation’s role asquality assuror of the General and Further Educationand Training band, the Appeals Committee of theCouncil was established at the November 2007Council meeting. Its first meeting took place inDecember 2007.The period 2006/2007 was eventful and exciting.The E&A Unit is looking forward to its next stepsin building a quality assurance system – fullaccreditation will be piloted in 2008/2009 with aview to full implementation in 2009/2010.16 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeAccreditation and monitoringsystems for providers ofeducation and trainingmaintained and extended.Accreditation and monitoringsystems for assessmentbodies maintained andextended.Unit administration systemmaintained and extended.Council Committeeestablishedand maintained.Key performanceindicatorExtension of provisionalaccreditation.Monitoring against improvementplans, including individualmonitoring reports.Site visits to institutions and reportsacross three sectors: independentschools, private FET colleges andAdult Learning Centres.Consolidated verifi cation site visitreports per sector.Articulation with registrationprocess of National Departmentand Provincial Departments ofEducation (PDEs).Quality assurance intervention atpublic FET colleges.Monitoring of existing assessmentbodies against improvementplans, including individualmonitoring reports.Evaluation of assessment systemfor the newly introduced NationalCertifi cate: Vocational (NCV).TargetThroughoutMay/June 2007March 2008December 2007January 2008February 2008March 2008September 2007September 2007September 2007Performance resultsNew applications received for the period underreview:– 78 independent schools;– 359 private FET learning sites; and– 76 private AET centres.Private providers monitored:– 555 independent schools;– 109 (288 sites) private FET colleges; and– 77 private AET centres.Learning sites and reports completed:– 150 independent schools;– 104 private FET learning sites; and– 50 private AET centres.Independent schools;Private FET colleges; andPrivate AET centres.Reporting process established between Umalusiand provincial departments of education (PDEs)in respect of independent schools;– All eligible private FET colleges recommendedfor registration to National Department;– 161 SETA FET providers referred toNational Department.14 public colleges visited to evaluate their stateof readiness to assess the newly introducedNational Certifi cate Vocational (NCV).Monitoring of, and site visits to:– Independent Examinations Board;– Onafhanklike Afrikaanse Eksamenraad (OAE).Monitoring of all public assessment bodies, andsite visits to:Western Cape; Limpopo; KwaZulu-Natal;Eastern Cape; Mpumalanga.Quality assurance intervention at 14 public FETcolleges. The evaluation to be extended tolarger system in 2008.MIS is functional;Improved workfl ows.Ongoing Unit MIS is fully functional and able toproduce meaningful status reports;Workfl ows have been revised andimplemented.Unit policies formalised. March 2008 Unit policies have been formalised.Internal audit fi ndingsaddressed.Appeals Committee convened.March 2008Meetings asper planInternal audit fi ndings have beensatisfactorily addressed.An Appeals Committee was formally constitutedin November 2007. It held its fi rst meetingin December 2007.17 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeProvider and stakeholderrelationships extendedand maintained.In-house research.Key performanceindicatorConsultation with stakeholdersannual provider workshops.Best Practice workshops.Analyses of provider qualifi cations.Quality indicators for primaryschools.Professional bodies andassessment.TargetMeetings andworkshops as perplan.November 2007December 2007December 2007Performance resultsConsultations with the National IndependentSchools Association (NAISA);Information sessions with providers regardingDoE registration requirements (Umalusi and SETAproviders);Ten annual provider workshops in preparationof the monitoring cycle for 2007/2008; andOrientation workshop with prospectiveassessment bodies.All in-house research concluded.Round Up: Quality Assurance ReportsThe Evaluation and Accreditation Unit (Programme B) produced the following reports of interest:Umalusi’s Site Visits to Independent Schools in 2007The 2007 site visits were conducted at schools that were considered at a high state of readiness forfull accreditation. The report identifi es the most prevalent factors that seemed to have a positivebearing on quality education and informs ‘good practice’ in schooling.FET Private Providers Site Visit and Verification ReportThe Further Education and Training (FET) verifi cation report refl ects the extremely diverse and complexnature of private FET provisioning. Even on the basis of a relatively small sample of providers on whichthis report is based, the site visit verifi cation process has provided rich information, in particular aboutthe systemic issues facing the sector.Umalusi’s Site Visits to Private Adult Education and Training (AET) Providers 2007The programme of site visits to private AET providers in 2007 has confi rmed various perceptions ofthis sector and provided a number of new insights: in spite of general political recognition of theimportance of the AET sector, an array of problems has proved intractable. The fi ndings are useful ininforming and steering future quality assurance initiatives.The Quality Assurance of Assessment Unit (Programme A) produced the following reports to theMinister of Education:2007 Report on the Quality Assurance of the Senior Certificate ExaminationThe report covers all the quality assurance processes employed by Umalusi to ensure that the SeniorCertifi cate is of the required standard and makes recommendations for improvement.2007 Report on the Quality Assurance of Vocational Education and Training AssessmentThe purpose of the report is to provide information on the various quality assurance processesemployed in quality assuring the assessment of vocational qualifi cations and to makerecommendations for improvement.2007 Report on the Quality Assurance of the ABET Level 4 ExaminationsThe report covers all fi ve quality assurance processes employed in quality assuring the GETC: Adultsand includes identifying areas of concern that require attention and improvement18 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)PROGRAMME C:Qualifications, Curriculum and CertificationThe Qualifications, Curriculum and Certification (QCC)Unit was established in 2005 to assist Umalusi inits mission to quality assure the standards forqualifications and curricula, a role that has beensignificantly strengthened by the changes proposedto the legislation governing quality assurance ineducation. The Unit also encompasses two otherfunctions — that of certification and that of verification,both functions which are well established and whichhave gone, yet again, from strength to strength. Inorder to deal with the demands on the verificationside, an additional verification post was madepermanent in June 2007, and an additional contractworker for verification employed.The Unit has undertaken its responsibility of issuingcertificates with distinction and has spent a good dealof time readying itself, with the generous support ofthe IT unit, to issue the 2007 NCV Level 2 certificatesfor the first time, as well as for the first-time issuing ofthe NSC in 2008. This preparation is underpinned bythe quality assurance work being done in the otherunits, namely the quality assurance of provision andassessment of these new qualifications.In the first half of 2007, under the guidance of Ms SHMafanga-Kibi, the first pilot evaluations of two curriculawas undertaken for the Beweging vir Christelik-volkseieOnderwys, an assessment body, while the second halfof the year saw an extremely thorough evaluation ofthe ABET curricula used for the GETC, under theguidance of Dr Heidi Bolton of the R&D Unit. Thenewly appointed Assistant Manager: Qualifications &Curriculum, Ms Helen Matshoba, and the Unit’sthen-administrative assistant Ms Thabiso Ramaphakelaworked with Dr Bolton and were quickly initiated intothe complex demands of the research processassociated with curriculum evaluation.Ms Mafanga-Kibi left the Unit to take up a postin the Western Cape Education Department inOctober 2007, and at much the same time theCertification Officer Ms Annemarie Janse vanRensburg, was offered a post elsewhere. Her postwas taken up Ms Antoinette Dliwayo in September2007. Very recently Ms Elizabeth Burroughs hasmoved across from R & D Unit to take up the positionas a senior manager in the QCC unit.In short, despite the considerable upheaval in thestaffing situation, the unit has continued to function:certificating, verifying, creating new systems andexploring the roles that will become a focus for newwork in the year ahead.OutcomeKey performanceindicatorTargetPerformance resultsUmalusi’s approachand policy to establishingand maintaining itsqualifications frameworkis developed.A framework of qualifications in GFET anda quality assurancepolicy developed andconsulted.Guidelines that supportthe development andevaluation of qualifi cationsand curriculadeveloped and piloted.The policy documentsubmitted for consultationwith Council byFebruary 2008.The guidelines for theevaluation and approvalof qualifi cations andcurricula developed andstrengthened during pilotevaluations during 2007.The proposed policy was sent out for comment,and shared with the Council and stakeholders.A fi rst draft of a framework document forQCC’s work in the evaluation and approval ofqualifi cations and curriculum was developedduring 2007 and piloted.Criteria and guidelines for evaluating the standards(quality assurance) of curricula were improvedusing inputs from the June 2007 Cognitive IIworkshop.19 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeKey performanceindicatorTargetPerformance resultsUmalusi’s approach andpolicy to establishingand maintaining itsqualifications frameworkis developed.(continued)Curricula are evaluatedand approved.Certification oflearner achievementsis ensured.Subjects selected fromthe schooling, college,ABET and SETA qualifi -cation sectors identified and evaluationplanned.Learner certifi cationprocesses are maintainedand improved.A new certifi cation systemfor the NCV 2 and 3qualifi cations is in place,and being tested.New certifi cates forthe NCV designed andcommunicated to SITA(BETA) for programming.Directives for the certifi -cation of the NSC developedand consulted.The guidelines are usedto evaluate curricula forassessment bodies.Two BCVO curriculaevaluated and processmonitored by August2007.NSC evaluation conceptualisedand commencedby March 2008.GETC: for adultscurriculum evaluated byJanuary 2008.Certifi cates are issuedon request fromassessment bodies, inaccordance with thedata sets submitted.Capacity buildingconducted forassessment bodies.Certifi cates for NCVissued once the datasets for the November2007 exams submitted.A new IT system for theNCV Level 2 developedand tested – further developmentscommencein 2008 / 2009.Certifi cate templatescan be used whenrequired.Draft directives for NSCcompleted and consultedby March 2008.The criteria for the evaluation of curricula werepublished in a Research & Development report,and are thus commonly available.The tools for the curriculum evaluation are beingstrengthened for the evaluation of practical curriculathrough a project with Research & Development.The criteria and guidelines for the evaluation ofqualifi cations and curricula were mediated tonew/emerging assessment bodies in November2007.Pilot evaluations of two BCVO subjects wereundertaken and the process itself monitored andevaluated.NSC evaluation project conceptualised andmaterials for evaluation of curricula for thegateway subjects collected and prepared.The evaluation of ABET curriculum for adults, inpartnership with R&D, was completed inJanuary 2008.The evaluation fi ndings have informed the nationalABET review process and provided input into theministerial green paper on ABET.741 708 certifi cates were issued during the yearbeginning 1 April 2007 and ending 31 March 2008.The new certifi cation tariffs were successfullyimplemented from the 1st June 2007.A workshop on the certifi cation review for the2006/11 exams and NCV was held on the 25 June2007.Directives and guidelines for the new NCVcertifi cate were council approved byNovember 2007, printed and distributed toDoE and SITA in February 2008.Phase 1 of IT system developed and tested.The Certifi cate formats were gazetted inSeptember 2007.Draft directives completed.20 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeKey performanceindicatorTargetPerformance resultsVerification service isprovided.Provider and stakeholderrelationships extendedand maintained.Management, supportstructures maintained andimproved.Processing of certifi cateverifi cations is maintainedat a consistentlyhigh standard.Existing stakeholderrelationships are maintainedwith assessmentbodies, SITA, verifi cationclients and strategicpartners and newrelationships fostered todeal with changes in thelegislative environment.Positive working relationshipsare maintained withcontracted verifi cationclients.Council, managementand inter unit committeessupported and maintained.The verifi cation servicekeeps pace withdemand.Existing client contractsrenewed and new contractsundertaken.The verifi cation systemis continually monitoredand improved.Through the services i.a.of QCC, Umalusi ispre-eminently placed toplay an infl uentialrole shaping the nationaleducational context inwhich it certifi es selectedGENFETQA qualifi cations.Existing clients are efficiently and accuratelyserviced and supported.QCC processes areestablished so as to supportthe work requiredby the remaining Umalusiunits.The Internal Certifi cationAdvisory Forum (ICAF)meetings maintainedbimonthly.The number of verifi cations processed during the2007 – 2008 year has been almost 203 000, up bymore than 25% on the previous year’s total of justunder 150 000.Two existing clients have renewed their contractswith Umalusi.Three new clients are negotiating verifi cationcontracts.A new e-verifi cation system developed by the ITunit has improved turnout times.Monitoring and reporting on verifi cation statisticsand fraud cases takes place monthly.QCC (with IT) participates in the DoE IECS usergroup and committee established to developpolicies and systems for the new NSC.QCC has participated in the following externalconsultative meetings and workshops: CMC,SAQA-GETC, QCTO and GMET.Meetings with all verifi cation contract clients conductedto improve service delivery.Internal processes have beendeveloped and mapped for routine work.The Internal Certifi cation Advisory Forum (ICAF), establishedand met as per schedule.Certificates Printed for the Period 01 April 2007 to 31 March 20081 Endorsement (fi rst issue) 68 3372 Senior Certifi cate (fi rst Issue) 224 6583 N3 (fi rst issue) 4 6244 Endorsement (combinations) 7935 Senior Certifi cate (combinations, reissues, duplicates) 64 4426 N3 (combinations, reissues, duplicates) 6 0087 GETC (ABET Level 4) 1 2208 GETC (ABET Level 4) (combinations, reissues) 1 0079 Subject certifi cates: Senior Certifi cates 302 48410 Subject certifi cates: N3 Certifi cates 44 03411 Subject certifi cates: GETC (ABET Level 4) 31 47812 National Senior Certifi cates 1 01313 National Senior Certifi cates (combinations, re-issues) 738TOTAL 750 83621 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)PROGRAMME D:Research and DevelopmentThe Research and Development (R&D) Unit hadanother eventful and productive year. Two significantresearch projects were concluded in this year. Thefirst report, Examining the standard of the compulsory‘fundamental’ components of qualifications, waspresented at a well-attended public seminar, and hasbeen widely quoted, debated, and contested. As thefirst research in this area, it raised important issuesfor Umalusi and more broadly for policy formulators.The second major research project compared thesyllabuses and examinations of South Africa’s SeniorCertificate with equivalent qualifications in Ghana,Kenya and Zambia. This project produced two reports:one, Making Educational Judgments, focusing on toolsand approaches for comparing syllabuses and examinations;and the other, Learning from Africa, exploringkey differences between South Africa and the threeAfrican countries, discussing what South Africa has tolearn from these countries.Important research projects were also initiatedthis year. Probably the most important is researchexploring ‘Item Response Theory’ as a mechanismfor maintaining standards in the transition from theold Senior Certificate to the new National SeniorCertificate. The project, which also thoroughlyinvestigates a range of other mechanisms formaintaining standards, will produce a report in thenext financial year. Umalusi’s research reports as wellas information on research currently underway canbe viewed on Umalusi’s website.The R&D Unit has continued to facilitate Umalusi’sengagement with the general public. In March 2008,Umalusi was proud to host the 5th InternationalConference of the Association of CommonwealthExamination and Accreditation Bodies. The conferencewas held at the Innovation Hub in Pretoria and wasorganised around the theme ‘Improving the qualityof public education in the commonwealth: assessment,accreditation and evaluation.’The conference was attended by delegates fromaccreditation bodies, examinations organisations,and quality assurance authorities from variousCommonwealth countries including Australia,Barbados, Botswana, the Cayman Islands, Fiji, Jamaica,Lesotho, Malawi, Malta, Namibia, New Zealand,Nigeria, Pakistan, South Africa, Uganda, the UnitedKingdom, Zambia, and Zimbabwe. Papers werepresented by attending delegates on topics such asSystemic Development for Efficient and AccountableSystems; Models of Quality Assurance; and Improving theQuality of Assessment and Evaluation.The R&D Unit together with the Centre for EducationPolicy Development (CEPD) also launched a worthwhileseries of public seminars focussing on improvingpublic education. Five seminars were held in thisfinancial year. Another very successful public seminarwas held to discuss research into the NationalQualifications Framework. Booklets capturing thepresentations are available on Umalusi’s website.Further public seminars based on Umalusi researchfindings are currently being planned for the comingfinancial year.22 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeKey performanceindicatorTargetPerformance resultsResearch is planned,implemented, managed,and research findingsare shared in theorganisation.Research forum/committee maintained.Stakeholders are engagedwith through conferencesand publisheddocuments.Resource Centremaintained.Research projects arecommissioned orconducted.Research fi ndings andreports are used inappropriate structures ofthe organisation.Research forum meetingsconducted and minuted asscheduled.Conference/seminarproceedings and papers.Published reports anddocuments.Website is up to date anduser friendly.Organisationalpromotional material.Resource Centre cateringfor staff needs maintained.Insight into curriculum,examinations, andevaluation andaccreditation improved.Umalusi’s systemsimproved on an ongoingbasis.Guidance and adviceprovided by experts andprofessionals throughoutthe year.Organisation disseminatesprofessional work throughpublished documents anda professional website.Public conferences andseminars organised.Umalusi’s presence in theeducational area is maintainedand strengthened.Debates are facilitatedamongst key Umalusi roleplayers and stakeholders.New resources obtained.Organisation of resourcesimproved by 30 March2008.Report exploring mechanisms for evaluatingsyllabuses and examinations complete.Report comparing SA matric with theequivalent in other countries complete.‘Fundamentals’ research report complete.CASS research interim fi rst stage reportcomplete.Maintaining Standards research initiated.Research into the Adult Basic Educationcurriculum complete.Three successful meetings of the ResearchForum took place, and one successful workshoptook place in lieu of a meeting.A seminar presenting the Fundamentalsresearch was hosted.A seminar on the NQF was hosted.Five seminars exploring how to improvepublic education were hosted.The ACEAB conference was hosted.Publishing systems were maintained andimproved, and reports were published.A peer reviewed journal was produced,based on conference papers of the SouthernAfrican conference Umalusi hosted in 2006.The website was maintained.Promotional material was produced.The Resource centre was maintained.The electronic catalogue was maintained andimproved.Books, journals, and research reports wereobtained and catalogued.Ongoing support in organising and storingdata was provided to the organisation.Research publication highlightsMaking Educational Judgments, a report focusing on tools and approaches for comparingsyllabuses and examinationsLearning from Africa, a report describing what South Africa can learn from the Science, Biology, andMathematics curricula of Ghana, Kenya, and ZambiaThe ‘f’ word: the quality of the ‘fundamental’ component of qualifi cations in general and furthereducation and training, report on the fundamental components of qualifi cationsIf I were Minister of Education: key priorities to turn public schooling around, booklet on the Umalusipublic seminar If I were Minister of EducationDo we need more public exams? Booklet on the Umalusi public seminar, Do we need more publicexams?5th international conference of the Association of Commonwealth Examination and AccreditationBodies, conference book and cd of abstracts23 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)PROGRAMME E:Management Support Structuresand Governance (MSS)The Management Support Structures (MSS) ensuredthat a strategic plan was in place and that the organisationfulfilled its mandate. The Unit supported thework of Council and its committees and ensured thatthe Council was kept up-to-date and was able to doits work. The Unit also ensured that all internal workwas coordinated in an efficient and effective manner.During this financial year the Unit oversaw theimplementation of its second customer satisfactionsurvey: 501 telephone interviews across nineprovinces were conducted in February / March 2008and included providers of education and training, aswell as assessment bodies that make up Umalusi’squality assurance constituency; stakeholders such asother quality assurance bodies were also included inthe survey. Collectively the results were excellent with77% agreeing that Umalusi provided good customerservice and 80% agreeing that the staff were helpful,knowledgeable, easy to deal with and able to assistwhen needed. Umalusi again proved that its servicesand relationships are of the highest quality by improvingin every category against the 2006 survey results.Areas that were previously highlighted as concernseither receded completely or now remain as areas forfurther improvement.Three copies of the newsletter Makoya were producedduring the year. In the latter part of the year thePublication and Events Manager resigned and wasreplaced with an external service provider, to manageUmalusi’s media and Public Relations functions. Theexternal service provider ensured that a number ofpress releases, radio and television interviews andpress conferences occurred and also managed theopening of Umalusi House by the Minister of EducationMrs Naledi Pandor, MP, on 31 August 2007.OutcomeKey performanceindicatorTargetPerformance resultsOrganisational planningand implementation andreview of plans.Strategic and businessplans developed andapproved.New cycle and calendardrawn up, presented andupdated.Plans coordinated, implementationmonitored,reviewed and reported oninternally and externally.PFMA and other targetsmet.Planning conducted June2007.Plans submitted toMinister for approvalby Sept 2007.New cycle and calendarcompleted by 1 April 2007.Plans coordinated ona monthly basis.Quarterly reports submittedto management.Review meetingsconducted thrice annually.Strategic and business planning completedand approved by the Minister of Education.New management planning cycle andcalendar implemented.Managerial and organisational planscoordinated, reviewed and reported on perplan.24 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeKey performanceindicatorTargetPerformance resultsOrganisational governanceis maintained.Stakeholder relationsestablished and managed.Implementing publicrelations programme.Organisational policies developedand implementedafter Council approval.Staff establishments andperformance reviewed.Internal quality improvementfacilitated.Council and committeemeetings supportedeffi ciently and effectively.Council meetingprogramme adhered to.Reports and key matterspresented to Counciland committees andinformation shared.Meetings with:– Political structures;– Educational administration;– Other statutory bodies.Enhanced participationin public debate.Corporate identitystrengthened.Umalusi media profi leimproved.Good internal communicationprocesses in place.Effective administrativeand quality assurancepolicies developed toguide and support work asrequired.Staff establishment andperformance was reviewedin March 2008.Umalusi responsive to customerneeds.Effective quality assuranceprocedures implemented.Council and committeewell supported iro logisticsand documentation.Council met four times.Committee meetingsconducted as scheduled.Reports to Council submittediro all Umalusi’s plans,committees and governancematters four timesannually – May 07, August07, November 07,February 08.Reports and mattersdiscussed with committeesfor recommendation toCouncil as per committeeschedules.Synchronisation of Umalusiwork with political, administrativeand other statutoryimperatives as well asbenchmarking organisationalwork with others.Opportunities for publicdebate established.The Umalusi ‘brand’ isrecognised.Umalusi well profi led inthe media.Weekly internal newsletterpublished.Administrative policies developed inaccordance with internal audit requirements.Qualifi cations Framework and QualityAssurance Policy developed.Appeals Policy developed.Staff establishment and performancereviewed as per plan.Client survey completed.Council and committees supported.Administrative services rendered.Council and committee programmes adheredto as scheduled.Reports submitted to Council and committeesas per plan.Recommendations presented to Council percommittee schedules.Umalusi engaged in discussions with allstakeholders iro quality assurance landscapechanges.Benchmarking occurred through the work ofthe research and development unit – researchreports, public seminars, conference reports etc.A series of six seminars on public educationconducted; ACEAB conference hosted.Client satisfaction survey indicates greaterawareness of Umalusi ‘brand’.Corporate image redesigned.Communications strategy developed andimplemented in respect of newsletters, mediainterviews, briefi ngs and conferences, pressreleases and articles.Media queries responded to promptlyInternal media training session conducted forsenior staff.Internal newsletter published as planned.25 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)Finance and AdministrationThe Finance and Administration (F&A) Unit ensures theeffective and efficient utilisation of all organisationalresources. It offers centralised and coordinatedsupport to the core business of Umalusi throughprovision of the following:Information Technology Systems(Programme F)Finance and Administration (Programme G1)Human Resources Management and Development(Programme G2)PROGRAMME F: Information Technology SystemsThe organisation’s needs have been met through the installation of the latest IT infrastructure and supportservices to ensure that all work is well supported. IT processes and hardware are continuously monitored andimproved.OutcomeKey performanceindicatorTargetPerformance resultsIT systems established,maintained and improved.MIS functions well.MIS system extended,maintained and improved.Nov 2007.Workfl ow for Evaluation and Accreditation hasbeen implemented and maintained in-house.Moderators claim system for the new NSC andNCV have been revised and improved.Development of a change request system hascommenced.Certification processeffectively supported.Maintained website accordingto requests received fromusers.Effective certifi cationprocess ensured.Maintained certifi cationsystem according to requestsreceived from the users.Developed and implementeda system to certify NCVLevel 2 certifi cates.Verifi cation processescomputerised.Website consistentlyupdated and effi cient- ongoing.Certifi cation and verifi cationprocesses effectively,developed, maintainedand improved by March2008.The Umalusi website is fully operational.The certifi cation system for SC and N3 wasmaintained.A system to certify the NCV Level 2certifi cates was developed and fi nal testingbefore implementation is being done.Investigations into a new system for thecertifi cation of the new NSC commenced.Verifi cation process was improved andcontrol measures were implemented.26 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)OutcomeKey performanceindicatorTargetPerformance resultsAdequate computerhardware and softwarein place to supportoperations.Computer equipmentprocured as required.Daily back-up of organisationaldata.Computer hardwareand software effi cientlyprocured and supportedduring 2007.Ongoing back-up servicesprovided.Equipment was procured, maintained andinstalled as required.Software licenses were acquired and are upto date.SLAs with designated providers wereeffectively managed.Network support was adequately provided.Equipment to cater for high availability ofservers has been ordered.Adequate off-site back-ups facilitated.PROGRAMME G1:Finance and AdministrationThis programme maintains a credible finance and accounting system which is monitored by the Council’s AuditCommittee, EXCO and the Council. The finance function includes asset and facilities management.OutcomeKey performanceindicatorTargetPerformance resultsFinance and accountingsystems maintainedand improved.Accounting system in linewith PFMA maintained andimproved.Policy implemented in terms ofPFMA and various committees’requirements.Internal and external audits met compliancerequirements and improved systems.Audit requirements met. Final Audited Financial Statements weretimeously submitted to Treasury.90% of debt collected. 91.4% of debt was collected.Investments wisely managed.Investments were made at the Corporationfor Public Deposits (CPD) at the ReserveBank in line with prescribed policy.Assets carefully managed.Assets were labelled and accounted forduring the year.Payments made forgoods and services.Financial resourcesmanaged well.Creditors paid on time(monthly).Creditors were paid within 30 days.Organisation adequatelyresourced.Goods and services were sourced on time.Building and securitysystems maintainedand improved.Property transfer registered. Transfer registered during 2007. Transfer was registered during September2007.Alterations effected to accommodateorganisationalrequirements.Buildings and security systemsmanaged against thebudget and managementrequirements.Alterations in accordance withaction plan.Preventative maintenanceprogram implemented.Plans for modifi cation to building toenhance accommodation have beenapproved.Maintenance was done on an ‘as required’basis. A preventive maintenanceplan will be developed and implementedafter completion of the planned buildingmodifi cations.27 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report on Operations (continued)PROGRAMME G2:Human Resources Management and DevelopmentThis function is overseen by the office of the CEO and the EXCO. It is responsible for recruitment, appointmentsand equity, performance evaluation and staff development.OutcomeKey performanceindicatorTargetPerformance resultsHuman resources (HR)managed anddeveloped.HR polices in line with labourlegislation to ensure goodlabour practices.Effective human resourcepractices in place.HR policies in line withlabour legislation to ensuregood labour practicesimplemented andmaintained.HR policies and procedures reviewed andelectronically available to all staff.Recruitment practices in line with organisationaltime frames and policy. Human resourceadministration completed in accordance withpolicy and adherence to time frames.Staff developmentprocesses in place.Staff performancemanaged.Staff performancemanaged twice annually(Sept 07 and March 08).Staff performances were evaluated and poorperformance addressed with recognitionawards recommended to deserving staff.Staff development strategiesin place.Staff development andsupport strategies in placeand implemented by endJuly 2007.Staff development plan developed andimplemented.Training was provided internally foradministrative cadre bi-weekly andprofessional staff were trained in both IT skillsand monitoring and evaluation.Financial assistance for further studies attertiary institutions was provided to seven staffmembers at a cost of R 35 070.The employee assistance program wasexpanded by giving staff access to acomprehensive online wellness programme(E-Care). This includes a wellness day for allstaff members.Documentmanagement systemestablished.Document managementsystem and central registryestablished andimplemented.Document managementsystem developed inphases – phase onecompleted March 2008.Phase 1 of document management systemcompleted.Registry established byOctober 2007.Registry established and operational.General servicesprovided.Reception and switchboardservices maintained andimproved.Effi cient reception andswitchboard services provided.Reception and switchboard services monitoredand improved through internal training.Cleaning services for buildingmaintained.Telephone records keptand distributed monthly.Reliable and effi cientcleaning services provided.Telephone records distributed monthly.Cleaning services contracted out andmanaged effi ciently.2 8 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report of the Audit Committeefor the year ended 31 March 2008The Audit Committee consists of the members as listed and meets at least twice a year in terms of the PublicFinance Management Act of 1999. During the 2007/2008 financial year under review, three meetings were held.The first meeting of the financial year under review was on 27 June 2007, followed by meetings on20 November 2007, and 7 February 2008. The Committee continued its mandate, executing an oversight roleover risk management, internal audit and financial reporting. It confirms that, in accordance with its formal termsof reference and the requirements of the Treasury Regulations, it has reviewed:the effectiveness of internal control;the effectiveness of the internal audit function;the risk management processes of Umalusi;the risk areas of Umalusi’s operations covered in the scope of internal and external audits;the adequacy, reliability and accuracy of the financial information provided to management and other usersof such information;accounting and auditing concerns identified as a result of internal and external audits;Umalusi’s compliance with legal and regulatory provisions;the quality of Umalusi’s monthly and quarterly management reports;the activities of the internal audit function, including its annual work programme, coordination with theexternal auditors, the reports of significant investigations and the responses of management to specificrecommendations; andthe contents of the annual financial statements.The Audit Committee reviewed the internal and external audit reports. Based on these, it is clear that thework of evaluating and accrediting providers has placed increased responsibilty and accountability on theorganisation structures to ensure effectiveness and efficiency. Following the reviews of the Committee, we areconfident that the stipulations of the relevant provisions of the Public Finance Management Act of 1999, asamended, and Treasury Regulations have been complied with to a satisfactory extent.I would like to express my appreciation to the members of the Audit Committee who played a valuable role inadvising and guiding Umalusi’s management.MS T KENTANE26 June 200829 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Annual Financial Statementsfor the year ended 31 March 2008The reports and statements set out below comprisethe annual financial statements presented to the members:IndexReport of the Independent Auditors 31Report of the Council 32Statement of Financial Position 34Statement of Financial Performance 34Statement of Changes in Net Assets 35Cash Flow Statement 35Accounting Policies 36Notes to the Annual Financial Statements 40The following supplementary informationdoes not form part of the annual financial statements and is unaudited:Detailed Statement of Financial Performance 453 0 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report of the Independent Auditorsfor the year ended 31 March 2008To Umalusi CouncilWe have audited the accompanying annual financial statements of Umalusi, which comprise Council’s report, thestatement of financial position as at 31 March 2008, the statement of financial performance, the statement ofchanges in net assets and cash flow statement for the year then ended, a summary of significant accountingpolicies and other explanatory notes, as set out on pages 36 to 44.Council’s responsibility for the financial statementsThe entity’s Council is responsible for the preparation and fair presentation of these annual financialstatements in accordance with South African Statements of Generally Accepted Accounting Practice (GAAP), withthe effective Standards of Generally Recognised Accounting Practice (GRAP) issued by the Accounting StandardsBoard replacing the equivalent GAAP statement, and in the manner required by the Public Finance Management Act,1 of 1999 (PFMA). This responsibility includes: designing, implementing and maintaining internal control relevantto the preparation and fair presentation of annual financial statements that are free from material misstatement,whether due to fraud or error; selecting and applying appropriate accounting policies; and making accountingestimates that are reasonable in the circumstances.Auditors’ responsibilityOur responsibility is to express an opinion on these annual financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing. Those standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether theannual financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theannual financial statements. The procedures selected depend on the auditors’ judgement, including theassessment of the risks of material misstatement of the annual financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparationand fair presentation of the annual financial statements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internalcontrol. An audit also includes evaluating the appropriateness of accounting policies used and the reasonablenessof accounting estimates made by the directors, as well as evaluating the overall presentation of the annualfinancial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.OpinionIn our opinion, the annual financial statements present fairly, in all material respects, the financial position ofthe entity as at 31 March 2008, and of its financial performance and its cash flows for the year then ended inaccordance with the basis of accounting as described in note 1.1, and in the manner required by the PublicFinance Management Act, 1 of 1999 (PFMA).Emphasis of matterWithout qualifying our opinion above, we draw attention to the disclosures of the PFMA internal control weaknessesin the Report of the Council item 6 overleaf.Supplementary informationWe draw your attention to the fact that the supplementary information set out on pages 45 to 46 doesnot form part of the annual financial statements and is presented as additional information. We have notaudited this information and accordingly do not express an opinion thereon.GOBODO INCORPORATEDRegistered Auditors31 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report of the Councilfor the year ended 31 March 2008The Council presents its report for the year ended 31 March 2008. This report forms part of the auditedfinancial statements.1. IncorporationUmalusi is listed as a national public entity in terms of schedule 3A of the Public Finance and Management Act,Act 1 of 1999, as amended.2. Review of activitiesMain business and operationsUmalusi, Council for Quality Assurance in General and Further Education and Training, is the quality assurer in thegeneral and further education and training bands of the National Qualifications Framework (NQF). The Councilensures that continuous enhancement of quality is achieved in the delivery and outcomes of the general andfurther education and training sectors of the national education system.The operating results and state of affairs of the Council are fully set out in the attached annual financial statementsand do not, in our opinion, require any further comment.3. Statement of responsibilityThe Council is responsible for the maintenance of adequate accounting records and the preparation andintegrity of the financial statements and related information. The auditors are responsible for reporting on the fairpresentation of the financial statements. The financial statements have been prepared in accordance withGenerally Recognised Accounting Practice (GRAP), supplemented by Generally Accepted Accounting Practice(GAAP) (refer to note 1 to the financial statements), and in the manner required by the PFMA.The Council is also responsible for the entity’s system of internal control. These are designed to providereasonable, but not absolute assurance as to the reliability of the annual financial statements, and to adequatelysafeguard, verify and maintain accountability of assets, and to prevent and detect misstatement and loss.Nothing has come to the attention of the Council to indicate that any material breakdown in the functioning ofthese controls, procedures and systems has occurred during the year under review.The financial statements have been prepared on the going concern basis, since the Council has every reason tobelieve that the entity has adequate resources in place to continue its operations in the foreseeable future.4. Post statement of financial position eventsThe Council is not aware of any matter or circumstance which has arisen between the financial year end and thedate of approval of the financial statements.5. Non-current assetsDuring the year, Council acquired certain land and buildings, which it previously occupied as a tenant, for use asoffice premises. Further details of the property are disclosed in note 2 to the financial statements.There have been no further changes in the nature or use of non-current assets.6. Internal controlIn accordance with the PFMA, the Council is accountable for internal control. The Council has the responsibilityfor maintaining a sound system of internal control that supports the achievement of Umalusi’s objectives andreviews its effectiveness.The system of internal control is based on an ongoing risk management process designed to identify theprincipal risks to the achievement of the organisation’s objectives; to evaluate the nature and extent of thoserisks and to manage them efficiently and effectively. The system of internal control is underpinned by compliancewith the relevant corporate and governance legislation.32 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Report of the Councilfor the year ended 31 March 2008 (continued)Whilst the Council is encouraged by the significant improvements undertaken by management in implementingsound financial management practices and good corporate governance, the internal control weaknesses in thefollowing areas came to the Council’s attention during the current financial year:asset management; andrevenue management.As a result of the onerous obligations of the PFMA and the failure to comply with all the statutory prescripts of thePFMA, the Council wishes to highlight the substantial progress that has been made in redefining thefoundation for sound internal control within the entity, and is committed to implementing improvements in keyareas, including the enhancement of asset and revenue management processes.7. Council membersThe Council members during the year and to the date of this report are as follows:Prof JD Volmink (Chairperson)Mr J Pampallis (Deputy Chairperson)Mr GR AgocsProf M FourieProf SG MabizelaDr MA MakhafolaMs J NaidooMr L NengovhelaDr RA PatelMr MS RakometsiProf IL RensburgDr ZC SosiboDr PJN SteynMs PT TyobekaProf DS Zinn (Appointed on 14 March 2008)Prof L Chisholm (Resigned on 16 November 2007)8. SecretaryThe secretary of the Council is Mr EP du Plooy :Business address: 37 General van Ryneveld Street Postal address: Postnet Suite 102Persequor TechnoParkPrivate Bag X1PretoriaQueenswood0121 Pretoria, 01219. AuditorsGobodo Incorporated were appointed as auditors with effect from 1 April 2005.10. ApprovalThe annual financial statements set out on pages 34 to 46, which have been prepared on the going concern basis,were approved by Umalusi Executive Committee of Council on 30 June 2008 and were signed on its behalf by:PROF JD VOLMINKChairpersonDR PP LOLWANAChief Executive Offi cer33 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Statement of Financial Positionas at 31 March 2008Notes2008R2007RASSETSNon-current assetsProperty and equipment 2 13 152 227 981 661Intangible assets 3 3 876 43 11613 156 103 1 024 777Current assetsTrade and other receivables 4 10 036 339 9 365 500Cash and cash equivalents 5 14 002 487 20 657 68724 038 826 30 023 187Total assets 37 194 929 31 047 964NET ASSETS AND LIABILITIESNet assetsAccumulated surplus 34 053 015 28 926 806LIABILITIESCurrent liabilitiesTrade and other payables 6 3 141 914 2 121 158Total equity and liabilities 37 194 929 31 047 964Statement of Financial Performancefor the year ended 31 March 2008Notes2008R2007RRevenue 7 21 682 498 20 279 187Other income 12 744 096 10 965 909Operating expenses (30 887 357) (28 024 527)Operating surplus 3 539 237 3 220 569Investment revenue 8 1 586 972 1 727 250Surplus for the year 5 126 209 4 947 81934 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Statement of Changes in Net Assetsfor the year ended 31 March 2008Accumulated SurplusRBalance at 01 April 2006 23 978 987Changes in net assetsSurplus for the year 4 947 819Total changes 4 947 819Balance at 01 April 2007 28 926 806Changes in net assetsSurplus for the year 5 126 209Total changes 5 126 209Balance at 31 March 2008 34 053 015Cash Flow Statementfor the year ended 31 March 2008Notes2008R2007RCash flows from operating activitiesCash receipts from customers 33 795 386 29 072 632Cash paid to suppliers and employees (29 112 182) (27 103 122)Cash generated from operations 10 4 683 204 1 969 510Interest income 1 586 972 1 727 250Net cash from operating activities 6 270 176 3 696 760Cash flows from investing activitiesPurchase of property and equipment 2 (12 930 398) (555 027)Sale of property and equipment 5 365 -Purchase of other intangible assets 3 (343) -Net cash from investing activities (12 925 376) (555 027)Total cash movement for the year (6 655 200) 3 141 733Cash at the beginning of the year 20 657 687 17 515 954Total cash at end of the year 5 14 002 487 20 657 68735 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Accounting Policies1. Presentation of Annual Financial StatementsThe annual financial statements have been prepared in accordance with South African Statements ofGenerally Accepted Accounting Practice (GAAP) including any of such statements issued by the AccountingStandards Board, with the effective Standards of Generally Recognised Accounting Practices (GRAP) issued bythe Accounting Standards Board replacing the equivalent GAAP statements as follows:Standards of GRAPGRAP 1: Presentation of fi nancial statementsGRAP 2: Cash fl ow statementsGRAP 3: Accounting policies, changes inaccounting estimates and errorsReplaced Statement of GAAPAC101: Presentation of fi nancial statementsAC118: Cash fl ow statementsAC103: Accounting policies, changes inaccounting estimates and errorsCurrently the recognition and measurement principles in the above GRAP and GAAP statements do not differsusbtantially or result in material differences in items presented and disclosed in the financial statements. Theimplementation of GRAP 1, 2 & 3 has resulted in the following changes in the presentation of the financialstatements:a) Terminology differences:Standards of GRAPStatement of fi nancial performanceStatement of fi nancial positionStatement of changes in net assetsNet assetsSurplus/defi citAccumulated surplus/defi citReplaced Statement of GAAPIncome statementBalance sheetStatement of changes in equityEquityProfi t/lossRetained earnings/accumlated lossb) The cash flow statement can only be prepared in accordance with the direct method.c) There are no restrictions on cash balances.Paragraph 11 to 15 of GRAP 1 has not been implemented because the budget reporting standard is in theprocess of development by international and local standard setters. Although the inclusion of budget informationwould enhance the usefulness of the financial statements, non-disclosure will not affect the objective ofthe financial statements.The financial statements are prepared on the going concern basis and are prepared under the historical costconvention and incorporate the principal accounting policies set out below.These accounting policies are consistent with the previous year.1.1 Property and equipmentThe cost of an item of property and equipment is recognised as an asset when:it is probable that future economic benefits associated with the item will flow to the Council; andthe cost of the item can be measured reliably.Costs include costs incurred initially to acquire or construct an item of property and equipment, and costsincurred subsequently, to add to, replace part of, or service it. If a replacement cost is recognised in the carryingamount of an item of property and equipment, the carrying amount of the replaced part is derecognised.3 6 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Accounting Policies (continued)Land is not depreciated. Other property and equipment is carried at cost less accumulated depreciationand any impairment losses. Estimated useful lives of the main categories of property and equipment are asfollows:Item description Average useful lifeBuildings20 yearsFurniture and fi xtures4 to 6 yearsOffi ce equipment5 yearsComputer equipment3 yearsCommunication equipment5 years(The residual value and the useful life of each asset is reviewed at the end of each financial period).Each part of an item of property and equipment with a cost that is significant in relation to the total cost of theitem, is depreciated separately.The depreciation charge for each period is recognised in the statement of financial performance unless it isincluded in the carrying amount of another asset.The gain or loss arising from the derecognition of an item of property and equipment is included in the statementof financial performance when the item is derecognised. The gain or loss arising from the derecognitionof an item of property and equipment is determined as the difference between the net disposal proceeds, ifany, and the carrying amount of the item.1.2 Intangible assetsAn intangible asset is recognised when:it is probable that the expected future economic benefits that are attributable to the asset will flow to theCouncil; andthe cost of the asset can be measured reliably.Intangible assets are initially recognised at cost.Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.All intangible assets are amortised on a straight line basis over their useful life.The amortisation period and the amortisation method for intangible assets are reviewed every period-end.Reassessing the useful life of an intangible asset with a definite useful life after it was classified asindefinite, is an indicator that the asset may be impaired. As a result, the asset is tested for impairment and theremaining carrying amount is amortised over its useful life.Amortisation is provided to write down the intangible assets, on a straight-line basis, to their residualvalues as follows:ItemComputer softwareUseful life2 years1.3 Financial instrumentsTrade and other receivablesTrade receivables are measured at initial recognition at fair value, and are subsequently measuredat amortised cost using the effective interest rate method. Appropriate allowances for estimatedirrecoverable amounts are recognised in the statement of financial performance when there is37 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Accounting Policies (continued)objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that thedebtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than60 days overdue) are considered indicators that the trade receivable is impaired. The allowance recognisedis measured as the difference between the asset’s carrying amount and the present value of estimated futurecash flows discounted at the effective interest rate computed at initial recognition.The carrying amount of the asset is reduced through the use of an allowance account, and the amount ofthe loss is recognised in the statement of financial performance within operating expenses. When a tradereceivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequentrecoveries of amounts previously written off are credited against operating expenses in the Statement ofFinancial Performance.Trade and other receivables are classified as loans and receivables.Trade and other payablesTrade payables are initially measured at fair value, and are subsequently measured at amortised cost, usingthe effective interest rate method.Cash and cash equivalentsCash and cash equivalents comprise cash on hand and demand deposits and other short term highly liquidinvestments that are readily convertible to a known amount of cash and are subject to an insignificant risk ofchanges in value. These are initially and subsequently recorded at fair value.1.4 LeasesA lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental toownership. A lease is classified as an operating lease if it does not transfer substantially all the risks andrewards incidental to ownership.Operating leases – lesseeOperating lease payments are recognised as an expense on a straight-line basis over the lease term. Thedifference between the amounts recognised as an expense and the contractual payments are recognised asan operating lease asset. This liability is not discounted.Any contingent rents are expensed in the period they are incurred.1.5 Impairment of assetsThe Council assesses at each Statement of Financial Position date whether there is any indication that anasset may be impaired. If any such indication exists, the Council estimates the recoverable amount of theasset.If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individualasset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amountof the cash generating unit to which the asset belongs is determined.The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to selland its value in use.If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset isreduced to its recoverable amount. That reduction is an impairment loss.An impairment loss of assets carried at cost, less any accumulated depreciation or amortisation, is recognisedimmediately in the statement of financial performance. Any impairment loss of a revalued asset is treated as arevaluation decrease.3 8 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Accounting Policies (continued)A reversal of an impairment loss of assets, carried at cost less accumulated depreciation or amortisation isrecognised immediately in the statement of financial performance. Any reversal of an impairment loss of arevalued asset is treated as a revaluation increase.1.6 Employee benefitsShort-term employee benefitsThe cost of short-term employee benefits, (those payable within 12 months after the service is rendered,such as paid vacation leave and sick leave, bonuses, and non monetary benefits such as medical care), arerecognised in the period in which the service is rendered and are not discounted.The expected cost of compensated absences is recognised as an expense as the employees render servicesthat increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.1.7 Government grantsGovernment grants are recognised when there is reasonable assurance that:the Council will comply with the conditions attaching to them; andthe grants will be received.Government grants are recognised as income over the periods necessary to match them with the related coststhat they are intended to compensate.A government grant that becomes receivable as compensation for expenses or losses already incurred or forthe purpose of giving immediate financial support to the entity with no future related costs is recognised asincome of the period in which it becomes receivable.Grants related to income are presented as a credit in the statement of financial performance (separately).1.8 RevenueRevenue in respect of certification, accreditation, and verification is recognised upon completion of the activityor replacement of certificates.Revenue is measured at the fair value of the consideration received or receivable and represents the amountsreceivable for services provided in the normal course of business.Interest is recognised, in the statement of financial performance, using the effective interest rate method.3 9 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Notes to the Annual Financial Statements2. Property and equipment2008R2007RCostAccumulateddepreciationCarryingvalueCostAccumulateddepreciationCarryingvalueLand 3 125 682 - 3 125 682 - - -Buildings 9 277 818 (270 603) 9 007 215 - - -Furniture and fi xtures 1 406 637 (968 184) 438 453 1 226 480 (762 500) 463 980Offi ce equipment 405 583 (236 259) 169 324 330 981 (190 178) 140 803Computer equipment 1 859 143 (1 467 416) 391 727 1 603 781 (1 254 813) 348 968Communication equipment 157 375 (137 549) 19 826 157 375 (129 465) 27 910Total 16 232 238 (3 080 011) 13 152 227 3 318 617 (2 336 956) 981 661Reconciliation of property and equipment - 2008OpeningBalanceAdditions Depreciation TotalLand - 3 125 682 - 3 125 682Buildings - 9 277 818 (270 603) 9 007 215Furniture and fi xtures 463 980 180 157 (205 684) 438 453Offi ce equipment 140 803 74 602 (46 081) 169 324Computer equipment 348 968 272 139 (229 380) 391 727Communication equipment 27 910 - (8 084) 19 826Total981 661 12 930 398 (759 832) 13 152 227Details of immovable propertyThe land and buildings acquired on 26 July 2007, are described as portion 2 of Erf 2 Persequor Township,Gauteng Province, measuring 5 721 square meters with office buildings thereon. The premises are owneroccupied.3. Intangible assets2008R2007RCostAccumulatedamortisationCarryingvalueCostAccumulatedamortisationCarryingvalueComputer software 906 043 (902 167) 3 876 905 701 (862 585) 43 116Reconciliation of intangible assets - 2008OpeningBalanceAdditions Amortisation TotalComputer software 43 116 343 (39 583) 3 8764 0 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Notes to the Annual Financial Statements (continued)4. Trade and other receivablesTrade receivables 9 670 549 8 872 408Deposits 149 433 -Other receivables 216 357 493 09210 036 339 9 365 500Trade and other receivables impairedTrade and other receivables are reflected net of the provision for impairment.The amount of the provision for impairment of trade receivables was R 97 098 as of 31 March 2008(2007: R19 278).Reconciliation of provision for impairment of trade and other receivablesOpening balance 19 278 19 278Increase in provision for impairment 284 492 -Balance at year end 303 770 19 2782008R2007R5. Cash and cash equivalentsCash and cash equivalents consist of:Bank balances 1 460 436 299 580Short-term deposits 12 542 051 20 358 10714 002 487 20 657 6876. Trade and other payablesTrade payables 928 775 1 045 504Other payables 6 249 -Accrued leave pay 571 818 347 807Accrued bonus 223 787 557 153Other accrued expenses 1 114 049 170 694Unallocated receipts 297 236 -3 141 914 2 121 158Unallocated receipts represent direct deposits into Council’s bank account with no traceable reference. Theseamounts will be credited to revenue or accounts receivable once the deposits are traced.41 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Notes to the Annual Financial Statements (continued)2008R2007R7. RevenueCertifi cation, verifi cation & accreditation fees 21 682 498 20 279 1878. Investment revenueInterest revenueBank 1 586 972 1 727 2509. Auditors’ remunerationInternal audit fee 199 500 125 400External audit fee 102 600 84 360302 100 209 76010. Cash generated from operationsSurplus for the year 5 126 209 4 947 819Adjustments for:Depreciation and amortisation 799 415 492 454Profi t on sale of assets (5 365) -Interest received (1 586 972) (1 727 250)Changes in working capital:Trade and other receivables (670 839) (2 173 168)Trade and other payables 1 020 756 429 6554 683 204 1 969 51011. CommitmentsAuthorised capital expenditureAlready contracted for :Property, and equipment 297 824 12 712 140Not yet contracted for, but approved as per the budget 2 962 723 -This committed expenditure relates to the acquisition of an electric generator for which a deposit of R148 912has already been paid as at year end, and the delivery will occur in the month of June 2008. All thecommitments are funded from the available cash resources.Operating leases – as lessee (expense)Minimum lease payments due- within one year 53 788 397 800- in second to fi fth year inclusive 161 363 169 200215 151 567 000Operating lease payments represent rentals payable by the Council for certain of its office equipment. Leasesare negotiated for an average term of seven years and rentals are fixed for an average of three years. Nocontingent rent is payable.42 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Notes to the Annual Financial Statements (continued)12. Related parties2008R2007RRelationshipsSignificant grantorMembers of key managementEntity / NameDepartment of EducationAll Council membersChief Executive OfficerChief Financial OfficerChief Operating OfficerAll Senior ManagersRelated party transactionsSee note 13 for details of compensation paid to key management.Grants receivedDepartment of Education 12 652 000 10 286 00013. Compensation to key management2008 SalaryPensioncontributionsBonus andperformancepaymentsDr PP Lolwana 658 023 51 927 73 860 783 810Mr MQ Potterton 61 437 3 549 17 745 82 731Mrs E Rabe 555 694 42 633 15 534 613 861Mr JR Thomas 515 665 34 942 46 911 597 518Dr SJ Allais 513 439 - 52 643 566 082Mr VD Naidoo 451 762 36 649 36 813 525 224Dr JP Blom 377 642 30 616 20 266 428 524Ms EM Burroughs 54 398 3 243 - 57 641Ms SH Mafanga-Kibi 256 810 - 9 480 266 2903 444 870 203 559 273 252 3 921 681Total2007 SalaryPensioncontributionsBonus andperformancepaymentsDr PP Lolwana 613 981 49 709 68 090 731 780Mr MQ Potterton 530 622 40 596 - 571 218Mrs E Rabe 452 453 35 303 4 740 492 496Mr JR Thomas 440 715 35 425 34 038 510 178Mr VD Naidoo 114 130 8 877 - 123 007Mr SJ Ndaba 340 136 25 894 27 521 393 551Ms SH Mafanga-Kibi 345 770 - - 345 770Dr SJ Allais 463 071 - 39 147 502 2183 300 878 195 804 173 536 3 670 218Total43 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Notes to the Annual Financial Statements (continued)2008 Fees paid TotalProf JD Volmink 54 543 54 543Ms J Naidoo 6 545 6 545Prof SG Mabizela 4 449 4 449Dr ZC Sosibo 1 282 1 282Dr MA Makhafolo 1 132 1 13267 951 67 9512007 Fees paid TotalProf JD Volmink 47 483 47 483Ms J Naidoo 2 628 2 62850 111 50 11114. Change in accounting estimateProperty and equipmentThe Council had effected lease improvements whose useful life was to end in August 2008 when the leaseterm of the property expires. However, due to the acquisition of the leased property in July 2007, theleasehold improvements’ useful life has been revised, resulting in the remaining carrying amount written offon the cancellation of the lease agreement. The effect of this revision has increased the depreciation chargesfor the current year by R 46 835. The cost of the lease improvements and the related depreciation charge areincluded in furniture and fittings.15. Risk managementLiquidity riskThe Council’s risk to liquidity is a result of the funds available to cover future commitments. The Councilmanages liquidity risk through an ongoing review of future commitments.Interest rate riskThe Council adopts a policy of ensuring that its exposure to changes in interest rates is of a floating nature.Credit riskThe Council maintains cash, cash equivalents and short-term investments with various financial institutions.The Council’s policy is designed to limit exposure with any one financial institution and a high credit standingis necessary for the financial institutions with which transactions are executed. The entity has no significantconcentration of credit risk.16. TaxationThe Council has obtained approval for exemption from income tax in terms of Section 10(1)(cA)(i)(bb) of theIncome Tax Act.17. Comparative figuresWhere considered necessary, comparative figures have been restated to correspond with current yearreclassification of certain items.Short term employee benefits had previously been incorrectly classified as provision. The amounts have nowbeen correctly classified as accrued expenses.44 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Detailed Statement of Financial PerformanceNotes2008R2007RRevenueCertifi cation, verifi cation & accreditation fees 21 682 498 20 279 187Other incomeGrant: Department of Education 12 652 000 10 286 000Sundry revenue 86 731 679 909Interest received 8 1 586 972 1 727 250Gains on disposal of assets 5 365 -14 331 068 12 693 159Operating expenses (Refer to page 46) (30 887 357) (28 024 527)Surplus for the year 5 126 209 4 947 81945 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Detailed Statement of Financial Performance (continued)Notes2008R2007ROperating expensesAdvertising (189 552) (215 445)Audit committee expenses (5 357) (13 563)Auditors remuneration 9 (302 100) (209 760)Bank charges (34 525) (28 402)Certifi cation expense (1 651 516) (2 810 504)Cleaning (121 628) (101 902)Computer expenses (847 169) (638 289)Conference and workshops (449 018) (387 380)Consulting fees (1 147 037) (685 970)Council members remuneration (149 952) (155 706)Depreciation and amortisation (799 415) (492 454)Impairment for trade and other receivables (284 492) -Electricity (118,569) (133 137)Employee costs (14 473 009) (12 072 472)General expense (27 700) (26 358)Gifts - (1 285)Insurance (61 006) (14 835)Lease rentals on operating lease (284 968) (1 406 523)Legal expenses (44 640) (120 469)Levies (58 544) (8 205)Meeting expenses (275 321) (163 327)Membership fees (12 557) (9 316)Moderator and verifi er costs (4 303 909) (3 885 783)Postage and courier (189 474) (142 145)Printing and stationery (637 158) (530 902)Promotions (339 526) (138 814)Repairs and maintenance (134 692) (109 874)Research and development costs (52 622) (49 470)Security (5 263) (13 109)Staff welfare and refreshments (80 574) (62 394)Standardisation (8 062) (65 882)Telephone and fax (243 406) (299 618)Training (239 040) (269 933)Travel and accommodation - local (3 205 478) (2 706 761)Travel and accommodation - overseas (110 078) (54 540)(30 887 357) (28 024 527)4 6 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and DevelopmentOversight ReportThe statistics and information published in this part of the annual report are required in terms of Chapter 1, PartIII J.3 of the Public Service Regulations, 2001 as prescribed by the Minister of Public Services and Administration.Information on key human resource issues is provided in the statistical tables below. The information aims toempower legislators, the media, the public and other stakeholders to monitor whether public entities:exercise the powers granted under Public Service and Public Finance legislation in a responsible manner,achieve national transformation priorities established by the Cabinet, (e.g. affirmative action).1. ExpenditureUmalusi budgets in terms of clearly defined programmes. The following tables summarise the expenditure perprogramme (Table 1.1) and in salary bands (Table 1.2). An indication of the amount spent on personnel costs interms of each of the programmes or salary bands within Umalusi is provided.These figures reflect the permanent employees of Umalusi. An average of 200 employees who were appointedas moderators and monitors are reflected as consultants, who were remunerated on a claim-per-task basis.Personnel cost by programme 2007/08 TABLE 1.1ProgrammeTotalexpenditure(R’000)Personnelexpenditure(R’000)Trainingexpenditure(R’000)Personnel costas a % of totalexpenditureAveragepersonnel costper employee(R’000)Management Support Structures 2 571 1 832 7 71% 305Evaluation and Accreditation 5 251 3 297 25 63% 275Qualifi cations Curriculum &Certifi cation1 338 1 131 13 85% 162Quality Assurance of Assessment 9 703 3 198 23 33% 246Research and Development 2 684 1 442 2 54% 361Finance and Administration 9 340 3 573 124 38% 298Total 30 887 14 473 194 47% 268Personnel cost by salary bands 2007/08TABLE 1.2Salary bandsPersonnelexpenditure(R’000)% of totalpersonnel cost(R’000)Average personnelcost per employee(R’000)Lower skilled (Levels 1 - 2) 68 1% 68Skilled (Levels 3 - 5) 2 610 18% 154High skilled production (Levels 6 - 8) 214 1% 36High skilled supervision (Levels 9 -12) 8 149 56% 354Senior management (Levels 13 -16) 3 432 24% 490Total 14 473 100% 26847 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)Tables 1.3 and 1.4 provide a summary per programme and salary bands of expenditure incurred as a result of thepayment of salaries, employer’s contribution to the Pension Fund, home-owner’s allowance and medical allowance.The tables provide an indication of the percentage of the personnel budget that was used for these items.TABLE 1.3Salaries, pension fund, home owners allowance, medical aidassistance by programme 2007/08ProgrammeSalariesEmployerscontribution toPension FundHome-owner’sAllowanceMedical AidAssistanceAmountAs a % ofAmountAs a % ofAmountAs a % ofAmountAs a % of(R’000)personnel(R’000)personnel(R’000)personnel(R’000)personnelcostcostcostcostManagement Support Structures 2 235 15% 171 1% 17 0,12% 24 0,17%Evaluation and Accreditation 2 932 20% 245 2% 27 0,19% 83 0,57%Qualifi cations Curriculum and Certifi cation 1 086 8% 54 0,37% - - 6 0,04%Quality Assurance of Assessment 2 950 20% 233 2% 35 0,24% 55 0,38%Research and Development 1 318 9% 75 0,52% - - 10 0,07%Finance and Administration 2 751 19% 136 0,94% 1 0,01% 29 0,20%Total 13 272 92% 914 6% 80 0,55% 207 1%TABLE 1.4Salaries, pension fund, home owners allowance, medical aidassistance by salary bands 2007/08ProgrammeSalariesEmployerscontribution toPension FundHome-owner’sAllowanceMedical AidAssistanceSalary bandAmount(R’000)Salary asa % ofpersonnelcostAmount(R’000)As a % ofpersonnelcostAmount(R’000)As a % ofpersonnelcostAmount(R’000)As a % ofpersonnelcostLower skilled (Levels 1 - 2) 88 1% 11 0,08% - - 2 0,01%Skilled (Levels 3 - 5) 1 622 11% 105 0,73% 8 0,06% 36 0,25%High skilled production(Levels 6 - 8)High skilled supervision(Levels 9 -12)Senior management(Levels13 -16)1 629 11% 104 0,72% 21 0,15% 26 0,18%6 375 44% 475 3% 34 0.23% 94 0,65%3 558 25% 219 2% 17 0,12% 49 0,34%Total 13 272 92% 914 6% 80 0,55% 207 1%4 8 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)2. Employment and vacanciesThe following tables show the number of posts on the establishment, the number of employees, the vacancyrate and whether there are any staff additional to the establishment. This information is presented in terms ofthree key variables: programme (Table 2.1), salary bands (Table 2.2) and critical occupations (Table 2.3). Table 2.3provides establishment and vacancy information for the key critical occupations in Umalusi. The vacancy ratereflects the percentage of posts that are not filled.Employment and vacancies by programme 31 March 2008TABLE 2.1ProgrammeNumber ofpostsNumber ofposts filledVacancyrate %Number of postsfilled additional tothe establishmentManagement Support Structures 7 6 14% -Evaluation and Accreditation 19 12 37% 2Qualifi cations Curriculum and Certifi cation 7 7 - 2Quality Assurance of Assessment 18 13 28% -Research and Development 4 4 - -Finance and Administration 22 12 45% -Total 77 54 30% 4Employment and vacancies by salary bands 31 March 2008TABLE 2.2ProgrammeNumber ofpostsNumber ofposts filledVacancyrate %Number of postsfilled additional tothe establishmentLower skilled (Levels 1 - 2) 1 1 - -Skilled (Levels 3 - 5) 22 17 23% 3High skilled production (Levels 6 - 8) 13 6 54% -High skilled supervision (Levels 9 -12) 34 23 32% 1Senior management (Levels 13 -16) 7 7 - -Total 77 54 30% 4Employment and vacancies by critical occupation 31 March 2008 TABLE 2.3CriticaloccupationsNumber ofpostsNumber ofposts filledVacancyrate %Number of postsfilled additional tothe establishmentAdministrative related 20 14 15% 3Cleaners 1 1 - -Communication related 2 - 100% -Financial related 5 3 40% -Human resource related 6 4 33% -Secretarial related 2 2 - -Information technology related 5 2 60% -Assessment 11 9 18% -Accreditation 12 7 42% 1Research 3 3 - -Qualifi cations 3 2 33% -Senior management 7 7 - -Total 77 54 30% 44 9 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)3. Job evaluationNo job evaluations were conducted during the 2007/08 financial year.4. Employment changesThis section provides information on changes in employment over the financial year. The turnover rates providean indication of trends in the employment profile of Umalusi. The following tables provide a summary of turnoverrates by salary band (Table 4.1) and by critical occupations (Table 4.2), identifies the major reason for staff leavingUmalusi’s employment (Table 4.3), indicates promotions by critical occupation (Table 4.4), and promotions by salaryband (Table 4.5).TABLE 4.1Annual turnover by salary bandSalary bandNumber ofemployees perband as on1 April 2007AppointmentsTerminationsTurnoverrateLower skilled (Levels 1 - 2) 1 1 - -Skilled (Levels 3 - 5) 17 11 6 35%High skilled production (Levels 6 - 8) 6 4 1 17%High skilled supervision (Levels 9 -12) 23 5 6 26%Senior management service band A 5 1 1 20%Senior management service band B 1 1 1 100%Senior management service band C 1 - - -Total 54 23 15 28%TABLE 4.2Annual turnover by critical occupation 2007/08OccupationsNumber ofemployees peroccupation as on1 April 2007AppointmentsTerminationsTurnoverrateAdministrative related 14 3 3 21%Cleaners 1 1 - -Communication related - - - -Human resource related 3 3 1 33%Financial related 4 2 1 25%Secretarial related 2 - - -Information technology related 2 2 - -Assessment 8 2 3 38%Accreditation 5 4 2 40%Research 3 2 2 67%Qualifi cations 5 3 2 40%Senior management 7 1 1 14%Total 54 23 15 28%5 0 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)The major reason why staff have left UmalusiTABLE 4.3Termination typeNumber% of totalemploymentResignation 15 28%Total 15 28%Total number of employees who left as a % of the total employment 28%Promotions by critical occupationTABLE 4.4CriticaloccupationsNumber ofemployees perOccupation asOn 1 April 2007Promotionsto anothersalary levelSalary levelpromotionsas a % ofemployees byoccupationProgressionto anothernotchwithin salaryrange levelNotchprogressionas a % ofemployees byoccupationAdministrative related 14 - - 10 71%Cleaners 1 - - 1 100%Communication related - - - - -Human resource related 3 - - 2 67%Financial related 4 - - 2 50%Secretarial related 2 - - 1 50%Information technology 2 - - 2 100%Assessment 8 - - 2 25%Accreditation 5 2 40% 2 40%Research 3 - - 1 33%Qualifi cations 5 - - 2 40%Senior management 7 - - 4 57%Total 54 2 40% 29 54%51 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)TABLE 4.5Promotions by salary bandSalary bandsNumber ofemployees1 April 2007Promotionsto anothersalarylevelSalary levelpromotionsas a % ofemployees byoccupationProgressionto anothernotchwithin salaryrange levelNotchprogressionas a % ofemployeesby occupationLower skilled (Levels 1 - 2) 1 - - 1 100%Skilled (Levels 3 - 5) 17 - - 10 59%High skilled production (Levels 6 -8) 6 - - 3 50%High skilled supervision (Levels 9 -12) 23 2 9% 11 48%Senior management (Levels 13-16) 7 - - 4 57%Total 54 2 9% 29 54%5. Employment equityThe tables in this section are presented in the format prescribed by the Employment Equity Act, No 55 of 1998.TABLE 5.1Total number of employees (including employees with disabilities)in each of the occupational categories as on 31 March 2008.OccupationalcategoriesMale Male Male Male Female Female Female Female TotalAfrican Coloured Indian White African Coloured Indian WhiteLegislators, senior offi cialsand managers3 2 1 3 3 - 1 5 18ProfessionalsTechnicians and associate professionals 6 - - 1 5 - 2 5 19Clerks 5 - 1 - 14 - 1 1 22Elementary occupations 1 - - 1 - - - 2Total permanent 15 2 2 4 23 - 4 11 61Non-permanent - - - - - - - - -Total 15 2 2 4 23 - 4 11 61Employees with disabilities - - - - - - - - -52 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)Total number of employees (including employees with disabilities)in each of the occupational bands as on 31 March 2008TABLE 5.2OccupationalbandsMale Male Male Male Female Female Female Female TotalAfrican Coloured Indian White African Coloured Indian WhiteTop management - - - - 1 - - - 1Senior management - 1 1 - - - - 4 6Professionally qualifi ed and experiencedspecialists and mid-managementSkilled technical and academicallyqualifi ed workers, junior managementSemi-skilled and discretionarydecision making3 1 - 3 2 - 1 1 116 - 1 1 5 - 2 5 205 - - - 14 - 1 1 21Unskilled and defi ned decision making 1 - - - 1 - - - 2Total permanent 15 2 2 4 23 - 4 11 61Non-permanent - - - - - - - - -Total 15 2 2 4 23 - 4 11 61Recruitment 2007/08TABLE 5.3Occupationalbands Male Male Male Male Female Female Female Female TotalAfrican Coloured Indian White African Coloured Indian WhiteTop management - - - - - - - - -Senior management - - - - - - - 3 3Professionally qualifi ed and experiencedspecialists and mid-managementSkilled technical juniormanagement, supervisors2 - - 1 2 - - 3 81 - - - 8 - 1 1 11Unskilled and defi ned decision making 1 - - - - - - - 1Total permanent 4 - - 1 10 - 1 7 23Non-permanent - - - - - - - - -Total 4 - - 1 10 - 1 7 2353 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)TABLE 5.4Terminations 2007/08OccupationalbandsMale Male Male Male Female Female Female Female TotalAfrican Coloured Indian White African Coloured Indian WhiteSenior management - - - 1 1 - - - 2Professionally qualifi ed and experiencedspecialists and mid-management- - - - 1 - - 2 3Skilled technical junior management,supervisors4 - - - 4 1 - 1 10Total permanent 4 - - 1 6 1 - 3 15Non-permanent - - - - - - - - -Total 4 - - 1 6 1 - 3 156. Performance rewardsTo encourage good performance, Umalusi granted the following performance rewards during 2007/08.The information is presented in terms of race, gender and disability (Table 6.1) salary bands (Table 6.2)and critical occupations (Table 6.3).TABLE 6.1Performance rewards by race, gender and disabilityOccupationalcategoriesNumber ofbeneficiariesNumber ofemployees ingroup% of totalwithin groupCost (R’000)Average costper employee(R’000)AfricanMale 5 12 42% 29 6Female 12 21 57% 92 8AsianMale 1 2 50% 12 12Female - 3 - - -ColouredMale 1 2 50% 21 21Female - 1 - - -WhiteMale 2 4 50% 26 13Female 5 9 56% 59 12Employees with a disability - - - - -Total 26 54 48% 239 954 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)Performance rewards by salary bands for personnel belowsenior management services 2007/08TABLE 6.2Number ofbeneficiariesBeneficiaryprofileNumber ofemployees ingroup% of totalwithin groupCost(R’000)CostAveragecost peremployeeLower skilled (Levels 1-2) 1 1 100% 2 2Skilled (Levels 3-5) 7 17 41% 22 3Highly skilled production (Levels 6-8) 1 6 16% 4 4Highly skilled supervision (Levels 9-12) 10 23 43% 95 10Total 19 47 40% 123 6Performance related rewards (cash bonus) by salary band forsenior management services 2007/08TABLE 6.3Number ofbeneficiariesBeneficiaryprofileNumber ofemployees ingroup% of totalwithin groupCost(R’000)CostAveragecost peremployeeBand A 5 5 100% 78 16Band B 1 1 100% - -Band C 1 1 100% 37 37Band D - - - - -Total 7 7 100% 115 167. Leave utilisation for the period 1 January 2007 to 31 December 2007The need to monitor sick leave within the public service, was identified by the Public Service Commission.An indication of the use of sick leave (Table 7.1) is provided in the following table.Sick leave 1 January 2007 – 31 December 2007 TABLE 7.1Salary bandTotal days% days withmedicalcertificatesNumber ofemployees usingsick leaveAveragedays peremployeeLower skilled (Levels 1-2) 1 - 1 1Skilled (Levels 3-5) 86 75% 22 4Highly skilled production (Levels 6-8) 31 80% 8 4Highly skilled supervision (Levels 9-12) 92 80% 25 4Senior management (Band A-C) 11 60% 7 2Total 221 74% 63 455 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)Table 7.2 summarises the utilisation of annual leave. Management prevents high levels of annual leave accruelthat has to be paid out to staff on termination of service by encouraging the optimum use of leave.TABLE 7.2Annual leave 1 January 2007 – 31 December 2007Salary band Total days taken Average per employeeLower skilled (Levels 1-2) 27 27Skilled (Levels 3-5) 301 18Highly skilled production (Levels 6-8) 144 24Highly skilled supervision (Levels 9-12) 531 23Senior management (Band A -C) 176 25Total 1 179 22The table below (Table 7.3) summarises payments made to employees as a result of leave that was not takenand paid out.TABLE 7.3Leave payoutsSalary bandTotal amount(R’000)Number ofemployeesAverage paymentper employee(R’000)Current leave payout on termination of service for 2007/08 99 15 7Total 99 15 78. HIV/AIDS and health promotion programmesTABLE 8.1Steps taken to reduce the risk of occupational exposureUnits /categories of employees identified as being at risk ofcontracting HIV and related diseases (if any)NoneKey steps taken to reduce the risksHIV/AIDS organisational policy implemented5 6 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)Details of health promotion and HIV/AIDS programmes TABLE 8.2Questions Yes No Details if yes1. Has the organisation designated a member of the seniormanagement services to implement the provisions contained inPart VI.E of Chapter 1 of the Public Service Regulations, 2001?2. Does the organisation have a dedicated unit or hasit designated specifi c staff members to promote thehealth and well being of the employees?•• Human Resources sub-unit3. Has the organisation introduced an employee assistance orhealth promotion programme for the employees?•EAP implemented throughICAS4. Has the organisation established (a) committee(s) ascontemplated in Part VI E.5(e) of Chapter 1 of the PublicService Regulations, 2001?5. Has the organisation reviewed its employment policies andpractices to ensure that these do not unfairly discriminateagainst employees on the basis of their HIV status?6. Has the organisation introduced measures toprotect HIV-positive employees or those perceivedto be HIV-positive from discrimination?•• HIV/AIDS Policy• HIV/AIDS Policy7. Does the organisation encourage its employeesto undergo voluntary counseling and testing?8. Has the organisation developed measures /indicatorsto monitor and evaluate the impact of its health promotionprogramme?••Through the EmployeeAssistance ProgrammeEAP implemented June 2006through ICAS with monthlyreporting9. Labour relationsGrievances lodged 2007/08 TABLE 9.1No grievances lodged during 2007/08.Disputes lodged with Labour Relations Councils 2007/08 TABLE 9.2Number% of totalNumber of disputes lodged 1 100%57 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Human Resources Management and Development (continued)10. Skills developmentTABLE 10.1Training needs identified and training provided 2007/08OccupationalcategoriesGenderNumber ofemployeesas at 1 April 2007Skills Programmesand other shortcourses identifiedSkills Programmesand other shortcourses providedLegislators, senior offi cialsand managersTechnicians and associateprofessionalsClerksElementary occupationsSubtotalMale 9 6 7Female 10 6 7Male 5 4 4Female 6 4 4Male 7 4 13Female 16 4 13Male - - -Female 1 - -Male 21 14 24Female 33 14 24Total 54 28 4811. Utilisation of consultantsUmalusi makes use of part-time evaluators, moderators and monitors on a periodic basis in its quality assuranceprocess. The organisation finds this to be an effective means of fulfilling its mandate.TABLE 11.1Reports on consultant appointments using appropriated fundsProject titleTotal number ofconsultantsValue inRand (R’000)Moderators 334 4 304Consultants (other) 46 1 147Total 380 5 4515 8 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

AcronymsABETACEABADCOMAETAPPETDASECABCVOCASSCEOCEPDCMCAdult Basic Education and TrainingAssociation of CommonwealthExamination and Accreditation BodiesAdvisory Committee for FETCollege ExaminationsAdult Education and TrainingAssociation of Private Providers ofEducation, Training and DevelopmentAlternative Secondary EducationCertificate for AdultsBeweging vir Christelik-volkseieOnderwysContinuous AssessmentChief Executive OfficerCentre for Education PolicyDevelopmentCurriculum Management CommitteeHEDCOMHESAHGICASIEBIECSIPECMISMPMSSNAISANATEDNCVHeads of Education DepartmentsCommitteeHigher Education South AfricaHigher GradeIndependent Counseling and AdvisoryServicesIndependent Examinations BoardIntegrated Examinations ComputerSystemInter-Provincial ExaminationsCommitteeManagement Information SystemMember of ParliamentManagement Support Structures UnitNational Association of IndependentSchoolsNational Technical Education (policy)National Certificate VocationalCTACommon Task for AssessmentNLRDNational Learner Record DatabaseCHECouncil on Higher EducationNQFNational Qualifications FrameworkCPDCorporation for Public DepositsNSCNational Senior CertificateDoEDepartment of EducationOAEOnafhanklike Afrikaanse EksamenraadE&AEvaluation and Accreditation UnitPALCPublic Adult Learning CentreEAPEmployee Assistance ProgrammePAYEPay As You EarnEEEmployment EquityPDEProvincial Department of EducationETQAEducation and Training Quality AssurorPFMAPublic Finance Management ActF&AFinance and Administration UnitQAAQuality Assurance of Assessment UnitFETFurther Education and TrainingQCQuality CouncilGAAPGETGECGETCGFETGMETGRAPGenerally Acceptable AccountingPracticeGeneral Education and TrainingGeneral Education CertificateGeneral Education and TrainingCertificateGeneral and Further Education andTrainingGeneric and MechanicalEngineering TradesGenerally RecognisedAccounting PracticeQCCQCTOR&DSAFCERTSAQASCSETASGSITASLAQualifications, Curriculum andCertification UnitQuality Council for Trades andOccupationsResearch and Development UnitSouth African Certification CouncilSouth African Qualifications AuthoritySenior CertificateSector Education and TrainingAuthorityStandard GradeState Information Technology AgencyService Level Agreement5 9 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

Staff 2007 / 2008 (on 31 March 2008)Management Support Structuresand GovernanceEugene du PlooyPeliwe LolwanaPhilistas MasingaEugenie RabeJeremy ThomasQuality Assurance of AssessmentConfi dence DikgoleMarisa du ToitMartha MalapaneFrans MashiloVirginia MashishiNthabiseng MatsobaneVijayen NaidooSiphamandla NxumaloEmmanuel SibandaAndy ThuloEardley TwiggVeenay BennideenVani ChattyFrank ChinyamakobvuHeather ErasmusZitha KhumaloMary-Louis MadalaneChaile MakalengEstella MichaelTlhuphi MorokeChris NyangintsimbiKholofelo RabothoMatseleng AllaisHeidi BoltonResearch and DevelopmentRamadimetja PhaladiFinance and Administration, InformationTechnology and Human ResourcesUlrike BadenhorstGerhard BooyseQualifications, Curriculum and CertificationLiz BurroughsAntoinette DliwayoZolile HlabeniHelen MatshobaMpho MavhungaLerato MolaiMbuleleni MyatazaMarie BothaJohanna ChobaGerrit Jansen van VuurenMiriam MathewsOlga MatlalaMakoena MokgadiIrene ThobejaneLetseba TosaCarien van der WaltEvaluation and AccreditationThinus WesselsRonel Blom6 0 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8

37 General Van Ryneveld Street, Persequor Technopark, PretoriaTelephone: +27 12 349 1510 • Fax: +27 12 349 1511• E-mail: info@umalusi.org.za • Web: www.umalusi.org.za