Department of Basic Education, Umalusi & SACE 2025/26 Annual Reports (with Ministry)

Video Annual Reports 2025/26 In a virtual meeting, the Portfolio Committee on Basic Education, with Minister and Deputy Minister in attendance, considered the Department of Basic Education’s (DBE) 2025/26 performance, financial position and audit outcomes, as well as presentations by the Audit Committee, Umalusi and SACE. The Chairperson stressed that the BRRR process should assess whether expenditure translated into meaningful educational outcomes, with Members raising concerns about Early Childhood Development (ECD), learner performance, infrastructure, underspending, audit findings, consequence management and conditions at specific schools. The DBE reported 60 of 66 targets achieved (91%), with the six unmet targets mainly relating to ECD subsidies, Mathematics and Physical Sciences, learners with disabilities, and literacy and numeracy. It spent 98.6% of its R37.5 billion budget, with underspending linked mainly to ECD, employment and training, capital assets and infrastructure. Committee members questioned the reliability of ECD data, low Funza Lushaka graduate placement, temporary teacher appointments, infrastructure underspending, accruals, irregular expenditure and the accountability of officials and implementing agents. The Minister acknowledged shortcomings and committed to investigating the causes and consequence management, while the DG undertook to provide information on officials responsible for underspending and recurring weaknesses. Members also questioned the Department’s progress towards a clean audit. DBE responded that Internal Audit had conducted 15 risk-based audits and the main remaining systemic challenge was non-compliance by implementing agents, particularly in procurement and contract management. The Chief Audit Executive reported that most internally investigated irregular-expenditure cases had been addressed, while engagements with the five implementing agents continued. The Chairperson requested reports on identified schools and outstanding matters, including a report on the Limpopo school visit. Umalusi reported achieving 15 of 16 targets (94%), but its audit outcome regressed to an unqualified opinion with findings, mainly late financial statements and overspending. Irregular expenditure declined from R31.1 million to R6.29 million, while Umalusi recorded a R3.8 million surplus. Members questioned the audit regression, irregular expenditure, administrative spending, financial sustainability, fraudulent certificates, examination monitoring, assessment irregularities and unaccredited online schools. Umalusi attributed some challenges to resource constraints, financial-system changes and GRAP 104, and said an audit action plan and revised funding model were being pursued. It also explained that fraudulent certificates were referred to SAQA and that limited resources restricted examination monitoring. SACE reported 79% achievement of its predetermined objectives, with ethical standards remaining its weakest area. Members raised concerns about misconduct backlogs, delayed sanctions, teacher vetting, vacant posts, irregular expenditure, audit findings and the nine-month governance gap before the new Council was appointed. SACE explained that the governance gap had contributed to some underperformance and that some cases referred to it should instead have been dealt with by provincial departments. It said newly registered educators were vetted through SAPS and that electronic integration with SAPS and the Department of Social Development was being pursued. It noted that its R10.1 million surplus largely resulted from additional revenue collected late in the financial year, leaving limited time to spend the increased budget. The Committee emphasised the need for accurate performance information, stronger oversight, consequence management and clear corrective plans. Members also highlighted the vulnerability of learners and teachers, volunteer teachers, poor-performing schools, fraudulent qualifications and unaccredited online schools. The Chairperson stressed that recurring backlogs, audit findings and other weaknesses could not continue without resolution and called for written responses and reports on outstanding matters. Future engagements would focus on whether previously committed corrective actions had actually been implemented.