An evaluation of the new funding model for further education and training colleges and its financial implications

[摘要] ENGLISH ABSTRACT: This research study is an investigation into the new funding model of three public FurtherEducation and Training (FET) colleges in KwaZulu-Natal Province. The study aims tounderstand the extent of the effectiveness of this funding model in the different colleges.Most governments worldwide view education as a central contributor to the economicdevelopment of a country and ultimately to its prosperity. It is for this reason thateducation is considered a national investment. Therefore, in South Africa, the largestportion of government budget is allocated to education, including FET colleges. FETcolleges are supposed to contribute to academic and skills development and training.This study evaluates whether government funding to public FET colleges is effective forthis skills development and training. I have used Public Finance Management Theory todiscuss the contractual relationship between government and FET colleges that is crucialto managing public money in this regard. The methodology used is a mixed-method approach, which is largely qualitative but alsouses descriptive statistics in quantitative inquiry. The specific instruments used arestructured questionnaires and an analysis of institutional financial documents.The significant finding was that a disproportionate amount of money is spent onpersonnel salaries and less on students or infrastructure. This means that the new fundingmodel is failing the FET system of education. Importantly, this study establishes thatthere is a need to engage in partnerships with the private sector as an alternative fundingsource. It believes that an alternative funding model, particularly in partnership with theprivate sector, is sustainable and therefore recommends that FET colleges pursue thismodel alongside government funding.

[发布机构] Stellenbosch University