Select Committee on Finance

1
Department Of Education

• Select Committee on Finance
• 16/09/2009

2
Content

• Year-on-year comparison
• Conditional Grants
• Background
• National School Nutrition Grant
• HIV and Aids Grant
• Infrastructure
• Monitoring
• Key challenges

3
Year-on-year comparisonAllocations 2008 2009
4
Year-on-year comparisonExpenditure to 30 June
2008 2009
5
Conditional Grants
6
Expenditure to 30/06/2009
7
Year-on-Year comparison Allocations 2008 2009
8
Year-on-Year comparisonExpenditure to 30 June
2008 2009
9
Background

• During 2008/09 the department overspent the COE
  budget with R414 million
• This impacted on the cash flow and payments for
  goods and services, conditional grants, transfers
  and capital payments were held back
• Major impact on the budget for 2009/10 financial
  year as invoices to the amount of R292 million
  were paid from April to July 2009

10
Background

• The following accruals were registered for
  2008/09
• Goods and services R202 m
• Transfers and subs R5 m
• Buildings R58 m
• Equipment R24 m
• Intangible assets R3 m
• This impact is visible throughout the 1st quarter
  reports of the department in terms of actual vs
  planned outputs and expenditure as service
  providers refused to take new orders from the
  Department due to non-payment

11
Background

• The Department implemented cost curtailment
  measures to absorb the impact of the R292 million
  accruals
• Moratorium was placed on filling of non-educator
  posts
• Delegations to acquire goods and services were
  withdrawn
• Thresholds for all administrative functions were
  implemented

12
National School Nutrition Grant
13
Progress report April - June 2009 (A)
Strategic objective To supply food to needy
learners through National School Nutrition
Programme Budget 2009/10 R229.534 million
14
Progress report April - June 2009 (A1)
Planned Annual Output Operational and administrative costs. Planning session conducted
1st Quarter planned output Operational costs and consumable stores and 1st planning session conducted
1st Quarter Actual Output Operational costs and consumable stores and 1st planning session conducted
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R3 761 000
1st Q actual spending R1 604 620
14
15
Progress report April - June 2009 (A2)
Planned Annual Output 574,725 primary and 48,588 secondary school learners to access programme for 198 days
1st Quarter planned output 574,725 learners in primary and 48,588 secondary school learners to access the nutrition programme for 48 days
1st Quarter Actual Output 574,725 primary and 48,588 secondary school learners participated in the programme for 48 days
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R52 979 000
1st Q actual spending R63 910 380
15
16
Reach

• The programme is currently accessed by Primary
  and Secondary School Learners in the following
  categories

Primary Schools No. of Schools No. of Learners
Quintile 1 360 113 343
Quintile 2 395 162 581
Quintile 3 332 175 728
Quintile 4 167 88 703
Quintile 5 57 27 565
Unranked 78 6 805
Total 1 389 574 725
17
Reach
Sec. Schools No. of Schools No. of Learners
Quintile 1 78 48 588
TOTAL (Primary Secondary) 623 313

• Why feed Q4 Q5 ?
• Farm schools and schools serving informal
  settlements are ranked in the higher categories.
• In terms of Cabinet Memo of 2002, the above
  category of schools should receive priority.

17
18
Cost per meal

• The meals cost R1.50 and R1.83 for Primary and
  Secondary schools respectively (exclusive of 17c
  cooking cost)
• National norm R1.80 and R2.35 (inclusive of
  cooking cost)
• Realistically speaking, the per capita
  expenditure can only provide food that meets the
  basic requirements
• Fortified maize products, beans, soya products,
  cooking oil, condiments, rice and fresh vegetable
  are not cheap, but are provided

18
19
HIV and AIDS Grant
20
Progress report April - June 2009 (B)
Strategic objective To educate learners on Life
Skills, HIV and Aids and to give care and support
to those infected and affected by HIV and
Aids Budget 2009/10 R10.093 million
21
Progress report April - June 2009 (B1)
Planned Annual Output Operational and administrative costs. Planning sessions conducted
1st Quarter planned output Operational costs and consumable stores and 1st planning session conducted
1st Quarter Actual Output Operational costs and consumable stores and 1st planning session coordinated
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R219 000
1st Q actual spending R44 000
21
22
Progress report April - June 2009 (B2)
Planned Annual Output 1,800 educators empowered on Sexuality Education, Drug and Substance Abuse
1st Quarter planned output 600 Educators empowered on Sexuality Education, Drug and Substance Abuse
1st Quarter Actual Output 600 Educators empowered on Sexuality Education, Drug and Substance Abuse
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R685 000
1st Q actual spending R577 000
22
23
Progress report April - June 2009 (B3)
Planned Annual Output 600 Schools turned into Nodes of Care and Support and 1 Jamboree held (Leth'impilo)
1st Quarter planned output 150 Schools turned into nodes of Care and Support
1st Quarter Actual Output 45 Schools turned into Nodes of Care and Support
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R250 000
1st Q actual spending R75 000
23
24
Progress report April - June 2009 (B4)
Planned Annual Output 1,800 educators empowered on Care and Support
1st Quarter planned output 600 educators empowered on Care and Support of OVCs
1st Quarter Actual Output 689 Educators empowered on Care and Support of OVC's
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R593 000
1st Q actual spending R393 000
24
25
Progress report April - June 2009 (B5)
Planned Annual Output 2,000 learners in 100 schools empowered on Peer Support programme including Soul Buddyz Congress
1st Quarter planned output 800 learners empowered on a Peer Support programme
1st Quarter Actual Output 640 Learners empowered on Peer Support Programme
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R1 170 000
1st Q actual spending R705 000
25
26
Progress report April - June 2009 (B6)
Planned Annual Output 600 SMTs empowered on Policy Development by EMGD
1st Quarter planned output 150 SMTs empowered on Policy Development
1st Quarter Actual Output 150 SMT's empowered on HIV and AIDS Policy Development
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R206 000
1st Q actual spending R174 000
26
27
Progress report April - June 2009 (C)
Strategic objective To make all role players and
stakeholders advocates of HIV and AIDS Budget
2009/10 R4.533 million
27
28
Progress report April - June 2009 (C1)
Planned Annual Output All Life Skills, HIV and AIDS programmes advocated to relevant stakeholders
12 open discussion workshops between parents and learners (Peer Educators) on HIV and AIDS 48 clusters of SGB's 54 Traditional Leaders Wives 4 clusters of Traditional Healers 4 clusters of FBOs 48 Calendar Events celebrated
1st Quarter planned output 3 Open discussion workshops between parents and learners (peer education) on HIV and AIDS conducted 12 Clusters of SGBs 12 Candle Light Memorial Events celebrated
28
29
Progress report April - June 2009 (C1)
1st Quarter Actual Output 3 Open discussion workshops between parents and learners on HIV and AIDS conducted 12 Candle Light Memorial Events celebrated
Challenges/reasons for non-achievement/ outcomes Operational 12 Clusters of SGB's not capacitated due to the election period of new SGB's Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Operational Capacitation of SGB's to be done in the 2nd quarter after elections of new SGB's Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R422 000
1st Q actual spending R202 000
29
30
Progress report April - June 2009 (C2)
Planned Annual Output 156 Schools monitored and supported
1st Quarter planned output 38 Schools monitored and supported
1st Quarter Actual Output 19 Schools monitored and supported by regional officials, 15 schools evaluated by the Provincial and National Team
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R268 000
1st Q actual spending R91 000
30
31
Progress report April - June 2009 (C3)
Planned Annual Output LTSM for learners and educators procured
1st Quarter planned output Relevant LTSM for 1,500 educators and 7,500 learners procured (resource guides and activity books)
1st Quarter Actual Output Relevant LTSM for 1,289 educators and 640 learners procured (resource guides and activity books)
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R539 000
1st Q actual spending R392 000
31
32
Infrastructure
33
Progress report April - June 2009 (D)
Strategic objective To improve the physical
conditions and appearance of schools Budget
2009/10 R246.590 million
34
Progress report April - June 2009 (D1)
Planned Annual Output 3 New Schools
1st Quarter planned output Commence with the three new schools in this programme
1st Quarter Actual Output Operational Magudu at 40 Cyril Clarke and Khunjuliwe have not commenced
Challenges/reasons for non-achievement/ outcomes Operational Allocation of site at Khunjuliwe Cyril Clarke School design option not finalized
Plans to Address challenges Negotiation are in progress for Khunjuliwe Decision on Cyril Clarke fast tracked.
1st Q projected budget R71 000 000
1st Q actual spending R39 073 000
35
Progress report April - June 2009 (D2)
Planned Annual Output Special and Inclusive Schools. There are 4 school prioritised for 2009/10
1st Quarter planned output To commerce the upgrading of schools for learners with special needs
1st Quarter Actual Output No progress registered
Challenges/reasons for non-achievement/ outcomes Operational Reprioritisation process have contributed to the delays
Plans to Address challenges Operational DPWRT to refocus on this programme
1st Q projected budget R29 000 000
1st Q actual spending Nil
36
Progress report April - June 2009 (D3)
Planned Annual Output 100 historical projects to be completed
1st Quarter planned output Fast tracking process to be instituted in 100 projects
1st Quarter Actual Output Slow progress registered in 100 projects
Challenges/reasons for non-achievement/ outcomes Financial Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial Revised cash flow schedule was submitted to Treasury
1st Q projected budget R38 929 000
1st Q actual spending R56 227 000
37
Progress report April - June 2009 (D4)
Planned Annual Output Mud and unsafe Schools
1st Quarter planned output There are 14 schools in this programme.
1st Quarter Actual Output Planning and design completed. Preparation of tender documents.
Challenges/reasons for non-achievement/ outcomes Operational Delay with tendering process by DPWRT
Plans to Address challenges Operational Matter discussed in a POMM and challenges resolved
1st Q projected budget R29 000 000
1st Q actual spending Nil
38
Progress report April - June 2009 (D5)
Planned Annual Output Kitchens and Grade R centres
1st Quarter planned output Commence the plan and design
1st Quarter Actual Output Planning and design in process
Challenges/reasons for non-achievement/ outcomes Operational No feedback from implementing agent
Plans to Address challenges Operational Follow-up with implementing agent prioritised
1st Q projected budget R10 000 000
1st Q actual spending None
39
Monitoring of the grants (NSNP and HIV and AIDS)

• Monitoring is done as a compliance requirements
  within the DORA and PFMA
• This is done within the broader monitoring
  process led by the Department of Basic Education
• 11 Life Skills Regional Officials and 26 NSNP
  monitors monitor the implementation of the
  programme by visiting the schools and submitting
  reports to the Provincial office for effective
  monitoring and providing adequate support to
  reach all the schools
• More Regional officials are needed to execute
  their duties effectively
• Regional reports are consolidated monthly and
  sent to NDoE

40
Monitoring of the grants (NSNP and HIV and AIDS)

• Quarterly and Annual reports compiled and sent to
  NDoE and NT reporting on financial and
  non-financial indicators
• Provincial evaluation team conduct pre-evaluation
  of 10-20 schools before final evaluation by
  national department is conducted at end of each
  financial year
• Evaluation reports are compiled by the Provincial
  evaluation team at the end of each financial year
• Quarterly meetings are held with the NSNP
  suppliers to deal with any challenge within the
  programme

41
Monitoring of the grants (Infrastructure)

• The MDoE has limited internal resources to
  conduct effective monitoring
• Work Inspectors posts at HO are vacant due to
  promotion of incumbents
• Reliance on the presence of the Service Provider
  Teams, i.e. PTAT, OST TA
• Service Provider Teams are also small as PTAT has
  one person, OST one person at HO and one per
  Region (except BBR Region) and one TA
• The latter individual monitors specific projects
• Works Inspectors posts at the Regional Offices
  have just been filled

42
Summary of key challenges

• Limitation on achievement of goals due to
  outstanding payments to service providers
• Accrual payments impacting on budget for 2009/10
• Utilization of grant funds for Compensation of
  employees
• NSNP R44 537 437.44
• Infrastructure R14 186 703.98
• HIV and AIDS R 1 177 000.00
• Inability to provide nutrition to 67 541 poor
  learners in farm schools ranked Q4 and ungazetted
  Q1 Secondary Schools in BBR

43
Summary of key challenges

• In terms of infrastructure
• Some contractors have deserted sites while others
  have scaled down operations
• Service providers not paid on time due to
  insufficient cash
• Delay in the procurement of service providers by
  the implementing agent
• Inaccurate reports from the implementing agent
  that are provided to the department
• Unavailability of sites in some municipalities
• Inadequate capacity in the department

44
The end
Thank you!