PUBLIC%20HEARING%20ON

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• PUBLIC HEARING ON
• CONDITIONAL GRANTS AND CAPITAL EXPENDITURE
• 08 May 2006

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INTRODUCTION

• The Free State Department of Education has been
  invited to Public Hearings and to address the
  NCOP Select Committee on Finance on the
  following
• Data trends in conditional grants and capital
  expenditure allocations
• 2005/06 Transfers and actual expenditure
• Assessment on Departments monitoring capacity
• Indication of under spending/ overspending
• Capacity constraints and their impact

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2001/02 05/06 CONDITIONAL GRANTS DATA TRENDS
SUMMARY
2001/02 R000 2002/03 R000 2003/04 R000 2004/05 R000 2005/06 R000 2006/07 R000
Total Amount Received 73,355 177,471 130,454 196,662 217,193 239,157
Total Spending 20,579 76,606 111,978 181,409 204,218 N/A
Balance 52,776 100,865 18,476 15,253 12,975
Spending 28 43 86 92 94
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CONDITIONAL GRANTS SPENDING TRENDS
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2005/06 CONDITIONAL GRANTS RECEIVED
Conditional grant Appropriated R000 Roll-overs R000 Additional Funds R000 Total R000
HIV and AIDS 7,947 0,455 8,402
NSNP 53,817 2,951 11,747 68,515
Provincial Infrastructure grant 55,913 4,638 60,551
Own Infrastructure grant 73,360 6,365 79,725
Total 191,037 14,409 11,747 217,193
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2005/06 SPENDING ON CONDITIONAL GRANTS
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2005/06 CONDITIONAL GRANT SPENDING
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LEARNERS FED THROUGH Bread Menu NSNP DURING
2005/06
District No Learners No of schools
FEZILE DABI 17 941 197
LEJWELEPUTSWA 21 923 239
MOTHEO 26 317 168
THABO MOFUTSANYANA 126 244 488
XHARIEP 26 128 79
TOTAL 218 553 1171
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2005/6 SCHOOLS FED COOKED MENU
District No Learners No of schools
FEZILE DABI 34 638 50
LEJWELEPUTSWA 45 294 61
MOTHEO 38 130 49
THABO MOFUTSANYANA 3 854 5
XHARIEP 16 127 44
GRAND TOTAL 134 043 209
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NSNP GRAND TOTAL 2005/06
Number of Learners Number of Schools
feeding of cooked meals 134 043 209
feeding of bread menu 218 553 1171
GRAND TOTAL 352 596 1380
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LEARNER SUPPORT PROGRAMMES

• Learner transport provided to 3 117 farm school
  learners in Province.
• 3 more Hostels (initial 8) in Edenburg for 55
  learners, Villiers for 40 and Thaba Nchu for 100
  learners

• Feed total 352 596 learners through NSNP
  exceeding initial target of 287 000.
• Provide hot meals to 21 schools in pilot
  project, feeding over 134 043 learners

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HIV AND AIDS PROGRAMMES

• A total of 1,818 educators have been trained in
  Basic Counseling Skills
• A further 1,000 educators were trained from all
  schools at GET and ECD level in Life Skills and
  HIV and AIDS education
• 1,000 educators were trained in awareness
  programmes that include prevention, care and
  support at school level
• All School Management Teams were trained in the
  management of the impact of HIV and AIDS,
  programme extended to SGBs
• ABET educators were trained in Life Skills and
  HIV and AIDS education

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ADDITIONAL FUNDING R70,7 MILLION
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MINOR REPAIRS EPWP PROJECTS

• 252 schools completed, entails renovations at
  R31,6 million where SMMEs were utilised
• Further 355 schools allocated by end of February
  2006 for similar project at R39,1 million
• 22 farm schools refurbishment with unsafe
  structures utilising mobile classrooms
• Letsema projects completed at 90 schools to
  repair broken windows, painting of ceilings and
  walls etc.

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TRANSFER PAYMENTS TO SCHOOLS

• Funds transferred to schools for renovations were
  executed through a selected process and training
  was given before payments were made into their
  banking accounts
• Teams were set up in order to monitor and manage
  individual school projects
• Teams consist of the School Governing Bodies and
  the principal plays a critical role.
• District teams assisted schools in their
  respective districts, lead by the Physical
  Planners and at Head Office level, a Project
  Manager was appointed to co-ordinate the above.

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ACTUAL SPENDING ON CAPEX AS 31 MARCH 2006
Description 2005/06 Allocation R000 Spending as at 31 March 2006 R000 Spending
Capital transfers 213,683 210,583 99
Buildings and fixed structures 56,799 39,998 70
Machinery and equipment 27,708 23,116 83
Total 298,190 273,697 92
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TRANSFER OF FUNDS FROM EDUCATION TO PWRT

• Funds for capital projects implemented by Public
  Works were transferred as per the agreements
  between the two departments
• A total amount of R106,942 million was made
  available to Education and subsequently
  transferred to the Department of Public Works to
  speed up capital projects
• As at 31 March 2006 an amount of R95,634,845 was
  spent
• This amount includes R8,956,713which is for
  retentions and guarantees to contractors.
• An amount of R10,827,271 was brought forward to
  the current financial year, being funds already
  committed

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SERVICE LEVEL AGREEMENT

• The existing Service Level Agreement makes
  provision for the Department of Public Works to
  execute all Capital projects, whilst the
  Department of Education is responsible for the
  implementation of Minor Capital Projects
  (renovations) and day-to-day maintenance
• The Department of Education remains responsible
  for funds transferred to the Department of Public
  Works
• Meetings between the two departments take place
  on monthly. These meetings are attended by Senior
  Managers from both departments
• The Service level Agreement is in the process of
  revision to make provision that the Department of
  Public Works will also take responsibility for
  the implementation of the latter

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PROGRESS ON CAPITAL PROJECTS IN 2005/06

• Completed 6 new schools
• Tawana
• JJ Kubheka
• Disasterpark
• SS Paki
• Louriepark ( completed April 2006)
• Tumisang (Completed April 2006)
• And good progress on others
• JC Motumi (Kutlwanong)
• Kgotso- Uxolo(Reitz)

• Commenced with construction of 2 new schools
• Dr. Mgoma- January 2006 (Welkom)
• EE Monesa January 2006
• (Senekal)
• Commenced with construction of Additional
  facilities at
• Mmabana P/S- Jan 2006
• AND finalised
• PPP feasibility study completed for construction
  of 13 new schools to eliminate platooning schools
  by 2008/09

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OVER / UNDER SPENDING

• It is important to note that according to MINMEC
  figures, only 74 was spent on Capex. This figure
  was disputed in that meeting and the correct
  figure is 90 of our budget
• The main reason for not spending all the funds is
  due to the heavy rains in the Province since
  January 2006
• The Department of Public Works promised that the
  outstanding amount will be spent by June on the
  projects affected by rain

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OVER / UNDER SPENDING AND CAPACITY CONSTRAINTS

• The only areas of under expenditure are located
  in the implementation of small capital projects,
  day-to-day maintenance and the Letsema Project
  due to capacity constraints of implementers of
  projects .
• Improved planning projects were approved prior
  to the commencement of the 2006/07 financial year
  to ensure more efficiency in 2006/07
• Improving staffing levels by appointing
  additional technical staff to monitor progress on
  site

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MONITORING CAPACITY AND PLANNING

• Capital and Expenditure trends throughout the
  Department are now monitored by a dedicated
  Directorate one Management Accountant is
  dedicated to this assignment .
• Monthly reconciliation on BAS Expenditure reports
  are done to track expenditure against each
  project
• Monthly in-house monitoring meetings are now held
  to provide early warning to all Managers.
• The relevant Directorate must now report at the
  Quarterly Review meetings of its remedial
  measures on under/over expenditure.
• Regular monitoring meetings with Department of
  Public Works, Roads and Transport are held to
  monitor progress on major capital works.
• The full implementation of the Infrastructure
  Development Programme will also assist to ensure
  projects are effectively executed. (IDIP)
• National Treasury is also assisting with the
  Technical Assistant to support both Education and
  Department of Public Works, Roads and transport
• The Planning of Projects is also improved to
  ensure the projects start on time and are
  timeously completed.
• Business Plans for the 2006/07 have been
  submitted on time to PWRT for the current
  financial year according to the Division of
  Revenue Act.

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INFRASTRUCTURE ACTION PLAN 2006/07
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INFRASTRUCTURE ACTION PLAN 2006/07 (CONTINUED)
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2006/07 INFRASTRUCTURE DELIVERY IMPROVEMENT
PROGRAMME

• Align the Budget Process Strategic Planning
  Process
• and
• the multi-year Infrastructure Plans
• Regular Monitoring of infrastructure projects
• Keeping accurate expenditure and commitment
  register for the Capital Budget Transferred to
  PWRT
• Regular Management meetings with PWRT

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THANK YOU