Department Of Education Select Committee on Finance 16092009

Department Of Education Select Committee on Finance 16/09/2009

Content • • Year-on-year comparison Conditional Grants Background National School Nutrition Grant HIV and Aids Grant Infrastructure Monitoring Key challenges 2

Year-on-year comparison: Allocations: 2008 : 2009 3

Year-on-year comparison: Expenditure to 30 June: 2008 : 2009 4

Conditional Grants 5

Expenditure to 30/06/2009 6

Year-on-Year comparison: Allocations: 2008 : 2009 7

Year-on-Year comparison: Expenditure to 30 June: 2008 : 2009 8

Background • During 2008/09 the department overspent the COE budget with R 414 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 R 292 million were paid from April to July 2009 9

Background… • The following accruals were registered for 2008/09: § § § Goods and services Transfers and subs Buildings Equipment Intangible assets : : : R 202 m R 58 m R 24 m R 3 m • This impact is visible throughout the 1 st 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 10

Background… • The Department implemented cost curtailment measures to absorb the impact of the R 292 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accruals: § Moratorium was placed on filling of non- educator posts § Delegations to acquire goods and services were withdrawn § Thresholds for all administrative functions were implemented 11

National School Nutrition Grant 12

Progress report: April - June 2009 (A) Strategic objective To supply food to needy learners through National School Nutrition Programme Budget: 2009/10 R 229. 534 million 13

Progress report: April - June 2009 (A 1) Planned Annual Output Operational and administrative costs. Planning session conducted 1 st Quarter planned output Operational costs and consumable stores and 1 st planning session conducted 1 st Quarter Actual Output Operational costs and consumable stores and 1 st planning session conducted Challenges/reasons for non Financial: Invoices submitted for payment -achievement/ outcomes not processed due to accrual payments and cash flow Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury 1 st Q projected budget R 3 761 000 1 st Q actual spending R 1 604 620 14

Progress report: April - June 2009 (A 2) Planned Annual Output 574, 725 primary and 48, 588 secondary school learners to access programme for 198 days 1 st Quarter planned output 574, 725 learners in primary and 48, 588 secondary school learners to access the nutrition programme for 48 days 1 st Quarter Actual Output 574, 725 primary and 48, 588 secondary school learners participated in the programme for 48 days Challenges/reasons for Financial: Invoices submitted for payment non-achievement/ processed due to accrual payments and cash outcomes flow Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury 1 st Q projected budget R 52 979 000 1 st Q actual spending R 63 910 380 15

Reach • The programme is currently accessed by Primary and Secondary School Learners in the following categories: Primary 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 1 389 574 725 Total 16

Reach… Sec. Schools Quintile 1 No. of Schools 78 No. of Learners 48 588 TOTAL: (Primary & Secondary) = 623 313 Why feed Q 4 & Q 5 ? • 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

Cost per meal • The meals cost R 1. 50 and R 1. 83 for Primary and Secondary schools respectively (exclusive of 17 c cooking cost) • National norm: R 1. 80 and R 2. 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

HIV and AIDS Grant 19

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 R 10. 093 million 20

Progress report: April - June 2009 (B 1) Planned Annual Output Operational and administrative costs. Planning sessions conducted 1 st Quarter planned output Operational costs and consumable stores and 1 st planning session conducted 1 st Quarter Actual Output Operational costs and consumable stores and 1 st planning session coordinated Challenges/reasons for nonachievement/ 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 1 st Q projected budget R 219 000 1 st Q actual spending R 44 000 21

Progress report: April - June 2009 (B 2) Planned Annual Output 1, 800 educators empowered on Sexuality Education, Drug and Substance Abuse 1 st Quarter planned output 600 Educators empowered on Sexuality Education, Drug and Substance Abuse 1 st Quarter Actual Output 600 Educators empowered on Sexuality Education, Drug and Substance Abuse Challenges/reasons for non- Financial: Invoices submitted for payment not achievement/ outcomes processed due to accrual payments and cash flow Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury 1 st Q projected budget R 685 000 1 st Q actual spending R 577 000 22

Progress report: April - June 2009 (B 3) Planned Annual Output 600 Schools turned into Nodes of Care and Support and 1 Jamboree held (Leth'impilo) 1 st Quarter planned output 150 Schools turned into nodes of Care and Support 1 st 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 1 st Q projected budget R 250 000 1 st Q actual spending R 75 000 23

Progress report: April - June 2009 (B 4) Planned Annual Output 1, 800 educators empowered on Care and Support 1 st Quarter planned output 600 educators empowered on Care and Support of OVCs 1 st Quarter Actual Output 689 Educators empowered on Care and Support of OVC's Challenges/reasons for nonachievement/ 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 1 st Q projected budget R 593 000 1 st Q actual spending R 393 000 24

Progress report: April - June 2009 (B 5) Planned Annual Output 2, 000 learners in 100 schools empowered on Peer Support programme including Soul Buddyz Congress 1 st Quarter planned output 800 learners empowered on a Peer Support programme 1 st Quarter Actual Output 640 Learners empowered on Peer Support Programme Challenges/reasons for nonachievement/ 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 1 st Q projected budget R 1 170 000 1 st Q actual spending R 705 000 25

Progress report: April - June 2009 (B 6) Planned Annual Output 600 SMTs empowered on Policy Development by EMGD 1 st Quarter planned output 150 SMTs empowered on Policy Development 1 st Quarter Actual Output 150 SMT's empowered on HIV and AIDS Policy Development Challenges/reasons for nonachievement/ 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 1 st Q projected budget R 206 000 1 st Q actual spending R 174 000 26

Progress report: April - June 2009 (C) Strategic objective To make all role players and stakeholders advocates of HIV and AIDS Budget: 2009/10 R 4. 533 million 27

Progress report: April - June 2009 (C 1) Planned Annual Output All Life Skills, HIV and AIDS programmes advocated to relevant stakeholders: • • • 1 st Quarter planned output • • • 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 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

Progress report: April - June 2009 (C 1) 1 st 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 2 nd quarter after elections of new SGB's Financial: Revised cash flow schedule was submitted to Treasury 1 st Q projected budget R 422 000 1 st Q actual spending R 202 000 29

Progress report: April - June 2009 (C 2) Planned Annual Output 156 Schools monitored and supported 1 st Quarter planned output 38 Schools monitored and supported 1 st Quarter Actual Output 19 Schools monitored and supported by regional officials, 15 schools evaluated by the Provincial and National Team Challenges/reasons for nonachievement/ 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 1 st Q projected budget R 268 000 1 st Q actual spending R 91 000 30

Progress report: April - June 2009 (C 3) Planned Annual Output LTSM for learners and educators procured 1 st Quarter planned output Relevant LTSM for 1, 500 educators and 7, 500 learners procured (resource guides and activity books) 1 st 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 1 st Q projected budget R 539 000 1 st Q actual spending R 392 000 31

Infrastructure 32

Progress report: April - June 2009 (D) Strategic objective To improve the physical conditions and appearance of schools Budget: 2009/10 R 246. 590 million 33

Progress report: April - June 2009 (D 1) Planned Annual Output 3 New Schools 1 st Quarter planned output Commence with the three new schools in this programme 1 st Quarter Actual Output Operational: • Magudu at 40% • Cyril Clarke and Khunjuliwe have not commenced Challenges/reasons for non- Operational: achievement/ outcomes • 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. 1 st Q projected budget R 71 000 1 st Q actual spending R 39 073 000 34

Progress report: April - June 2009 (D 2) Planned Annual Output Special and Inclusive Schools. There are 4 school prioritised for 2009/10 1 st Quarter planned output To commerce the upgrading of schools for learners with special needs 1 st Quarter Actual Output No progress registered Challenges/reasons for non- Operational: Reprioritisation process have achievement/ outcomes contributed to the delays Plans to Address challenges Operational: DPWR&T to refocus on this programme 1 st Q projected budget R 29 000 1 st Q actual spending Nil 35

Progress report: April - June 2009 (D 3) Planned Annual Output 100 historical projects to be completed 1 st Quarter planned output Fast tracking process to be instituted in 100 projects 1 st Quarter Actual Output Slow progress registered in 100 projects Challenges/reasons for non- Financial: Invoices submitted for payment achievement/ outcomes not processed due to accrual payments and cash flow Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury 1 st Q projected budget R 38 929 000 1 st Q actual spending R 56 227 000 36

Progress report: April - June 2009 (D 4) Planned Annual Output Mud and unsafe Schools 1 st Quarter planned output There are 14 schools in this programme. 1 st Quarter Actual Output Planning and design completed. Preparation of tender documents. Challenges/reasons for non- Operational: Delay with tendering process by achievement/ outcomes DPWR&T Plans to Address challenges Operational: Matter discussed in a POMM and challenges resolved 1 st Q projected budget R 29 000 1 st Q actual spending Nil 37

Progress report: April - June 2009 (D 5) Planned Annual Output Kitchens and Grade R centres 1 st Quarter planned output Commence the plan and design 1 st Quarter Actual Output Planning and design in process Challenges/reasons for non- Operational: No feedback from implementing achievement/ outcomes agent Plans to Address challenges Operational: Follow-up with implementing agent prioritised 1 st Q projected budget R 10 000 1 st Q actual spending None 38

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 NDo. E 39

Monitoring of the grants (NSNP and HIV and AIDS)… • Quarterly and Annual reports compiled and sent to NDo. E and NT reporting on financial and nonfinancial 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 40

Monitoring of the grants (Infrastructure) • The MDo. E has limited internal resources to conduct effective monitoring • Work Inspector’s 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 Inspector’s posts at the Regional Offices have just been filled 41

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 Infrastructure HIV and AIDS : : : R 44 537 437. 44 R 14 186 703. 98 R 1 177 000. 00 • Inability to provide nutrition to 67 541 poor learners in farm schools ranked Q 4 and ungazetted Q 1 Secondary Schools in BBR 42

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 43

The end Thank you! 44