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NCOP SELECT COMMITTEE ON FINANCE MEETING

15 NOVEMBER 2007

OVERVIEW

The objective is to report in terms of Section 32 of thePFMA• 2007/08 expenditure as at 30 September 2007 • Related service delivery outcome• Conditional Grants Spending• Capital expenditure• Progress with regarding to the implementation of

infrastructure progress• Achievements, Challenges and Remedials • Monitoring arrangements within FSDoE

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EXPENDITURE PER PROGRAME AS AT 30 SEPTEMBER 2007

Programme Budget Compen- sation

Goods and Services

Transfers Capital Total Expense

Balance

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Programme 1: Adminisration 457,296 136,376 62,080 3,088 1,836 203,380 253,916 44.47% 20.11%

Programme 2: Public ordinary Schools4,314,716 1,897,661 43,779 146,913 4,775 2,093,128 2,221,588 48.51% 23.17%

Programme 3: Independent Schools35,684 0 0 17,539 0 17,539 18,145 49.15% 24.52%

Programme 4: Special Schools 179,344 73,827 1,448 15,235 31 90,541 88,803 50.48% 24.15%

Programme 5: FET Colleges 187,364 52,837 150 29,942 0 82,929 104,435 44.26% 22.89%

Programme 6: ABET 69,122 28,404 2,631 68 17 31,120 38,002 45.02% 20.46%

Programme 7: ECD 58,038 5,876 931 15,790 0 22,597 35,441 38.93% 6.46%

Programme 8: Auxiliary & Assoc. Serv.390,861 2,958 65,998 19,991 90,403 179,350 211,511 45.89% 21.07%

Totals 5,692,425 2,197,939 177,017 248,566 97,062 2,720,584 2,971,841 47.79% 22.61%

% Actual Spending

2nd Quarter

% Actual Spending

1st Quarter

1st Quarter norm – 25%, under spending = 2.392nd Quarter norm – 50%, under spending = 2.21

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EXPENDITURE BY ECONOMIC CLASSIFICATION 30 SEPT 2007

Budget Expenditure Commit Balance

R ' 000 R ' 000 R ' 000 R ' 000

Total Department 5,692,425 2,720,584 172,512 2,799,329 47.79% 22.61%

Current Expenditure 4,904,270 2,374,956 99,411 2,429,903 48.43% 22.96% Compensation of employees 4,411,516 2,197,939 4 2,213,573 49.82% 23.95% Goods and services 492,754 177,017 99,407 216,330 35.92% 14.15%Transfers and Subsidies 537,464 248,566 81 288,817 46.25% 22.20% Departmental agencies 3,412 3,412 0 0 100.00% 100.00% Non profit institutions 493,416 236,854 68 256,494 48.00% 208.06% Households 40,636 8,300 13 32,323 20.43% 65.53%Capital Assets 250,691 97,062 73,020 80,609 38.72% 17.25% Buildings and fix structures 198,745 94,987 68,222 35,536 47.79% 20.44% Machinery and equipment 51,946 2,075 4,798 45,073 3.99% 2.48%

% Actual Spending-

2nd Quarter

% Actual Spending -1st Quarter

Expenditure including commitments= 51%4

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OVERVIEW OF UNDERSPENDING PER PROGRAMME

Programme1: Administration • ICT equipment(R36 million): Procurement has started and roll-out will commence

from Nov 2007

Programme 2: Public Ordinary Schools• Non sec 21 LTSM in Districts. Orders have been placed and funds committed

Programme 5: FET colleges • Compensation of employees: Outstanding claims for part-time educators and the

implications of the FET Act

Programme 6: ABET • LTSM funds have been committed

Programme 7: ECD • Compensation of employees• Transfers to centres delayed due to non-compliance

• Programme 8: Auxiliary and Associated Services• Payment of markers= R22million will only happen in December 2007

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Conditional Grant spending

Conditional GrantBudget

September 2007

ExpenditureCommit Balance

% Actual Spending

R ' 000 R ' 000 R ' 000 R ' 000HIV/AIDS 9,217 3,760 3,377 2,080 40.79%National School Nutrition Programme 68,023 38,504 7,805 21,714 56.60%Provincial Infrastructure grant 119,723 51,493 39,447 28,783 43.01%Infrastructure Enhancement 80,725 38,883 20,970 20,872 48.17%FET Colleges Recapitalisation 36,000 18,000 18,000 50.00%Totals 313,688 150,640 71,599 91,449 48.02%

R18 million = transferred to the Colleges

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HIV / AIDS: Performance Measures

ADVOCACY Target Actual

Orientation meetings for parents in 30 schools 30 39

TRAINING - Master TrainersTrain GET Learning Facilitators in Life Skills and HIV and AIDS 30 54

Train 60 FET Learning Facilitators in Life Skills and HIV and AIDS. 60 60

Train 135 Officials in Basic Counselling and referral Skills 103 107

Train 90 FET Officials in Conflict Resolution and Facilitation Skills.

90 90

Train 40 0fficials in a Teenage Pregnancy Prevention Programme 40 67

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HIV / AIDS: Performance MeasuresTRAINING - Educators Target Actual

Top – up training of 1 300 ECD/ GET Educators 625 384

Train Educators in ‘No Apologies” Programme 38 150

Top – up training of 500 FET Educators 258 300

Roll out of cross curricular integration in 200 schools (Gr.8-11) 200 136

EMDG training of SMTs in 300 Schools 300 In process

CARE AND SUPPORT Train 300 educators in Basic Counselling Skills 75 152

Train 150 Schools in Substance Abuse and/or Victims and Villains Abuse Programme

25 95

Train 150 Ministers and Pastors in Care and Support 0 115

Establishing 80 schools as Nodes of Care. 80 In process

Parenting Project to prevent teenage pregnancy in 40 schools 40 In process

PEER EDUCATION Train 2000 Gr 10 Learners in the RADS Peer education Programme 600 629

Train 34 Out of School Youth to implement Peer Education 30 30

HIV / AIDSCHALLENGES INTERVENTIONS

Due to industrial action workshops were postponed. Furthermore, most available holiday time is usually reserved for NCS training.

Training has been restricted to afternoons, weekends or postponed to September/December holidays.

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ACHIEVEMENTS: NSNP

• Providing meals for all school days (184 days)• Voluntary food handlers are given stipend of

R500 each per month• Schools are given R300 per month for gas /

fuel per• There are 637 schools with existing vegetable

gardens• Each District has 20 schools participating in

Nutrition Education

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LEARNER SUPPORT

• NSNP – Feeding – 413 546 primary school learners in the 5 Districts

CHALLENGES INTERVENTIONS

• Improvement of quality meals • Improved menus gradually introduced within the limitations of the budget allocation

• Improvement of monitoring of Services providers NSNP

• Monitoring appointed in all District – the vast and rural nature of the province challenging.• Capacity increased in the finance and procurement sections in the Directorates

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Infrastructure expenditure• End of second quarter – 47.79% expenditure• The expenditure was below the 50% target due to the

relatively late appointment of contractors. This challenge is addressed by providing project lists to the Implementing Agency (Public Works) earlier (by April of the previous year) for future years

• The expenditure has however reached the target by end October 2007.(60% against the target of 58%)

• Regular monthly monitoring meetings between Implementing Agency and Client. Monthly reports are supplied and discussed

• Intensive quarterly reviews led by Provincial Treasury

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Infrastructure Programmes

• The Capital Infrastructure Programme consist of the following:– Major Capital implemented by Public Works with a focus

on elimination of platooning and overcrowding. (Platooning will be eliminated in the next two financial years)

– The Minor Capital projects implemented by the Department of education in collaboration with SGB’s targets renovations, maintenance and the provisioning of basic services like water, sanitation and electrification. (Agreements with DWAF and ESKOM are in place to assist with implementation)

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ACTUAL SPENDING BY FET COLLEGES ON RECAP GRANT –30 SEPTEMBER 2007

ACTUAL SPENDING BY FET COLLEGES ON GRANTFET College Allocation TransfersSep 2007

Expenditure

Balance % Spendin

g

R'000 R'000 R'000 R'000 %Flavius Mareka 7,000 3,500 2,295 1,205 65.57%Goldfields 11,000 5,500 3,058 2,442 55.60%Maluti 7,000 3,500 3,120 380 89.14%Motheo 11,000 5,500 2,994 2,506 54.44%Totals 36,000 18,000 11,467 6,533 63.71%

By the end of October, Actual expenditure has improved to 83.04%

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1. RESKILLING STAFF TO OFFER RESPONSIVE PROGRAMMES

257 FET Staff received training according to identified needs to ensure effective teaching and learning as well as managing the implementation of the NC(v) programmes. Training will continue during November when NC(v) Level 3 lecturers will receive training.

2. UPGRADING PHYSICAL INFRASTRUCTURE OF FET COLLEGES

Colleges utilised funds to complete the following projects:

Build new classrooms, laboratories and offices as per identified needs (5 facilities completed, 15 facilities in progress).

Upgraded classrooms, laboratories and offices as per identified needs (9 facilities completed).

Upgraded College sites (Upgrading of 2 college sites completed, upgrading of 2 college sites still in progress).

Purchased equipment to support teaching and learning (Equipment for 47 classrooms, 2 workshops, 2 resource centres and 4 offices were purchased)

Prepare for delivery of new curriculum (Approved LTSM for NC(v) Level 2 programmes were purchased at all 4 FET Colleges for effective teaching and learning)

ACHIEVEMENTS: FET RECAPITALIZATION GRANT

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ACHIEVEMENTS: FET RECAPITALIZATION GRANT(Continue)

3. ESTABLISHING CONNECTIVITY TO IMPROVE COMMUNICATION, INFORMATION MANAGEMENT AND CURRICULUM DELIVERY

All the campuses of Flavius Mareka, Goldfields and Motheo FET Colleges are connected with their respective Central Offices through a Management Information System. (Maltui FET College has budgeted for this function in 2008/2009)

The four FET Colleges marketed the NC(v) programmes in order to increase awareness.

Open days were held to increase awareness and partnerships with the various Government Departments, SETA’s, Local Government and Community Based Organizations.

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Several monitoring visits were conducted by DoE and the FSDoE in order to ensure compliance to financial management as well as the management of the Recapitalization Conditional Grant at FET Colleges

DoE and FSDoE visited FET Colleges on a regular basis to assist and ensure implementation of management systems (e.g. Financial Management, Asset Management, Supply Chain Management and Recap Management Systems)

Personnel at Colleges were trained for effective delivery of the NC(V) programmes through the Recap funds.

Relevant, modern type equipment has been purchased for effective and efficient teaching and training of NC(v).

Security and control systems have been installed at all four FET Colleges - boom gates, asset registers, Coltech for learner registration and keeping of financial records, etc.

OVERALL ACHIEVEMENTS: FET RECAPITALIZATION GRANT

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OVERALL ACHIEVEMENTS: FET RECAPITALIZATION GRANT

The improved appearance of college sites create a more positive image with the public and attract more learners.

715 learners received bursaries from DoE for NC(v).

1 434 learners received bursaries from the FSDoE for the Nated Programmes. The purpose of this financial aid is to improve Maths and Science performance as well as to increase the number of Engineering Students at FET Colleges.

Infrastructure developments are taking place at Colleges.

The provision of new modern facilities and equipment impacts on the improved quality of teaching and training.

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FET RECAPTITALIZATION CHALLENGES

Inadequate student support services due to shortage of human resources at FET Colleges. (Mathematics and English Language Skills needs extra student support).

Inadequate staffing of FET Colleges at Central Offices for them to be able to implement the new FET Act.

Inadequate qualified lecturing staff to teach specialized NC(v) programmes (e.g. Engineering Field of Study) is a mammoth problem at FET Colleges.

Much more attention needs to be paid to improving the skills of educators to enable them to meet the demands of the NC(v). Major efforts have already been made in this regard, but there is still a long way to go.

The challenges relating to human recruitment, retention and professional development need to be addressed.

Problems with contractors:– Do not keep to specifications in Service Level Agreements– Fall behind schedule– Not sufficient response from competent contractors to tender– Building material not delivered on time (especially steel constructions)

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EXPERIENCES AND ISSUES RELATED TO INFRASTRUCTURE GRANTS

Monitoring and reporting • Limited expertise within departments to effectively deal with the Infrastructure

Reporting Model (IRM)

• Monthly reports and Quarterly reviews ensure that activities are successfully executed as planned and enhance strategic decisions regarding infrastructure delivery.

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PLANNING 2008/09FET RECAPITALISATION

Grant Objective Target Funds allocation

FET Recap

To train educators Capacitate and train 394 FET Staff members to deliver NC(v) Programmes on Levels 2,3 and 4

R1,570,000

Develop systems to support delivery of NC(v) programmes

To connect all 8 campuses of Maluti FET College with the Central Office.

R200,000

To upgrade and refurbish of classrooms, laboratories and workshops

To upgrade 1 student resource centre, 2 hospitality laboratories, 2 workshops and student toilets at 4 FET Colleges

R13520,000

Upgrading of College Sites Upgrading of 6 college sites with regard to fencing, redecoration, signage, electricity and paving

R8,450,000

Buying or building of new classrooms, laboratories, offices

To build 2 workshops, 1 restaurant, 1 student support centre at 4 FET Colleges, as well as to purchase 1 new campus site at Harrismith

R27,625,000

Purchasing of equipment To purchase and install equipment for 23 classrooms/ workshops/ laboratories for effective teaching of NC(v) programmes

R7,110,850

Preparation for the implementation of curriculum

To purchase LTSM as approved by DoE for the delivery of 11 NC(v) programmes.

R1,094,150

Total R52,200,000

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Monitoring capacity• Monthly Finance Committee meetings are held to discuss underspending and remedial

actions

• Quarterly review sessions are held to provide feedback on service delivery and the budget.

• Monthly expenditure reports are sent for the attention and the comment of the HOD and the Executive authority.

• Letters are written to managers who underspent to inform them of the status quo and the implications of their underspending.

• Where underspending persist affected manager are brought before the executive leadership and the MEC to account for their actions.

THANK YOU

?

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