presentation to the select committee on appropriations date: 24 th august 2010 1

PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS

DATE: 24 TH AUGUST 2010

1

PRESENTATION OUTLINE

Infrastructure FET Grant HIV/AIDS National School Nutrition Program

INFRASTRUCTURE

INFRASTRUCTURE GRANT EXPENDITURE TRENDS 2010/11

PROGRAMME ALLOCATION EXPENDITURE VARIANCE EXPENDITURE VARIANCE

R’000 R’000 R’000 % %

Programme 2 436,686 12,192 424,494 2.87 97.13Programme 2 : FET RECAPITALISATION 2,005 0 2,005 0 100

EPWP 500 0 500 0 100

Programme 4 39,908 1,172 38,736 3.03 96.97

Programme 7 27,586 0 27,586 0 100

REASONS FOR UNDER-EXPENDITURE• The inability to honour payments in the last quarter of 2009/10 due to

cost containment measures resulted in incorrect Table B5 for 2010/11• Table B5 had to be revised thus leading to re-loading of infrastructure

projects on BAS. This further resulted in first payments being effected in May

• Inability to pay for projects, due to the following reasons: Reconciliation with Public Works took longer than anticipated due to

current projects not on B5 or underfunded on both B5 and BAS• Moratorium from Provincial Treasury, wherein the Department of

Education was instructed not to commit any funds from the Provincial Infrastructure Grant for programme 2.

• The allocation for the FET high school recapitalization will be utilized for planning in the 2011/12 implementation of infrastructure projects

REMEDIAL ACTION

• Due to the looming budget cut on the equitable share, it has been decided that current projects funded under equitable share, must be taken to the Provincial Infrastructure Grant

• The abovementioned situation will reduce the under-expenditure drastically, since the intended projects are already continuing.

FURTHER EDUCATION & TRAINING

ITEM BUDGET

Allocation for 20010/11 R555,208 m

% Allocation 100%

Transfers up to 30 June 2010 R185,087m

Actual Expenditure up to 30 June 2010 R123,152m

% Expenditure up to 30 June 2010 67%

FIRST QUARTER EXPENDITURE REPORT

ACTUAL EXPENDITURE PER COLLEGECollege CoE Transfer

paymentsTotal

King Hintsa 5,991 5,060 11,051

Buffalo City 10,722 8,909 19,631

Lovedale 7,439 4,567 12,006

Ingwe 4,932 4,639 9,571

Port Elizabeth 16,481 9,666 26,147

Ikhala 4,794 6,808 11,602

East Cape Midlands 6,306 13,128 19,434

King Sabata 6,859 4,920 11,779

63,524 57,697 121,221

REASONS FOR UNDER EXPENDITURE

• Other expenses amounting to R1,931m were incurred at Head Office

• Initially the transfers to FET Colleges were to be made twice a year but during April the Ministry for Higher Education indicated they must be paid quarterly. The actual transfer to Treasury was more.

• Included in the payment for the quarter is the payment of educators who opted to remain with the old employer - these have now been transferred from this programme

CHALLENGES

• Non placement of educators who opted to remain with the old employer - these are costing the department approximately R33 million in the current financial year

• The budget amount of R7,982 m set aside for the office and to finalise infrastructure projects in progress under this programme, is inadequate for the current financial year. There is projected over expenditure on infrastructure under this programme

REMEDIAL ACTION

• The Department is working with Higher Education Ministry in the process of placing the ex-college lecturers who opted to remain with the department back to the FET colleges

• The department is utilising slow moving projects in order to temporarily fund the projected over expenditure but this will not assist once these projects pick up.

HIV AND AIDS LIFESKILLS

2006/07 2007/08 2008/09 2009/10(unaudited)

R’000 R’000 R’000

Allocation R 25,113 R 26,797 R28,542 R 30,168

Transfers R 25, 805(R 692,000 Rollover)

R 26,797 R 28,542 R 30,168

Actual Expenditure

R 25,981 R 26,394 R 29,451 R 27,577

Under/over expenditure

(R 176) R 413 (R 959) R 2,591

Spending as a % of total

100.7% 98.5% 103.4% 91%

FINANCIAL TRENDS IN ALLOCATION/TRANSFERS/ACTUAL EXPENDITURE

ITEM BUDGET

Allocation for 20010/11 R32,189,000

% Allocation 100%

Transfers up to 30 June 2010 R 8,047,250

Actual Expenditure up to 30 June 2010 R 2,825,176

Total under Expenditure up to 30 June 2010 R 5,222,074

% Expenditure up to 30 June 2010 27%


Key Performance Area OutcomeIndicators

Output Target for 2010

Actual for 1st Quarter

ADVOCACY Increased awareness on HIV and AIDS Lifeskills programme

No of learners, educators and school communities reached through HIV and AIDS campaigns

80000 5674

TRAINING AND DEVELOPMENT

Quality Sexual Reproductive Health and HIV prevention programmes implemented in all primary and secondary schools

Number of educators trained in infusing and integrating HIV and AIDS into the curriculum and Peer Education

2000 260



Number of schools which have fully infused and integrated HIV and AIDS and Lifeskills into the curriculum

2000 51



Number of educators trained in Expressive Art Therapy

1100 Nil

Key Performance Area OutcomeIndicators

Output Target Actual for 1st Quarter

LTSM NCS compliant LTSM in all public ordinary schools

Number of schools to receive appropriate HIV and AIDS and Lifeskills LTSM during the planned financial year

450 000 Nil

CARE AND SUPPORT Schools with OVC care and support programmes

Number of schools with OVC care and support package

300 300

CARE AND SUPPORT Incraesed Access, Retention and Academic achievement for OVC

Learners accessing the OVC care and support package of the ECDOE

30000 27407

CARE AND SUPPORT Trained Health Advisory Committees in policy development and implementation

Number of Health Advisory Committees trained in HIV and AIDS and Health policy development and implementation

300 Nil

Key Performance Area

OutcomeIndicators


PEER EDUCATION Number of reported teenage pregnancies

A decrease in the number of reported cases of learner pregnancy

7500 Statistics pending from EMIS

PEER EDUCATION Trained learners in Peer Education

Number of trained learners in Peer Education

2500 581

PEER EDUCATION Schools with functional Peer Education programme

Number of schools with functional Peer Education programme

800 416

MONITORING AND SUPPORT

Regular submission of monitoring reports, to evaluate the effectiveness of the curricular intervention programmes

100% compliance in the submission of monthly reports

276 35

Key Performance Area

OutcomeIndicators




Schools visited 2300 248



Meetings held 4 1

PROJECT/ FUNCTION HUMAN RESOURCE BRIEF

Overall management and coordination of programme

- 1 Provincial Lifeskills HIV & AIDS Coordinator-7 Provincial Officials- 23 District coordinators

-Training of 2000 educators in Integration of HIV and AIDS into the curriculum-Coordination of all Lifeskills HIV and AIDS projects, seminars, conferences and campaigns-Report writing - Monitoring and Evaluation of programme

Integration of HIV & AIDS into the curriculum

-20 Trainers -Capacity building of 2000 Educators in Lifeskills

Peer Education programme in 800 schools

- 223 Out of School Youth(Peer Group Trainers)

-Training of 10 000 learners in Peer Education (Grade 7-12)- Coordinate Campaigns against Teenage Pregnancy and Drug and Substance Abuse in 800 schools and surrounding communities

Orphans and Vulnerable Children’s programme in 300 schools

- 330 Volunteers (Caregivers)- 1 Project Manager19 Project Officers

-Facilitate academic, material and psychosocial support to orphaned and vulnerable learners to promote access and retention of this category of learners to the education system-13 Districts (Lusikisiki,Libode,Maluti, Sterkspruit,Mthatha,Cofimvaba,PE,EL,KWT,Dutywa,Lady Frere,Mt Fletcher,Bizana)

Health Advisory Committees in 300 schools

- 23 District coordinators- 1 Project Manager-19 Project Officers

-Establishment and Capacity building of 300 Health Advisory Committees to ensure functional Lifeskills HIV and AIDS and Care and Support programmes for vulnerable learners

ASSESSMENT OF MONITORING CAPACITY

REASONS FOR UNDER-EXPENDITURE•A technical problem in the payment of an invoice for the OVC programme (BID SCMU-08/09-0016) trapped in the system for more than two months resulted in non payment of this tender until it was resolved in July 2010

•This also impacted negatively on the implementation of the OVC Programme and expenditure for the quarter.

•Delays in the payment of stipends for 330 learner support agents (caregivers) and 223 Peer Group Trainers for April, May and June 2010 due to capacity problems in the directorate

)

MECHANISM TO DEAL WITH THE UNDER-EXPENDITURE

A Turnaround Plan has been developed to ensure that the HIV & AIDS Conditional Grant is not affected by the current budget pressures in the ECDOE

Systemic challenges which were hindering the payment of invoices (BID SCMU-08/09-0016) have been sorted and a recovery plan has been developed to make up for the lost time in the OVC programme

Two admin clerks have been placed in the Directorate and this will assist in payment of stipends on a monthly basis to the 553 volunteers (caregivers and PGTs)

COMPLIANCE WITH REPORTING• Monthly In Year Monitoring meetings were held and

monthly reports were submitted to FINCOMM• The programme compiled with the submission of

reports to the Department of Basic Education as the transferring Department

• All schools implementing the programme have also been monitored by districts

• Annual Evaluation for 2009/10 was conducted from the 03-07 May 2010 and report and forwarded to Department of Basic Education

NATIONAL SCHOOL NUTRITION PROGRAMME

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HISTORICAL PERSPECTIVE

• Problematic Transfer from DOH to DOE in 2004

- Inheritance of Q4,Q5 and ECD outside conditional grant

- Payment backlogs

• Virtual Collapse of SNP in 2006 due to premature incorporation of

cooperatives

-Forensic Audit by Ngubane and Associates

- Abrupt stoppage of programme due to investigation created more

payment backlogs estimated at R 40 m

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HISTORICAL PERSPECTIVE (CONT.)

•All outstanding invoices for these periods are

being audited and additional funding will be

required to eliminate payment backlogs.

• Roll-over funds of 2007/08 ( R42, 362m) that

was not granted to the Department may assist

to deal with these payment backlogs

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FINANCIAL TRENDS IN ALLOCATION/TRANSFERS / ACTUAL EXPENDITURE

NATIONAL SCHOOL NUTRITION PROGRAMME

2006/07‘000

2007/08 ‘000

2008/09‘000

2009/10‘000

Allocation 266,107 333,836 413,658 486,695

Transfers 170,156 333,836 413,658 486,695

Actually Expenditure

170,156 291,474 405 ,664 475,39

Under-/over expenditure

95,951 42,362 7, 994 7392

Spending as a % of total

64% 87% 98% 98 %

BUDGET ALLOCATION

Year Allocation R’000

Roll- over R’000

Additional Allocation Total R’000

Target Learners

2006/07 233 882 32 225 - 266 107 928 685(Gr. R to Gr4)

2007/08 237 885 95 951 - 333 836 1 302 561(Gr. R to Gr7

2008/09 339 816 No roll over approved

53 725 ( inflation adjustment)20 117( preparation cost for Q1 secondary Schools)

413, 658 1,376,617(Gr. R to Gr. 7)

2009/10 486 695 No roll over approved

_ 486,695 1 424,305(Gr. R to Gr. 7in Primary and Quintile 1 Secondary)

2010/11 702,936 Application for roll over made, not yet approved

_ 702,936 1 126 727 learners in Grades R-7 in Q1-3 Primary schools over 186 days300 173 learners in Grades 8-12 in Q1 and Q2 Secondary schools over 186 days

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EXPLANATION OF UNDER EXPENDITURE

• Delays in the loading of the conditional grant budget in April (due to conditional grant codes) which allowed payments to be made only in the last week of April (mostly accruals for January to March 2010)

•Slow, late and non submission of 1401’s BAS entity forms by schools which is an additional control measure and prerequisite for transfer of meal servers payments to schools.

•The non awarding of NSNP tender resulted in further extension in April-June which was approved late in June with the old price i.e.R1.65 instead of R1.95 for primary schools and R2.00 for secondary schools instead of R2.95 and this translated to delays in payments.

•The extended tender continued to provide food excluding Quintile 2 senior secondary schools from April to June due to non-awarding of the tender

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MECHANISM TO DEAL WITH THE UNDER EXPENDITURE

•Capacity issues in the programme are being addressed by assistance from the Payment Directorate to clear all the April- June payment backlogs.

• Appointment of an Audit team to deal with payment backlogs dating back to 2004 to ensure clearance of backlogs.

• In addressing under expenditure the memorandum of understanding (MOU ) signed by the Department with King Hintsa FET College to be extended in order to provide quintile 3 schools and primary schools with mobile kitchens and feeding utensils in the current quarter

• Awarding of the new SNP and the rollout thereof in October 2010 will assist in addressing under expenditure.

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ITEM BUDGET

Allocation for 2010/11 R702 936 000

First Quarter allocation1)For feeding2) Preparation budget for Q3 Secondary School Total tranche for 1st Quarter

R175 734 000R 11 332 000R 187 066 000

Actual Expenditure up to 30 June R 110 278 000

Total under Expenditure up to 30 June 2010 ( For first Tranche)

R76 788 000

% Expenditure up to 30 June 2010 ( For first tranche) 59 0%

% Expenditure up to 30 June 2010 ( For entire budget allocation) t 15,7%


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COMPLIANCE WITH REPORTING

•Monthly In year monitoring reports were submitted to FINCOM.

•Monthly and Quarterly reports were submitted in compliance to DORA

•Compliance to Menu and supplier performance has been monitored by Districts and Head Office staff (Coordinators and EDO’s) and action taken against non performing suppliers to avoid wasteful expenditure.

•Regular monitoring visits by Districts staff and submission of reports as part of monitoring of spending.

•Annual Evaluation for 2009/10 was conducted from the 24-29 May 2010 and reported and forwarded to Department of Basic Education

PROJECT/ FUNCTION HUMAN RESOURCE BRIEF

Provision of Nutritious meals to needy learners by 10h00 each day.

128 service providers9500 meal servers

128 service providers are contracted to supply foodstuffs to all quintile 1-3 primary schools and to quintile 1-2 secondary schools. A political mandate to feed quintile 4 and 5 primary schools was also received.Meal servers are governing body appointees which are appointed and trained to empower them with food handling and food hygiene skills.

Monitoring of feeding 23 District coordinators 43 monitors on contract3 Cluster coordinators

There are 23 vehicles,1 per district which are designated for monitoring purpose,Monitoring reports are submitted for actioning on a daily and weekly basis

Payment of service providers and meal servers

Food production

Nutrition Education

Staff of 17 at Head office are in charge of payments

2 Food garden coordinators (assistant directors) at head office level assisted by 23 district coordinators

23 District coordinatorsNSNP educators

Payments are done within 30 days where all documents are available. For meal servers the current payment system is causing delays as it requires schools to pay and claim.

All schools that benefit from the SNP are encouraged to establish food gardens. Most have productive gardens while others struggle with plots and water. Schools are provided with garden equipment by the department and through partnerships with other sectors. There is a challenge of exorbitant water consumption due to these food gardens which result in schools not affording/paying for municipal services.

Nutrition Education on food a preparation, handling and hygiene is conducted for NSNP educators and meal servers.

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.AREAS OF CONCERN

POSSIBLE CORRECTIVE MEASURESCHALLENGES

• The non awarding of previous years rollovers result in paying backlogs and accruals from the current budget and this poses a challenge.

• Continuous feeding of learners in quintiles 4 & 5 and standalone ECD centres will result in unauthorized expenditure in the current financial year

• Delays in awarding of tenders advertised for feeding result in continuously extending contracts of current SNP suppliers

• this results in deviation from the business plan in terms of implementation of new menu with the new prices.

• Payment of accruals and backlogs some dating back to 2004 results in utilization of current budget on accruals and backlogs .

7

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.AREAS OF CONCERN

POSSIBLE CORRECTIVE MEASURESCHALLENGES (Cont.)• Weaknesses in monitoring result in inaccurate data for budget planning (e.g confirmation of number of grade R ‘s both at schools and at stand alone ECD sites, closed schools ,farm schools will assist the Department in accurate budget planning) • Staff shortage in the NSNP Directorate and in some districts is further exacerbated by the absence of a Director for NSNP and this affects implementation and management of the programme generally.•Labour unrest in the department at Head Office has an impact on the timely processing of payments and delays in awarding of tenders.

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. MECHANISMS TO DEAL WITH THE CHALLENGES

• An application for a rollover or appeal for additional funding will be made to the Provincial Treasury to deal with the payment backlogs dating back to 2004 • Since no funding is available from the equitable share , feeding of these learners under Q4and % and ECD centres will have to stop as from October 2010. These schools will be included in the 2011/12 Business Plan for the SNP Conditional Grant• SNP Tender has to be awarded by the first week in September 2010 to ensure timeous issuing of award letters and orders to new service providers by SCM . • Monitoring of programme to be improved and learner data to be verified.• Payments to current service providers have been updated and are to be made within 30 days

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.AREAS OF CONCERN

POSSIBLE CORRECTIVE MEASURES

THANK YOU

END

presentation to the select committee on appropriations date: 24 th august 2010 1

Documents

current projects

mactual expenditure

intended projects

department of education

programme challenges

higher education ministry

provincial treasury

fet colleges