select committee on finance 16/09/2009

Select Committee on Finance

16/09/2009

Department Of Education

MPUMALANGA A Pioneering Spirit

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Content

• Year-on-year comparison

• Conditional Grants

• Background

• National School Nutrition Grant

• HIV and Aids Grant

• Infrastructure

• Monitoring

• Key challenges

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

2008 2009 Y-O-Y R'000 R'000

Compensation of employees 6,624,303 7,948,599 20%Goods and services 1,534,057 1,244,963 -19%Transfers and subsidies 398,379 464,577 17%Capital expenditure 377,493 415,060 10%

8,934,232 10,073,199 13%

TOTAL

Total allocation

ECONOMIC CLASSIFICATION

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

2008 2009 Y-O-Y R'000 R'000

Compensation of employees 1,736,409 1,862,182 7%Goods and services 230,382 423,506 84%Transfers and subsidies 169,949 282,829 66%Capital expenditure 102,219 72,488 -29%

2,238,959 2,641,005 18%

TOTAL

Total expenditure

ECONOMIC CLASSIFICATION

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Conditional Grants

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Expenditure to 30/06/2009

P

rBudget Commitments Actual

Expenditure to

30/06/2009

% Spent P

r

o

jR'000 R'000 R'000

National School Nutrition 229 534 184 024 45 510 20%HIV and AIDS 14 626 11 973 2 653 18%Infrastructure 246 590 151 290 95 300 39%

2009/10Conditional Grants

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

2008 2009 Y-O-Y R'000 R'000

National School Nutrition 136,606 229,534 68%HIV and AIDS 13,848 14,626 6%Infrastructure 171,673 246,590 44%

322,127 490,750 52%

TOTAL

Total allocation

CONDITIONAL GRANTS

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

2008 2009 Y-O-Y R'000 R'000

National School Nutrition 29,618 45,510 54%HIV and AIDS 4,321 2,653 -39%Infrastructure 58,968 95,300 62%

92,907 143,463 54%Total expenditure

CONDITIONAL GRANTS TOTAL

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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

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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

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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

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National School Nutrition Grant

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Progress report: April - June 2009 (A)

Strategic objectiveTo supply food to needy learners through

National School Nutrition Programme

Budget: 2009/10R229.534 million

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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

1515

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







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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

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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.

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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

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HIV and AIDS Grant

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Progress report: April - June 2009 (B)

Strategic objectiveTo educate learners on Life Skills, HIV and

Aids and to give care and support to those infected and affected by HIV and Aids


2121

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



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

2222


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






2323


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







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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






2525


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






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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






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Progress report: April - June 2009 (C)

Strategic objectiveTo make all role players and stakeholders

advocates of HIV and AIDS


2828

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


• 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

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• 3 Open discussion workshops between parents and learners on HIV and AIDS conducted

• 12 Candle Light Memorial Events celebrated


Operational: 12 Clusters of SGB's not capacitated due to the election period of new SGB's



Operational: Capacitation of SGB's to be done in the 2nd quarter after elections of new SGB's




3030


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






3131


Planned Annual Output LTSM for learners and educators procured


Relevant LTSM for 1,500 educators and 7,500 learners procured (resource guides and activity books)


Relevant LTSM for 1,289 educators and 640 learners procured (resource guides and activity books)







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Infrastructure

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Progress report: April - June 2009 (D)

Strategic objectiveTo improve the physical conditions and

appearance of schools


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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


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.



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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


Operational: Reprioritisation process have contributed to the delays

Plans to Address challenges Operational: DPWR&T to refocus on this programme


1st Q actual spending Nil

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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






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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.


Operational: Delay with tendering process by DPWR&T

Plans to Address challenges Operational: Matter discussed in a POMM and challenges resolved


1st Q actual spending Nil

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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


Operational: No feedback from implementing agent

Plans to Address challenges Operational: Follow-up with implementing agent prioritised


1st Q actual spending None

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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

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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

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Monitoring of the grants (Infrastructure)

• The MDoE 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

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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

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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

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The end

Thank you!

select committee on finance 16/09/2009

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