1 FREE STATE EDUCATION DEPARTMENT PUBLIC HEARING ON PROVINCIAL BUDGETS AND EXPENDITURE REVIEW 19 October 2005.

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FREE STATE EDUCATION DEPARTMENT

PUBLIC HEARING ON PROVINCIAL BUDGETS AND EXPENDITURE

REVIEW19 October 2005

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OVERVIEW OF PRESENTATION• Introduction• Background• Strategic goals and objectives• 2001/02-07/08 budget and expenditure overview• Conditional grants• Actual expenditure on programmes• 2004/05 main reasons for under spending• Monitoring capacity• Conclusion

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FREE STATE DEPARTMENT OF EDUCATION TEAM

The Free State Department of Education is represented by Mrs. M A Tsopo, the MEC for education and supported by the following members:

• Mr. MS Rakometsi: Head Education• Mr. TNT Lioma: DDG – Corporate Management and Development• Mr. F Sithole: Act. DDG – Curriculum Management and Development• Mr. MB Monnane: Chief Financial Officer• Me PF Ndaba: Chief Director – Curriculum and Professional Support

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INTRODUCTIONThe Free State Department of Education has been invited to Public Hearings on provincial budgets and expenditure trends and to address the NCOP Select Committee on Finance on the following:

• To present the provincial budget and expenditure review 2001/02 -07/08

• The extent to which the budget gives effect to provincial and national mandates

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BACKGROUND• Provincial Departments receive three year

MTEF allocations• A five year Strategic Plan for the period

2005/06 to 2009/10 has been compiled and published

• An Annual Performance Plan for the MTEF 2005/06 – 2007/08 has been compiled from the Strategic Plan and published

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STRATEGIC GOALS AND OBJECTIVES

The following main strategic plans and objectives of the Free State Education Department derived from the Strategic Plan are the following:PROGRAMME 1: ADMINISTRATION

1. To ensure that projects/initiatives contribute to economic development and job creation (EPWP)

2. To improve Human Resource Development practices at all levels3. To promote sound labour relations and good discipline4. To improve access to Information Communication Technology for office based

staff5. To develop and foster partnerships and collaboration with provincial, national and

international stakeholders, donors and departments6. To ensure sound financial management practices in terms of relevant legislation7. To improve efficient and effective management of assets8. To improve risk management and internal control environment to prevent

corruption9. To promote communication with stakeholders, including the business sector10. To provide Human Resource Development for office based staff

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STRATEGIC GOALS AND OBJECTIVES (Continued)

PROGRAMME 2: PUBLIC ORDINARY SCHOOL EDUCATION11. To foster a culture of effective learning and teaching12. To provide Learners and Educators with basic Learning, Teaching and

Support Materials in accordance with curriculum needs13. To ensure that the flow of learners through the public primary and

secondary school system is optimally oriented14. To improve access to e-Education15. To promote the participation of the historically marginalized group of

learners 16. To provide recognition to schools and candidates for their performance17. To provide professional support to all educators in schools18. To improve access to and quality of formal education at learning

institutions in terms of school effectiveness and educator professionalism19. To provide departmental services and further development of educators

and non-educators in public ordinary schools

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STRATEGIC GOALS AND OBJECTIVES (Continued)

PROGRAMME 4: PUBLIC SPECIAL SCHOOL EDUCATION20. To provide spaces in public special schools/resources/full service schools

in accordance with policy and the principles of inclusive education21. To provide spaces for out-of-school disabled children to return to learning

in public special schools/resources/full service schools 22. To provide professional support to all educators in public special

schools/resources/full service schools 23. To provide access to and quality of formal education at learning

institutions in terms of school effectiveness and educator professionalism in public special schools/resources/full service schools PROGRAMME 5: FURTHER EDUCATION AND TRAINING COLLEGES

24. To promote the participation of historically marginalized groups in public FET Colleges

25. To promote the transformation of public FET Colleges26. To ensure that the new Conditional Grant for FET Colleges is utilized

effectively and efficiently

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STRATEGIC GOALS AND OBJECTIVES (Continued)

PROGRAMME 6: ADULT BASIC EDUCATION AND TRAINING27. To link ABET Programmes with Expanded Public Works Programme

Objectives28. To make ABET accessible to learners with special education needs

PROGRAMME 8: AUXILIARY AND ASSOCIATED SERVICES29. To provide for special departmentally managed intervention projects in

the education system as a whole30. To implement the Physical Infrastructure and provisioning of Basic

Services: water, sanitation and electricity

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2001/02 - 07/08 BUDGET AND EXPENDITURE REVIEW

  2001/02 2002/03 2003/04 2004/05Adj. Est.2005/06

Allocation2006/07

Allocation2007/08

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

Equitable Share 3,303,517 3,253,307 3,861,082 4,278,724 4,678,353 4,830,934 5,083,719

Conditional Grants 78,742 181,651 130,454 197,566 206,183 209,357 267,316

Own Revenue   287,159 142,044 141,360 160,351 161,950 170,048

TOTAL RECEIPTS 3,382,259 3,722,117 4,133,580 4,617,650 5,044,887 5,202,241 5,521,083

Current Payments 2,994,931 3,251,931 3,654,562 3,923,770 2,065,375 4,676,625 4,919,183

Transfers & Subsidies 83,413 145,659 237,274 365,857 305,868 454,562 517,857

Payments for Capital              

Assets 95,539 124,604 156,338 109,879 19,024 71,054 84,043

TOTAL PAYMENTS 3,173,883 3,522,194 4,048,174 4,399,506 2,390,267 5,202,241 5,521,083

UNDER/(OVER)              

SPENDING 208,376 199,923 85,406 218,144 2,654,620 0 0

% Variance 6% 5% 2% 5% 53% 0% 0%

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2001/02 - 07/08 BUDGET AND EXPENDITURE REVIEW

0%10%20%30%40%50%60%70%80%90%

100%

2001/02(94%)

2002/03(95%)

2003/04(98%)

2004/05(95%)

2005/06(47%)

ExpenditureBudget

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PAST EXPENDITURE TRENDS BY PROGRAMME

Programme 2001/02 2002/03 2003/04 2004/05 2005/06SEPT

’05

1. Administration 79% 95% 97% 96% 41%

2. Public Ordinary School Education 97% 98% 99% 95% 47%

3. Independent Schools 100% 100% 100% 100% 66%

4. Public Special Schools 99% 94% 100% 99% 48%

5. Further Education and Training Colleges

53% 95% 95% 100% 43%

6. Adult Basic Education and Training

72% 81% 94% 50% 77%

7. Early Childhood Development 89% 93% 86% 93% 39%

8. Auxiliary and Associated Services

87% 90% 83% 88% 56%

9. Theft and Losses

Total Spent 94% 95% 98% 95% 47%

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PAST EXPENDITURE TRENDS BY PROGRAMME

0%10%20%30%40%50%60%70%80%90%

100%

P1 P2 P3 P4 P5 P6 P7 P8 Total

2001/022002/032003/042004/052005/06

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2001/02 – 05/06 CONDITIONAL GRANTS SUMMARY

2001/02R’000

2002/03R’000

2003/04R’000

2004/05R’000

2005/06R’000

Total Amount

Received73,355 177,471 130,454 196,662 206,183

Total Spending 20,579 76,606 111,978 181,409 140,717

Balance 52,776 100,865 18,476 15,253 65,466% Spending 28% 43% 86% 92% 68%

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ACTUAL EXPENDITURE ON CONDITIONAL GRANTS AS AT

30 SEPT. 2005Conditional

GrantTotal

AllocationR’000

Actual Exp. June 2005R’000

% Spent June 2005

Actual Exp. Sept.

2005R’000

% Spent Sept. 2005

Early Childhood Development 737 0 0% 737 100%

HIV and Aids 8,402 824 10% 3,015 36%

NSNP 56,768 11,842 21% 22,856 40%

Infrastructure Grant 140,276 2,812 2,0% 411,097 81,3%

Total 206,183 15,478 8% 140,717 68%

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ACTUAL EXPENDITURE ON CONDITIONAL GRANTS AS AT

30 SEPT. 2005

0%

10%

20%

30%

40%

50%

60%

70%

1st Qtr (8%) 2nd Qtr(68%)

2005/06

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SEPTEMBER COMPARATIVE FIGURES 2003/04 – 2005/06

Grant % Spent Sept. 2003/04

% Spent Sept 2004/05

% Spent Sept 2005/06

Early Childhood Development

27% N/A 100%

HIV and Aids 90% 55% 36%

NSNP N/A 33% 40%

National Infrastructure 103% 79% 76%

Provincial Infrastructure N/A 44% 86%

Total 73% 53% 68%

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ACTUAL EXPENDITURE BY PROGRAMME AS AT 30 SEPT.

2005Programme Total Allocation

Actual Exp. June 2005

% Spent June 2005

Actual Exp. Sept. 2005

% Spent Sept 2005

Programme 1: Administration 373,770 78,047 21% 154,180 41%

Programme 2: Public Ordinary School Education 3,944,858 948,861 24% 1,849,494 47%

Programme 3: Independent School Education 26,422 10,619 40% 17,371 66%

Programme 4: Public Special School Education 148,973 35,581 24% 71,614 48%

Programme 5: Further Education and Training 152,000 35,832 24% 64,757 43%

Programme 6: Adult Basic Education 73,050 29,817 41% 56,004 77%

Programme 7: Early Childhood Development 33,586 3,936 12% 12,968 39%

Programme 8: Auxiliary and Associated Services 292,228 25,485 9% 163,875 56%

Programme 9: Theft and Losses   4   4  

Total 5,044,887 1,168,182 23% 2,390,267 47%

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ACTUAL EXPENDITURE BY PROGRAMME AS AT 30 SEPT.

2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

P1 P2 P3 P4 P5 P6 P7 P8 Total

1 st Qtr2 nd Qtr

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SEPTEMBER COMPARATIVE FIGURES (CG) 2003/04 – 2005/06

% Spent Sept. 2003/04

% Spent Sept 2004/05

% Spent Sept 2005/06

All Conditional Grants

73% 53% 68%

Total All Expenditure (CG)

52% 38% 47%

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SEPTEMBER COMPARATIVE FIGURES (CG)2003/04 – 2005/06

0%

10%

20%

30%

40%

50%

60%

70%

80%

'2003/04 '2004/05 '2005/06

Cond. GrantsTotal Exp.

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2004/05 EXPENDITURE BY PROGRAMME

2004/05

Programme Budget Expenditure Variance % Variance

Administration 329,390 315,074 14,316 4.3%

Public Ordinary        

School Education 3,680,519 3,511,016 169,503 4.6%

Independent Schools 21,655 21,646 9 0.0%

Public Special Schools 134,247 133,227 1,020 0.8%

Further Educ & Training 135,869 135,449 420 0.3%

ABET 90,591 45,759 44,832 49.5%

ECD 31,894 29,509 2,385 7.5%

Auxiliary & Associated        

Services 193,485 170,613 22,872 11.8%

Theft and Losses   37,213    

TOTAL 4,617,650 4,399,506 218,144 4.7%

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2004/05 MAIN REASONS FOR UNDERSPENDING

Programme AmountR’000

Reason

1. Administration 7,604 Outstanding commitments

4,000 Computer equipment which could not be procured timeously

2. Public Ordinary School Education

43,240 Outstanding pay progression to CS-Educators

19,050 Outstanding transfer payments to POS

8,848 Outstanding commitments on capital works

2,301 Under spending on equipment

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2004/05 MAIN REASONS FOR UNDERSPENDING (Continued)

Programme AmountR’000

Reason

6. Adult Basic Education and Training

34,614 Outstanding ABET claims not being paid out

7. Early Childhood Development

2,385 Under spending on compensation and outstanding commitments on goods and services

8. Auxiliary and Associated Services

3,729 Under spending on compensation

11,565 Unspent balances on conditional grants

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MONITORING CAPACITY AND PLANNING

• Expenditure trends throughout the Department are now monitored by a dedicated Directorate.

• Monthly in-house monitoring meetings are now held to provide early warning to all Managers.

• Each 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.

• Monthly reconciliation on BAS Expenditure reports are done to track expenditure against each project

• 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 2005/06 have been duly submitted for the current financial year according to the Division of Revenue Act.

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CONCLUSION• The Free State Province is the second poorest province in the country. • Sixty percent (60%) of schools are farm schools.• Education plays a very important role in the Province’s socio-economic

upliftment of communities. CHALLENGES FACED BY THE FREE STATE EDUCATION DEPARTMENT• To improve the overall literacy rate ( 69,2% in 1996)• Implement National Quintiles to achieve equitable school funding to

the poor communities• Abolish school fees for the first two National Quintiles (Poorest

quintiles)• Strengthen the exemption policy• To provide spaces in special schools/resource centres/full service

schools in accordance with policy• To implement Learner Support Programmes ( Hostel, Transport )

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CONCLUSION (Continued)• National School Nutrition Programme• Feeding in public and farm schools• Integrate all the related activities including E-learning• Transforming the Further Education and Training (FET)

sector• Implementation of Early Childhood Development (ECD) in

public schools in rural areas• Expand ABET programmes and that ABET programmes

support the Expanded Public Works Programme• Revision of basic infrastructure at schools• Improve the provision of Science and Technology

programmes in schools

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THANK YOU