VOTE 14: EDUCATION PRESENTATION TO THE JOINT BUDGET COMMITTEE FOR BRIEFING ON THE 2007 MEDIUM TERM BUDGET POLICY STATEMENT.

VOTE 14: EDUCATION

PRESENTATION TO THE JOINT BUDGET COMMITTEE FOR BRIEFING ON THE 2007 MEDIUM TERM BUDGET

POLICY STATEMENT

Vote 14: Education: Medium Term Budget Policy Statement

Expenditure trends and audit outcomes for 2006/07

Mandate and medium-term policy priorities Significant MTEF allocations Personnel establishment and vacancy ratios Skills development and training programmes Infrastructure and maintenance budgets Transfer and grant management Monitoring and evaluation systems

Expenditure Trends and Audit Outcomes for 2006/07

The Department received a clean audit report The Department did not experience any delays

during the audit due to the strike action during June 2007

The spending rate for the Department for the 2006/07 financial year was at 99,7% (R14,250 billion) which is an improvement on 2005/06

2006/07 marks the first year of more detailed budget and financial monitoring of and support to provincial education departments

2006/07: ALLOCATION VS EXPENDITUREAllocation Actual

ExpenditureDeviation % Spent

R’000 R’000 R’000

Higher Education Institutions 10 988 701 10 985 688 3 013 99.97%

NSFAS 926 378 926 378 - 100.00%

CHE 27 902 27 902 - 100.00%

SAQA 33 991 33 991 - 100.00%

Umalusi 7 432 7 432 - 100.00%

Other Transfers 16 049 14 824 1 225 92.37%

Conditional Grants 1 712 507 1 712 507 - 100.00%

Operational Expenditure 586 216 541 083 45 133 92.30%

Total: Department of Education 14 299 176 14 249 805 49 371 99.65%

Expenditure Outcomes:2003/04 to 2006/07

Programmes 2003/04 2004/05 2005/06 2006/07 Annual Average Increase

R’000 R’000 R’000 R’000 %

P1: Administration 91 647 121 650 132 474 147 160 17,1%

P2: System Planning Monitoring 58 743 22 402 34 202 36 430 (14,7%)

P3: General Education 191 248 86 044 85 209 79 354 (25,4%)

P4: Further Education and Training 110 434 150 364 238 461 710 891 86,0%

P5: Quality Promotion and Development 913 860 1 015 902 1 283 793 1 290 384 12,2%

P6: Higher Education 8 952 567 9 911 391 10 646 832 11 956 879 10,1%

P7: Auxiliary and Associated Services 238 517 32 626 15 836 28 707 (50,6%)

Total 10 557 016 11 340 379 12 436 807 14 249 805 10,5%

Mandate and Medium-term Policy Priorities

Dealing with poverty• No fee schools• NSNP• Enhanced Rural Education

Skills Development• Further Education and Training• Adult Basic Education and Training• Human Resource Development

Quality Improvement• Implementation of NCS – Grades R – 12• Implementation of Integrated Quality Management System• Improvement of Infrastructure

Mandate and Medium-term Policy Priorities (Cont)

Health and Education – Life Skills Institutional Development

• Merging of HEIs

• Recapitalisation of FET Colleges

• Clarification of roles and responsibiities of district management structures.

Higher Education

Spending Proposals for new funding over the MTEF

National School Nutrition Programme FET Connectivity Inclusive Education Grade R Infrastructure and npnc expenditure EPWP/ECD Personnel Provisioning Increase subsidies of Public Entities National Procurement of Textbooks

Selected Budget Bids2008 MTEF

Request for Additional Funding 2008/09 2009/10 2010/11

Department R’000 R’000 R’000

Increased funding of the NSNP 1 079 299 1 245 934 1 444 259

FET Colleges Connectivity 108 000 186 000 46 000

Increased Subsidies of Public Entities 26 000 27 320 28 549

National Procurement of Grade 10 Textbooks to Support NCS 210 000 245 000 267 400

Sub Total 1 423 299 1 704 254 1 786 208

Sector

Inclusive Education 628 833 1 106 514 1 728 731

Grade R 2 229 254 2 625 020 3 098 044

Infrastructure and npnc expenditure 2 442 013 5 488 764 7 563 202

EPWP/ECD 371 460 642 989 746 981

Personnel Provisioning 4 371 919 5 578 987 8 096 915

Sub Total 10 043 479 15 442 274 21 233 873

Total Budget Bid 11 466 778 17 146 528 23 020 081

Significant MTEF AllocationsNSNP (Key objectives)

Expand the existing school nutrition programme to all deserving primary and secondary school learners

Increase average per learner feeding cost from the current R1,22 per learner per day to R1,50

Feeding of learners for all school days (198 days) per annum of all quintile 1 and 2 schools

Significant MTEF AllocationsNSNP (Key outcomes)

Contribute to enhanced learning capacity of learners of both primary and secondary schools

Provide learners with skills in producing their own food gardens

Promote healthy lifestyles within school communities

Phase in feeding of all no fee primary and secondary schools in quintiles 1 and 2

Significant MTEF AllocationsNSNP (Risks)

Deserving primary and secondary school learners will not receive meals.

Learners will not have the benefit to receive a meal during each school day.

The positive effect of the programme on learner attendance cannot improve.

Learners in the same household in secondary schools will not receive the same benefit of a meal at school as those learners in primary schools.

Significant MTEF AllocationsFET Colleges Connectivity (Key

objective)

Improved access, management, production and utilisation of information

Broaden access and participation in quality vocational education

Significant MTEF AllocationsFET Colleges Connectivity (Key

outcome)

To create an IT platform for FET Colleges to support the implementation of their mandate of skills for the 21st Century

Significant MTEF AllocationsFET Colleges Connectivity (Risks)

FET College Sector achieving the crucial capacity of information age skills could be minimised.

The current bandwidth costs, which are very high in comparison to international norms. This challenge can be overcome by implementing the solution within a single financial and project management framework.

The sustainability of operating costs. To deal with this is to:• Establish the sector as a major IT user and allow it to force

market adjustments in pricing. • The baseline for this is the e-learning rate of a 50%

discount for IT based services. • The funding norms for the FET Colleges includes a

component for IT operating and capitalisation costs.

Significant MTEF AllocationsInclusive Education (Key

Objectives) Expand school places for disabled children Improving access and equity for learners with special needs through

providing• Increased number of appropriate places in public ordinary schools (or full

service schools) for learners with special needs• Improving the standards and quality at current special schools• Putting in place the necessary support services (resource centres and district

support) Providing more choice for disabled learners and their parents through

making available support in a range of appropriate settings (ordinary schools, full service schools and special schools)

Drive landscape change from exclusive focus on special schools to (1) improved special schools (2) full service schools and (3) district-based support

Significant MTEF AllocationsInclusive Education (Key Outcomes)

Targets:• Maintain approximately 90 000 places at special schools but improve quality

and strengthen role as resource centres;• Improved screening of learners for informed choices about attendance;• 20 000 quality places in public ordinary (full service) schools by 2010;• Appropriate support in all districts – psychosocial, learning and administration

Special schools/resource centres• Infrastructure upgrade @ 135 neglected schools @ R2 million plus increasing

average expenditure (by about R3 500 per learner for 88 000 learners) Full services schools

• Learning support coordinator for every 12 learners; once-off allocation for infrastr & equipment of R30 000; top-up npnc of R2 225 per learner, increased transport

• 2 000 learners in 2008, 10 000 in 2009 and 20 000 in 2010

Significant MTEF AllocationsInclusive Education (Key Outcomes)

District based support team• 6 person DBST (psycho-social, therapeutic

and learning support) in 30, 50, 80 districts at 2008/09 cost of around R1 million excluding setup

• District strengthening for planning, implementation management & provisioning

Also: training, management, advocacy, monitoring and evaluation

Significant MTEF AllocationsInclusive Education (Risks)

The screening tool implementation needs to be accelerated – and carries many inherent difficulties

Securing key inputs a challenge: qualified teachers, support staff (including specialist medical), management teams to drive change

Putting in place enabling support structures, e.g. district-based support teams

Funding framework needs to be further developed

Significant MTEF AllocationsGrade R (Key Objectives)

To improve quality of education outcomes and efficiency of the system through improved school readiness and success rates

Ensure universal access to publicly funded, quality Grade R education by the end of 2011

Significant MTEF AllocationsGrade R (Key Outcomes)

Target: 950 000 in publicly funded (poverty targeted) Grade R places by 2010/2011(predominantly in public schools)

Increase number of places available• 83 333 additional learners in system per year at 2008/9 cost of R3

475 per learner• Average NPNC of R724 per learner. Average remuneration of

R85 258, and 30 learners per teacher Improve funding & quality of current places (estimated 700 000)

• From per learner exp of approx R1 900 to R3 475 per year (2008/09)

Training• 6 000, 3 400, 3 500 trained in MTEF yrs at starting cost of R12 000

per trainee

Significant MTEF AllocationsGrade R (Key Outcomes)

Facilities

• 1 705 classrooms each year at R220 000 per classroom

National management and research (including monitoring)

Provincial & district planning & implementation – including monitoring (5% of additional allocation)

Significant MTEF AllocationsGrade R (Risks)

Securing key inputs a challenge:• Qualified teachers, appropriate support staff and teams to manage

the envisaged fourfold expansion of the sector• Need improved planning for facilities, equipment and materials

Model focuses on lowering cost through school-governing board appointments, class sizes of 30: may impact on quality and ability to secure personnel

There are currently insufficient monitoring approaches and capacity in place to track progress, measure impact and take corrective steps

There needs to be significant improvement in the whole Foundation phase in order to derive benefits from Grade R investments

Significant MTEF AllocationsInfrastructure and npnc

expenditure (Key Objectives)

To move to funding levels that will ensure• An adequate supply of quality facilities at all schools

• Appropriate facilities and equipment for modern environment (laboratories, libraries, ICT)

• Security (fencing, lighting)• Sport fields (for soccer, rugby, cricket netball) & halls

learner access to a basic basket of non-personnel non-capital inputs (Qids-up)

To effectively deal with capacitation of both national and provincial infrastructure teams and to put support systems in place

Significant MTEF AllocationsInfrastructure and npnc

expenditure (Key Outcomes)

Schools, especially the poor, have good school facilities (through new facilities but also increased maintenance)• Equity in education provision• Enhance quality through better environment & appropriate

inputs Increased capacity of National and Provincial

infrastructure teams Improved NPNC inputs to enhance quality Enhanced systems for accurate information for

monitoring and planning

Significant MTEF AllocationsInfrastructure and npnc

expenditure (Risks) Currently limited capacity in physical planning function in

provinces/Skilled personnel scarce Improvement in mechanisms for infrastructure delivery, including

relationships and capacity of current implementing agents as well as setting up special mechanisms and vehicles – complex processes.

Key underlying work recently completed or ongoing• Education infrastructure policy framework and norms and standards not

complete• National Education Infrastructure Management System delivered and full

operationalisation being planned Broader construction industry trends:

• Capacity constraints• High and growing demand• Escalating costs

Significant MTEF AllocationsEPWP/ECD (Key Objectives)

To train ECD practitioners, parents and caregivers in registered ECD sites.

To pay the stipends for those practitioners, parents and caregivers whilst they are on the training programme.

To develop and distribute stimulation programmes in all official languages.

To increase the capacity to manage the programme at national, provincial and district level.

To manage and conduct ongoing research for programme delivery.

Significant MTEF AllocationsEPWP/ECD (Key Outcomes)

Target: Train 55 884 practitioners at level 1 and 4 as well as 32 484 parents and caregivers at approx 23 638 registered ECD sites.• 5 850 level 1 practitioners ONLY in 2008/09 @ R8 000,00 p.a• 50 034 level 4 practitioners over MTEF @R10 000,00 p.a

Payment of stipends to:- 5 850 level 1 practitioners ONLY in 2008/09 @ R500,00 per month- 50 034 level 4 practitioners over MTEF @R1 000,00 per month- 32 484 parents and care givers over MTEF @R500,00 per month

Develop and distribute stimulation programmes (100 000 p.a in all official languages) @ R1,6 million over MTEF

National, provincial and district personnel (DCES level) @R132 million over MTEF

Management and research @R9 million over MTEF

Significant MTEF AllocationsEPWP/ECD (Risks)

Integration & inter-sectoral collaboration:Implications for planning, financial and human resources.

Regulation of child minding: Not regulated by the current Child Care Act of 1983.

Lack of human resources: There is no dedicated ECD unit at national level impacting on services delivery.

National database: There is no national database of registered and unregistered sites and the absence of the implementation of a monitoring tool.

Significant MTEF AllocationsEPWP/ECD (Risks)

Alignment: Lack of alignment between ECD national and provincial targets.

Lack of awareness amongst the general public that it is compulsory to register as an ECD facility when caring for more than six children away from their parents.

Existing resources do not match the objectives of the National Integrated Plan for ECD.

Significant MTEF AllocationsPersonnel Provisioning (Key

Objectives)

Improvement of remuneration in a number of areas and also increasing numbers of staff in previously neglected areas impacting on equity and quality of education

Significant MTEF AllocationsPersonnel Provisioning (Key

Outcomes)

The bid addresses a range of staff necessary to enhance the quality of the system• upgrade district manager posts

• remove principals from school establishment.

• curriculum expansion in priority learning areas.

• additional Mathematics and Science educators.

• substitute educators for educators who would be temporarily incapacitated – due to sickness.

• teacher assistants to support foundation phase.

• additional personnel for sports coordination at district level.

Significant MTEF AllocationsPersonnel Provisioning (Risks)

Turn around time is slow in filling posts (advertisement, recruitment and appointment of candidates).

Capacity in provinces to retain personnel. Grievances arising from promotional measures take

longer to resolve. Mandating and related bargaining processes

sometimes stall progress. Potential overlaps with OSD.

Significant MTEF AllocationsPublic Entities (Key Objectives) To improve the existing level of funding of

Umalusi, SACE and SAQA The additional resources required for the

performance of the required responsibilities are as follows:• Umalusi: R8 million for 2008/09 (Evaluation and Accreditation -

R4 million; Research and Development - R3 million; Quality Assurance of Assessment - R1 million) escalated with 4,5% for the two outer years.

• SACE: R10 million for 2008/09; R10,6 million for 2009/10 and R11,1 million for 2010/11.

• SAQA: R8 million for 2008/09 escalated with 4,5% for the two outer years.

Significant MTEF AllocationsPublic Entities (Key Outcomes)

To enable the entities to perform all required responsibilities within their legal frameworks and mandates

Umalusi:Evaluation and accreditation of independent schools, private ABET centres and private FET collegesRoll out of CTA in Grade 9 for which moderators need to be appointed and trained

Significant MTEF AllocationsPublic Entities (Key Outcomes -

Cont) SACE:

Development of Continuing Professional Teacher Development (CPTD) system

SAQA:Increased funding requirement due to loss of EU sponsorship

Significant MTEF AllocationsPublic Entities (Risks)

Private and independent bodies will not be accredited.

Verification of sites for adequacy for teaching and learning will not take place.

Courses will not be quality assured. Question papers for the NSC will not be

moderated, monitored and standardised.

Significant MTEF AllocationsPublic Entities (Risks - Cont)

The CPTD system is a fresh approach to address the current situation of under-skilled teachers as a mechanism to decrease the low learner performance of learners. If the approach is not followed, it will severely limit the contribution that schooling can make to national development generally, particularly to the economy and social cohesion and the growing problem of inequality in our country.

It is difficult to determine the extent of the consultations and the transition period for the revised NQF framework.

Significant MTEF AllocationsNational Procurement of LTSM (Key

Objectives)

To conduct a pilot for 3 years for the provisioning of LTSM for the cohort of the Grade 10 learners of 2009 as follows:

2009 – Grade 10

2010 – Grade 11

2011 – Grade 12

Significant MTEF AllocationsNational Procurement of LTSM (Key

Outcomes)

Bulk purchasing of best available books per subject to ensure best possible economies of scale

Distribution of books to all learners in all provinces

Ensure that every learner has the prescribed books at the start of the academic year

Significant MTEF AllocationsNational Procurement of LTSM

(Risks)

Bulk buying requires considerable lead time and timeous delivery will depend on the capacity of publishers to print the quantity required within the stipulated timeframes.

Personnel Establishment and Vacancy Ratios

2004/05 2005/06 2006/07

Total Establishment 896 925 1 046

Number of posts filled at 31 March

739 738 768

Vacant at 31 March 157 187 278

% Vacant 17,5% 20,2% 26,6%

Staff turnover rate 22,33% 22,09% 14,45%

Skills Development and Training Programmes

Internship Programme Skills Development and Training

Programmes Bursaries ABET for General Workers such as the

Cleaners/Tea Ladies/Maintenance Team and Messengers)

Skills Development and Training Programmes: Internship

Internship was introduced in DoE in 2004 Purpose

• To help unemployed graduates to gain workplace experience

Currently the Department has 163 Interns (Quota 74)

Since inception:• 83 Interns were appointed permanently in the

Department• 53 Interns were appointed in other Departments and in

the Private Sector

Skills Development and Training Programmes

In 2006/07: 580 Officials were trained• 417 = Permanent• 163 = Contract

Trained on:• Project Management• Finance for non-financial managers• Advanced Management Development Programme (Middle

Managers)• Presidential Strategic Leadership Development Programme (Senior

Managers)• Business Writing Skills• Report Writing• Computer Training• Internal Auditing• Asset Management

Skills Development and Training Programmes: Bursaries

2007/08: 51 Employees to study towards: Post Matric (50) and Matric (1) Qualifications.

2006/07: 41 Employees to study towards Post Matric Qualifications.

Skills Development and Training: ABET

Training for General Workers such as cleaners/tea ladies/maintenance team/messengers

10 ABET Learners 36 Skills Programme 11 Matric 70 Basic Computer Skills

Infrastructure and Maintenance Budget

The concession agreement for the new head office building of the Department was signed in 2007/08.

The projected date for occupying the new head office building is 1 April 2009.

Projected shortage of R10 million per year on current allocation for the New Head Office Building.

Transfer and Grant Management:Transfers

2007/08 2008/09

ENE AE MTEF Option

R’000 R’000 R’000 R’000

HEIs 11 944 151 11 942 751 13 309 708 0

Public entities 1 405 337 1 412 337 1 631 478 26 000

Conditional grants 1 905 633 2 016 773 2 201 392 1 079 299

Other 10 771 14 442 11 612 0

Total Transfers 15 265 892 15 386 303 17 154 190 1 105 299

Transfer and Grant ManagementHigher Education Institutions (HEIs)

Subsidies are paid to 23 HEIs. Monitor transfer payments to HEIs on a monthly basis by

ensuring that the transfers are in line with the allocations. Expenditure is monitored on an annual basis on receipt of

audited annual financial statements.• Actual student numbers are measured against the student

numbers used to determine the block grants to institutions.

• Should it happen that the actual numbers are less than the initial numbers used, the block grants are adjusted accordingly for future years.

• HEIs are only funded at a level of approximately 60% of actual expenditure.

Transfer and Grant ManagementPublic Entities (PE)

Responsible for 6 PEs, i.e.• NSFAS

• CHE

• SAQA

• Umalusi

• SACE

• ELRC Quarterly reports are used to monitor PEs

• Financial and performance information based on the approved strategic plans of the public entities.

Transfer and Grant ManagementConditional Grants

Manage three conditional grants, i.e.:• HIV and Aids

• National School Nutrition Programme

• FET Colleges Recapitalisation Grant Monitors in accordance with the Division of Revenue Act -

monthly financial reports and quarterly narrative reports. Reports are checked against the approved business plans. Provincial visits, inter-provincial meetings and the annual

evaluation on each grant for previous financial year takes place.

Monitoring and Evaluation Systems

Monthly cash flows are issued to management and the Minister for monitoring actual expenditure vs budget.

Quarterly reports are prepared to monitor and evaluate the outcomes of the strategic plan.

Provincial visits are conducted to monitor the roll-out of policy initiatives.

The Budget Review and Advisory Committee meets regularly to address budget and expenditure matters.