NCOP SELECT COMMITTEE ON FINANCE MEETING

1
Department of Education

• NCOP SELECT COMMITTEE ON FINANCE MEETING
• 6 FEBRUARY 2007

2
OVERVIEW

• The objective is to report in terms of Section 32
• of the PFMA
• 2007/08 expenditure as at 31 December 2007
• Conditional Grants Spending
• Capital expenditure
• Progress with the implementation of
  infrastructure projects
• Achievements, Challenges and Remedial Measures
• Monitoring arrangements within FSDoE

3
EXPENDITURE PER PROGRAMME AS AT 31 DECEMBER 2007

• Percentage spending excludes commitments in all
  instances

3
4
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 Section 21 LTSM in Districts. Delivery of
  Stationery to date 98, all distributed to
  schools.
• Textbooks delivery is 82. Awaiting backorders
  from Publishers.
• Programme 5 FET colleges
• Compensation of employees Outstanding claims for
  part-time educators and the implications of the
  FET Act
• Programme 6 ABET
• The amount of R4,9million on goods and services
  will be used to conduct training on new unit
  standards and site based assessment tasks in
  February 2008
• Programme 7 ECD
• Compensation of employees
• Transfers to centres delayed due to
  non-compliance
• Programme 8 Auxiliary and Associated Services
• Payment for capital projects is according to
  schedule and no overspending is envisaged.

4
5
EXPENDITURE BY ECONOMIC CLASSIFICATION 31
DECEMBER 2007

• Households includes bursaries paid to
  learners at tertiary institutions including leave
  gratuities.
• Bursaries are paid in Jan-Feb 2008 while
  gratuities are paid through the financial year

5
6
CONDITIONAL GRANTS SPENDING AS AT 31 DECEMBER
2007

• R36, 574 million transferred to the Colleges
• NSNP will be supplemented by R1,2million from the
  equitable share to cover for the increased number
  of ALL primary school learners fed.

6
7
ACTUAL SPENDING BY FET COLLEGES ON RECAP GRANT
AS AT 31 DECEMBER 2007
Taking into consideration commitments of
R5million,expenditure will improve to
75,3.Commitments are largely for buying/building
of new classroooms,laboratories,offices etc
7
8
LIFE SKILLS AND HIV / AIDS PERFORMANCE MEASURES
8
9
LIFE SKILLS AND HIV / AIDS
10
NATIONAL SCHOOL NUTRITION PROGRAMME PERFORMANCE
MEASURES
10
11
NATIONAL SCHOOL NUTRITION PROGRAMME
11
12
ACHIEVEMENTS FET RECAPITALIZATION GRANT

• RESKILLING STAFF TO OFFER RESPONSIVE PROGRAMMES
• 382 FET Staff received training according to
  identified needs to ensure effective teaching and
  learning as well as managing the implementation
  of the National Curriculum (vocational) NC(v)
  programmes.
• UPGRADING PHYSICAL INFRASTRUCTURE OF FET COLLEGES
  
• Colleges utilised funds to complete the
  following projects
• 1 Student Support Centre was built and completed
  at Goldfields College.
• 5 Workshops, classrooms, laboratories and offices
  as per identified needs were upgraded at the four
  FET colleges.
• 2 Campus sites were upgraded at Motheo and Maluti
  Colleges.
• Equipment was purchased to support teaching and
  learning of NC(v) levels 2 and 3 programmes.
• LTSM were purchased for NC(v) levels 2 and 3
  programmes to ensure effective and efficient
  training.
• 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.

13
OVERALL ACHIEVEMENTS FET RECAPITALIZATION GRANT

• 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)

14
FET RECAPITALIZATION CHALLENGES

• 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)

15
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
  SGBs 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)

15
16
SPENDING ON INFRASTRUCTURE
16
17
INFRASTRUCTURE EXPENDITURE

• End of Third Quarter expenditure 82 vs second
  quarter 44
• The expenditure has increased due to the fact
  that most contractors were performing according
  to expectations.
• The 100 mark is expected to be reached by end
  February 2008.
• Regular monthly monitoring meetings between
  Implementing Agency and Client. Monthly reports
  are supplied and discussed
• Intensive quarterly reviews led by Provincial
  Treasury assists in briefing the Executing
  Authorities in the province

17
18
Monitoring capacity in the Department

• 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.
• Each branch is allocated a management accountant
  to assist with all financial related queries
  including budget management
• 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.
• Where managers are not able to spent despite all
  the interventions funds are diverted and spent in
  line with objectives of the department.

19
THANK YOU