VOTE 14: EDUCATION
CONDITIONAL GRANTS: 2001/02: DIVISION OF REVENUE BILL, 2001
Financial year |
1998/99 |
1999/00 |
2000/01 (1) |
2001/02 |
Allocation: National Department |
37 822 |
(2) 69 000 |
(3) 76 455 |
70 000 |
Expenditure: National Department |
18 740 |
33 836 |
21 656 |
- |
Balance |
19 082 |
35 164 |
54 799 |
70 000 |
Allocation: Provinces |
162 178 |
192 000 |
(3) 253 987 |
213 000 |
Expenditure: Provinces |
26 035 |
88 388 |
101 376 |
- |
Balance |
136 143 |
103 612 |
152 611 |
213 000 |
Total allocation |
200 000 |
261 000 |
330 442 |
283 000 |
Total expenditure |
44 775 |
122 224 |
123 032 |
- |
Total: Balance |
155 225 |
138 776 |
207 410 |
283 000 |
% Spent |
22,39% |
46,83% |
37,23% |
Expenditure as at 31 January 2001. (2) Includes an amount of R50 million rolled over from 1998/99 (3) Includes an amount of R6,455 million and R51,987 million rolled over from 1999/2000 for national and provincial education departments respectively.
The single most important factor that has shaped the content of the business plans for the 2000/01 financial year was the Ministers Tirisano programme. This programme represents the conversion of the Ministers nine priorities identified in his famous Call to Action address into the five programmes of Tirisano, namely:
HIV/AIDS
School Effectiveness and Educator Professionalism
Literacy
Further and Higher Education
Organisational Effectiveness of the National and Provincial Education Departments
The following framework was laid down for the inclusion of projects to be funded by this conditional grant:
Whole school evaluation, school record keeping, quarterly reports on school attendance and school supervision
Regular assessment of learner performance
School safety
Improvement of the Senior Certificate examination results
Professional development of school principals, with emphasis on the induction of new appointees
Developing functional and effective school governing bodies
Orientation and ongoing professional development of educators for Curriculum 2005
Provincial strategic planning and the availability of credible and reliable data for planning and budgeting
Working systems and processes, including financial systems, procurement procedures and personnel practices.
A set of guidelines was to be used in the development of business plans. These were:
Target poverty
Under-performing schools
60% of expenditure to reach schools directly
Under-expenditure
A number of factors militated against optimal implementation of the conditional grant in the last three years, which led to under-expenditure. A few of these are listed below: [Please see Annexure A for amounts allocated vs amount spent per province during the 1998/99 till 2000/01 financial years.]
1998/99
In the first financial year collective inexperience with this kind of mechanism coupled with delays and uncertainty about the release of funds made proper planning very difficult.
1999/2000
In the second financial year inexperience and uncertainty about how exactly the mechanism was supposed to operate continued to present some difficulties.
The capacity at provincial education departments and the Department of Education was not fully geared for optimal conceptualisation, management and implementation of the conditional grant mechanism. This also lead to late planning.
2000/01
Delays to create allocation codes in the financial system in some provinces.
Major delays regarding tender/procurement process.
Lack of capacity. The appointment of the chief financial officers and specific project managers will enhance the solution to this problem.
Unrealistic/over optimistic planning by, for example, not taking into consideration the time linked to tendering processes.
Co-ordination most of the projects within this conditional grant involve negotiations at school, district, provincial and national levels which is a time consuming factor.
Donor funds allocated for similar projects.
Steps to improve on the spending of conditional grants
A number of changes to the effective management of the grant have been implemented during the 2000/01 financial year and will be built upon for the 2001/02 financial year:
The participation of HEDCOM and CEM in determining the priorities for education to establish the support of senior management right through the education sector.
The establishment of dedicated capacity and institutional mechanisms for realistic planning, effective implementation, co-ordination and monitoring, both at national and provincial level.
Greater clarity on the focus areas that would form the backbone for strategies to improve financial management and the improvement of quality education.
These changes, and greater clarity on the part of National Treasury and the Department of Education on how the conditional grant mechanism is to function, will create conditions that are conducive for performance. Furthermore, control and monitoring via monthly reporting on the progress of the projects, certification that expenditure was in accordance with the purpose and conditions of the grant and that funds were properly managed and accounted for, will contribute significantly towards greater effectiveness.
Transfer of funds to provinces
During the 1999/2000 and 2000/01 financial years, the Department of Education transferred funds to provincial education departments in four equal instalments during July 1999, October 1999, December 1999 and February 2000 and June 2000, July 2000, October 2000 and January 2001 respectively.
Criteria for the allocation of funds per province for the 2000/01 financial year
The R202 million to the provinces is allocated according to the education component of the equitable share formula, with an additional R10 million divided among the three most needy provinces, i.e. KwaZulu-Natal, Eastern Cape and Northern Province to address specific backlogs.
Projected life of the grant
The Financial Management and Quality Enhancement in School Education conditional grant is presently projected to continue until the 2003/04 financial year. We anticipate a joint assessment with National Treasury of the desirability and need to continue with this instrument.
Payment schedule
In terms of section 8(1) of the Division of Revenue Bill, 2001 payment schedules must be gazetted by 15 May 2001. Instalments earlier than June 2001 will therefore not be possible. However, no financing problems are foreseen in the provincial education departments, taken the current spending rate on this conditional grant and given the fact that provinces will retain the 2000/01 unspent balance of this grant. Thus this grant will again be paid out in four equal instalments to the various provincial education departments commencing June 2001.
Capacity and preparedness of the transferring department
Technical assistance to provinces and the national department for managing this grant has been obtained. It however remains a complex task and the continued assistance and support of National Treasury will need to be relied on.
EARLY CHILDHOOD DEVELOPMENT
Conditional grant to provinces: R21 million
Funds earmarked for the Department: R9 million
Purpose and measurable objectives
The purpose of this programme will be the further development and testing of systems and models of new policy implementation so that all children, and particularly the poor, have access to an accredited Reception Year programme. This programme is designed to extend Early Childhood Development (ECD) services to the poor through the provision of a quality Reception Year programme at 4,500 selected, registered Early Childhood Development sites, impacting on 135 000 learners in year one. Particular attention will be paid to ensuring that the areas identified for the Urban Renewal and Rural Development strategy will be included. One of the aims of this project is to enhance provincial capacities to support Early Childhood Development initiatives. The following objectives will be met:
Short term objectives: To extend the provision of an accredited Reception Year programme to selected poor ECD sites.
Long term objectives: To manage the process of introducing a compulsory Reception Year programme in South Africa.
Conditions
The main condition attached to this grant is that funds should be spent in accordance with approved business plans which incorporate the Departments identified priority areas in the provinces.
Criteria for allocation between provinces
The allocations per province are based on the education component of the equitable share formula.
Monitoring mechanisms and auditing arrangements
Financial and progress reporting needs to be in compliance with the requirements of the annual Division of Revenue Act and the Public Finance Management Act.
Monthly reporting in the prescribed format must be signed off by the accounting officers of the respective provincial education departments.
These funds are subject to auditing by the Office of the Auditor-General as is the case with all other funds allocated to the Department.
Should provincial education departments be in breach of the requirements of the above acts, the transfer of funds to the provinces may be delayed or withheld.
Rationale for funding through a conditional grant
The rationale for funding through a conditional grant is to focus on specific outcomes in collaboration with national policy. For the 2001/02 financial year R9 million will be kept centrally for policy making, monitoring and co-ordinating purposes.
Past performance
This is a new conditional grant to the Department of Education commencing in the 2001/02 financial year. The Department during the past three years initiated pilot projects and the experience gained will ensure that the desired objectives will be achieved with the funds now allocated.
Projected life of the grant
This project will be phased in over a five year period commencing 2001.
Payment schedule
This grant will be paid out in two equal instalments to the various provincial education departments.
Capacity and preparedness of the transferring department
The Chief Directorate: School Education in the Department will manage the programme, establish monitoring systems and monitor effectiveness, efficiency and impact.
Action plans for 2001/02
The National Department of Education will be responsible for the following:
An effective information and advocacy campaign to ensure that all stakeholders are informed about Early Childhood Developments and activities.
Training by an individual/company/consortium/institution of provincial/regional/district officials to ensure that there is on-going monitoring and support to participating sites and personnel.
The contracting of an individual/company/consortium/institution to provide sites with a basic package of resource materials to enhance the implementation of the programme.
A neutral body will be contracted to assure the quality of delivery.
Provincial departments of education will be responsible for:
Providing programme coordinators in the respective provinces and the implementation of the programme in the provinces.
Establishment of accountable systems for the distribution of subsidies to the Early Childhood Development sites/practitioners.
Provincial/regional/district staff will be identified to take responsibility for the programmes coordination, including visiting sites to provide on-going monitoring and support for ECD management committees, practitioners and learners.
An individual/company/consortium/institution will be contracted to train, monitor and support participating ECD site management committees and ECD practitioners towards an accredited Level 4 qualification in ECD.
Appropriate systems will be established to enable Site Management Committees to take responsibility for managing the subsidies received for running costs and report on a regular basis to the provincial departments.
HIV/AIDS
Conditional grant to provinces: R63,5 million
Funds earmarked for the Department: R5,2 million
Purpose and measurable objectives
The overall goal of the HIV/AIDS programme is to ensure access to an appropriate and effective integrated system of prevention as well as care and support for children infected by HIV/AIDS. This is a joint effort of collaboration between three departments namely Health, Social Welfare and Education. Each Department received individual allocations for this grant. The Department of Education is responsible for the implementation of life skills programmes and HIV/AIDS education in primary and secondary schools.
Conditions
The main condition of this grant is that funds should be spent in accordance with approved business plans which incorporate the Departments identified priorities for the provinces.
Criteria
The allocations per province were based on the education component of the equitable share formula.
Monitoring mechanisms and auditing arrangements
Financial and progress reporting needs to be in compliance with the requirements of the annual Division of Revenue Act and the Public Finance Management Act.
Monthly reporting in the prescribed format must be signed off by the accounting officers of the respective provincial education departments.
These funds are subject to auditing by the Office of the Auditor-General as is the case with all other funds allocated to the Department.
Should provincial education departments be in breach of the requirements of the above acts, the transfer of funds to the provinces may be delayed or withheld.
Rationale for funding through a conditional grant
The rationale for funding through a conditional grant is to focus on specific outcomes envisaged in national policy.
Past performance
This conditional grant was introduced in the Supplementary Budget for 2000/01 and was tabled in Parliament on 14 June 2000. A total amount of R31,295 million was granted for education for 2000/01, of which R26,930 million is a conditional grant to provincial education departments and R4,365 million is an earmarked allocation for the Department of Education. The HIV/AIDS programme is a three-year programme, which therefore commenced in the 2000/01 financial year.
The following guiding principles have been used during the 2000/01 financial year for the development of business plans:
The areas of the highest prevalence;
Priority provinces identified by Cabinet, namely Eastern Cape, KwaZulu-Natal, Northern Province and North West Province;
Ratios and portions in terms of numbers of schools and learners per province;
Learners most vulnerable or at risk [Grades 1 to 9] but not excluding learners in the further and higher education and training phases;
Urban renewal and rural development strategies;
District development plans of the Department of Education;
Poverty alleviation programme;
Integrated nutrition programme;
Social upliftment programme; and
Involvement of the business sector where possible.
Under-expenditure of current financial year
The main reason for the low spending in the 2000/01 financial year is the fact that the transfer of these funds was only gazetted on 28 August 2000 and therefore this project could only commence late in 2000. However, it is expected that spending will pick up substantially during 2001. During the 2000/01 financial year, project managers and financial administrative officers have been appointed in the provinces to manage the project. The printing of the learning materials has been done and the materials are in the process of being distributed to the provinces.
[Please see Annexure B for amounts allocated vs amounts spent per province during the 2000/01 financial year.]
Transfer of funds to provinces
During the 2000/01 financial year, the Department of Education transferred funds to provincial education departments in two equal instalments during September 2000 and November 2000.
Projected life of the grant
On-going and subject to annual review.
Payment schedule
The Department of Education will transfer funds to the provinces in two equal instalments in June and October 2001.
Capacity and preparedness of the transferring department
The Chief Directorate: School Education in the Department will manage the programme, establish monitoring systems and monitor effectiveness, efficiency and impact. Project managers and financial administrative officers have been appointed in the provinces to manage this project in the provinces.
Action plans for 2001/02
Primary schools
Implementation of the Life Skills and HIV/AIDS education programme in 40% (8 400) of primary schools. 25 200 Teachers will be trained.
Hosting 2 520 information sharing and motivational workshops.
112 Teachers trained as counselors.
Continuation of the programmes in schools targeted in year 1 (4 200 schools)
Duplication and distribution of support video material.
Reproducing leaflets
Planning and motivational workshop for master trainers
Secondary schools
1 day meeting for master trainers - 60 people per province
Training of teachers from 40% of the secondary schools - 254 workshops
Monitoring and support visits per school - 3 visits and 1 parent evening - 353 schools per province - 3 173 schools
Motivational workshops - 2 people per school - 353 schools per province - 3173 schools
Peer education workshops - 6 new schools per province - 1 follow-up visit - 54 schools - sustaining of year 1 schools
Grade 8 and 9 teacher manual and learners guide - 40% of learners - 760 739 learners - two teachers per school = 6346 teachers
Concluding remarks
It is the vision of the Department of Education to ensure that all the people of South Africa have equal access to lifelong education and training opportunities which will contribute towards improving their quality of life and building a peaceful, prosperous and democratic society. The conditional grants enable the Department to work together with provincial education departments to address the strategic policy and implementation priorities in the system. However, the experience gained over the past three years on the mechanism and implementation of conditional grants has benefited all spheres of education. The lack of capacity in most provincial education departments was highlighted and verified by the under-expenditure on conditional grants in these departments. The collaboration between the Department and provinces has contributed to sharing of knowledge and experience of successes and failures. The duplication of certain services was identified and the concept of sharing resources and skills and networking for effective utilisation of scarce resources will ultimately result in economical implementation of projects. International and local donors have also committed further funds to further education goals in line with the priorities identified by the Department.
I am confident that the role of conditional grants will continue to enhance the spirit of Tirisano "working together to build an education and training system for the 21st Century".