Department
of Education
Presentation of 1st
Quarter Outcomes
of the Gauteng Department
of Education
in respect of the
Conditional Grants
April
– June 2006/07
Department
of Education
Presentation of 1st
Quarter Outcomes
of the Gauteng Department
of Education
in respect of the
Conditional Grants
April
– June 2006/07
The
2006/07 Financial Year is a difficult year as a result of continued growth of
the education sector due to increased learner enrolments arising from migration
and as a result of reduced drop-out rates in secondary schools. Over the last
few years the gross enrolment ratio in primary have reached universal access
levels and in secondary schools are nearing universal access levels.
This is
creating pressure on the system to respond faster with learning spaces
especially in the secondary sector of ordinary schooling and to expend and
improve efficiencies in providing a sustainable school nutrition programmes.
While in
|
Programme |
2005/06 Actual |
2006/7 Budget |
Actual Spending April -June 2006 |
% Spent June 2006 |
|
680,127 |
798,580 |
161,966 |
20.3% |
|
|
8,253,401 |
9, 653,621 |
1,876,742 |
19.4% |
|
|
159,801 |
177,102 |
87,994 |
49.7% |
|
|
590,053 |
638,731 |
195,691 |
30.6% |
|
|
327,132 |
484,695 |
124,427 |
25.7% |
|
|
157,845 |
147,474 |
37,031 |
25.1% |
|
|
41,507 |
79,000 |
10,709 |
13.6% |
|
|
195,818 |
302,765 |
22,384 |
7.4% |
|
|
- |
- |
430 |
100.0% |
|
|
Total
expenditure |
10,405,684 |
12,281,967 |
2, 517, 374 |
20.5% |
· Spending is on track across all programmes.
· The low expenditure in Early Childhood development is as a result of growth plans for 2007 academic year.
· The low expenditure in Auxiliary Services is as a result of GautengOnline rollout being planned for the the third quarter of the year and the senior examinations in the third quarter.
|
Economic classification |
2005/6 Actual |
2006/7 Budget |
Actual Spending April– June 2006 |
% Spent June 2006 |
|
Current
payments |
9,165,887 |
10,679,832 |
2,236,294 |
20.5% |
|
Compensation
of employees |
8,270,713 |
9,579,954 |
2,121,722 |
22.1% |
|
Goods
and services |
894,981 |
1,099,878 |
114,339 |
10.4% |
|
other |
183 |
|
233 |
100.0% |
|
Total
transfers and subsidies |
719,236 |
876,456 |
226,209 |
25.8% |
|
Provinces
and municipalities |
28,422 |
- |
6,905 |
100.0% |
|
Departmental
agencies |
65 |
|
40 |
|
|
Non-profit
institutions |
607,092 |
854,144 |
213,999 |
25.1% |
|
Households
|
21,350 |
22,312 |
5,265 |
23.6% |
|
Payments
for capital assets |
520,562 |
725,679 |
54,871 |
7.6% |
|
Buildings
and other fixed structures |
370,069 |
606,679 |
47,036 |
7.8% |
|
Machinery
and equipment |
137,168 |
119,000 |
7,835 |
6.6% |
|
other |
13,325 |
- |
|
|
|
Total
expenditure |
10,405,684 |
12,281,967 |
2,517,374 |
20.5% |
· Personnel expenditure is lower than expected due to the implementation of ELRC resolution in the third quarter of the year which will be retrospective to 2005/6 Financial year.
· Transfers are slightly low due to late transfers to schools as a result of Section 21 Functions being reviewed.
· The low capital expenditure is as a result of the shortage of CIDB compliant companies. The department has also not disbursed further funds to the IDT due to the late start of projects in the 2005/06 financial year due shortage of CIDB compliant companies.
|
Actual Budget 2005/06 |
2006/07 Budget |
Actual Spending – June 2006 |
% Spent April-June 2006 |
|
|
Recapitalisation of FET |
- |
106,000 |
53,000 |
50% |
|
HIV and AIDS |
19 348 |
21,102 |
1,825 |
9% |
|
|
91 580 |
99,921 |
13,191 |
13% |
|
Total Conditional Grants |
110, 928 |
227,023 |
68,016 |
30% |
·
Expenditure is on track for most conditional grants.
·
The low expenditure in HIV/AIDS Grant is a result of training being
schedule in the third and fourth quarters of the financial year due to the NCS
training being prioritised.
·
The Recapitalisation Grant expenditure is high as a result of the first
trunch of 50% of the allocation to a college being transferred to colleges. The
utilisation of the said funds by collges are at lower level due to slow
start-up and will increase rapidly as the projects go into full delivery mode.
The
department has signified major efforts in delivering HIV and AIDS interventions
over the first quarter of 2006/07.
|
Key phase/Performance Area |
Allocation R`000 |
% of allocation R`000 |
Expenditure R’000 |
Balance R`000 |
% Spent |
|
Advocacy |
1,550 |
5% |
56 |
1,494 |
3.6% |
|
Peer Educators |
5,151 |
15% |
563 |
4,588 |
10.9% |
|
Care & Support |
2,620 |
15% |
39 |
2,581 |
1.5% |
|
LTSM |
2,410 |
14% |
488 |
1,922 |
20.2% |
|
Monitoring & Evaluation |
1,400 |
15% |
49 |
1,351 |
3.5% |
|
Management & Administration |
1,781 |
6% |
315 |
1,466 |
17.7% |
|
Educator Training |
5,100 |
30% |
315 |
4,785 |
6.2% |
|
Total |
20,012 |
100% |
1,825 |
18,187 |
9% |
Challenges and
Concerns experienced during the first quarter
During the first quarter, activities had to be deferred
due to training priorities. There were also some delays experienced in relation
to the finalisation of requisitions at Gauteng Shared Service Centre. The Basic
Accounting System posed serious problems in light of expenditure reports as the
systems does not present the true reflection of actual expenditure.
Interventions to
keep spending on Track
The
following point reflects the Corrective actions and measures undertaken by the
Department to ensure that spending will be on track for the financial year:
Ø
Requisitions have been prepared headed for the filling of
vacant posts.
Ø
Strengthened the evaluation and monitoring tool to track
expenditure
Ø
Meetings are held to have common approach with regard to
implementation of the programmes for the year as well as budget utilisation
The Department has been allocated a budget
of R 99 921 in response to the School Nutrition Programme for the 2006/07
financial year. As reflected in the IYM
report, only 13 % of the appropriated budget was been spent during the first
quarter of the financial year. The nutrition budget spent over the quarter
amounted to R93 256,800 and this total measures up to 14% real spending.
With the allocated budget, the Department is
providing School Nutrition Programme to 1137 schools catering 396 944 learners
in the National School Nutrition Programme at identified schools across the
province. 97% of the
beneficiaries have been reached out during the first quarter.
|
Key
phase / performance area |
Allocation |
%
of allocation |
Expenditure |
Balance |
% Spent |
Total
|
99,921,000
|
100% |
13,190,591 |
86,730,408 |
13% |
Challenges and
Concerns experienced during the first quarter:
Schools in the province do not submit
applications timeously and this causes delays in the dispensation process. The procurement process is long and
protracted resulting in hindrances in sourcing goods and services required. The Basic Accounting System presents some
problems particularly that it seldom mirrors the accurate expenditure due to
accumulations.
The Department has arranged some corrective
accomplishment to these challenges impeding on delivery. District coordinators developed management
plans for submission of application by schools to speed up the processes. Additional interns will be recruited to
alleviate capacity problems.
Interventions to
keep spending on Track
In
ensuring that the budget will be efficiently spent, the Department has planned
to provide infrastructure and food production programmes at schools through
competitions and incentives in the next quarter. Promotional materials supporting healthy
lifestyles will also be developed.
The allocation for FET Recapitalisation
Grant in the 2006/07 financial year for the Department amounts to R106
million. R56 million was transferred to
the eight colleges. During the first quarter
of the financial year a total of R13 million of the R56 million was spent by
the colleges to implement the recapitalisation plans.
Percentage expenditure reflects that the
real budget spent over the first quarter amounts to 13 % of the total
allocation of R106 million over the financial year but represents 25% of the
amount transferred.
FET Recapitalisation expenditure over the
first quarter April – June 2006/07:
|
|
Total Allocation |
Total Expenditure |
Balance |
% Spent |
|
EEC |
R 13,000,000.00 |
R 809,388.51 |
R 12,190,611.49 |
6.2% |
|
WESTCOL |
R 3,000,000.00 |
R 856,063.95 |
R 2,143,936.05 |
28.5% |
|
TSC |
R 20,000,000.00 |
R 6,109,757.00 |
R 13,890,243.00 |
30.5% |
|
SWC |
R 12,000,000.00 |
R 183,602.36 |
R 11,816,397.64 |
1.5% |
|
SED |
R 11,000,000.00 |
R 47,346.10 |
R 10,952,653.90 |
0.4% |
|
CJC |
R 15,000,000.00 |
R 1,335,670.00 |
R 13,664,330.00 |
8.9% |
|
EWC |
R 18,000,000.00 |
R 3,172,907.45 |
R 14,827,092.55 |
17.6% |
|
TNC |
R 14,000,000.00 |
R 809,388.51 |
R 13,190,611.49 |
5.8% |
|
TOTAL |
R106,000,000 |
R13,324,124 |
R 92,675,876.12 |
13% |
Challenges and
Concerns experienced during the first quarter:
The Following mirrors the challenges experienced by the Department
in the Recapitalisation process for the 8 FET Colleges
Ø
The Department experienced problems in speeding up of the
procurement processes
Ø
Indication of state of expenditure (the committed funds) as
per summary template (offered by DoE).
Ø
Constant support in especially on finance from GDE
Ø
Marketing of the new programmes when the cost per programme
is not known.
Ø
The preparation to train the educators for 2007
implementation.
Ø
Step up the frequency of monitoring per college especially
those which are behind in their spending and implementation.
Ø
Re-adjustment of operational plans and budget allocations in
order to meet objectives. And submissions of deviations promptly for GDE HOD
and DoE approval.
Ø
Meeting skills demands of projects with existing staff and
skills levels.
Ø
Developing LTSM to meet demands of new programmes.
Interventions to
keep spending on Track
The Department has provided
support and monitored the 8 FET institutions which were expected to prepare
audited income and expenditure statements by the middle of the first quarter of
2006/07
There has been continued support
for Colleges requiring assistance in terms of challenges identified especially
with the budgets. Thorough analysis of
College monthly reports has been carried out to ensure maximum production. The Department has also embarked on follow up
visits to verify progress as indicated in the monthly reports. Teams/committees
at all colleges have been Strengthened with motivation and training.
Meetings have been held with National
Department of Education, Provincial Education Department’s and Colleges - on
preparation for the Procurement of LTSM as well as Programme costing. All
personnel involved in bidding /tender are trained in Supply Chain Management.
By now 37 college staff members (from 8 FET Colleges) and 8 Departmental
officials have been taken through training by the Gauteng Shares Services
Centre in August 2006. Compliance with legislature and GPG processes was
inculcated into the training. GDE had to
secure the services of GSSC for college onsite procurement and other financial
expertise support. The summary budget template on the monthly report to had to
be reworked to reflect the committed funds and paid funds.
The
CAPEX budget prioritised the building of new schools, in the belief that the
additional funding would allow increase delivery of infrastructure which is
urgently needed to address chronic backlogs in the provision of school
buildings. There will have to be an arbitrary identification of projects to
track the expenditure of the allocated conditional grant funding should this be
required. The total allocated funding, excluding
This
decision has proved to be ineffective, as the building process is not speeded
up simply by the provision of additional funding. Projects in process where
left unfunded and monies were not allocated for maintenance.
CAPEX expenditure over the first quarter
April – June 2006/07:
|
Project
Title |
Total Allocation |
Expenditure |
|
New Construction started prior 2006 |
|
8,460,318 |
|
New Schools started 2006 |
|
12,023,430 |
|
|
|
23,505,476 |
|
Mobile Classrooms for increased enrolments |
|
804,031 |
|
Additions and Renovations |
|
9,919,000 |
|
DoE Additions and Renovations |
|
6,468,710 |
|
DoE consultant |
|
70,926 |
|
Unplanned Maintenance |
|
12,089,301 |
|
Rehabilitation and Maintenance |
|
46,408 |
|
Dolomite Risk Management |
|
280,923 |
|
Consultants fees |
|
2,385,261 |
|
GRAND
TOTAL |
|
76,053,785 |
Challenges and concerns experienced during the first quarter
The
contracting of services for 16 schools have been completed. These matters were
finalised during June, and a normal expenditure pattern is now being realized.
Planning processes are in place, and all relevant information for the
identified new schools to be built in 2007/8 has to be available and finalised
by mid November 2006, to avoid repetition of the current situation.
Interventions to
keep spending on Track
The Department
has ensured that all spending patterns are on track for the quarter. The Department prioritised the projects over
the first quarter to ensure that the budget would be sufficient and is associated
to the new market related costs Projects have been revised to urbanisation and
migration into the province and the department is experiencing tremendous
learner growth.
The
Department has established a Directorate for Nutrition in 2003 to deliver the
Nutrition scheme. The Directorate has a monitoring and evaluation unit. The
Department is directly responsible for monitoring and evaluation of the
programme. Expenditure on the programme
is precisely on track and the entire budget for the financial year will be
spent accordingly. The Department has contracted 94 interns to serve on the
programme. Monitoring has been
strengthened for the programme with the appointment of these interns at school
level to ensure service delivery improvement is at upper limit.
The HIV/AIDS grant is directly monitored by
the Department’s Inclusion and Special Programmes office as well as the
Provincial Coordinating Committee for HIV/AIDS under the Office of the Premier.
The Provincial Coordinating Committee is responsible for monitoring and
evaluating the impact of HIV/AIDS programme in the province.
All resource allocation efforts are monitored, evaluated
and reported monthly and quarterly through the financial reports as well as the
quarterly progress reports with an aim of improving implementation and
efficiency.
In developing and supporting institutions,
the Institutional Development and Support Officials (IDSOs) will focus on two
broad areas, namely, functionality which is about factors that are controllable
and internal to the institutions and other variances that are uncontrollable,
being external to the institutions and have an impact on their effective
running.
Two broad areas alluded to above are briefly
expounded upon below:
3.3.1
FUNCTIONALITY
The following aspects are key locale for
measuring Institutions Recapitalisation effectiveness:
The 8 FET colleges were notified
about the monitoring visits by the Department in July 2006. The monitoring took
place in July and August 2006. Two teams from the Department executed
monitoring and support. The Department
has also Identified and provided support on new challenges as they arise.
Distinguished roles and
activities of the Departmental monitoring teams:
Ø
monitored the progress and effect of the
Recapitalisation operations
Ø monitored the
preparations of the colleges in relation to programme delivery
o
(State of readiness)
2. The Support Systems (SS)
Ø
Reinforced the existence and effective working of the
College Recapitalisation committees.
Ø
Promoted the commitment and review of the goals and
objectives of the Recapitalisation
Process.
The PME team applied a tool to
conduct their monitoring and met with the members of the Recapitalisation
committee in finalizing monitoring for the quarter.
The SS team met with the
Recapitalisation Committee members in each of the 8 Colleges and used the
selected agenda items for information and review.
The
purpose of a monitoring tool is to assist in getting comparable measurements
between different institutions. It also provides information on learner and
institutional performance and provides benchmarks against which we can measure
progress.
The
Department has a Chief Directorate for facilities and has a dedicated
monitoring and evaluation Unit as well as a Compliance sub directorate.
Provincially all CAPEX programmes are also monitored by the provincial Public
Works department. Although each of the projects
within the department are specified,
The task teams enables the monitoring of projects to be efficient and
contributes to the broadening of accountability as well as ensuring effective
implementation co-ordination.
The Department has always reviews Capital
Expenditure Procurement. The intended impact of the monitoring and evaluation
processes is to leverage Capex to optimise the impact on service delivery.
The
department has successfully concluded the service level agreements with the
Independent Development Trust to deliver schools within a nine month period for
2006/07.
The
department has concluded a memorandum of understanding with the provincial
Department of Public works on the migration of the education department’s Works
Section to the Department of Public Works during 2006/07 as a result of
provincial executive council decisions. A service level agreement is being
discussed and should be concluded by July 2006 for implementation in 2007/08.
The department is confident that with the
changes in approach to delivery in the areas of the conditional grants and
Capital expenditure we will deliver in much more effective way wit improved
efficiencies and turnaround time. Management Systems are in place to make
certain that implementation is carried at the highest intensity in relation to
the conditional grants.