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NORTHERN CAPE EDUCATION DEPARTMENT

PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL

EXPENDITURE

[3rd Quarter Provincial Budget Report]

6 February 2008

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CONTEXT

The Department manages four conditional grants, namely the National School Nutrition Programme (NSNP), HIV and Aids (Life Skills), Infrastructure and the Further Education and Training (FET) grant.

Collectively these grants articulate with programmes aimed at poverty alleviation, job creation and the provision of quality education.

This is also in line with the NCED’s Vision to transform the education system to reflect and advance the interests and aspirations of all South Africans on an equitable basis; as well as our Mission to develop and maintain a high quality and efficient education system in the Northern Cape.

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1. DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL

EXPENDITURE

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DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE (2004/05 – 2006/07)

CONDITIONAL GRANT

 AUDITED AUDITED AUDITED

 2004/2005 2005/2006 2006/2007

  Allocation Exp % Exp Allocation Exp % Exp Allocation Exp % Exp

FET RECAP - - - - -   10,000 10,000 100

FOOD NUTRITION 22,469 21,439 95 31,033 28,770 93 31,909 29,284 92

INFRASTRUCTURE 33,183 32,554 98 54,894 53,973 98 27,812 27,812 100

HIV/AIDS 2,186 2,186 100 2,318 2,028 87 2,747 2,279 83

TOTAL 57,838 56,179 97 88,245 84,771 96 72,468 69,375 96

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CONDITIONAL GRANT

 

1st Quarter (April – June 2007)

2nd Quarter (Jul. – Sep. 2007)

3rd Quarter (Oct. – Dec. 2007)

  Allocation Transfer Exp Allocation Transfer Exp Allocation Transfer Exp

FET RECAP 8,000 4,000 4,075 8,000 0 0 8,000 0 0

FOOD NUTRITION 34,507 8,627 7,233 34,507 8,627 12,033 37,132 8,000 8,715

INFRASTRUCTURE 48,098 12,024 16,366 48,098 12,024 15,470 48,098 0 9,828

HIV/AIDS 3,454 864 618 3,454 864 761 3,923 8,000 1,633

TOTAL 94,059 25,515 28,292 94,059 21,515 28,264 97153 16,000 20,176

DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE (1st; 2nd & 3rd Quarter 2007/08)

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EXPENDITURE TRENDS

Spending on the NSNP Conditional Grant for the third quarter of 2007/08 improved to 75,3% of available conditional grant funds compared to the second quarter 56%.

Spending on the HIV and Aids (Life Skills) grant for the third quarter in 2007/08 increased from 40% in the second quarter to 78% of available conditional grant funds.

Spending on the Infrastructure grant for third quarter in 2007/08 improved to 87% in the third quarter compared to the 40% expenditure in the second quarter.

Spending on the FET Recapitalisation Grant for third quarter of 2007/08 increased from 46% in the second quarter to 71% of available conditional grant funds.

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2. ASSESSMENT OF 2007/2008 FINANCIAL YEAR ALLOCATIONS;

UNDER/OVERSPENDING & CAPACITY CONSTRAINTS

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2007/08 CG BUDGET

PROGRAMME BUDGET

R’000

Food Nutrition 37,132

Life Skills/HIV & AIDS 3,923

FET 8,000

Infrastructure 48,098

TOTAL 97,152

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FOOD NUTRITION

Allocation R37,132,000 Expenditure R27,981,000 Variance R 9,151,000 % Expenditure 75,3%

No under- or over-expenditure experienced at the end of the 3rd Quarter, and no over-expenditure is envisaged for the end of the 2007/08 financial year.

Infrastructural backlogs in Kgalagadi is still hampering the smooth implementation of the school feeding programme (as reported in the last report).

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FOOD NUTRITION: Programme Performance No of learners fed = 127 181 in Grade R - 7 No of schools = 319, quintile 1 - 5 No of feeding days = 174 days per annum

(additional funding for 18 days from Treasury) No of feeding days for April - June 2006 = 49 days Rate per learner per day for food = R1.00 Rate per learner per day for admin. = R0,15 Rate per learner per day for admin. in farm and

schools with enrolment -200 learners = R0,25 313 SMME’s enlisted as service providers

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LIFE SKILLS/HIV & AIDS

Allocation R 3,922,000 Expenditure R3,042,000

Variance R 879,329% Expenditure 78% * No under- or over-expenditure experienced at

the end of the 3rd Quarter, and no over-expenditure is envisaged for the end of the 2007/08 financial year.

There are no capacity constraints that impacted negatively on implementation.

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LIFE SKILLS/HIV & AIDS: Programme Performance

Life skills training for educators = 78Care & support = 136 educatorsPeer education = 100 learnersMonitoring of schools = 19 schoolsAdvocacy 4405 parents, learners and

educators reached

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FURTHER EDUCATION AND TRAINING

Allocation R8,000,000 Expenditure R5,676,528 Variance R2,323,472 % Expenditure 71% This programme is not expecting any under- or

overspending by the end of the financial year. Although no capacity constraints are reported,

internet / ICT connectivity in the Rural College is a major challenge because of the absence of ASDL broadband internet lines in some rural areas.

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FET: Programme Performance

71 lecturers trained for delivery of National Certificate Vocational NC(V) Level 3 programme

5 Rural Campuses connected on the Virtual Private Network VPN

4 classrooms built at Moremogolo Campus 2 workshops furnished with modernized equipments at Urban

College Equipments for the Engineering workshops in Kathu Campus

ordered and delivered Conversion of 2 classrooms into hospitality and catering is 90%

complete at Namaqua Campus Equipment purchased for 1 workshop in Upington Campus National Certificate (Vocational) NC(V) Level 3 textbooks

ordered at Rural College and 150 delivered at Urban College

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INFRASTRUCTURE

Allocation R48,098,000 Expenditure R41,664,000 Variance R 6,434,000 % Expenditure 86,6% This programme is also not expecting any

under- or overspending by the end of the financial year.

The challenge of some contractors not being able to complete projects on time is closely monitored through the IDIP model.

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INFRASTRUCTURE: Programme Performance

Newtown Primary Phase 1 completedPhase 1 of Peme district office completedRefurbished water supply reticulation at 40

schoolsInstallation mobile classrooms at 12

schools

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1st Quarter

2nd Quarter 3rd Quarter

Total to 31 December

2007R'000 R'000 R'000 R'000

Maintenance 3,900 2,300 1,800 8,000

Conversions 50 2,150 1,320 3,520

School Flagship Rehabilitation

780 820 740 2,340

Laboratories (Science/Biology)

300 200 500

Sanitation 2,100 1,400 3,500

Water 700 500 1,200

Ablution Blocks 500 200 100 800

Administration Blocks

500 500

Classrooms 2,100 400 400 2,900

Mobile Classrooms

900 1,900 1,800 4,600

Schools 680 320 100 1,100

Computer Centres

350 20 370

Computer Classrooms

120 120

Fencing/Security 300 500 400 1,200

Repairs and Renovations

6,800 3,286 1,109 11,195

Totals 16,510 15,326 10,009 41,845

Estimated Categorisation of NCED Infrastructure Expenditure up to 31 December 2007

Programme

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3. BRIEF ASSESSMENT OF NCED MONITORING CAPACITY THUS FAR

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MONITORING – Food Nutrition

Monitoring plan outlined in Annual Performance Plan strictly adhered to.

A common monitoring tool is enforced and implemented by all districts.

Sample of 40% set out in Annual Performance Plan per quarter per district exceeded.

Mandatory quarterly meetings are held with all districts to monitor and scrutinize progress.

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MONITORING – Life Skills

Monitoring tool is utilized for schools to monitor the implementation of the Life Skills programme.

Monitoring is done against the approved plan and is continuous.

Bi-Monthly meetings are held with districts to monitor progress and address challenges.

Mandatory monthly, quarterly and annual reports are submitted by districts.

19 Schools were monitored during the 3rd quarter.

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MONITORING - FET

Monitoring done against the approved college operational plans.

Conduct site visits on a monthly and quarterly basis or when need arises.

Regular support to colleges that experience challenges in any of the areas of implementation.

Submission of monthly and quarterly reports by the colleges.

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MONITORING - Infrastructure

Monitoring capacity has improved in 07/08 by the appointment of additional staff and restructuring roles in infrastructure delivery.

The programme reporting system and the changes to BAS have not been implemented as planned. The reporting & monitoring systems need to be improved.

Further improvements will be made when the deputy director has been appointed, and the unit upgraded to a directorate.

Additional system to assist planning and reporting is being developed, with pilot implementation expected in the 1st quarter of 08/09.

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4. MONTHLY REPORTS FROM RECEIVING DEPARTMENTS OR

MUNICIPALITIES & OTHER INSTITUTIONAL ARRANGEMENTS

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Certified Business Plans

 

•Certified business plans for 2007/08 financial year submitted to National Treasury as per Division of Revenue Act for Food Nutrition; Infrastructure; Life Skills and FET

•NCED busy finalising Business Plans for 2008/09 financial year

•Business Plans, Cash Flow Projections and Expenditure Plans forwarded to the Select Committee on Finance

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Service Level Agreements Service Level Agreements in respect of the PSNP

and Infrastructure programmes have been signed

Programme Partner Relationship Date Signed

Food Nutrition

Health

Local Govt.

Agriculture

Environmental Affairs

De-worming and Vitamin A supplements

Food testing

Food gardens

Greening of schools

2004 – renew annually

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Service Level Agreements (cont.)

Programme Partner Relationship Date Signed

Infrastructure Public Works

Act as implementation agent re.:-Procurement of contractors-Quality assessment-Progress payments-Project design-Project management

2005 – renewed annually

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CONCLUDING REMARKS

The NCED’s overall expenditure on all 4 Conditional Grants and Capital Expenditure is relatively healthy at average 77% at the end of the 3rd Quarter (with only 3 months to the end of the financial year).

No transfers are made to other departments or municipalities, whilst Food Nutrition makes transfers to schools and FET Recapitalisation to the Rural and the Urban FET Colleges.

With the tight monitoring plans in place, very limited problems are experienced in terms of receiving reports from the above institutions.

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Thank You