a report on the 1 st quarter outcomes in respect of conditional grants april to june 2008/09

A report on the 1st Quarter Outcomes in respect of Conditional Grants

April to June 2008/09

IntroductionIntroduction

• The Gauteng Department of Education (GDE) currently administers four Conditional Grants for the fiscal year 2008/09 which amounts to R1,070,198 billion.

• These grants constitutes 6.4 percent of the total GDE budget of R16,629,084 billion.

• The goal of GDE is to achieve systemic improvements and to maintain sustainable implementation of Conditional Grants with a positive impact in the areas of the National School Nutrition Programme, HIV/AIDS Life Skills Education, FET Recapitalisation and Infrastructure (CAPEX).

• In order to achieve this goal and to fulfil its obligation the GDE fosters a learning environment by means of reflecting and reporting programme progress and achievements through quarterly reports.

• This report presents a detailed in-depth analysis of the Conditional Grant revenue for the financial year 2008/09 and expenditure for the first quarter ending June 2008.

• The compilation of this report relies on data and information provided by the four programme managers for Conditional Grants, BAS, the In-year Monitoring Tool (IYM) and other relevant budget documentation.

Budget and Expenditure Trends Budget and Expenditure Trends AnalysisAnalysis

Expenditure by Programme:

Programme

2008/09 MTEFBudget Allocation

Actual Spending from 01 April to 30 June 08

% Spent of Allocated Budget

Balance/AvailableFunds

Balance/AvailableFunds %

Administration 1,084,460 308,274 28.4 776,186 71.6Public Ordinary School Education 13,185,378 2,731,847 20.7 10,453,531 79.3Independent School Education 256,461 113,404 44.2 143,057 55.8Public Special School Education 822,411 303,040 36.8 519,371 63.2Further Education and Training 687,182 172,267 25.1 514,915 74.9Adult Basic Education and Training 254,602 47,632 18.7 206,970 81.3Early Childhood Development 214,571 10,051 4.7 204,520 95.3Auxiliary and Associated Services 124,017 4,873 3.9 119,144 96.1Total expenditure 16,629,082 3,691,388 22.2 12,937,694 77.8

• The Dept spent R3,691 billion (22 per cent) of its budget in the 1st quarter from 01 April to 30 June 2008.

Budget and Expenditure Trends Budget and Expenditure Trends Analysis Analysis

Total 2008/09 MTEFBudget Allocation


% Spent of Allocated Budget as at end June 2008



Economic classification

Current payments 14,207,298 3,326,784 23 10,880,514 77

Compensation of employees 12,311,254 2,998,831 24 9,312,423 76

Goods and services 1,896,044 327,953 17 1,568,091 83

External examinations 9,853 - - 9,853 100

Learner support material 623,655 78,269 13 545,386 87

Stationery and printing 331,012 26,780 8 304,232 92

Consultants, contractors and special services164,841 24,780 15 140,061 85

Equipment less than R5000 72,495 6,293 9 66,202 91

Furniture less than R5000 30,606 15,103 49 15,503 51

Operating leases 157,133 24,369 16 132,764 84

Learner transport 73,530 16,451 22 57,079 78

Other Goods and Services 432,918 135,908 31 297,010 69

Current transfers and subsidies 1,785,772 335,646 19 1,450,126 81

Provinces and municipalities 3,660 3,660 100 - -

Non-profit institutions 1,756,826 326,120 19 1,430,706 81

Households 25,286 5,866 23 19,420 77

Capital transfers and subsidies 452 14,171 3,135 (13,719) (3,035)

Provinces and municipalities 53 53 100 - -

Non-profit institutions - 13,719 (13,719)

Households 399 399 100 - -

Total transfers and subsidies 1,786,224 349,817 20 1,436,407 80

Provinces and municipalities 3,713 3,713 100 - -

Non-profit institutions 1,756,826 339,839 19 1,416,987 81

Households 25,685 6,265 24 19,420 76

Payments for capital assets 635,560 14,787 2 620,773 98

Buildings and other fixed structures 607,650 13,707 2 593,943 98

Machinery and equipment 27,910 1,080 4 26,830 96

Total expenditure 16,629,082 3,691,388 22 12,937,694 78


Expenditure by Economic Classification

• Current Payments accounts for the largest portion of expenditure at R3, 326 billion of which “Compensation for Employees”

• Goods and Services also show significant spending amounting to R327,953 million.

• Transfers and Subsidies - at the end of the 1st quarter transfers of R349, 817 million had been made.

• Under Payments for Capital Assets, Building and other – the expenditure amounts to R13, 707 million from April to June 2008.


Expenditure by Conditional Grants

Table 3

Conditional Grants

2008/09 MTEFConditional Grant Allocation





Recapitalisation of FET 167,156,000 17,781,716 10.6 149,374,284 89.4HIV/AIDS 23,886,000 513,000 2.1 23,373,000 97.9National School Nutrition Programme172,111,000 24,799,699 14.4 147,311,301 85.6Infrastructure National 707,045,000 22,338,831 3.2 684,706,169 97Total Conditional Grants 1,070,198,000 65,433,246 6.1 1,004,764,754 93.9


Expenditure of conditional Grants

• The actual expenditure for all Conditional Grants as at 30 June 2008 is R42, 581 million with the bulk of the spending from the National School Nutrition Programme and FET Recapitalisation.

• The HIV and Aids Conditional Grant expenditure is very low in comparison to Nutrition and FET Recapitalisation but 40% has been already committed and spent since the 1st Quarter Report.

HIV and AIDS (Life Skills Education HIV and AIDS (Life Skills Education GrantGrant

Progress to date

Districts successfully conducted their planned activities during the month of June 2008 : – Stress management for educators – Girl learners were engaged on teenage pregnancy , – HIV and AIDS awareness with educators, learners and

NGO`s. – Peer education camps for learners. – Conducted accredited counselling course for educators.– First Aid training and Care and Support Jamboree for

child headed families and needy children.

Table 4HIV and AIDS (Life Skills Education Grant)HIV and AIDS (Life Skills Education Grant)

Key Performance Area


Actual SpendingApril-June 2008




Advocacy 1,194,000 0 0.0% 1,194,000 100Training Education 7,166,000 143,000 2.0% 7,023,000 98Peer Education 3,583,000 370,000 10.3% 3,213,000 90Care and Support 3,583,000 0 0.0% 3,583,000 100LSM 3,344,000 0 0.0% 3,344,000 100Management and Administration1,433,000 0 0.0% 1,433,000 100Monitoring and Evaluation 3,583,000 0 0.0% 3,583,000 100Total Budget 23,886,000 513,000 2.1% 23,373,000 98

• Actual expenditure for HIV/AIDS for the 1st quarter is at R513, 000 thousand which is 2,1 percent of the allocated grant for 2008/09 – June/July activities not included in the above expenditure figures

HIV and AIDS (Life Skills Education Grant)HIV and AIDS (Life Skills Education Grant)

Interventions to keep spending on track• We conducted interviews and recommended

candidates for vacant posts at the districts. – To strengthen capacity at the district level in order to

fast track the procurement processes.

• All the districts have submitted their annual activities reference to their operational plans.

National School Nutrition Programme National School Nutrition Programme GrantGrant

Progress to date

• Learners received food for 14 days in June 2008.

• Learners at 1491 schools were fed.

• R24, 799,699 million has been spent to date.

• Invoices for April 2008 to June 2008 has been paid.

• The tender for the evaluation of the programme has been advertised.

• Expanded to Quintile 3 schools that elected to become No Fee Schools


Challenges and Concerns experienced during the quarter

• If all learners in quintile 3 schools receive food the given allocation will not be sufficient for this financial year.

• Inadequate human resource at District level.

• Monitoring at district level

• Escalation of current food prices.


Interventions/Corrective measures

• District offices to obtain data and information from quintile 3 schools to indicate which schools will run their own feeding programmes. The database will be updated after the office has received correspondence from district offices.

• The lack of monitoring of schools and the none submission of monthly reports by district officials has been reported to the district directors at the BMT meeting.

• Advertisement for vacant posts has been placed.


Table 5

Sub-Programme


Actual SpendingApril-June 2008




Food Suplies 144,971,500 24,336,202 16.8 120,635,298 83Honoraria (Voluntary Workers) 16,500,000 337,054 2.0 16,162,946 98.0DomCons:Gas, General 6,257,600 90,100 1.4 6,167,500 98.6Consultants 2,327,000 0 0 2,327,000 100Equip<R5000:Office (Lease Payments) 50,000 0 0 50,000 100T&S Dom without OP: GG VHCL 540,000 0 0 540,000 100Train & Staff Dev:External 260,000 0 0 260,000 100Stationary 79,940 36,343 45.5 43,597 54.5Equip<R5000:Domestic Equipment 431,500 0 0 431,500 100Advert:Gifts & Promotional Items 412,460 0 0 412,460 100Total Goods and Services 171,830,000 24,799,699 14.4 147,030,301 85.6


Interventions to keep spending on track

• A survey on food production was conducted.

• The advertisement of a tender for the assessment of the programme by an independent consultant.

• The procuring of lockable storage cages for LPG gas cylinders and fire extinguishers.

Further Education and Training College Further Education and Training College Sector Recapitalisation GrantSector Recapitalisation Grant

Budget allocation, Expenditure trends and Balance per activity

Table 6:

Strategic Area


Actual Spending to end of June




Human Resource Development 6,548,000 170,083 3 6,377,917 97Development of Systems and Procedures3,194,000 159,081 5 3,034,919 95

Upgrading alteration, refurbishment andmodernisation of classrooms, laboratories and workshops 51,806,000 2,181,103 4 49,624,897 96Upgrading of college sites 8,355,000 549,209 7 7,805,791 93Buying or building of newclassrooms, laboratories, offices, etc. 43,593,000 11,525,668 26 32,067,332 74Purchase of equipment 37,412,000 2,044,197 5 35,367,803 95Develop/purchase curriculum and programme material 16,248,000 1,152,375 7 15,095,625 93

Total 167,156,000 17,781,716 11 149,374,284 89

Further Education and Training College Further Education and Training College Sector Recapitalisation GrantSector Recapitalisation Grant

Budget allocation, Expenditure trends and Balance per activity continuous…

• The FET Recapitalisation Conditional Grant consist of seven sub-programmes or strategic areas which conforms to the strategic objectives and priorities of GDE.

• The FET Recap programme has managed to spend R17,781

million of its allocation for the 1st quarter of the financial year 2008/09 which is 10,6 per cent of the total budget.

• “Buying or building of new classrooms”, accounts for the bulk of the expenditure 64,8 per cent of the entire expenditure for the 1st quarter.

Infrastructure Grant CAPEXInfrastructure Grant CAPEXProgress to date

New schools prior to 2006• Twenty-three new schools were completed, of which nineteen were taken over for

occupation in previous financial years.

• The nineteen projects referred to are still on the building programme for finalization of minor outstanding/remedial works and settlement of final accounts.

• Four schools are still under construction, namely JB Marks, Katlehong South, Pretoria Inner City and Isipho Sethu. With the exception of Katlehong South and Pretoria Inner City, all projects are planned for final completion during the 2008/09 financial year.

• The buildings of JB Marks and Isipho Sethu should be ready for occupation during the next quarter (July 2008), whereas Katlehong South and Pretoria Inner City are expected to be ready for occupation towards the end of 2010 and 2008 respectively.

Infrastructure Grant CAPEXInfrastructure Grant CAPEX

Progress to date continuous…

New alternative schools

• Two of the original eight alternative school projects were completed during the previous financial year.

• The six projects appearing on the 2008/09 building programme have also reached the stage of practical completion (and the buildings have been taken over for occupation) but minor remedial / outstanding work need to be done and final accounts settled.

• It is anticipated that all six projects will be finalized shortly.

Infrastructure Grant CAPEXInfrastructure Grant CAPEXProgress to date continuous…

Additions to schools• 17 projects are in retention / final account stage. • Major additions to Vukosi and Mandisa Schiceka schools,

activated by Public works during 2007, will only be completed towards the end of 2009.

• The remaining 4 projects still under construction are expected to be completed before the end of 2008.

Upgrading of schools • Thirty-one projects, of which 21 have been completed

except for retention items/final accounts• It is anticipated that all these projects will be finally

completed before the end of 2008/09.

Infrastructure Grant CAPEXInfrastructure Grant CAPEXProgress to date continuous…

Fencing • Thirteen fencing projects, of which 5 have been completed• Eight projects are currently under construction • List of new projects to a total value of R20m are currently

being compiled for activation during the next quarter.

Rehabilitation of schools• This sub-programme comprises of 80 projects ranging

between ±R100 000,00 to R400 000,00 per project. • With the exception of one project, the work is being carried

out by GDE’s Works Inspectorate. • Most projects should be completed towards the end of

2008.


Progress to date continuous…

Ex North West Rehabilitation

• Thirty-nine ex North West schools in a bad state of repair were handed over to Public Works for repairs and renovations.

• All schools have already been evaluated and tenders are currently being adjudicated/awarded.

• All projects are programmed for completion before the end 2009. Numerous other ex North West as well as Mpumalanga schools are in a similar state of disrepair and will be taken into consideration when the Infrastructure Plan is updated.

• Some of the last mentioned projects may have to be activated without delay for health and safety reasons.

• A ring-fenced amount of ± R27m for the eradication of inappropriate structures forms part of the R65 allocation for this sub-programme.

Infrastructure Grant CAPEXInfrastructure Grant CAPEXProgress to date continuous…Challenges and Concerns experienced during the quarter

• An ongoing problem since June 2007 when the migration of functions / projects to Public Works was finalized, has been the inaccurate and late monthly progress and cash-flow reports received from Public Works.

– Inaccurate reports make it impossible to predict expenditure over the MTEF– Caused embarrassment as monthly IRM reports have been submitted late to

Provincial Treasury.– The matter has been taken up with Public Works at various client review

meetings as well as in writing. • A template to improve the accuracy of project specific progress and cash-

flow reporting has been developed in collaboration with the IDIP team and Public Works and will be introduced during the next quarter.

– The idea is to test the template first (and to revise it if necessary) before it is made applicable to all GDE projects, including projects being dealt with by other implementing agents such as the IDT.

• The introduction of this template will enhance the accuracy of reporting and ensure proper progress, budget and cash-flow control.


Summary of Actual Expenditure – New Construction

Programme

New Construction 2008/09

2008/09 Infrastructure

Grant 2009/10 2010/11New schools prior to 2006 707,045,000 4,488,377 4,488,377 41,082,531 41,082,531 32,236,386 17,684,668New schools 2006 80,394,858 299,703,221 190,375,1598 Alternative schools 1,090,759 1,090,759 6,815,824 6,815,824New 2008 schools 98,171 112,198,171 582,000,000 413,466,423New 2009/10 schools 0 0New 2011 schools 0 0Acquisition of land 2,285,619 33,895,502Specialist Facilities 0 3,460,000Sub Total - New Construction 88,357,784 497,155,249 804,611,545 431,151,091

Projected ExpenditureFunded byInfrastructure

Grant

Actual BASExpenditure as at June 08Budget

Infrastructure Grant CAPEXInfrastructure Grant CAPEXSummary of Actual Expenditure - Rehabilitation

2008/09

2008/09 Infrastructu

reGrant 2009/10 2010/11

REHABILITATION/UPGRADINGAdditions 5,708,944 5,708,944 38,852,794 38,852,794 18,554,045 5,749,328New mobile classrooms 1,772,752 13,502,450Upgrade office accommodation 11,642 10,249,642 67,272,000 35,000,000Upgrade schools 1,774,450 1,774,450 11,505,408 11,505,408Civil works - Fencing 1,597,076 1,597,076 23,589,058 23,589,058Rehabilitation 8,547,857 8,547,857 20,928,009 20,928,009Replace temporary classrooms 0 5,000,000Rehabilitation 2008 0 94,827,568 2,953,108Special Education full service 0 2,575,000Rehabilitation 2009 0 9,900,000Dolomite Risk Management 0 1,577,438Sanitation 0 12,750,000Ex NW Inappropriate Accommodation 0 71,139,420 71,139,420 2,373,120Sub Total - Rehabilitation/Upgrade 19,412,721 316,396,787 91,152,273 40,749,328

Budget

Actual BASExpenditur

e as at June

08

Funded byInfrastructu

reGrant

Projected Expenditure

Infrastructure Grant CAPEXInfrastructure Grant CAPEXSummary of Actual Expenditure

2008/09

2008/09 Infrastructure

Grant 2009/10 2010/11Organisational Support 989,893 3,550,151MaintenanceMaintenance - call centre allow 7,260,733 64,060,733Sub Total - Maintenance 7,260,733 64,060,733

Sub Total Capital Projects 707,045,000 116,021,131 23,207,463 881,162,920 213,913,045 895,763,818 471,900,418FURNITURE 0 28,750,000

Sub Total 707,045,000 116,021,131 23,207,463 909,912,920 213,913,045 895,763,818 471,900,418Less: Allowance for slippage 202,867,921 13,966,045 110,649,415 165,048,201

Sub Total 116,021,131 23,207,463 707,045,000 199,947,000 785,114,403 636,948,619Available budget 707,045,000 199,947,000 707,045,000 752,823,000 850,564,000Projected under(over) expenditure 32,291,403 213,615,381

Budget

Actual BASExpenditure as at June 08

Funded byInfrastructure

Grant

Projected Expenditure


Interventions to keep spending on track

• The appropriation of conditional grant funds to projects or groups of projects is based on estimated contract values as well as assumptions w.r.t. progress and achievement of certain milestones over the MTEF.

• The expenditure for the first quarter is 11, 2%. • The estimated expenditure for the 2008/09 financial year is

not based on a straight line prediction as various major projects will, according to programme, only have contractors on site during the second and third quarters when expenditure will increase drastically.

• Cash-flow predictions submitted by Public Works are closely monitored against time / progress on a monthly basis and corrective action will be taken if under-lover-expenditure becomes evident.

Issues Relating to ECD – Grade RIssues Relating to ECD – Grade R1. Number of registered Grade R sites:

• 1633 sites (including 160 Community Based Sites)• During 2009 the Department will establish an additional 600

Grade R sites in the province catering for approximately 65

000 learners.

2. Number of Number of accredited ECD centres – All grade R sites are registered and accredited by the Dept

3. Funding for these centres and whether the funding reaches intended beneficiaries

• Currently the number of funded sites reached over 40 000 beneficiaries.

• The Dept has targeted quintile 1 to 3 schools for the expansion in this regard

Issues Relating to ECDIssues Relating to ECD4. Performance of such funding

– The departmental budget for the maintenance and expansion for Grade R sites is R192, 471 million

– The funding allocation for support for the pre-grade R roll out is R17,1 million

– The budget for pre-grade R is mostly for the training of ECD practitioners as provided for by the ECD White Paper

5. The number of beneficiaries reached with specific reference to rural areas

– ECD registration and allocations included rural areas, these areas are targeted

– 170 sites and 3229 learners in grade R

6. Challenges experienced– Regulating Grade R, in particular the community based sites– Practitioner employment related issues, for example service contracts,

contribution to the unemployment insurance fund.– Terminology to be used in all future communication needs to be clarified,

e.g. Grade R site versus Grade R class, Grade R practitioner versus Grade R educator

– Current system to used to resource Grade R that is time consuming– Challenges to expansion caused by lack of infrastructure

Thank youThank you

a report on the 1 st quarter outcomes in respect of conditional grants april to june 2008/09

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