PORTFOLIO COMMITTEE MEETING 24 MAY 2011

SPENDING ON SCHOOLSVERSUS

ADMINISTRATION COSTS

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SCHOOLS EXPENDITURE vs ADMINISTRATION COSTS

• 2009/10 PEDs total budget allocation and Expenditure .• 2010/11 PEDs total budget allocation and Expenditure.

• Budget and expenditure – School activities.• Budget and expenditure - Compensation of employee.• 2009 -2011 PEDs expenditure on school funding.• Conclusion

2009/10- PEDs BUDGET AND EXPENDITURE

2009/10 FINANCIAL YEAR

 

Main Appropriation

AdjustmentsFinal

Appropriation

Actual Expenditure 31

Mar 2010

Under/(over)-expenditure

% Spent as at Mar 2010

  R'000 R'000 R'000 R'000 R'000 %

Administration 8 349 646 217 857 8 554 253 8 295 081 259 172 97.0%

Public Ordinary School Education 97 400 361 6 219 834 103 633 445 105 424 543 (1 791 098) 101.7%

Independent School 604 767 41 837 646 604 626 862 19 742 96.9%Public Special School Education 3 389 250 83 703 3 472 953 3 570 346 ( 97 393) 102.8%

Further Education and Training 3 168 340 ( 27 198) 3 141 142 3 155 276 ( 14 134) 100.4%

Adult Basic Education 1 123 133 78 222 1 201 355 1 126 518 74 837 93.8%

Early Childhood Development 1 995 697 ( 300 699) 1 694 998 1 547 610 147 388 91.3%

Auxilliary and Associated Services 2 526 494 15 978 2 542 472 2 545 062 ( 2 590) 100.1%

Thefts and losses    

           

TOTAL 118 557 688 6 329 534 124 887 222 126 291 298 (1 404 076) 101.1%

Economic Classification 2009/10 FINANCIAL YEAR

 Main Appropriation Adjustments Final Appropriation

Actual Expenditure 31 Mar 2010

Under/(over)-expenditure

% Spent as at Mar 2010

B. ECONOMIC CLASSIFICATION            CURRENT PAYMENTS 104 382 797 5 757 148 110 139 945 111 709 877 (1 569 932) 101.4%Compensation of employees 90 517 474 6 988 794 97 506 268 99 255 803 (1 749 535) 101.8%Goods and services 13 699 888 (1 081 617) 12 618 271 12 428 391 189 880 98.5%Interest and rent on land 1 125 4 788 5 913 11 397 ( 5 484) 192.7%

Financial transactions in assets and liabilities 3 508 5 985 9 493 14 286 ( 4 793) 150.5%Unauthorised expenditure 160 802 ( 160 802)           

TRANSFERS AND SUBSIDIES 8 690 097 426 524 9 116 621 9 036 654 79 967 99.1%Subsidies          

Public Ordinary Schools 4 795 504 382 014 5 177 518 5 146 302 31 216 99.4% Independent Schools 604 502 37 317 641 819 622 703 19 116 97.0%

Public Special Schools 615 372 11 830 627 202 620 058 7 144 98.9% FET Colleges 1 602 150 ( 156 087) 1 446 063 1 465 798 ( 19 735) 101.4% ABET 27 391 ( 4 481) 22 910 23 051 ( 141)  ECD 417 995 ( 74 266) 343 729 328 828 14 901 95.7%Payments to SETA 42 368 19 978 62 346 62 317 29 100.0%Other transfers 584 815 210 219 795 034 767 597 27 437 96.5%             CAPITAL PAYMENTS 5 484 794 145 862 5 630 656 5 544 767 85 889 98.5%

Buildings and other fixed structures 4 960 143 268 654 5 228 797 5 123 086 105 711 98.0%Machinery and Equipment 523 386 ( 142 297) 381 089 386 680 ( 5 591) 101.5%Cultivated assets  

Software and other intanglible assets 1 265 19 505 20 770 22 982 ( 2 212) 110.6%Land and subsoil assets 12 019 ( 12 019)              TOTAL 118 557 688 6 329 534 124 887 222 126 291 298 (1 404 076) 101.1%

             

C. CONDITIONAL GRANTS INCLUDED ABOVE            HIV and Aids 177 401 5 470 182 871 168 752 14 119 92.3%

National School Nutrition Programme 2 394 528 151 376 2 545 904 2 496 935 48 969 98.1%Infrastructure 2 665 765 39 181 2 704 946 2 653 444 51 502 98.1%             TOTAL 5 237 694 196 027 5 433 721 5 319 131 114 590 97.9%

2009 SCHOOL EXPENDITURE Vs ADMINISTRATION COSTS

• Adjusted budget for the administration programme for the 2009/10 financial year is R8,554 billion and it represent 6,9 % of the total adjusted budget for the PEDs.

•The expenditure for the 2009/10 financial year is R8,295 billion and it represent 6,6 % of the PEDs total expenditure. •Most of the budget is allocated for school activities that includes teacher salaries, LTSM, school maintenance and repairs.

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2010/11-PEDs BUDGET AND EXPENDITURE

2010/11 FINANCIAL YEAR

 

Approved Budget

AdjustmentsAdjusted Budget

Actual Expenditure

Feb 2011

Projected Expenditure

Mar 2011 - Mar 2011

Total Projected

Expenditure for 2010/11

Projected under/(over)-expenditure

% Spent Feb 2011

  R'000 R'000 R'000 R'000 R'000 R'000 R'000 %

A.PROGRAMMES                

                 

Administration 8 506 297 574 812 9 081 109 8 441 657 872 183 9 313 840 ( 232 731) 93.0%

Public Ordinary School Education 113 296 206 2 461 091 115 757 297 104 878 886 10 879 868 115 758 754 ( 1 457) 90.6%

Independent School 705 719 736 706 455 691 211 46 960 738 171 ( 31 716) 97.8%

Public Special School Education 4 141 452 103 716 4 245 168 3 775 993 372 448 4 148 441 96 727 88.9%

Further Education and Training 3 876 789 28 896 3 905 685 3 473 311 404 346 3 877 657 28 028 88.9%

Adult Basic Education 1 322 788 14 083 1 336 871 1 126 422 144 523 1 270 945 65 926 84.3%

Early Childhood Development 2 742 032 ( 67 646) 2 674 386 1 830 799 559 124 2 389 923 284 463 68.5%

Auxilliary and Associated Services 2 847 399 ( 140 947) 2 706 452 1 978 385 478 057 2 456 442 250 010 73.1%

           

TOTAL 137 438 682 2 974 741 140 413 423 126 196 664 13 757 509 139 954 173 459 250 89.9%

Economic Classification 2010/11 FINANCIAL YEAR

 

Approved Budget

AdjustmentsAdjusted Budget

Actual Expenditure

Feb 2011

Projected Expenditure

Mar 2011 - Mar 2011

Total Projected Expenditure for

2010/11

Projected under/(over)-expenditure

% Spent Feb 2011

                 B. ECONOMIC CLASSIFICATION                CURRENT PAYMENTS 119 289 511 3 891 705 123 181 216 111 606 463 12 088 539 123 695 002 ( 513 786) 90.6%Compensation of Employees 104 643 149 3 484 437 108 127 586 101 249 330 9 413 938 110 663 268 (2 535 682) 93.6%Goods and services 14 644 490 407 001 15 051 491 10 355 545 2 673 676 13 029 221 2 022 270 68.8%Interest and rent on land 1 872 267 2 139 1 588 925 2 513 ( 374) 74.2%Unauthorised expenditure                   TRANSFERS AND SUBSIDIES 10 853 674 4 121 10 857 795 10 278 154 493 955 10 772 109 85 686 94.7%Subsidies              

Public Ordinary Schools 5 978 112 32 573 6 010 685 5 732 109 242 933 5 975 042 35 643 95.4% Independent Schools 704 719 736 705 455 690 193 38 204 728 397 ( 22 942) 97.8% Public Special Schools 812 571 ( 48 064) 764 507 705 696 15 070 720 766 43 741 92.3% FET Colleges 1 954 645 ( 79 579) 1 875 066 1 801 536 96 454 1 897 990 ( 22 924) 96.1% ABET 27 469 618 28 087 25 837 4 324 30 161 ( 2 074) 92.0% ECD 399 784 ( 10 106) 389 678 309 576 55 916 365 492 24 186 79.4%Payments to SETA 72 747 21 396 94 143 74 695 2 501 77 196 16 947 79.3%Other transfers 903 627 86 547 990 174 938 512 38 553 977 065 13 109 94.8%                 CAPITAL PAYMENTS 7 158 162 ( 921 085) 6 237 077 4 309 044 1 038 321 5 347 365 889 712 69.1%Buildings and other fixed structures 6 529 124 ( 869 129) 5 659 995 4 096 477 961 042 5 057 519 602 476 72.4%Machinery and Equipment 578 732 ( 52 666) 526 066 186 744 74 854 261 598 264 468 35.5%

Cultivated assets  Software and other intanglible assets 10 306 710 11 016 9 325 2 361 11 686 ( 670) 84.6%Land and subsoil assets 40 000 40 000 16 498 64 16 562 23 438 41.2%                 Payment of financial assets 137 335 137 335 3 003 136 694 139 697 ( 2 362) 2.2%                 TOTAL 137 438 682 2 974 741 140 413 423 126 196 664 13 757 509 139 954 173 459 250 89.9%

                 C. CONDITIONAL GRANTS INCLUDED ABOVE                HIV and Aids 188 045 2 865 190 910 128 766 58 978 187 744 3 166 67.4%National School Nutrition Programme 3 663 326 ( 42 692) 3 620 634 3 038 787 480 693 3 519 480 101 154 83.9%Technical Schools Recapitalisation 80 000 80 000 32 256 39 592 71 848 8 152 40.3%Infrastructure Grants to Provinces 3 801 059 21 661 3 822 720 2 198 995 884 917 3 083 912 738 808 57.5%FET Colleges 3 772 661 125 849 3 898 510 3 377 104 413 793 3 790 897 107 613 86.6%                 Total 11 505 091 107 683 11 612 774 8 775 908 1 877 973 10 653 881 958 893 75.6%

2010 PEDs BUDGET AND EXPENDITURE • Adjusted administration budget allocations for

2010/11 is R9, 081 billion and it represent 6,5% allocated budget peds of R140,413 billion .

• school expenditure is mainly realised on compensation of employees, goods and services (LTSM, maintenance and repairs)

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Budget & Expenditure – Schools Activities2010/11 Financial Year 2009/10 Financial Year

Item Adjusted Budget Expenditure as at Feb 2011

% Spent Adjusted Budget Expenditure as at Mar 2010

% Spent

R’000 R’000 % R’000 R’000 %

Compensation of employees to education institutions** 101,073,779 94,239,653 93.2%

90,853,072

92,794,637 102.1%

LTSM

4,755,663

3,983,176 83.8%

4,505,336

3,974,091 88.2%

Infrastructure

7,560,772

4,593,004 60.7%

5,372,704

5,359,474 99.8%

NSNP

3,620,634

3,038,787 83.9%

2,545,904

2,496,935 98.1%

Transfers to schools & FET

9,773,478

9,264,947 94.8%

8,259,241

8,206,740 99.4%

TOTAL 126,784,326 115,119,567 90.8% 111,536,257

112,831,877 101.2%

Budget and Expenditure- Schools Activities

•R115,120 billion is incurred in respect of the schools activities as at 28 February 2011 by PEDs.

•The expenditure represent 82% of the PEDs total budget allocation of R140,413 billion.

•In 2009 financial year 90.3 % has been spent on school activities of the total budget allocation of 124,887 billion.

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Compensation of employees 2010/11 2009/10

Adjusted Budget Actual Expenditure % Spent Adjusted BudgetActual

Expenditure % Spent

R'000 R'000 % R'000 R'000 %

Total budget 108 127 586 101 249 330 93.6% 97 506 268 99 255 803 101.8%

Programme 1 6 186 655 6 222 255 100.6% 5 817 875 5 607 746 96.4%

Programme 8 867 152 787 422 90.8% 835 321 853 420 102.2%

COE excl Pr 1&8 101 073 779 94 239 653 93.2% 90 853 072 92 794 637 102.1%

Compensation of employees• The 2010/11 PEDs total adjusted budget for compensation of employees to education institutions is R101,073 billion and it represent 94% of the allocated budget.

• The 2009/10 PEDs total adjusted budget for compensation of employees is R90,853 billion and it represent 93% of the total allocated adjusted budget.

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2009-2011 - Total Provincial Expenditure on school funding for quintile 1 to 5

PED Total Provincial Expenditure Q1 -Q5

  2009 2010 2011

EC 1,306,407,867 1,479,348,582 1,341,316,991

FS 318,209,649 431,982,421 472,306,242

GT 730,548,048 1,004,194,666 1,049,987,304

KZN 1,304,465,735 1,650,004,238 1,605,226,209

LP 1,177,273,202 1,382,729,926 1,392,915,321

MP 500,125,472 646,849,811 717,055,279

NC 150,891,705 160,452,663 175,013,684

NW 511,047,968 453,478,533 544,996,756

WC 233,292,046 443,618,215 485,198,898

TOTAL 6,232,261,692 7,652,659,055 7,784,016,684

2009-2011 - Total Provincial Expenditure on school funding for quintile 1 to 5

The total spending on no fee and fee paying schools for quintile 1 to 5 in 2009, 2010 and 2011 is R6,232 billion, R7,653 billion and R7,784 billion respectively.

The total budget allocation on Administration represent less than 10% of the total allocated budget to PEDs.

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Conclusion

•The total budget allocation on Administration represent less than 10% of the total allocated budget to PEDs.• Most of the education budget is allocated to compensation of employees mainly teacher salaries.

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THANK YOU

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