select committee on finance 16/09/2009
DESCRIPTION
Department Of Education. Select Committee on Finance 16/09/2009. Content. Year-on-year comparison Conditional Grants Background National School Nutrition Grant HIV and Aids Grant Infrastructure Monitoring Key challenges. Year-on-year comparison: Allocations: 2008 : 2009. - PowerPoint PPT PresentationTRANSCRIPT
Select Committee on Finance
16/09/2009
Department Of Education
MPUMALANGA A Pioneering Spirit
2
Content
• Year-on-year comparison
• Conditional Grants
• Background
• National School Nutrition Grant
• HIV and Aids Grant
• Infrastructure
• Monitoring
• Key challenges
3
Year-on-year comparison:Allocations: 2008 : 2009
2008 2009 Y-O-Y R'000 R'000
Compensation of employees 6,624,303 7,948,599 20%Goods and services 1,534,057 1,244,963 -19%Transfers and subsidies 398,379 464,577 17%Capital expenditure 377,493 415,060 10%
8,934,232 10,073,199 13%
TOTAL
Total allocation
ECONOMIC CLASSIFICATION
4
Year-on-year comparison:Expenditure to 30 June: 2008 : 2009
2008 2009 Y-O-Y R'000 R'000
Compensation of employees 1,736,409 1,862,182 7%Goods and services 230,382 423,506 84%Transfers and subsidies 169,949 282,829 66%Capital expenditure 102,219 72,488 -29%
2,238,959 2,641,005 18%
TOTAL
Total expenditure
ECONOMIC CLASSIFICATION
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Conditional Grants
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Expenditure to 30/06/2009
P
rBudget Commitments Actual
Expenditure to
30/06/2009
% Spent P
r
o
jR'000 R'000 R'000
National School Nutrition 229 534 184 024 45 510 20%HIV and AIDS 14 626 11 973 2 653 18%Infrastructure 246 590 151 290 95 300 39%
2009/10Conditional Grants
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Year-on-Year comparison: Allocations: 2008 : 2009
2008 2009 Y-O-Y R'000 R'000
National School Nutrition 136,606 229,534 68%HIV and AIDS 13,848 14,626 6%Infrastructure 171,673 246,590 44%
322,127 490,750 52%
TOTAL
Total allocation
CONDITIONAL GRANTS
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Year-on-Year comparison:Expenditure to 30 June: 2008 : 2009
2008 2009 Y-O-Y R'000 R'000
National School Nutrition 29,618 45,510 54%HIV and AIDS 4,321 2,653 -39%Infrastructure 58,968 95,300 62%
92,907 143,463 54%Total expenditure
CONDITIONAL GRANTS TOTAL
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Background
• During 2008/09 the department overspent the COE budget with R414 million
• This impacted on the cash flow and payments for goods and services, conditional grants, transfers and capital payments were held back
• Major impact on the budget for 2009/10 financial year as invoices to the amount of R292 million were paid from April to July 2009
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Background…
• The following accruals were registered for 2008/09: Goods and services : R202 m Transfers and subs : R5 m Buildings : R58 m Equipment : R24 m Intangible assets : R3 m
• This impact is visible throughout the 1st quarter reports of the department in terms of actual vs planned outputs and expenditure as service providers refused to take new orders from the Department due to non-payment
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Background…
• The Department implemented cost curtailment measures to absorb the impact of the R292 million accruals: Moratorium was placed on filling of non-
educator posts Delegations to acquire goods and services
were withdrawn Thresholds for all administrative functions
were implemented
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National School Nutrition Grant
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Progress report: April - June 2009 (A)
Strategic objectiveTo supply food to needy learners through
National School Nutrition Programme
Budget: 2009/10R229.534 million
1414
Progress report: April - June 2009 (A1)
Planned Annual Output Operational and administrative costs. Planning session conducted
1st Quarter planned output Operational costs and consumable stores and 1st planning session conducted
1st Quarter Actual Output Operational costs and consumable stores and 1st planning session conducted
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges
Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R3 761 000
1st Q actual spending R1 604 620
1515
Progress report: April - June 2009 (A2)
Planned Annual Output
574,725 primary and 48,588 secondary school learners to access programme for 198 days
1st Quarter planned output
574,725 learners in primary and 48,588 secondary school learners to access the nutrition programme for 48 days
1st Quarter Actual Output
574,725 primary and 48,588 secondary school learners participated in the programme for 48 days
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges
Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R52 979 000
1st Q actual spending R63 910 380
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Reach• The programme is currently accessed by Primary and
Secondary School Learners in the following categories:
Primary Schools No. of Schools No. of Learners
Quintile 1 360 113 343
Quintile 2 395 162 581
Quintile 3 332 175 728
Quintile 4 167 88 703
Quintile 5 57 27 565
Unranked 78 6 805
Total 1 389 574 725
1717
Reach…
Sec. Schools No. of Schools No. of Learners
Quintile 1 78 48 588
TOTAL: (Primary & Secondary) = 623 313
Why feed Q4 & Q5 ?• Farm schools and schools serving informal
settlements are ranked in the higher categories.• In terms of Cabinet Memo of 2002, the above
category of schools should receive priority.
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Cost per meal
• The meals cost R1.50 and R1.83 for Primary and Secondary schools respectively (exclusive of 17c cooking cost)
• National norm: R1.80 and R2.35 (inclusive of cooking cost)
• Realistically speaking, the per capita expenditure can only provide food that meets the basic requirements
• Fortified maize products, beans, soya products, cooking oil, condiments, rice and fresh vegetable are not cheap, but are provided
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HIV and AIDS Grant
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Progress report: April - June 2009 (B)
Strategic objectiveTo educate learners on Life Skills, HIV and
Aids and to give care and support to those infected and affected by HIV and Aids
Budget: 2009/10R10.093 million
2121
Progress report: April - June 2009 (B1)
Planned Annual Output Operational and administrative costs. Planning sessions conducted
1st Quarter planned output Operational costs and consumable stores and 1st planning session conducted
1st Quarter Actual Output Operational costs and consumable stores and 1st planning session coordinated
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R219 000
1st Q actual spending R44 000
2222
Progress report: April - June 2009 (B2)
Planned Annual Output 1,800 educators empowered on Sexuality Education, Drug and Substance Abuse
1st Quarter planned output 600 Educators empowered on Sexuality Education, Drug and Substance Abuse
1st Quarter Actual Output 600 Educators empowered on Sexuality Education, Drug and Substance Abuse
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R685 000
1st Q actual spending R577 000
2323
Progress report: April - June 2009 (B3)
Planned Annual Output 600 Schools turned into Nodes of Care and Support and 1 Jamboree held (Leth'impilo)
1st Quarter planned output 150 Schools turned into nodes of Care and Support
1st Quarter Actual Output 45 Schools turned into Nodes of Care and Support
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges
Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R250 000
1st Q actual spending R75 000
2424
Progress report: April - June 2009 (B4)
Planned Annual Output 1,800 educators empowered on Care and Support
1st Quarter planned output 600 educators empowered on Care and Support of OVCs
1st Quarter Actual Output 689 Educators empowered on Care and Support of OVC's
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R593 000
1st Q actual spending R393 000
2525
Progress report: April - June 2009 (B5)
Planned Annual Output 2,000 learners in 100 schools empowered on Peer Support programme including Soul Buddyz Congress
1st Quarter planned output 800 learners empowered on a Peer Support programme
1st Quarter Actual Output 640 Learners empowered on Peer Support Programme
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R1 170 000
1st Q actual spending R705 000
2626
Progress report: April - June 2009 (B6)
Planned Annual Output 600 SMTs empowered on Policy Development by EMGD
1st Quarter planned output 150 SMTs empowered on Policy Development
1st Quarter Actual Output 150 SMT's empowered on HIV and AIDS Policy Development
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R206 000
1st Q actual spending R174 000
2727
Progress report: April - June 2009 (C)
Strategic objectiveTo make all role players and stakeholders
advocates of HIV and AIDS
Budget: 2009/10R4.533 million
2828
Progress report: April - June 2009 (C1)
Planned Annual Output
All Life Skills, HIV and AIDS programmes advocated to relevant stakeholders:
• 12 open discussion workshops between parents and learners (Peer Educators) on HIV and AIDS
• 48 clusters of SGB's• 54 Traditional Leaders Wives• 4 clusters of Traditional Healers• 4 clusters of FBOs• 48 Calendar Events celebrated
1st Quarter planned output
• 3 Open discussion workshops between parents and learners (peer education) on HIV and AIDS conducted
• 12 Clusters of SGBs• 12 Candle Light Memorial Events celebrated
2929
Progress report: April - June 2009 (C1)
1st Quarter Actual Output
• 3 Open discussion workshops between parents and learners on HIV and AIDS conducted
• 12 Candle Light Memorial Events celebrated
Challenges/reasons for non-achievement/ outcomes
Operational: 12 Clusters of SGB's not capacitated due to the election period of new SGB's
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges
Operational: Capacitation of SGB's to be done in the 2nd quarter after elections of new SGB's
Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R422 000
1st Q actual spending R202 000
3030
Progress report: April - June 2009 (C2)
Planned Annual Output 156 Schools monitored and supported
1st Quarter planned output 38 Schools monitored and supported
1st Quarter Actual Output 19 Schools monitored and supported by regional officials, 15 schools evaluated by the Provincial and National Team
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R268 000
1st Q actual spending R91 000
3131
Progress report: April - June 2009 (C3)
Planned Annual Output LTSM for learners and educators procured
1st Quarter planned output
Relevant LTSM for 1,500 educators and 7,500 learners procured (resource guides and activity books)
1st Quarter Actual Output
Relevant LTSM for 1,289 educators and 640 learners procured (resource guides and activity books)
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges
Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R539 000
1st Q actual spending R392 000
32
Infrastructure
33
Progress report: April - June 2009 (D)
Strategic objectiveTo improve the physical conditions and
appearance of schools
Budget: 2009/10R246.590 million
34
Progress report: April - June 2009 (D1)
Planned Annual Output 3 New Schools
1st Quarter planned output Commence with the three new schools in this programme
1st Quarter Actual Output Operational:• Magudu at 40%• Cyril Clarke and Khunjuliwe have not commenced
Challenges/reasons for non-achievement/ outcomes
Operational:• Allocation of site at Khunjuliwe• Cyril Clarke School design option not finalized
Plans to Address challenges • Negotiation are in progress for Khunjuliwe• Decision on Cyril Clarke fast tracked.
1st Q projected budget R71 000 000
1st Q actual spending R39 073 000
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Progress report: April - June 2009 (D2)
Planned Annual Output Special and Inclusive Schools. There are 4 school prioritised for 2009/10
1st Quarter planned output To commerce the upgrading of schools for learners with special needs
1st Quarter Actual Output No progress registered
Challenges/reasons for non-achievement/ outcomes
Operational: Reprioritisation process have contributed to the delays
Plans to Address challenges Operational: DPWR&T to refocus on this programme
1st Q projected budget R29 000 000
1st Q actual spending Nil
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Progress report: April - June 2009 (D3)
Planned Annual Output 100 historical projects to be completed
1st Quarter planned output Fast tracking process to be instituted in 100 projects
1st Quarter Actual Output Slow progress registered in 100 projects
Challenges/reasons for non-achievement/ outcomes
Financial: Invoices submitted for payment not processed due to accrual payments and cash flow
Plans to Address challenges Financial: Revised cash flow schedule was submitted to Treasury
1st Q projected budget R38 929 000
1st Q actual spending R56 227 000
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Progress report: April - June 2009 (D4)
Planned Annual Output Mud and unsafe Schools
1st Quarter planned output There are 14 schools in this programme.
1st Quarter Actual Output Planning and design completed. Preparation of tender documents.
Challenges/reasons for non-achievement/ outcomes
Operational: Delay with tendering process by DPWR&T
Plans to Address challenges Operational: Matter discussed in a POMM and challenges resolved
1st Q projected budget R29 000 000
1st Q actual spending Nil
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Progress report: April - June 2009 (D5)
Planned Annual Output Kitchens and Grade R centres
1st Quarter planned output Commence the plan and design
1st Quarter Actual Output Planning and design in process
Challenges/reasons for non-achievement/ outcomes
Operational: No feedback from implementing agent
Plans to Address challenges Operational: Follow-up with implementing agent prioritised
1st Q projected budget R10 000 000
1st Q actual spending None
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Monitoring of the grants (NSNP and HIV and AIDS)
• Monitoring is done as a compliance requirements within the DORA and PFMA
• This is done within the broader monitoring process led by the Department of Basic Education
• 11 Life Skills Regional Officials and 26 NSNP monitors monitor the implementation of the programme by visiting the schools and submitting reports to the Provincial office for effective monitoring and providing adequate support to reach all the schools
• More Regional officials are needed to execute their duties effectively
• Regional reports are consolidated monthly and sent to NDoE
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Monitoring of the grants (NSNP and HIV and AIDS)…
• Quarterly and Annual reports compiled and sent to NDoE and NT reporting on financial and non-financial indicators
• Provincial evaluation team conduct pre-evaluation of 10-20 schools before final evaluation by national department is conducted at end of each financial year
• Evaluation reports are compiled by the Provincial evaluation team at the end of each financial year
• Quarterly meetings are held with the NSNP suppliers to deal with any challenge within the programme
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Monitoring of the grants (Infrastructure)
• The MDoE has limited internal resources to conduct effective monitoring
• Work Inspector’s posts at HO are vacant due to promotion of incumbents
• Reliance on the presence of the Service Provider Teams, i.e. PTAT, OST & TA
• Service Provider Teams are also small as PTAT has one person, OST one person at HO and one per Region (except BBR Region) and one TA
• The latter individual monitors specific projects• Works Inspector’s posts at the Regional Offices
have just been filled
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Summary of key challenges
• Limitation on achievement of goals due to outstanding payments to service providers
• Accrual payments impacting on budget for 2009/10• Utilization of grant funds for Compensation of
employees: NSNP : R44 537 437.44 Infrastructure: R14 186 703.98 HIV and AIDS : R 1 177 000.00
• Inability to provide nutrition to 67 541 poor learners in farm schools ranked Q4 and ungazetted Q1 Secondary Schools in BBR
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Summary of key challenges…
• In terms of infrastructure: Some contractors have deserted sites while
others have scaled down operations Service providers not paid on time due to
insufficient cash Delay in the procurement of service providers by
the implementing agent Inaccurate reports from the implementing agent
that are provided to the department Unavailability of sites in some municipalities Inadequate capacity in the department
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The end
Thank you!