NORTHERN CAPE EDUCATION DEPARTMENT PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE [3rd Quarter Provincial Budget Report] 6 February 2008

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.

1. DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE

DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE (2004/05 – 2006/07) CONDITIONAL GRANT   AUDITED 2004/2005 2005/2006 2006/2007 Allocation Exp % Exp FET RECAP - 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 27,812 HIV/AIDS 2,186 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

DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE (1st; 2nd & 3rd Quarter 2007/08) CONDITIONAL GRANT   1st Quarter (April – June 2007) 2nd Quarter (Jul. – Sep. 2007) 3rd Quarter (Oct. – Dec. 2007) Allocation Transfer Exp FET RECAP 8,000 4,000 4,075 FOOD NUTRITION 34,507 8,627 7,233 12,033 37,132 8,715 INFRASTRUCTURE 48,098 12,024 16,366 15,470 9,828 HIV/AIDS 3,454 864 618 761 3,923 1,633 TOTAL 94,059 25,515 28,292 21,515 28,264 97153 16,000 20,176

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.

2. ASSESSMENT OF 2007/2008 FINANCIAL YEAR ALLOCATIONS; UNDER/OVERSPENDING & CAPACITY CONSTRAINTS

2007/08 CG BUDGET R’000 Food Nutrition 37,132 Life Skills/HIV & AIDS PROGRAMME BUDGET R’000 Food Nutrition 37,132 Life Skills/HIV & AIDS 3,923 FET 8,000 Infrastructure 48,098 TOTAL 97,152

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).

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

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.

LIFE SKILLS/HIV & AIDS: Programme Performance Life skills training for educators = 78 Care & support = 136 educators Peer education = 100 learners Monitoring of schools = 19 schools Advocacy 4405 parents, learners and educators reached

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.

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

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.

INFRASTRUCTURE: Programme Performance Newtown Primary Phase 1 completed Phase 1 of Peme district office completed Refurbished water supply reticulation at 40 schools Installation mobile classrooms at 12 schools

3. BRIEF ASSESSMENT OF NCED MONITORING CAPACITY THUS FAR

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.

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.

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.

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.

4. MONTHLY REPORTS FROM RECEIVING DEPARTMENTS OR MUNICIPALITIES & OTHER INSTITUTIONAL ARRANGEMENTS

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

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

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

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.

Thank You