BRIEFING ON THE ADJUSTMENT APPROPRIATIONS BILL BASIC EDUCATION STANDING COMMITTEE ON APPROPRIATIONS 23 November 2018

PRESENTATION OUTLINE Readiness to effectively and efficiently spend any additional allocations as per the 2018 adjustments process Virements – There were no virements needing Parliament approval Summary of non-financial performance at the end of the 2nd quarter as well as reasons and remedial measures for under/over spending and under performance Budget vs Expenditure to date, and explanations of material variances

Mawushe JSS- Picture 1- Ngonyama JPS - Picture 1 Picture 2 Picture 2 3

READINESS TO SPEND ADDITIONAL ALLOCATIONS AS PER THE 2018 ADJUSTMENT PROCESS [up to 20 November 2018] ADDITIONAL AMOUNT APPROPRIATED = R800m FINANCIAL PERFORMANCE, INITITIAL BUDGET: R1,471,826,000 ADD: ADDITIONAL ALLOCATION: + R800,000,000 = POST-ADJUSTMENT BUDGET: = R2,271,826,000 LESS: EXPENDITURE TO 20 NOVEMBER 2018: - R1,134,264,000 LESS: PROJECTED EXPENDITURE TO YEAR END: - R1,232,175,000 PROJECTED SHORTFALL AT YEAR-END: = R94,613,000 THE ABOVE CALCULATIONS ARE AN INDICATION THAT THE ADDITIONAL ALLOCATION WILL BE SPENT ON PROJECTS THAT ARE CURRENTLY UNDER CONSTRUCTION.

Inxu JSS - Picture 1- Xuba JSS - Picture 1 Picture 2 Picture 2 5

COMPARATIVE ANALYSIS: EXPENDITURE AND PERFORMANCE ASIDI   CUMMULATIVE PREVIOUS Q2 PERFORMANCES (EXPENDITURE) Expenditure on BAS 2016/2017 Percentage 2017/2018 2018/2019 Yearly Budget R 2,232,375,000.00 R 1,757,984,000.00 R 1,471,826,000.00 Q1 R 115,624,669.51 5% R 121,272,762.94 7% R 204,313,264.81 14% Q2 R 185,657,906.57 8% R 326,045,773.36 19% R 585,934,201.40 40% Cummulative (Q1 + Q2) R 301,282,576.08 13% R 447,318,536.30 26% R 790,247,466.21 54% ASIDI CUMMULATIVE PREVIOUS Q2 PERFORMANCES (DELIVERY) Sub-Programme Completed since Inception Financial Year 2016/17 Financial Year 2017/18 Current Financial Year 2018/19 Q1 + Q2 Q1 Q2 Q3 Q4 Inapp Structures 210 9 4 5 1 6 7 3 16 8   Sanitation 590 2 15 17 14 111 34 77 Water 796 27 11 18 12 Electricity 372 32 Electricity Scope Completed

Summary of non-financial performance at the end of the 2nd quarter as well as reasons and remedial measures for under/over spending and under performance

SIYAVUYA JSS

2018/19 PRELIMINARY Q2 SCORE-CARD/STATUS BAR FOR INDICATORS Programme No. of indicators per programme Annual Targets Quarterly Targets Bi-annual Targets Q2 status 2018/19 Not achieved Partially achieved Achieved One 3 2 1 -   Two 19 11 6* 5 Three 10 8 Four Five 4 Total distribution 47 33 12 2/14 1/14 11/14 Percentage distribution 100% 70% 26% 4% 14% 7% 79% *indicator 2.4.4 is recorded as a bi-annual reporting cycle in the APP however measured on a quarterly reporting cycle due to its targets being in Q1 and Q2 All Annual Targets are WHITE unless fully achieved. Where 50% of the target has not been achieved, the status is reflected as RED. Where 50% or more of the target has been realised, the status is reflected as AMBER. Where the target has been fully achieved, the status is reflected as GREEN. 9

PROGRAMME 1: ADMINISTRATION PERFORMANCE INDICATOR ANNUAL TARGET QUARTER 1 TARGET QUARTER 1 VALIDATED OUTPUT QUARTER 2 TARGET QUARTER 2 REPORTED OUTPUT REASON FOR DEVIATION REMEDIAL ACTION/ MEASURES 1.1.1 Percentage of Service providers within the procurement unit paid within 30 days. 100% (Quarterly) 96% (215/224) 98.8% (422/427) Inv. BMS05164: Actual Inv. Receipt date was captured incorrectly, 10/07/2018 instead of 10/08/2018   Inv. 022003: Payment was authorised on the 30th day. Inv. 34: Payment delayed by incomplete delivery. Department has developed Invoice days tracker tool to trace number of days from the time invoice is received by the Department until it is authorized on the system.

PROGRAMME 2: CURRICULUM POLICY, SUPPORT AND MONITORING PERFORMANCE INDICATOR ANNUAL TARGET QUARTER 1 TARGET QUARTER 1 VALIDATED OUTPUT QUARTER 2 TARGET QUARTER 2 REPORTED OUTPUT REASON FOR DEVIATION REMEDIAL ACTION/ MEASURES 2.4.4 Number of training sessions of CAPS for Technical subjects monitored 14 (Bi-annually) 7 2 This is a specialised training and is done by skills training centres through Service Level Agreements (SLAs). In 2018 provinces delayed to sign these SLAs. DBE has put systems in place to monitor the signing of these SLAs. One of them is the Recovery Plan. 2.5.2 Number of advocacy campaigns conducted on the Rural Education Policy in the provinces 9 (Quarterly) 3 The policy has not yet been finalised. The policy was presented at CEM and concerns were raised regarding the potential legal implications of the policy in view of the already constrained resources of the sector. CEM recommended that the principles contained in the policy be considered at HEDCOM for inclusion in the guidelines on the improvement of Rural Education

Langeni PS- Picture 1- Mbekweni HS - Picture 1 Picture 2 Picture 2

ECONOMIC CLASSIFICATIONS Expenditure as % of Appropriation ALLOCATION AGAINST ACTUAL EXPENDITURE FOR THE 2018/19 FINANCIAL YEAR [up to 20 November 2018] ECONOMIC CLASSIFICATIONS 2018/19 Expenditure as % of Appropriation POST-ADJUSTMENT APPROPRIATION ACTUAL EXPENDITURE VARIANCE R’000 Compensation of Employees 438 130 298 436 139 694 68.12% Examiners and Moderators 26 692 15 989 10 703 59.90% Transfers to Public Entities 144 960 108 825 36 135 75.07% Other Transfers 1 289 449 1 270 232 19 217 98.51% Conditional Grants 17 696 148 13 998 360 3 697 788 79.10% Schools Infrastructure Backlogs Indirect Grant 2 271 826 1 134 264 1 137 562 49.93% Earmarked Funds 1 204 711 811 538 393 173 67.36% Departmental Operations 204 953 121 988 82 965 59.52% Office Accommodation 197 482 114 342 83 140 57.90% Projects 225 232 88 547 136 685 39.31% Total 23 699 583 17 962 521 5 737 062 75.79% 13

REASONS FOR MATERIAL DEVIATIONS DEVIATION ITEM EXPLANATIONS FOR DEVIATIONS Transfers to Public Entities, Transfers and Other transfers: Conditional Grants Schools Infrastructure Backlogs Indirect Grant Projects The high spending to Public entities is due to 3 of the 4 annual transfers already done. 100% transfers done for Funza Lushaka bursaries. Transfers already done for the 3 Quarters Projected spending for remainder of the year shows R1,232,175,000, which exceeds the current balance by R94m Underspending is due to slow spending of National Assessments. The Department has for the first time administered a pilot study on the implementation of re-design Systemic Evaluation model from 15 to 19 October 2018. Tests were developed according to an Internationally recognised matrix design. 40 learners in Grades 3, 6 and 9 per school will be selected across 9 provinces to participate in the testing. The spending on this item will increase in the third and fourth quarter when invoices are received and processed. 14

RWANTSANA JSS Picture 1 NDOTSHANGA Picture 1 Picture 2 Picture 2 15