1. DIVISION OF REVENUE BILL VOTE 14: BASIC EDUCATION
Presentation to Select Committee on Appropriations
5 March 2010

2. Presentation Information
Restructuring of Education and distribution of budget
Funding of Education Sector: Equitable Share
Basic Education Conditional Grants

3. Part 1 Restructuring of Education and distribution of budget
The Department was established through the split of the Department of Education through the Government restructuring process during 2009
The Department received functions from the Department of Education
These functions include:
Adult basic literacy and numeracy through the Kha Ri Gude campaign
Shool Education

4. Part 1 Restructuring of Education and distribution of budget (2)
The budget for the Department consist of funds based on the split of the Department of Education
The splitting of funds from the Department of Education was done on an agreed framework in line with the allocation of functions as well as the distribution of the staff compliment
(See next slide on extract from Distribution Framework)
The Department may experience budget constraints during the 2010/11 financial year onwards since no additional funds were allocated for the establishment of the Department

5. Budget Distribution Framework: Education
Budget was split according to agreed framework between three DGs
Compensation of employees were distributed according to agreed ratios for each directorate
Earmarked Funds were allocated based on function
Commitments such as audit fees, rental machines, computer services, bank charges, etc. were determined for both departments and allocated to the respective directorates
Funds for operational costs and projects were dealt with as follows:
MTEF amounts for all components were split in agreed ratios between the two Departments
Operational costs of Directorates/components were allocated based on specific requirements
Available balance was reserved for projects

6. Part 1 Restructuring of Education and distribution of budget (3)
The aim of the Department is to develop, maintain and support a South African school education system for the 21st century.
Programmes in the 2010 ENE:
Administration (R252.8 million)
Curriculum Policy, Support and Monitoring (R million)
Teacher and Education Human Resources Development and Management (R513.7 million)
Planning, Quality Assessment and Monitoring and Evaluation (R148.7 million)
Social Responsibility (R million)
Details per programme follow in the next slides

7. Programme 2: Curriculum Policy, Support and Monitoring
Programme 1: Administration Overall management and administration of the Department
Minister, Deputy Minister, Management, Corporate Services, National and Provincial Coordination and Administration as well as Office Accommodation
Programme 2: Curriculum Policy, Support and Monitoring
Develop curriculum and assessment policies for basic education and monitor their implementation
Curriculum Implementation and Monitoring
National Curriculum Institute
Curriculum and Quality Enhancement Programmes
Kha Ri Gude Literacy Project
Programme 3: Teachers and Education Human Resources Development and Management Promote quality teaching and institutional performance through effective supply, development and utilisation of human resources
Education Human Resources Management
Institutional Development
Teacher Education

8. Programme 4: Planning, Quality Assessment and Monitoring and Evaluation
Promote quality and effective service delivery in the basic education system through research, monitoring and evaluation, planning and assessment
Information Monitoring and Evaluation
Financial and Physical Planning and Analysis
Educational Measurements, Assessment and Public Examination
Programme 5: Social Responsibility Develop policies and programmes to increase the participation of learners in schools and improve the quality of learning in schools
Social Inclusion in Education
Equity in Education
Health in Education

9. Part 2 Funding of Education Sector: Equitable Share
The key aspect in the Division of Revenue Bill for Education is the funding of the Basic Education Sector in Provincial Education Departments
At this stage, Provincial Education Departments receive a total of R128.3 billion. R138.9 billion and R145.6 billion over the 2010 MTEF (excluding conditional grants)
These allocations represent on average 49% of total provincial budgets
Compensation of employees remains the biggest portion of the budgets of Provincial Education Departments at an average of 79.9% over the 2010 MTEF
Detail of the allocations per province is reflected in the next 3 slides

10. Preliminary budgets of Provincial Education Departments for the 2010 MTEF
Province
2010/11
2011/12
2012/13 EC
20,587,104
22,286,147
23,379,150 FS
7,919,318
8,498,863
8,905,661 GP
20,690,746
22,789,136
23,578,204
KZN
27,259,258
29,651,173
31,263,843 LP
17,741,127
18,883,860
19,707,201 MP
10,974,544
11,789,298
12,329,472 NC
3,320,604
3,614,930
3,780,626 NW
8,638,863
9,384,490
9,909,565 WC
11,135,149
12,021,382
12,708,581
Total
128,266,713
138,919,279
145,562,303
These are preliminary figures from the draft 2010 MTEF budget statements which exclude conditional grants

11. Preliminary 2010 MTEF PEDs’ budgets per economic classification
Province
2010/11
2011/12
2012/13
Current payments
118,695,638
128,384,013
134,145,655
Compensation of employees
103,134,866
110,796,353
115,987,133
Goods and services
15,560,772
17,587,660
18,158,522
Transfers and subsidies
2,335,613
1,840,520
1,883,477
Payments for capital assets
7,235,462
8,694,746
9,533,171
Total
128,266,713
138,919,279
145,562,303
Bulk of funding allocated to compensation of employees
Possible decrease in transfers and subsidies over 2010 MTEF

12. Percentage of preliminary PEDs’ budgets against overall provincial budgets
Province
2010/11
2011/12
2012/13 EC
51%
52% FS
50% GP
46%
47%
KZN
48% LP
53%
54% MP NC NW WC
Total
49%
Average % allocation to PED’s against provincial budgets remains constant at 49% over 2010 MTEF
Normal education share is 51%, therefore EC, LP & MP enjoy a favourable % allocation BUT there are concerns about GP, KZN, NC and WC

13. Part 3 Conditional Grants
The Department will be responsible for four conditional grants over the MTEF period as follows:
National School Nutrition Programme
2010/11 R million
2011/12 R million
2012/13 R million
In addition, provision is made for national coordination, monitoring and strategic leadership as follows:
(2010/11: R million; 2011/12: R8.234 million; 2012/13: R million)
HIV/Aids Life Skills
2010/11 R million
2011/12 R million
2012/13 R million
No provision in grant for national coordination, monitoring and strategic leadership of the programme – this will need to be funded from the Department’s baseline allocation

14. Part 3 Conditional Grants
Technical Schools Recapitalisation
2010/11 R80 million
2011/12 R200 million
2012/13 R210 million
In addition, provision is made for national coordination, monitoring and strategic leadership as follows: (2010/11: R1 million; 2011/12: R2.5 million; 2012/13: R2.625 million)
Dinaledi Schools
2011/12 R70 million
2012/13 R100 million
This grant is only from the 2011/12 financial year and details around the framework and activities will be finalised during the 2010/11 financial year

15. NSNP 2010/11 GRANT FRAMEWORK Strategic goal
To enhance learning capacity and to improve access to education
Grant purpose
To provide nutritious meals to targeted learners
Outcome statements
Enhanced learning capacity and improved access to education
Outputs
Nutritious meals served to learners

16. NSNP 2010 MTEF ALLOCATION PER PROVINCE
2010 /11
2011 /12
2012 /13
R'000
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
Northern Cape
84 536
North West
Western Cape
Total

17. NSNP 2010/11 GRANT FRAMEWORK CONDITIONS
Develop business plans
Distribute budget allocation in terms of the following weightings:
- School Feeding: minimum of 95 per cent
- Administration and other activities: maximum of 5 per cent
Minimum feeding requirements:
Provide meals to all Q1-3 primary and Q1-2 secondary school learners on all school days
Cost per meal per learner in primary schools at R2.30 and in secondary schools at R3.25
Honorarium at R600 per month, in line with a food handler to learner ratio of 1:200
Comply with recommended menus
(Fresh fruit/ vegetables served daily and varied per week; a variety of protein food should be served per week. Tinned fish, preferably processed with bones, should be served at least once a week. Soya should not be served more than twice a week)

18. HIV/AIDS Life Skills 2010 GRANT FRAMEWORK
Strategic
goal
To provide access to an appropriate and effective integrated system of prevention, care and support for learners, educators and support staff infected and affected by HIV and AIDS
Grant
purpose
To develop, implement and manage Life Skills education in line with the HIV/Aids & STIs National Strategic Plan (NEW)
Outcome statements
Life Skills integration in the school curriculum at primary and secondary schools;
Care and support provided to learners, educators and support staff infected and affected with HIV and AIDS;
Reduction in risky behaviour among the school-going youth;
Reduction in teenage pregnancy as well as drug and substance use (NEW); and
Schools implement learner retention programmes (NEW)

19. HIV/Aids Life Skills 2010 GRANT FRAMEWORK (cont)
Outputs
1 500 master trainers trained in the integration of Life Skills and HIV and AIDS programmes;
educators trained to integrate the Life Skills programme in line with Departmental policies;
SMTs trained on integrated planning and management of school implementation plans;
Peer education, care and support programmes for learners, educators and other school support staff implemented in additional schools; and
Age-appropriate National Curriculum Statement compliant Learning and Teaching Support Material for Grades R-7 adapted for the deaf and blind and distributed to special schools.

20. HIV/Aids Life Skills KEY OUTCOME INDICATORS
Quality curricular prevention and school-based life skills (peer education) programme provided in primary and secondary schools
Quality Sexual and Reproductive Health and HIV prevention programmes implemented in primary and secondary schools
Reduction in risky behaviour
Reduction in teenage pregnancy rate
Reduction in drug and substance abuse
School implementation plans used to manage risky behaviour in schools

21. HIV/Aids Life Skills 2010/11 GRANT FRAMEWORK CONDITIONS
Develop business plans
Distribute budget allocation in terms of the following weightings:
- Advocacy and Communication: 3 percent
Training and development: 35 percent
Peer education: percent
Care and support (Not EAP or clinical): 25 percent
Learning and Teaching Support Material: 10 per cent
Management, support, monitoring and evaluation: 7 percent
Note: Provinces may adapt according to local conditions

22. Technical Schools Recapitalisation 2010/11 Grant Purpose and Activities
The purpose of the recapitalisation of technical schools is to improve conditions of technical schools and modernise them to meet the teaching requirements of learners in the technical and vocational fields and increase the number of suitably qualified and technically skilled graduates from these schools.
Provinces will utilise the funds for the following activities:
Building or re-designing workshops at technical schools to support the technical subject offerings.
Refurbishing workshops in technical schools to comply with safety laws and to meet minimum industry standards.
Buying and installing new machinery and equipment consistent with the technical subjects that are offered in technical schools.
Training and up-skilling teachers at technical schools to acquire new trends, practical skills, and developments in technical subjects.

23. Technical Schools Recapitalisation 2010/11 Grant Allocation Principles
The funds have been allocated to each province, according to the results of the audit, which reported on the conditions of schools to be recapitalised.
The Department determined the baseline values associated to each need, in accordance with the purpose of the project.
Baseline values were identified in the following expenditure items: Acquisition of land and buildings (R ) per new
workshop;
Equipment and machinery (R2,6 million) maximum allocation
per school;
Renovations to property (R ) per technical
subject/workshop; and
Training of teachers (R10 500) per teacher.

24. Proposed Allocations 2010/11 – 2012/13 (Audit Results Only)
PROVINCE
AUDIT RESULTS CRITERIA - CONSOLIDATED ALLOCATIONS
2010/11
R’000
2011/12
2012/13
TOTAL
% Allocation
E Cape
14,922
37,306
39,171
91,400
18.65
Free State
5,660
14,150
14,858
34,669
7.08
Gauteng
12,127
30,318
31,834
74,281
15.16
KZN
15,314
38,285
40,200
93,800
19.14
Limpopo
10,869
27,172
28,531
66,573
13.59 MP
7,120
17,800
18,690
43,611
8.90
N Cape
2,956
7,390
7,759
18,106
3.70 NW
6,695
16,737
17,574
41,007
8.37
W Cape
3,334
8,336
8,753
20,424
4.17
DoBE
1,000
2,500
2,625
6,125
1.25
80,000
200,000
210,000
490,000
100

25. Consolidated Allocations 2010/11 – 2012/13 (Equitable Share)

26. Technical Schools Recapitalisation Management and Monitoring
According to the grant framework, the Provincial Departments of Education are required to draft business plans and submit to the Department for evaluation and approval.
The Department and the project steering committee will manage and monitor the project on a regular basis.
Provincial Departments of Education are required to monitor the implementation process against the operational/business plans.
The monitoring and evaluation of the grant will be undertaken in compliance with the relevant policy provisions such as the Division of Revenue Act, Public Finance Management Act and the National Education Policy Act, as amended.