1. NORTHERN CAPE DEPARTMENT OF EDUCATION PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE: 3 rd QUARTER PROVINCIAL SPENDING REPORT 13 February 2007

2. 2006/07 CONDITIONAL GRANT ALLOCATIONS PROGRAMME BUDGET Food Nutrition R 29,647,000 HIV-Aids/Life SkillsR 2,457,000 FET R 10,000,000 InfrastructureR 26,891,000 TOTAL= R 68,995,000

3. 3 2006/07 EXPENDITURE TRENDS Spending on the PSNP conditional grant stands at 79% at the end of the 3 rd Quarter which paints a very healthy picture with no under-spending or overspending predicted for the 2006/2007 financial year. The approval of a rollover of R 2,262,000 in November 2006 brought the % spent down to 73,5%. Spending on the HIV and Aids (Life Skills) grant stands at 58% at the end of the 3 rd Quarter, with 94% of the total budget committed by 11 January 2007. Spending on the Infrastructure grant hiked from 46,7% in the 2 nd Quarter report to 79,7% of available conditional grant funds at the end of the 3 rd Quarter. During the first half of 2006/07 38% of available conditional grant funds for FET were spent. At the end of the 3 rd Quarter an improvement of 68% expenditure was reached.

4. CONDITIONAL GRANTS 2006/07 EXPENDITURE FOR 3 RD QUARTER AGAINST ANNUAL ALLOCATION GRANTANNUAL ALLOCATION ACTUAL EXPENDITURE BY END OF 3 RD QUARTER Variance% Spent PSNP29,647,000.00 *(31,909,000.00) 23,463,597.006,183,403.00 *(8,445,403.00) 79% *(73,5%) HIV & Aids/Life Skills2,457,000.001,424,589.001,032,411.0058% FET10,000,000.006,741,366.333,258,633.6768% Infrastructure26,891,000.0021,426,493.005,464,507.0079,7% TOTAL68,995,000 *(71,257,000.00) 53,056,045.3315,938,954.67 *(18,200,954.67) 64% * Represents the PSNP rollover of R 2,262,000 approved in November 2006

5. 5 PSNP: ACHIEVEMENTS 128,452 learners reached in 311 schools. 175 schools monitored. 142 school gardens established. Food Handlers Training completed in all four districts.

6. 6 PSNP: CHALLENGES Developing a system to ensure timeous submission of expenditure reports from schools. Inadequate infrastructure in rural and farm schools. The inclusion of Kgalagadi District after the cross boundary realignment process.

7. 7 PSNP: MONITORING MECHANISM Monitoring plan outlined in Annual Performance Plan strictly adhered to. A common monitoring tool is enforced and implemented by all districts. Target 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.

8. 8 HIV & AIDS: CONTEXT Reasons why expenditure was low: Awaiting invoices for payment in respect of Life Skills Material (R502 211) A large amount budgeted (R234 000) is for the rental of Imperial dedicated cars and this amount only gets deducted from the transport section in October (50%) and March (other 50%). The first invoice of R180 750 is currently being processed by the Finance section. An amount of R350 000 was incorrectly posted against the Provincial budget (in the districts) and not the Conditional grant. This is being corrected.

9. 9 HIV & AIDS: COMMITMENTS Amounts still outstanding: (Committed) The amount of R350 000 will be adjusted to reflect on the Conditional Grant. All the invoices for the purchasing of LTSM must still be processed. Two invoices (R55 844.14 and R89 722.00) have been received and will show on the next expenditure report. The other order to the value of R156 400 has been delivered and the invoice will be processed within the next week. The printers are currently busy with the last order. This invoice will be processed upon delivery of the material. (Total amount - R502 211).

10. 10 HIV & AIDS: PROJECTION ON SPENDING ON THE REMAINDER OF THE FINANCIAL YEAR Allocation Actual Expenditure Outstanding & Committed Variance R 2,457,000 R 290,000 (Roll-over) R 2,747,000 (Budget + Roll-over) R 1,424,589R 1,032,961R 289,450 TOTAL (Spent & Committed) =R 2,457,550

11. 11 HIV & AIDS: ACHIEVEMENTS Monitoring of Life Skills Program on track, except in Siyanda District. Successful care and support information sessions and training. Successful Peer Education Programmes in all Districts.

12. 12 HIV & AIDS: CHALLENGES Monitoring of Life Skills programme in Siyanda District. Collaboration with other stakeholders, i.e. Social Services, Health, etc. Functional Health Advisory Committee. Moral regeneration.

13. 13 HIV & AIDS/LIFE SKILLS: MONITORING MECHANISMS Monitoring takes place on a continuous basis as per requirements. Regular monitoring is done on the following aspects:  Implementation of the Life Skills Programme;  Integration with the Curriculum;  Care and Support Programmes at schools;  Functional Health Advisory Committees;  Peer Education; and  School Aids Policies.

14. 14 FET: CONTEXT The grant covers 2 areas, i.e. Urban College and Rural College. The grant provides for the following: staff development and training opportunities; to develop systems and procedures for new programmes; to purchase equipment to support teaching and learning; to build new classrooms, and upgrade, refurbish and modernise classrooms and workshops to rehabilitate 2 college sites

15. 15 FET: ACHIEVEMENTS Urban College: 21 additional staff members trained in health and safety in the workshop. Central office linked electronically with campuses, new brochures printed for NCV and network points installed. Equipment purchased and delivered for Civil Engineering Construction and also for Electrical, Plating, Computer and Academic Support Labs. 1 Welding workshop and 1 stone cutting workshop upgraded; and Plating, Electrical, and SIMSA labs upgraded. Appointment of a Quantity Surveyor.

16. 16 FET: ACHIEVEMENTS (cont.) Rural College: 5 staff members trained as moderators. Admin systems of all campuses linked into one single system. An additional 5 staff members trained in Management Systems and 5 in Fixed Assets Management. 4 workshops upgraded in Namakwa, existing storeroom in Upington converted in a Manufacturing and Extraction workshop, and building of 6 classrooms in Kathu is 80% in completion. IT equipment ordered, delivered and installed in Upington and Kuruman Campuses.

17. 17 FET: CHALLENGES Personnel – FET Unit to be right sized to speed up service delivery. Appointment of second layer of management at colleges. Connectivity in the Rural College is a problem as some areas (Namakwa Campus) does not have ASDL broadband internet lines. The college is looking for alternative satellite based connectivity.

18. 18 FET: MONITORING MECHANISMS Monitoring is done against the approved college operational plans. Submission of monthly and quarterly reports by the two colleges. Site visits on a monthly and quarterly basis or when need arises. Regular support to colleges that experience challenges in any of the aareas of implementation. Quarterly meetings with college project managers. Future plans include the conducting of internal audits and strengthening the monitoring team.

19. 19 INFRASTRUCTURE: CONTEXT Construction of new and maintaining existing infrastructure Renovating and repairing existing infrastructure Administering properties leased by the department.

20. 20 INFRASTRUCTURE: ACHIEVEMENTS Completion of 49 classrooms from the backlogs Completion of Orion Hostel in De Aar. Completion of construction of two new schools, i.e. Schmidsdrift and Riverside Senior Phase Schools

21. 21 INFRASTRUCTURE: CHALLENGES Lengthy finalisation of tenders resulting in delays in the implementation and completion of new projects Appointment of contractors that do not honour delivery schedules and contracts.

22. 22 INFRASTRUCTURE: PROGRESS REPORT FOR 2006/2007 Classrooms Admin blocks Ablution Blocks Classroom Construction and conversions Conversions of classrooms into offices Science Labs Forum Repairs and renovations Schmidsdrift New Town Galeshewe 75% 2 12 4 3 3 2828 98% 0% 2 2 1 1 In progressTender AdjudicationPlanningCompleted 2006/2007 25 2 2006/2007 012 1

23. 23 INFRASTRUCTURE: ADDRESSING THE BACKLOGS FROM 2004/2005 FINANCIAL YEAR ONWARDS The following projects are multi year projects also addressed in the 2006/2007 financial year:

24. 24 INFRASTRUCTURE: MONITORING MECHANISMS Monitoring capacity is a big challenge because of a lack of sufficient skilled personnel to monitor projects effectively. The NCED has however approved the upgrading of the infrastructure unit to a directorate for physical planning with the requisite personnel and appointment of staff in districts.

25. 25 Thank You

26. 26 Chair comments Will focus on CG for this year but maybe EQF for next year Provincial treasuries must provide a 2 to 3 page input saying why the funds on CG should not be cut The intention is to cut those provinces who have a pattern of under spending on the grants.

27. 27 Hard copy circulated. Special team from Nat treas will assist the committee to do this work Majileng presentation see handout Chair: compare reports of provinces with report of Nat treas to check congruence NCOPFINCOM would want to make site visits to view the projects listed in the reports

28. 28 Every MP will be given the data to follow up in their constituency work NW Pres Chair: Questions the credibility and reliability of business plans – since there are major discrepancies between budgets and actual spending (particularly over spending). Thus need finely calibrated planning. Balance between over and under spending must be obtained

29. 29 MEC: EC – Context: Will report the truth PSNP = an amount of 32m stuck in the adjustment. People do not put a face to nutrition but the money CFO reports Chair: Queries why PSNP allocations are decreasing. Targets are higher but budgets going down

30. 30 Plea to MECs to “smuggle” the issue of school safety in the minmec for specific funding for this EW Note: MECs present: NW, EC, FS, GT, LP, (abs: KZN, NC, WC, MP) HODs: NC, NW, NWMEC Response: Concept of Mega Schools as the strategy for farm schools, thus no spending on “farm schools”.

31. 31 Get docs from FS wrt community / SGB building schools and conducting minor maintenance in schools i.e. guidelines for procurement etc.

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