1. 1 FREE STATE EDUCATION DEPARTMENT PUBLIC HEARING ON PROVINCIAL BUDGETS AND EXPENDITURE REVIEW 19 October 2005

2. 2 OVERVIEW OF PRESENTATION Introduction Background Strategic goals and objectives 2001/02-07/08 budget and expenditure overview Conditional grants Actual expenditure on programmes 2004/05 main reasons for under spending Monitoring capacity Conclusion

3. 3 FREE STATE DEPARTMENT OF EDUCATION TEAM The Free State Department of Education is represented by Mrs. M A Tsopo, the MEC for education and supported by the following members: Mr. MS Rakometsi: Head Education Mr. TNT Lioma: DDG – Corporate Management and Development Mr. F Sithole: Act. DDG – Curriculum Management and Development Mr. MB Monnane: Chief Financial Officer Me PF Ndaba: Chief Director – Curriculum and Professional Support

4. 4 INTRODUCTION The Free State Department of Education has been invited to Public Hearings on provincial budgets and expenditure trends and to address the NCOP Select Committee on Finance on the following: To present the provincial budget and expenditure review 2001/02 -07/08 The extent to which the budget gives effect to provincial and national mandates

5. 5 BACKGROUND Provincial Departments receive three year MTEF allocations A five year Strategic Plan for the period 2005/06 to 2009/10 has been compiled and published An Annual Performance Plan for the MTEF 2005/06 – 2007/08 has been compiled from the Strategic Plan and published

6. 6 STRATEGIC GOALS AND OBJECTIVES The following main strategic plans and objectives of the Free State Education Department derived from the Strategic Plan are the following: PROGRAMME 1: ADMINISTRATION 1.To ensure that projects/initiatives contribute to economic development and job creation (EPWP) 2.To improve Human Resource Development practices at all levels 3.To promote sound labour relations and good discipline 4.To improve access to Information Communication Technology for office based staff 5.To develop and foster partnerships and collaboration with provincial, national and international stakeholders, donors and departments 6.To ensure sound financial management practices in terms of relevant legislation 7.To improve efficient and effective management of assets 8.To improve risk management and internal control environment to prevent corruption 9.To promote communication with stakeholders, including the business sector 10.To provide Human Resource Development for office based staff

7. 7 STRATEGIC GOALS AND OBJECTIVES (Continued) PROGRAMME 2: PUBLIC ORDINARY SCHOOL EDUCATION 11.To foster a culture of effective learning and teaching 12.To provide Learners and Educators with basic Learning, Teaching and Support Materials in accordance with curriculum needs 13.To ensure that the flow of learners through the public primary and secondary school system is optimally oriented 14.To improve access to e-Education 15.To promote the participation of the historically marginalized group of learners 16.To provide recognition to schools and candidates for their performance 17.To provide professional support to all educators in schools 18.To improve access to and quality of formal education at learning institutions in terms of school effectiveness and educator professionalism 19.To provide departmental services and further development of educators and non-educators in public ordinary schools

8. 8 STRATEGIC GOALS AND OBJECTIVES (Continued) PROGRAMME 4: PUBLIC SPECIAL SCHOOL EDUCATION 20.To provide spaces in public special schools/resources/full service schools in accordance with policy and the principles of inclusive education 21.To provide spaces for out-of-school disabled children to return to learning in public special schools/resources/full service schools 22.To provide professional support to all educators in public special schools/resources/full service schools 23.To provide access to and quality of formal education at learning institutions in terms of school effectiveness and educator professionalism in public special schools/resources/full service schools PROGRAMME 5: FURTHER EDUCATION AND TRAINING COLLEGES 24.To promote the participation of historically marginalized groups in public FET Colleges 25.To promote the transformation of public FET Colleges 26.To ensure that the new Conditional Grant for FET Colleges is utilized effectively and efficiently

9. 9 STRATEGIC GOALS AND OBJECTIVES (Continued) PROGRAMME 6: ADULT BASIC EDUCATION AND TRAINING 27.To link ABET Programmes with Expanded Public Works Programme Objectives 28.To make ABET accessible to learners with special education needs PROGRAMME 8: AUXILIARY AND ASSOCIATED SERVICES 29.To provide for special departmentally managed intervention projects in the education system as a whole 30.To implement the Physical Infrastructure and provisioning of Basic Services: water, sanitation and electricity

10. 10 2001/02 - 07/08 BUDGET AND EXPENDITURE REVIEW 2001/022002/032003/042004/05 Adj. Est. 2005/06 Allocation 2006/07 Allocation 2007/08 R'000 Equitable Share3,303,5173,253,3073,861,0824,278,7244,678,3534,830,9345,083,719 Conditional Grants78,742181,651130,454197,566206,183209,357267,316 Own Revenue 287,159142,044141,360160,351161,950170,048 TOTAL RECEIPTS3,382,2593,722,1174,133,5804,617,6505,044,8875,202,2415,521,083 Current Payments2,994,9313,251,9313,654,5623,923,7702,065,3754,676,6254,919,183 Transfers & Subsidies83,413145,659237,274365,857305,868454,562517,857 Payments for Capital Assets95,539124,604156,338109,87919,02471,05484,043 TOTAL PAYMENTS3,173,8833,522,1944,048,1744,399,5062,390,2675,202,2415,521,083 UNDER/(OVER) SPENDING208,376199,92385,406218,1442,654,62000 % Variance6%5%2%5%53%0%

11. 11 2001/02 - 07/08 BUDGET AND EXPENDITURE REVIEW

12. 12 PAST EXPENDITURE TRENDS BY PROGRAMME Programme2001/022002/032003/042004/052005/06 SEPT ’05 1. Administration79%95%97%96%41% 2. Public Ordinary School Education97%98%99%95%47% 3. Independent Schools100% 66% 4. Public Special Schools99%94%100%99%48% 5. Further Education and Training Colleges 53%95% 100%43% 6. Adult Basic Education and Training 72%81%94%50%77% 7. Early Childhood Development89%93%86%93%39% 8. Auxiliary and Associated Services87%90%83%88%56% 9. Theft and Losses Total Spent94%95%98%95%47%

13. 13 PAST EXPENDITURE TRENDS BY PROGRAMME

14. 14 2001/02 – 05/06 CONDITIONAL GRANTS SUMMARY 2001/02 R’000 2002/03 R’000 2003/04 R’000 2004/05 R’000 2005/06 R’000 Total Amount Received 73,355177,471130,454196,662206,183 Total Spending 20,57976,606111,978181,409140,717 Balance52,776100,86518,47615,25365,466 % Spending28%43%86%92%68%

15. 15 ACTUAL EXPENDITURE ON CONDITIONAL GRANTS AS AT 30 SEPT. 2005 Conditional Grant Total Allocation R’000 Actual Exp. June 2005 R’000 % Spent June 2005 Actual Exp. Sept. 2005 R’000 % Spent Sept. 2005 Early Childhood Development 73700%737100% HIV and Aids8,40282410%3,01536% NSNP56,76811,84221%22,85640% Infrastructure Grant 140,2762,8122,0%411,09781,3% Total206,18315,4788%140,71768%

16. 16 ACTUAL EXPENDITURE ON CONDITIONAL GRANTS AS AT 30 SEPT. 2005

17. 17 SEPTEMBER COMPARATIVE FIGURES 2003/04 – 2005/06 Grant% Spent Sept. 2003/04 % Spent Sept 2004/05 % Spent Sept 2005/06 Early Childhood Development 27%N/A100% HIV and Aids90%55%36% NSNPN/A33%40% National Infrastructure 103%79%76% Provincial Infrastructure N/A44%86% Total73%53%68%

18. 18 ACTUAL EXPENDITURE BY PROGRAMME AS AT 30 SEPT. 2005 ProgrammeTotal Allocation Actual Exp. June 2005 % Spent June 2005 Actual Exp. Sept. 2005 % Spent Sept 2005 Programme 1: Administration 373,770 78,04721% 154,18041% Programme 2: Public Ordinary School Education 3,944,858 948,86124% 1,849,49447% Programme 3: Independent School Education 26,422 10,61940% 17,37166% Programme 4: Public Special School Education 148,973 35,58124% 71,61448% Programme 5: Further Education and Training 152,000 35,83224% 64,75743% Programme 6: Adult Basic Education 73,050 29,81741% 56,00477% Programme 7: Early Childhood Development 33,586 3,93612% 12,96839% Programme 8: Auxiliary and Associated Services 292,228 25,4859% 163,87556% Programme 9: Theft and Losses 4 4 Total 5,044,887 1,168,18223% 2,390,26747%

19. 19 ACTUAL EXPENDITURE BY PROGRAMME AS AT 30 SEPT. 2005

20. 20 SEPTEMBER COMPARATIVE FIGURES (CG) 2003/04 – 2005/06 % Spent Sept. 2003/04 % Spent Sept 2004/05 % Spent Sept 2005/06 All Conditional Grants 73%53%68% Total All Expenditure (CG) 52%38%47%

21. 21 SEPTEMBER COMPARATIVE FIGURES (CG)2003/04 – 2005/06

22. 22 2004/05 EXPENDITURE BY PROGRAMME 2004/05 ProgrammeBudgetExpenditureVariance% Variance Administration329,390315,07414,3164.3% Public Ordinary School Education3,680,5193,511,016169,5034.6% Independent Schools21,65521,64690.0% Public Special Schools134,247133,2271,0200.8% Further Educ & Training135,869135,4494200.3% ABET90,59145,75944,83249.5% ECD31,89429,5092,3857.5% Auxiliary & Associated Services193,485170,61322,87211.8% Theft and Losses 37,213 TOTAL4,617,6504,399,506218,1444.7%

23. 23 2004/05 MAIN REASONS FOR UNDERSPENDING ProgrammeAmount R’000 Reason 1. Administration7,604Outstanding commitments 4,000Computer equipment which could not be procured timeously 2. Public Ordinary School Education 43,240Outstanding pay progression to CS- Educators 19,050Outstanding transfer payments to POS 8,848Outstanding commitments on capital works 2,301Under spending on equipment

24. 24 2004/05 MAIN REASONS FOR UNDERSPENDING (Continued) ProgrammeAmount R’000 Reason 6. Adult Basic Education and Training 34,614Outstanding ABET claims not being paid out 7. Early Childhood Development 2,385Under spending on compensation and outstanding commitments on goods and services 8. Auxiliary and Associated Services 3,729Under spending on compensation 11,565Unspent balances on conditional grants

25. 25 MONITORING CAPACITY AND PLANNING Expenditure trends throughout the Department are now monitored by a dedicated Directorate. Monthly in-house monitoring meetings are now held to provide early warning to all Managers. Each relevant Directorate must now report at the Quarterly Review meetings of its remedial measures on under/over expenditure. Regular monitoring meetings with Department of Public Works, Roads and Transport are held to monitor progress on major capital works. Monthly reconciliation on BAS Expenditure reports are done to track expenditure against each project The full implementation of the Infrastructure Development Programme will also assist to ensure projects are effectively executed. (IDIP) National Treasury is also assisting with the Technical Assistant to support both Education and Department of Public Works, Roads and transport The Planning of Projects is also improved to ensure the projects start on time and are timeously completed. Business Plans for the 2005/06 have been duly submitted for the current financial year according to the Division of Revenue Act.

26. 26 CONCLUSION The Free State Province is the second poorest province in the country. Sixty percent (60%) of schools are farm schools. Education plays a very important role in the Province’s socio-economic upliftment of communities. CHALLENGES FACED BY THE FREE STATE EDUCATION DEPARTMENT To improve the overall literacy rate ( 69,2% in 1996) Implement National Quintiles to achieve equitable school funding to the poor communities Abolish school fees for the first two National Quintiles (Poorest quintiles) Strengthen the exemption policy To provide spaces in special schools/resource centres/full service schools in accordance with policy To implement Learner Support Programmes ( Hostel, Transport )

27. 27 CONCLUSION (Continued) National School Nutrition Programme Feeding in public and farm schools Integrate all the related activities including E-learning Transforming the Further Education and Training (FET) sector Implementation of Early Childhood Development (ECD) in public schools in rural areas Expand ABET programmes and that ABET programmes support the Expanded Public Works Programme Revision of basic infrastructure at schools Improve the provision of Science and Technology programmes in schools

28. 28 THANK YOU