A report on the 1st Quarter Outcomes in respect of Conditional Grants

1
A report on the 1st Quarter Outcomes in respect
of Conditional Grants April to June 2008/09

2
Introduction

• The Gauteng Department of Education (GDE)
  currently administers four Conditional Grants for
  the fiscal year 2008/09 which amounts to
  R1,070,198 billion.
• These grants constitutes 6.4 percent of the total
  GDE budget of R16,629,084 billion.
• The goal of GDE is to achieve systemic
  improvements and to maintain sustainable
  implementation of Conditional Grants with a
  positive impact in the areas of the National
  School Nutrition Programme, HIV/AIDS Life Skills
  Education, FET Recapitalisation and
  Infrastructure (CAPEX).
• In order to achieve this goal and to fulfil its
  obligation the GDE fosters a learning environment
  by means of reflecting and reporting programme
  progress and achievements through quarterly
  reports.
• This report presents a detailed in-depth analysis
  of the Conditional Grant revenue for the
  financial year 2008/09 and expenditure for the
  first quarter ending June 2008.
• The compilation of this report relies on data and
  information provided by the four programme
  managers for Conditional Grants, BAS, the In-year
  Monitoring Tool (IYM) and other relevant budget
  documentation.

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Budget and Expenditure Trends Analysis

• Expenditure by Programme

• The Dept spent R3,691 billion (22 per cent) of
  its budget in the 1st quarter from 01 April to 30
  June 2008.

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Budget and Expenditure Trends Analysis
5
Budget and Expenditure Trends Analysis

• Expenditure by Economic Classification
• Current Payments accounts for the largest portion
  of expenditure at R3, 326 billion of which
  Compensation for Employees
• Goods and Services also show significant spending
  amounting to R327,953 million.
• Transfers and Subsidies - at the end of the 1st
  quarter transfers of R349, 817 million had been
  made.
• Under Payments for Capital Assets, Building and
  other the expenditure amounts to R13, 707
  million from April to June 2008.

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Budget and Expenditure Trends Analysis

• Expenditure by Conditional Grants
• Table 3

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Budget and Expenditure Trends Analysis

• Expenditure of conditional Grants
• The actual expenditure for all Conditional Grants
  as at 30 June 2008 is R42, 581 million with the
  bulk of the spending from the National School
  Nutrition Programme and FET Recapitalisation.
• The HIV and Aids Conditional Grant expenditure is
  very low in comparison to Nutrition and FET
  Recapitalisation but 40 has been already
  committed and spent since the 1st Quarter Report.
  

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HIV and AIDS (Life Skills Education Grant

• Progress to date
• Districts successfully conducted their planned
  activities during the month of June 2008
• Stress management for educators
• Girl learners were engaged on teenage pregnancy ,
  
• HIV and AIDS awareness with educators, learners
  and NGOs.
• Peer education camps for learners.
• Conducted accredited counselling course for
  educators.
• First Aid training and Care and Support Jamboree
  for child headed families and needy children.

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HIV and AIDS (Life Skills Education Grant)

• Table 4

• Actual expenditure for HIV/AIDS for the 1st
  quarter is at R513, 000 thousand which is 2,1
  percent of the allocated grant for 2008/09
  June/July activities not included in the above
  expenditure figures

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HIV and AIDS (Life Skills Education Grant)

• Interventions to keep spending on track
• We conducted interviews and recommended
  candidates for vacant posts at the districts.
• To strengthen capacity at the district level in
  order to fast track the procurement processes.
• All the districts have submitted their annual
  activities reference to their operational plans.

11
National School Nutrition Programme Grant

• Progress to date
• Learners received food for 14 days in June 2008.
• Learners at 1491 schools were fed.
• R24, 799,699 million has been spent to date.
• Invoices for April 2008 to June 2008 has been
  paid.
• The tender for the evaluation of the programme
  has been advertised.
• Expanded to Quintile 3 schools that elected to
  become No Fee Schools

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National School Nutrition Programme Grant

• Challenges and Concerns experienced during the
  quarter
• If all learners in quintile 3 schools receive
  food the given allocation will not be sufficient
  for this financial year.
• Inadequate human resource at District level.
• Monitoring at district level
• Escalation of current food prices.

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National School Nutrition Programme Grant

• Interventions/Corrective measures
• District offices to obtain data and information
  from quintile 3 schools to indicate which schools
  will run their own feeding programmes. The
  database will be updated after the office has
  received correspondence from district offices.
• The lack of monitoring of schools and the none
  submission of monthly reports by district
  officials has been reported to the district
  directors at the BMT meeting.
• Advertisement for vacant posts has been placed.

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National School Nutrition Programme Grant

• Table 5

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National School Nutrition Programme Grant

• Interventions to keep spending on track
• A survey on food production was conducted.
• The advertisement of a tender for the assessment
  of the programme by an independent consultant.
• The procuring of lockable storage cages for LPG
  gas cylinders and fire extinguishers.

16
Further Education and Training College Sector
Recapitalisation Grant

• Budget allocation, Expenditure trends and Balance
  per activity
• Table 6

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Further Education and Training College Sector
Recapitalisation Grant

• Budget allocation, Expenditure trends and Balance
  per activity continuous
• The FET Recapitalisation Conditional Grant
  consist of seven sub-programmes or strategic
  areas which conforms to the strategic objectives
  and priorities of GDE.
• The FET Recap programme has managed to spend
  R17,781 million of its allocation for the 1st
  quarter of the financial year 2008/09 which is
  10,6 per cent of the total budget.
• Buying or building of new classrooms, accounts
  for the bulk of the expenditure 64,8 per cent of
  the entire expenditure for the 1st quarter.

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Infrastructure Grant CAPEX

• Progress to date
• New schools prior to 2006
• Twenty-three new schools were completed, of which
  nineteen were taken over for occupation in
  previous financial years.
• The nineteen projects referred to are still on
  the building programme for finalization of minor
  outstanding/remedial works and settlement of
  final accounts.
• Four schools are still under construction, namely
  JB Marks, Katlehong South, Pretoria Inner City
  and Isipho Sethu. With the exception of
  Katlehong South and Pretoria Inner City, all
  projects are planned for final completion during
  the 2008/09 financial year.
• The buildings of JB Marks and Isipho Sethu should
  be ready for occupation during the next quarter
  (July 2008), whereas Katlehong South and Pretoria
  Inner City are expected to be ready for
  occupation towards the end of 2010 and 2008
  respectively.

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Infrastructure Grant CAPEX

• Progress to date continuous
• New alternative schools
• Two of the original eight alternative school
  projects were completed during the previous
  financial year.
• The six projects appearing on the 2008/09
  building programme have also reached the stage of
  practical completion (and the buildings have been
  taken over for occupation) but minor remedial /
  outstanding work need to be done and final
  accounts settled.
• It is anticipated that all six projects will be
  finalized shortly.

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Infrastructure Grant CAPEX

• Progress to date continuous
• Additions to schools
• 17 projects are in retention / final account
  stage.
• Major additions to Vukosi and Mandisa Schiceka
  schools, activated by Public works during 2007,
  will only be completed towards the end of 2009.
• The remaining 4 projects still under construction
  are expected to be completed before the end of
  2008.
• Upgrading of schools
• Thirty-one projects, of which 21 have been
  completed except for retention items/final
  accounts
• It is anticipated that all these projects will be
  finally completed before the end of 2008/09.

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Infrastructure Grant CAPEX

• Progress to date continuous
• Fencing
• Thirteen fencing projects, of which 5 have been
  completed
• Eight projects are currently under construction
• List of new projects to a total value of R20m are
  currently being compiled for activation during
  the next quarter.
• Rehabilitation of schools
• This sub-programme comprises of 80 projects
  ranging between R100 000,00 to R400 000,00 per
  project.
• With the exception of one project, the work is
  being carried out by GDEs Works Inspectorate.
• Most projects should be completed towards the end
  of 2008.

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Infrastructure Grant CAPEX

• Progress to date continuous
• Ex North West Rehabilitation
• Thirty-nine ex North West schools in a bad state
  of repair were handed over to Public Works for
  repairs and renovations.
• All schools have already been evaluated and
  tenders are currently being adjudicated/awarded.
  
• All projects are programmed for completion before
  the end 2009. Numerous other ex North West as
  well as Mpumalanga schools are in a similar state
  of disrepair and will be taken into consideration
  when the Infrastructure Plan is updated.
• Some of the last mentioned projects may have to
  be activated without delay for health and safety
  reasons.
• A ring-fenced amount of R27m for the
  eradication of inappropriate structures forms
  part of the R65 allocation for this
  sub-programme.

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Infrastructure Grant CAPEX

• Progress to date continuous
• Challenges and Concerns experienced during the
  quarter
• An ongoing problem since June 2007 when the
  migration of functions / projects to Public Works
  was finalized, has been the inaccurate and late
  monthly progress and cash-flow reports received
  from Public Works.
• Inaccurate reports make it impossible to predict
  expenditure over the MTEF
• Caused embarrassment as monthly IRM reports have
  been submitted late to Provincial Treasury.
• The matter has been taken up with Public Works at
  various client review meetings as well as in
  writing.
• A template to improve the accuracy of project
  specific progress and cash-flow reporting has
  been developed in collaboration with the IDIP
  team and Public Works and will be introduced
  during the next quarter.
• The idea is to test the template first (and to
  revise it if necessary) before it is made
  applicable to all GDE projects, including
  projects being dealt with by other implementing
  agents such as the IDT.
• The introduction of this template will enhance
  the accuracy of reporting and ensure proper
  progress, budget and cash-flow control.

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Infrastructure Grant CAPEX

• Summary of Actual Expenditure New Construction

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Infrastructure Grant CAPEX

• Summary of Actual Expenditure - Rehabilitation

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Infrastructure Grant CAPEX

• Summary of Actual Expenditure

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Infrastructure Grant CAPEX

• Interventions to keep spending on track
• The appropriation of conditional grant funds to
  projects or groups of projects is based on
  estimated contract values as well as assumptions
  w.r.t. progress and achievement of certain
  milestones over the MTEF.
• The expenditure for the first quarter is 11, 2.
  
• The estimated expenditure for the 2008/09
  financial year is not based on a straight line
  prediction as various major projects will,
  according to programme, only have contractors on
  site during the second and third quarters when
  expenditure will increase drastically.
• Cash-flow predictions submitted by Public Works
  are closely monitored against time / progress on
  a monthly basis and corrective action will be
  taken if under-lover-expenditure becomes evident.

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Issues Relating to ECD Grade R

• Number of registered Grade R sites
• 1633 sites (including 160 Community Based Sites)
• During 2009 the Department will establish an
  additional 600 Grade R sites in the province
  catering for approximately 65 000 learners.

• 2. Number of Number of accredited ECD centres
• All grade R sites are registered and accredited
  by the Dept
• 3. Funding for these centres and whether the
  funding reaches intended beneficiaries
• Currently the number of funded sites reached over
  40 000 beneficiaries.
• The Dept has targeted quintile 1 to 3 schools for
  the expansion in this regard

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Issues Relating to ECD

• 4. Performance of such funding
• The departmental budget for the maintenance and
  expansion for Grade R sites is R192, 471 million
  
• The funding allocation for support for the
  pre-grade R roll out is R17,1 million
• The budget for pre-grade R is mostly for the
  training of ECD practitioners as provided for by
  the ECD White Paper
• 5. The number of beneficiaries reached with
  specific reference to rural areas
• ECD registration and allocations included rural
  areas, these areas are targeted
• 170 sites and 3229 learners in grade R
• 6. Challenges experienced
• Regulating Grade R, in particular the community
  based sites
• Practitioner employment related issues, for
  example service contracts, contribution to the
  unemployment insurance fund.
• Terminology to be used in all future
  communication needs to be clarified, e.g. Grade R
  site versus Grade R class, Grade R practitioner
  versus Grade R educator
• Current system to used to resource Grade R that
  is time consuming
• Challenges to expansion caused by lack of
  infrastructure

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Thank you