PRESENTATION TO THE SELECT COMMITTEE ON FINANCE 13 TH FEBRUARY 2007

1. PRESENTATION TO THE SELECT COMMITTEE ON FINANCE 13TH FEBRUARY 2007 KWA-ZULU NATAL DEPARTMENT OF EDUCATION: HEARINGS ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE OF DEPARTMENTS

2. INFRASTRUCTUREPROGRAMME

3. 2006/07 Q3 EXPENDITURE ANALYSIS Service Delivery targets for 2006/07 = 1,750 classrooms and 2,500 toilets

4. CAPACITY CONSTRAINTS/LOW EXPENDITURE • Early closure in December. • 2 month lag between delivery and payment – contractor submits invoice to IA , IA pays contractor and IA claims from department. • The DoW have indicated experiencing problems with National Treasury in loading up payments for their numerous service providers and have indicated that there would be an approximate 1 week delay in submitting their invoice for the month of January 2007 • Internal capacity constraints – department has put measures to address

5. PROJECTIONS AND IMPROVEMENTS • The Q3 projections have forecast an approximately R13m over-expenditure for the year • The Department has revised its estimates taking into account its drop in budget, thus realising an over-expenditure • The Department has significantly improved its financial management systems with respect to Infrastructure and claims processing

6. EXPENDITURE AND DELIVERY MONITORING The Department has formed the following teams to ensure that monthly performance monitoring is carried out: • Education/Works Provincial Joint Task Team • Education/Provincial Treasury Joint Task Team • Monthly and quarterly reporting to National Education and Treasury • Internal Infrastructure Delivery Committee • Internal Finance/Infrastructure Liaison

7. FET COLLEGE RECAPITALISATION

8. FET EXPENDITURE SUMMARY

9. MONITORING AND REPORTING • Assessment of structural progress has been done. • Verification of committed expenditure completed. • Virement between colleges being assessed.

10. HIV / AIDSPROGRAMME

11. Q3 HIV and AIDS Allocation for 2006/07 R 32,994m Amount transferred at end of Q3 R 24,747m Expenditure as of end of Q3 R 18,728m % Spent of Total Allocation 56,8% % Spent of Amount Transferred 75,6%

12. Q3 HIV and AIDS • Spent for Q3 was 75,6% of amount transferred. • Lay Counselling workshops conducted in December – Invoices processed in January • Project 100% expenditure

13. MONITORING HIV AND AIDS • Monthly reporting in accordance with Schedule 3A and 3C of DORA • Approved business plan used as management and monitoring tool • Monthly meetings held with all Districts and affected Directorates to table financial reports(cash flow) for monitoring spending according to the conditions of the Grant

14. NATIONAL SCHOOL NUTRITION PROGRAMME

15. Q3 NSNP Gazette allocation for 2006/07 R 239,372m Additional funding from Vote 5 Baseline R 76,000m Total Budget for the Financial Year R 315,372m Amount transferred at end of Q3 R 179,529m Expenditure as of end of Q3 R 233,141m % Spent of Total Allocation 73,9 % % Spent of Amount Transferred 129 %

16. PROJECTIONS • Of the R239,3m allocated – R216,4m (90%) will be spent • Balance relates to March expenditure which will not be paid R20,7m (9%) and capital items R2,2m (0,9%) that will be delivered in the next financial year. • Of the R76m funded from baseline R58m (76%) will be spent. • Requesting roll-over of R22,9m in respect of 2006/07 monies. • The balance of R18m unspent portion of R76m – will probably be funded from baseline – continuing to put pressure on departmental finances.

17. EXPENDITURE TRENDS SUMMARY