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

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.

3. 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.

4. 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.

6. Budget and Expenditure Trends Analysis Expenditure by Conditional Grants Table 3

7. 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.

8. 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 NGO`s. • 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.

9. 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

10. 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

12. 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.

13. 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.

14. National School Nutrition Programme Grant Table 5

15. 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:

17. 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.

18. 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.

19. 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.

20. 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.

21. 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 GDE’s Works Inspectorate. • Most projects should be completed towards the end of 2008.

22. 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.

23. 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.

24. Infrastructure Grant CAPEX Summary of Actual Expenditure – New Construction

25. Infrastructure Grant CAPEX Summary of Actual Expenditure - Rehabilitation

26. Infrastructure Grant CAPEX Summary of Actual Expenditure

27. 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.

28. 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

29. 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

30. Thank you