Restructuring of Education and Budget Distribution

1. DIVISION OF REVENUE BILLVOTE 14: BASIC EDUCATION • Presentation to Select Committee on Appropriations • 5 March 2010

2. Presentation Information • Restructuring of Education and distribution of budget • Funding of Education Sector: Equitable Share • Basic Education Conditional Grants

3. Part 1Restructuring of Education and distribution of budget • The Department was established through the split of the Department of Education through the Government restructuring process during 2009 • The Department received functions from the Department of Education • These functions include: • Adult basic literacy and numeracy through the Kha Ri Gude campaign • Shool Education

4. Part 1Restructuring of Education and distribution of budget (2) • The budget for the Department consist of funds based on the split of the Department of Education • The splitting of funds from the Department of Education was done on an agreed framework in line with the allocation of functions as well as the distribution of the staff compliment • (See next slide on extract from Distribution Framework) • The Department may experience budget constraints during the 2010/11 financial year onwards since no additional funds were allocated for the establishment of the Department

5. Budget Distribution Framework: Education • Budget was split according to agreed framework between three DGs • Compensation of employees were distributed according to agreed ratios for each directorate • Earmarked Funds were allocated based on function • Commitments such as audit fees, rental machines, computer services, bank charges, etc. were determined for both departments and allocated to the respective directorates • Funds for operational costs and projects were dealt with as follows: • MTEF amounts for all components were split in agreed ratios between the two Departments • Operational costs of Directorates/components were allocated based on specific requirements • Available balance was reserved for projects

6. Part 1Restructuring of Education and distribution of budget(3) • The aim of the Department is to develop, maintain and support a South African school education system for the 21st century. • Programmes in the 2010 ENE: • Administration (R252.8 million) • Curriculum Policy, Support and Monitoring (R1 354.3 million) • Teacher and Education Human Resources Development and Management (R513.7 million) • Planning, Quality Assessment and Monitoring and Evaluation (R148.7 million) • Social Responsibility (R3 896.7 million) • Details per programme follow in the next slides

7. Programme 1: AdministrationOverall management and administration of the Department Minister, Deputy Minister, Management, Corporate Services, National and Provincial Coordination and Administration as well as Office Accommodation Programme 2: Curriculum Policy, Support and Monitoring Develop curriculum and assessment policies for basic education and monitor their implementation • Curriculum Implementation and Monitoring • National Curriculum Institute • Curriculum and Quality Enhancement Programmes • KhaRiGude Literacy Project Programme 3: Teachers and Education Human Resources Development and ManagementPromote quality teaching and institutional performance through effective supply, development and utilisation of human resources • Education Human Resources Management • Institutional Development • Teacher Education

8. Programme 4: Planning, Quality Assessment and Monitoring and Evaluation Promote quality and effective service delivery in the basic education system through research, monitoring and evaluation, planning and assessment • Information Monitoring and Evaluation • Financial and Physical Planning and Analysis • Educational Measurements, Assessment and Public Examination Programme 5: Social ResponsibilityDevelop policies and programmes to increase the participation of learners in schools and improve the quality of learning in schools • Social Inclusion in Education • Equity in Education • Health in Education

9. Part 2Funding of Education Sector: Equitable Share • The key aspect in the Division of Revenue Bill for Education is the funding of the Basic Education Sector in Provincial Education Departments • At this stage, Provincial Education Departments receive a total of R128.3 billion. R138.9 billion and R145.6 billion over the 2010 MTEF (excluding conditional grants) • These allocations represent on average 49% of total provincial budgets • Compensation of employees remains the biggest portion of the budgets of Provincial Education Departments at an average of 79.9% over the 2010 MTEF • Detail of the allocations per province is reflected in the next 3 slides

10. Preliminary budgets of Provincial Education Departmentsfor the 2010 MTEF These are preliminary figures from the draft 2010 MTEF budget statements which exclude conditional grants

11. Preliminary 2010 MTEF PEDs’ budgetsper economic classification Bulk of funding allocated to compensation of employees Possible decrease in transfers and subsidies over 2010 MTEF

12. Percentage of preliminary PEDs’ budgets against overall provincial budgets Average % allocation to PED’s against provincial budgets remains constant at 49% over 2010 MTEF Normal education share is 51%, therefore EC, LP & MPenjoy a favourable % allocation BUT there are concerns about GP, KZN, NC and WC

13. Part 3Conditional Grants • The Department will be responsible for four conditional grants over the MTEF period as follows: • National School Nutrition Programme • 2010/11 R3 663.326 million • 2011/12 R4 578.752 million • 2012/13 R4 928.090 million • In addition, provision is made for national coordination, monitoring and strategic leadership as follows: • (2010/11: R13.399 million; 2011/12: R8.234 million; 2012/13: R9.098 million) • HIV/Aids Life Skills • 2010/11 R188.045 million • 2011/12 R199.328 million • 2012/13 R209.294 million • No provision in grant for national coordination, monitoring and strategic leadership of the programme – this will need to be funded from the Department’s baseline allocation

14. Part 3Conditional Grants Technical Schools Recapitalisation 2010/11 R80 million 2011/12 R200 million 2012/13 R210 million In addition, provision is made for national coordination, monitoring and strategic leadership as follows: (2010/11: R1 million; 2011/12: R2.5 million; 2012/13: R2.625 million) Dinaledi Schools 2011/12 R70 million 2012/13 R100 million This grant is only from the 2011/12 financial year and details around the framework and activities will be finalised during the 2010/11 financial year

15. NSNP2010/11 GRANT FRAMEWORK

16. NSNP2010 MTEF ALLOCATION PER PROVINCE

17. NSNP2010/11 GRANT FRAMEWORK CONDITIONS

18. HIV/AIDS Life Skills2010 GRANT FRAMEWORK

19. HIV/Aids Life Skills2010 GRANT FRAMEWORK (cont)

20. HIV/Aids Life SkillsKEY OUTCOME INDICATORS • Quality curricular prevention and school-based life skills (peer education) programme provided in primary and secondary schools • Quality Sexual and Reproductive Health and HIV prevention programmes implemented in primary and secondary schools • Reduction in risky behaviour • Reduction in teenage pregnancy rate • Reduction in drug and substance abuse • School implementation plans used to manage risky behaviour in schools

21. HIV/Aids Life Skills2010/11 GRANT FRAMEWORK CONDITIONS • Develop business plans • Distribute budget allocation in terms of the following weightings: - Advocacy and Communication: 3 percent • Training and development: 35 percent • Peer education: 20 percent • Care and support (Not EAP or clinical): 25 percent • Learning and Teaching Support Material: 10 per cent • Management, support, monitoring and evaluation: 7 percent Note: Provinces may adapt according to local conditions

22. Technical Schools Recapitalisation2010/11 Grant Purpose and Activities The purpose of the recapitalisation of technical schools is to improve conditions of technical schools and modernise them to meet the teaching requirements of learners in the technical and vocational fields and increase the number of suitably qualified and technically skilled graduates from these schools. Provinces will utilise the funds for the following activities: • Building or re-designing workshops at technical schools to support the technical subject offerings. • Refurbishing workshops in technical schools to comply with safety laws and to meet minimum industry standards. • Buying and installing new machinery and equipment consistent with the technical subjects that are offered in technical schools. • Training and up-skilling teachers at technical schools to acquire new trends, practical skills, and developments in technical subjects.

23. Technical Schools Recapitalisation2010/11 Grant Allocation Principles • The funds have been allocated to each province, according to the results of the audit, which reported on the conditions of schools to be recapitalised. • The Department determined the baseline values associated to each need, in accordance with the purpose of the project. • Baseline values were identified in the following expenditure items: Acquisition of land and buildings (R500 000) per new workshop; Equipment and machinery (R2,6 million) maximum allocation per school; Renovations to property (R250 000) per technical subject/workshop; and Training of teachers (R10 500) per teacher.

24. Proposed Allocations 2010/11 – 2012/13(Audit Results Only)

25. Consolidated Allocations 2010/11 – 2012/13(Equitable Share)

26. Technical Schools RecapitalisationManagement and Monitoring • According to the grant framework, the Provincial Departments of Education are required to draft business plans and submit to the Department for evaluation and approval. • The Department and the project steering committee will manage and monitor the project on a regular basis. • Provincial Departments of Education are required to monitor the implementation process against the operational/business plans. • The monitoring and evaluation of the grant will be undertaken in compliance with the relevant policy provisions such as the Division of Revenue Act, Public Finance Management Act and the National Education Policy Act, as amended.