1. DIVISION OF REVENUE BILL VOTE 14: BASIC EDUCATION Presentation to Standing Committee on Appropriations 26 February 2010

2. Presentation Information 2 1.Restructuring of Education and Distribution of Budget 2.Funding of Education Sector: Equitable Share 3.Basic Education Conditional Grants

3. Part 1 Restructuring of Education and Distribution of Budget 3 The Department of Basic Education (DoBE) was established through the split of the Department of Education due to the Government restructuring process during 2009 The DoBE received functions from the Department of Education These functions include: Adult Basic Literacy and Numeracy through the Kha Ri Gude campaign School Education

4. Part 1 Restructuring of Education and Distribution of Budget (2) 4 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 complement (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 DoBE

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 5

6. Part 1 Restructuring of Education and Distribution of Budget (3) 6 The aim of the Department is to develop, maintain and support a South African school education system for the 21 st 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: Administration Overall management and administration of the Department Minister, Deputy Minister, Management, Corporate Services, National and Provincial Coordination and Administration as well as Office Accommodation 7 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 Kha Ri Gude Literacy Project Key objectives and measures include: Reduce the number of illiterate adults in South Africa by 1.5 million by 2011 through the Kha Ri Gude mass literacy campaign. Improve the quality of mathematics, science and technology education by providing support to and monitoring the performance and participation of 500 Dinaledi schools in these subjects in 2010/11 to increase the pass rates. Increasing the number of 5-year-old learners enrolled in Grade R to 900 000 learners by January 2011.

8. Programme 3: Teachers and Education Human Resources Development and Management Promote quality teaching and institutional performance through effective supply, development and utilisation of human resources Education Human Resources Management Institutional Development Teacher Education Key objectives and measures include: Improving the quality of teaching. Improved teacher education. Improve the teacher provisioning model. Improve school management 8

9. 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 Key objectives and measures include: Improving infrastructure planning and monitoring. Reduce the number of underperforming schools by 10 % in all provinces in 2010/11. Improve the management of learner information through the implementation of LURITS in schools. Improve literacy and numeracy through tests in Grade 3, 6 and 9. 9

10. Programme 5: Social Responsibility Develop 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 Key objectives and measures include: Improvement of gender equity in schools. Improve the quality of education and promote access in 450 farm and rural schools. Contribute to the reduction of teenage pregnancies. Improve learning capacity through the National School Nutrition Programme. Reduce health barriers to learning by rolling out health screening. 10

11. Part 2 Funding of Education Sector: Equitable Share 11 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 cycle (excluding conditional grants) These allocations represents 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 period Detail of the allocations per province is reflected in the next 3 slides

12. Preliminary budgets of Provincial Education Departments for the 2010 MTEF Province 2010/11 2011/12 2012/13 EC 20,587,104 22,286,147 23,379,150 FS 7,919,318 8,498,863 8,905,661 GP 20,690,746 22,789,136 23,578,204 KZN 27,259,258 29,651,173 31,263,843 LP 17,741,127 18,883,860 19,707,201 MP 10,974,544 11,789,298 12,329,472 NC 3,320,604 3,614,930 3,780,626 NW 8,638,863 9,384,490 9,909,565 WC 11,135,149 12,021,382 12,708,581 Total 128,266,713 138,919,279 145,562,303 12 – These are preliminary figures from the draft 2010 MTEF budget statements which exclude conditional grants

13. Preliminary 2010 MTEF PEDs’ budgets per economic classification Province 2010/11 2011/12 2012/13 Current payments 118,695,638128,384,013134,145,655 Compensation of employees 103,134,866110,796,353115,987,133 Goods and services 15,560,77217,587,66018,158,522 Transfers and subsidies 2,335,6131,840,5201,883,477 Payments for capital assets 7,235,4628,694,7469,533,171 Total128,266,713138,919,279145,562,303 13 Bulk of funding allocated to compensation of employees Possible decrease in transfers and subsidies over 2010 MTEF

14. Percentage of preliminary PEDs’ budgets against overall provincial budgets Province 2010/11 2011/12 2012/13 EC 51%52% FS 50% GP 46%47%46% KZN 48% LP 53% 54% MP 51%52%51% NC 47%48%47% NW 50% WC 46% Total49% 14 Average % allocation to PED’s against provincial budgets remains constant at 49% over 2010 MTEF Normal education share is 51%, therefore EC, LP & MP enjoy a favourable % allocation BUT there are concerns about GP, KZN, NC and WC

15. Part 3 Conditional Grants 15 The Department will be responsible for four conditional grants over the MTEF period as follows: National School Nutrition Programme 2010/11R3 663.326 million 2011/12R4 578.752 million 2012/13R4 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 2010/11R188.045 million 2011/12R199.328 million 2012/13R209.294 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

16. Part 3 Conditional Grants 16 Technical Schools Recapitalisation 2010/11R80 million 2011/12R200 million 2012/13R210 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 2011/12R70 million 2012/13R100 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

17. NSNP 2010/11 GRANT FRAMEWORK Strategic goal  To enhance learning capacity and to improve access to education Grant purpose  To provide nutritious meals to targeted learners Outcome statements  Enhanced learning capacity and improved access to education Outputs  Nutritious meals served to learners 17

18. Province2010 /112011 /122012 /13 R'000 Eastern Cape 702 936 845 166 909 644 Free State 195 194 244 699 263 367 Gauteng 388 884 509 798 548 690 KwaZulu-Natal 855 285 1 070 013 1 151 644 Limpopo 659 233 829 669 892 964 Mpumalanga 354 341 440 923 474 560 Northern Cape 84 536 105 116 113 135 North West 249 599 305 935 329 301 Western Cape 173 318 227 433 244 784 Total 3 663 3264 578 7524 928 090 NSNP 2010 MTEF ALLOCATION PER PROVINCE 18

19. NSNP 2010/11 GRANT FRAMEWORK CONDITIONS  Develop business plans  Distribute budget allocation in terms of the following weightings: - School Feeding: minimum of 95 per cent - Administration and other activities: maximum of 5 per cent  Minimum feeding requirements:  Provide meals to all Q1-3 primary and Q1-2 secondary school learners on all school days  Cost per meal per learner in primary schools at R2.30 and in secondary schools at R3.25  Honorarium at R600 per month, in line with a food handler to learner ratio of 1:200  Comply with recommended menus (Fresh fruit/ vegetables served daily and varied per week; a variety of protein food should be served per week. Tinned fish, preferably processed with bones, should be served at least once a week. Soya should not be served more than twice a week) 19

20. HIV/AIDS Life Skills 2010 GRANT FRAMEWORK Strategic goal To provide access to an appropriate and effective integrated system of prevention, care and support for learners, educators and support staff infected and affected by HIV and AIDS Grant purpose To develop, implement and manage Life Skills education in line with the HIV/Aids & STIs National Strategic Plan 2007-2011 (NEW) Outcome statements Life Skills integration in the school curriculum at primary and secondary schools; Care and support provided to learners, educators and support staff infected and affected with HIV and AIDS; Reduction in risky behaviour among the school-going youth; Reduction in teenage pregnancy as well as drug and substance use (NEW); and Schools implement learner retention programmes (NEW) 20

21. HIV/Aids Life Skills 2010 GRANT FRAMEWORK (cont) Outputs 1 500 master trainers trained in the integration of Life Skills and HIV and AIDS programmes; 30 000 educators trained to integrate the Life Skills programme in line with Departmental policies; Educators trained in Expressive Art Therapy; SMTs trained on integrated planning and management of school implementation plans; Peer education, care and support programmes for learners, educators and other school support staff implemented in additional 5 000 schools; and Age-appropriate National Curriculum Statement compliant Learning and Teaching Support Material for Grades R-7 adapted for the deaf and blind and distributed to special schools. 21

22. HIV/Aids Life Skills KEY 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 22

23. HIV/Aids Life Skills 2010/11 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 23

24. Technical Schools Recapitalisation 2010/11 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. 24

25. Technical Schools Recapitalisation 2010/11 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. 25

26. Proposed Allocations 2010/11 – 2012/13 (Audit Results Only) PROVINCEAUDIT RESULTS CRITERIA - CONSOLIDATED ALLOCATIONS 2010/11 R’000 2011/12 R’000 2012/13 R’000 TOTAL R’000 % Allocation E Cape 14,92237,30639,17191,40018.65 Free State 5,66014,15014,85834,6697.08 Gauteng 12,12730,31831,83474,28115.16 KZN 15,31438,28540,20093,80019.14 Limpopo 10,86927,17228,53166,57313.59 MP 7,12017,80018,69043,6118.90 N Cape 2,9567,3907,75918,1063.70 North West 6,69516,73717,57441,0078.37 W Cape 3,3348,3368,75320,4244.17 DoBE1,0002,5002,6256,1251.25 TOTAL80,000200,000210,000490,000100 26

27. Consolidated Allocations 2010/11 – 2012/13 (Equitable Share) 27

28. Technical Schools Recapitalisation Management 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. 28