1. Presentation to the Standing Committee on Appropriation
16 November 2011

2. Spending as at the end of the second quarter
Presentation Outline
PART 1
Spending as at the end of the second quarter
PART 2
Spending on Infrastructure

3. PART 1 Spending as at the end of the second quarter

4. Adjusted Appropriation Expenditure April 2011 to September 2011
ADJUSTED APPROPRIATION AGAINST END OF SECOND QUARTER EXPENDITURE FOR THE 2011/12 FINANCIAL YEAR PER PROGRAMME
Programmes
2011/12
Main Appropriation
Adjusted Appropriation
Expenditure April 2011 to September 2011
Deviation
R’000 %
Administration
43.36
Curriculum Policy, Support and Monitoring
22.82
Teachers, Education Human Resources and Institutional Development
45 019
91.44
Planning, Information and Assessment
40.00
Educational Enrichment Services
57.22
Total
45.64
Expenditure in the first six months of 2011/12 was R6.426 billion, or 45.6 per cent of the adjusted appropriation of R billion for the year as a whole.

5. Economic Classification
ADJUSTED APPROPRIATION AGAINST END OF SECOND QUARTER EXPENDITURE FOR THE 2011/12 FINANCIAL YEAR PER ECONOMIC CLASSIFICATION
Economic Classification
2011/12
Main Appropriation
Adjusted Appropriation
Expenditure April 2011 to September 2011
Deviation
R’000 %
Compensation of Employees
43.70
Examiners and Moderators
16 660
765
15 895
4.60
Transfers to Public Entities
9 191
98.04
Other Transfers
11 066
11 109
1 536
9 573
13.83
Conditional Grants
50.18
Earmarked Funds
21.24
School Infrastructure Backlogs Indirect Grant -
Departmental Operations
53.22
Projects
65 476
74 166
12 924
61 242
17.43
Total
45.64

6. Adjusted Appropriation Expenditure April 2011 to September 2011
DETAILS OF EARMARKED ALLOCATIONS/TRANSFERS OVER THE 2011/12 FINANCIAL YEAR
Services
2011/12
Main Appropriation
Adjusted Appropriation
Expenditure April 2011 to September 2011
Deviation
R’000 %
Earmarked Funds:
21.24
Kha Ri Gude Mass Literacy Project
26.00
EPWP Kha Ri Gude
43 981
12 800
31 181
29.10
Curriculum Review
80 000
8 923
71 077
11.15
Workbooks
17.89
Integrated Quality Management System
35 259
15 765
19 494
44.71
Systemic Evaluation
20 657
7 174
13 483
34.73
National Assessments: Grades 3, 6 and 9 -
8 906
National Education and Evaluation Development Unit
11 947
2 659
9 288
22.26
National Schools Nutrition Programme
14 467
16 404
5 259
11 145
32.06
Conditional Grants:
50.18
Technical Secondary Schools Recapitalisation Conditional Grant
60 000
28.50
Dinaledi Schools Conditional Grant
70 000
28 000
42 000
40.00
Educational Infrastructure Conditional Grant
45.07
National School Nutrition Programme
58.54
HIV and Aids
59 798
30.00

7. Adjusted Appropriation Expenditure April 2011 to September 2011
DETAILS OF EARMARKED ALLOCATIONS/TRANSFERS OVER THE 2011/12 FINANCIAL YEAR
Services
2011/12
Adjusted Appropriation
Expenditure April 2011 to September 2011
Deviation
R’000 %
Earmarked Funds:
21.24
Kha Ri Gude Mass Literacy Project
26.00
EPWP Kha Ri Gude
43 981
12 800
31 181
29.10
Curriculum Review
80 000
8 923
71 077
11.15
Workbooks
17.89
Integrated Quality Management System
35 259
15 765
19 494
44.71
Systemic Evaluation
20 657
7 174
13 483
34.73
National Assessments: Grades 3, 6 and 9
8 906 -
National Education and Evaluation Development Unit
11 947
2 659
9 288
22.26
National Schools Nutrition Programme
16 404
5 259
11 145
32.06
Conditional Grants:
50.18
Technical Secondary Schools Recapitalisation Conditional Grant
60 000
28.50
Dinaledi Schools Conditional Grant
70 000
28 000
42 000
40.00
Educational Infrastructure Conditional Grant
45.07
National School Nutrition Programme
58.54
HIV and Aids
59 798
30.00

8. Adjusted Appropriation Expenditure April 2011 to September 2011
DETAILS OF EARMARKED ALLOCATIONS/TRANSFERS OVER THE 2011/12 FINANCIAL YEAR
Services
2011/12
Adjusted Appropriation
Expenditure April 2011 to September 2011
Deviation
R’000 %
Transfers to Public Entities
9 191
98.04
NSFAS: Fundza Lushaka Bursaries -
100.00
Umalusi
18 391
9 200
50.02
Other Transfers
11 109
1 536
9 573
13.83
UNESCO Membership Fees
10 739
ADEA 27
Guidance Counseling &Youth Development Centre: Malawi
100
ETDP SETA
158
Childline South Africa 50
Households 35
1 371
(1 336)
Claims against the state 7
(7)

9. Adjusted Appropriation
MAIN APPROPRIATION AGAINST ADJUSTED APPROPRIATION FOR THE 2011/12 FINANCIAL YEAR
Programmes
2011/12
Main Appropriation
Adjustments Appropriation
Adjusted Appropriation
Roll-overs
Virements and Shifts
Other Adjustments
Total Adjustments Appropriation
R’000
Administration -
(3 414)
966
(2 448)
Curriculum Policy, Support and Monitoring
12 048
4 353
(2 605)
13 796
Teachers, Education Human Resources and Institutional Development
460
3 308
3 768
Planning, Information and Assessment
15 901
(5 155)
Educational Enrichment Services
1 937
3 756
246
5 939
Total
29 886
The total allocation for the Department increased by 1.53% (R  million) from R million in the Main Appropriation to R million in the Adjusted Estimates. Included in the R million are transfer payments to the National Student Financial Aid Scheme (3.19%), conditional grants to provincial education departments (76.25%) and other transfers and subsidies (0.21%). The specifically and exclusively appropriated School Infrastructure Backlogs indirect grant (4.97%) represents the bulk of the payments for capital assets. The balance of the Adjusted Estimates consists of earmarked funds, including workbooks for literacy and numeracy and the Kha Ri Gude Mass Literacy Campaign (11.47%) as well as compensation of employees, payments to examiners and moderators, projects and operational expenditure (3.91%).

10. Adjusted Appropriation
OVERVIEW OF THE ADJUSTED ESTIMATES OF NATIONAL EXPENDITURE ALLOCATIONS FOR 2011/12
Programmes
2011/12
Main Appropriation
Adjusted Appropriation
Increase / (Decrease)
R’000 %
Administration
(2 448)
(0.81)
Curriculum Policy, Support and Monitoring
13 796
0.75
Teachers, Education Human Resources and Institutional Development
3 768
0.72
Planning, Information and Assessment
2.99
Educational Enrichment Services
5 939
0.12
Total
1.53
Programme 1: Administration
The decrease of R2,448 million is due mainly as a result of the reorganisation of the Department with a decrease in the compensation of employees allocation in this programme as well as a shifting of funds towards other activities due to the alignment of underfunded units and the allocation for newly established units.
Programme 2: Curriculum Policy, Support and Monitoring
The increase of R13,796 million is due mainly to the roll-overs of R12,048 million in respect of the Technical Secondary Schools Recapitalisation conditional grant as well as courier services rendered for the Mass Literacy Campaign. The remainder of the increase is as a result of the reorganisation of the Department with a consequential increase in the compensation of employees allocation required for this programme.
Programme 3: Teachers, Education Human Resources and Institutional Development
The increase of R3,768 million is due mainly due to the shifting of functions of R3 million in respect of the Curriculum and Professional Development Unit project to this programme as well as an increase in the compensation of employees allocation due to the reorganisation of the Department.

11. OVERVIEW OF THE ADJUSTED ESTIMATES OF NATIONAL EXPENDITURE ALLOCATIONS FOR 2011/12 (CONTINUE)
Programme 4: Planning, Information and Assessment
The increase of R191,277 million is due to the roll-over of R15,901 in respect of service providers verifying and capturing the marks of grades 3, 6 and 9 in the national assessments as well as specialised computer services required for the Learner Unit Record Information and Tracking System. An increase of R180 million has furthermore been additionally allocated towards the Education Infrastructure conditional grant for disaster management in the provinces (school buildings). The following amount per province has been allocated:
Province
Amount Allocated
R’000
North West
3 960
Limpopo
23 040
Mpumalanga
3 600
Kwa-Zulu Natal
17 820
Free State
6 480
Eastern Cape
Total: Disaster management shift
Programme 5: Educational Enrichment Services
The increase of R5,939 million is due mainly to the roll-over of R1,937 million for a National School Nutrition Programme baseline study. The remainder of the increase is as a result of the reorganisation of the Department with a resulting increase in the compensation of employees allocation required for this programme.

12. PART 2 Spending on infrastructure

13. TOTAL INFRASTRUCTURE SPENDING AS AT 30 SEPTEMBER 2011
The second quarter spending is R 3, 786, 749 billion or 43% of the total budget of R8, 764, 933 billion.
EC is the lowest spending department with a reported spending of only 18 % against an expected spending of 50% as at the end of the second quarter.

14. 2ND QUARTER SPENDING ANALYSIS
Gauteng has reported a spending of 40%. This is an improvement on the expenditure reported at the end of the first quarter. However this is not a satisfactory indication of improvements in spending as the 3rd and 4th quarter projections are very high and may not be achieved as indicated.
Mpumalanga and Limpopo have reported over- spending as at the end of the second quarter of 83% & 67% respectively. This is a clear indication that these provinces will significantly over- spend their total infrastructure budget by the end of the 2011/12 financial year.
Given these indications, it becomes apparent that while the sector has attained an average spending of only 7% below the expectation of 50% at the end of the second quarter, there are those department that will significantly under- spend while others will significantly over- spend.

15. EDUCATION INFRASTRUCTURE GRANT AS AT 30 SEPTEMBER 2011
50% of the EIG has to date been transferred to PEDs.
EC , FS, NC & WC have spent less than the below 40% of the 50% that has currently been transferred.
4th transfer due on 18 Nov 2011

16. INTERVENTION TO IMPROVE SPENDING IN THE 2011/12 FINANCIAL YEAR
The 2011/12 financial year poses an immediate challenge to the sector to implement interventions to manage current spending. As mentioned some PEDs may over- spend while others may under- spend.
The following is monitored to assist provinces:
Effective supervision and oversight in the planning process to ensure that correct needs are identified and addressed
Alignment of planning and budgetting
Adherence to project management principles, including monitoring of projects
Capacity/skills
Procurement/Supply Chain management

17. MEASURES TO IMPROVE SPENDING
The sector is experiencing significant challenges with planning and capacity to plan at the provincial level. The following are actions taken by DBE to assist PEDs address these planning and capacity challenges:-
DBE has developed an Action Plan to address identified gaps in the planning process of PEDS. This plan identifies actions that need to be taken by PEDs and DBE to address these planning challenges. A planning and design manual has been developed and all infrastructure personnel will receive training based on the manual.
A Short Term Technical Assistant Team has been appointed to look at the User Asset Management Plans of PEDs to assist them to develop comprehensive plans and project lists. The team will also be responsible for developing tools to assist PEDs improve infrastructure planning.
DBE has established a PSU within the DBE to monitor the implementation of infrastructure and services provision by the various Professional Service Providers (PSP’s) and Implementing Agents (IA’s) that the Department of Basic Education and provinces are utilizing for the implementation of the infrastructure programme.

18. INTERVENTIONS TO IMPROVE SPENDING IN THE 2011/12 FINANCIAL YEAR….
The PSU will also be responsible to continuously track progress on projects; inspect work in progress and in completed projects to evaluate quality of work as well as monitoring expenditure per project on a monthly basis
Increased monitoring planning, budgeting , expenditure, project management and procurement issues are interrogated and a sample of projects are visited. Based on the findings from these visits, remedial actions are devised with the province and monitored by the DBE.
DBE is working with IDIP to develop an HR strategy to address capacity constraint with regards to infrastructure in PEDs. The strategy is at an advanced stage.
Training is planned on infrastructure procurement and the gateway process as articulated in the CIDB toolkit. This will include officials in the supply chain units in provinces

19. INTERVENTIONS TO IMPROVE SPENDING IN THE 2011/12 FINANCIAL YEAR….
The following have also been done to improve planning and implementation:
Concluded guidelines for infrastructure planning and these will be implemented in provinces
Upgrade and update the NEIMS database to ensure accurate data for planning;
Finalised the infrastructure planning and prioritization model ;
Standardized school designs have been finalised and will be released for use in provinces
A school infrastructure costing model has been developed and will be released to provinces to assist with preliminary costing for projects

20. PROGRESS ON ACCELERATED SCHOOLS INFRASTRUCTURE DELIVERY INITIATIVE (ASIDI)

21. Progress on Inappropriate Structures 2011/12 Programme: DBSA
The PSU has been appointed and assumed duty on 27 September 2011
Appointment of contractors for the 50 schools is progressing as per the table below.
Approximately 400 BIDS sold and 150 BIDS were returned
The evaluation committee is being constituted by DBSA with DBE representatives and the evaluation process has been concluded.
Adjudication committee met on the 14th November 2011.
Adverts Out in Newspapers
Availability Date for Tender Documents
Briefing Session
Tender Closes
Tender Evaluation & Adjudication Completed
Tender Award and Site Handover
PHASE 1:28 SCHOOLS OUT OF INITIAL 50 SCHOOLS
16 October 2011 [Sunday Times /City Press /Daily Dispatch]
25-Oct-11
26-Oct-11
04-Nov-11
11-Nov-11
18 to 21 November 2011
PHASE 2:22 SCHOOLS OUT OF INITIAL 50 SCHOOLS
06 Nov 2011 [Sunday Times /City Press]
15-Nov-11
16-Nov-11
29-Nov-11
06-Dec-11
07 to 14 December 2011
07-Nov-11
[Daily Dispatch]

22. Progress on Water and Sanitation 2011/12 Programme EC: MVULA TRUST
Mvula Trust has awarded 18 projects to contractors and 32 additional projects will be awarded to contractors by the 14TH November 2011
The table below indicates the projected site handover dates as well as anticipated completion dates.
No of Schools per Phase
Tender Award and Site Handover
Latest Planned Practical Completion
Latest Planned Final Completion
PHASE 1:18 SCHOOLS
19 to 24 October 2011
31 Dec Feb 2012
Mar-11
PHASE 2:32 SCHOOLS
03 to 09 November 2011

23. Progress on Water and Sanitation 2011/12 Programme : IDT Progress on Electrification 2011/12 Programme : ESKOM
IDT
The MOA with IDT is in the process of being finalised
27 schools in the North West have been assessed
ESKOM
MOA with ESKOM has been signed
155 projects are in the planning process throughout the country.
The projects cost is estimated at R66mil

24. Progress on Water and Sanitation 2011/12 Programme : KZN
KZN started with planning process on the 30 August 2011 and are in the process of implementing 79 Projects
32 of the projects are in planning stage and 47 in tender stage
No of Schools for Implementation
Planning Stage
Tender Award and Site Handover
Latest Planned Practical Completion
Latest Planned Final Completion 47
30-Aug-11
15-Feb-12
Apr-12 32
09- Nov-11
The projects cost is estimated at R57.5mil

25. Progress on Water, Sanitation and Electrification 2011/12 Programme : FS
FS appointed a Project Manager on the 17th August 2011
They are in the process of implementing 38 projects for water, 14 for Sanitation and 31 for Electrification
The time lines are as indicated in the table below.
Management Consultant appointed
Site visits
Preparation of contract documentation
Tender/Quotations
Evaluation & Appointments
Construction period
Final handover
WATER
17 Aug 2011
Aug -Sept 2011
Oct-Nov 2011
30 Nov 2011
Dec Feb 2012
March 2012
SANITATION
ELECTRIFICATION
The projects are estimated at R22mil

26. PLANNING 2012/13 AND 2013/14 : ASIDI
Additional 50 inappropriate schools in the EC and 100 schools from other provinces will also be implemented in the 2012/13
PSU will beginning with the scoping to this effect and to conclude by mid December
Eradication of the basic services backlog is targeted in the 2012/13
A criterion is being developed to identify schools which require Libraries, Laboratories and Administration block. Twelve (12) schools per province are targeted.
The balance of inappropriate schools will be eradicated in 2013/14

27. THANK YOU