1. 1 NCOP SELECT COMMITTEE ON FINANCE MEETING 15 NOVEMBER 2007

2. OVERVIEW The objective is to report in terms of Section 32 of the PFMA 2007/08 expenditure as at 30 September 2007 Related service delivery outcome Conditional Grants Spending Capital expenditure Progress with regarding to the implementation of infrastructure progress Achievements, Challenges and Remedials Monitoring arrangements within FSDoE 2

3. EXPENDITURE PER PROGRAME AS AT 30 SEPTEMBER 2007 1 st Quarter norm – 25%, under spending = 2.39 2 nd Quarter norm – 50%, under spending = 2.21 3

4. EXPENDITURE BY ECONOMIC CLASSIFICATION 30 SEPT 2007 Expenditure including commitments= 51% 4

5. 5 OVERVIEW OF UNDERSPENDING PER PROGRAMME Programme1: Administration ICT equipment(R36 million): Procurement has started and roll-out will commence from Nov 2007 Programme 2: Public Ordinary Schools Non sec 21 LTSM in Districts. Orders have been placed and funds committed Programme 5: FET colleges Compensation of employees: Outstanding claims for part-time educators and the implications of the FET Act Programme 6: ABET LTSM funds have been committed Programme 7: ECD Compensation of employees Transfers to centres delayed due to non-compliance Programme 8: Auxiliary and Associated Services Payment of markers= R22million will only happen in December 2007

6. 6 Conditional Grant spending R18 million = transferred to the Colleges

7. 7 HIV / AIDS: Performance Measures ADVOCACY TargetActual Orientation meetings for parents in 30 schools3039 TRAINING - Master Trainers Train GET Learning Facilitators in Life Skills and HIV and AIDS3054 Train 60 FET Learning Facilitators in Life Skills and HIV and AIDS.60 Train 135 Officials in Basic Counselling and referral Skills103107 Train 90 FET Officials in Conflict Resolution and Facilitation Skills.90 Train 40 0fficials in a Teenage Pregnancy Prevention Programme 4067

8. 8 HIV / AIDS: Performance Measures TRAINING - Educators TargetActual Top – up training of 1 300 ECD/ GET Educators 625384 Train Educators in ‘No Apologies” Programme38150 Top – up training of 500 FET Educators 258300 Roll out of cross curricular integration in 200 schools (Gr.8-11) 200136 EMDG training of SMTs in 300 Schools 300In process CARE AND SUPPORT Train 300 educators in Basic Counselling Skills 75152 Train 150 Schools in Substance Abuse and/or Victims and Villains Abuse Programme 2595 Train 150 Ministers and Pastors in Care and Support0115 Establishing 80 schools as Nodes of Care. 80In process Parenting Project to prevent teenage pregnancy in 40 schools40 In process PEER EDUCATION Train 2000 Gr 10 Learners in the RADS Peer education Programme600629 Train 34 Out of School Youth to implement Peer Education30

9. HIV / AIDS CHALLENGESINTERVENTIONS Due to industrial action workshops were postponed. Furthermore, most available holiday time is usually reserved for NCS training. Training has been restricted to afternoons, weekends or postponed to September/December holidays. 9

10. ACHIEVEMENTS: NSNP Providing meals for all school days (184 days) Voluntary food handlers are given stipend of R500 each per month Schools are given R300 per month for gas / fuel per There are 637 schools with existing vegetable gardens Each District has 20 schools participating in Nutrition Education 10

11. LEARNER SUPPORT NSNP – Feeding – 413 546 primary school learners in the 5 Districts CHALLENGESINTERVENTIONS Improvement of quality meals Improved menus gradually introduced within the limitations of the budget allocation Improvement of monitoring of Services providers NSNP Monitoring appointed in all District – the vast and rural nature of the province challenging. Capacity increased in the finance and procurement sections in the Directorates 11

12. Infrastructure expenditure End of second quarter – 47.79% expenditure The expenditure was below the 50% target due to the relatively late appointment of contractors. This challenge is addressed by providing project lists to the Implementing Agency (Public Works) earlier (by April of the previous year) for future years The expenditure has however reached the target by end October 2007.(60% against the target of 58%) Regular monthly monitoring meetings between Implementing Agency and Client. Monthly reports are supplied and discussed Intensive quarterly reviews led by Provincial Treasury 12

13. Infrastructure Programmes The Capital Infrastructure Programme consist of the following: – Major Capital implemented by Public Works with a focus on elimination of platooning and overcrowding. (Platooning will be eliminated in the next two financial years) – The Minor Capital projects implemented by the Department of education in collaboration with SGB’s targets renovations, maintenance and the provisioning of basic services like water, sanitation and electrification. (Agreements with DWAF and ESKOM are in place to assist with implementation) 13

14. 14 ACTUAL SPENDING BY FET COLLEGES ON RECAP GRANT – 30 SEPTEMBER 2007 By the end of October, Actual expenditure has improved to 83.04%

15. 15 1.RESKILLING STAFF TO OFFER RESPONSIVE PROGRAMMES  257 FET Staff received training according to identified needs to ensure effective teaching and learning as well as managing the implementation of the NC(v) programmes. Training will continue during November when NC(v) Level 3 lecturers will receive training. 2.UPGRADING PHYSICAL INFRASTRUCTURE OF FET COLLEGES Colleges utilised funds to complete the following projects:  Build new classrooms, laboratories and offices as per identified needs (5 facilities completed, 15 facilities in progress).  Upgraded classrooms, laboratories and offices as per identified needs (9 facilities completed).  Upgraded College sites (Upgrading of 2 college sites completed, upgrading of 2 college sites still in progress).  Purchased equipment to support teaching and learning (Equipment for 47 classrooms, 2 workshops, 2 resource centres and 4 offices were purchased)  Prepare for delivery of new curriculum (Approved LTSM for NC(v) Level 2 programmes were purchased at all 4 FET Colleges for effective teaching and learning) ACHIEVEMENTS: FET RECAPITALIZATION GRANT

16. 16 ACHIEVEMENTS: FET RECAPITALIZATION GRANT (Continue) 3.ESTABLISHING CONNECTIVITY TO IMPROVE COMMUNICATION, INFORMATION MANAGEMENT AND CURRICULUM DELIVERY  All the campuses of Flavius Mareka, Goldfields and Motheo FET Colleges are connected with their respective Central Offices through a Management Information System. (Maltui FET College has budgeted for this function in 2008/2009)  The four FET Colleges marketed the NC(v) programmes in order to increase awareness.  Open days were held to increase awareness and partnerships with the various Government Departments, SETA’s, Local Government and Community Based Organizations.

17. 17  Several monitoring visits were conducted by DoE and the FSDoE in order to ensure compliance to financial management as well as the management of the Recapitalization Conditional Grant at FET Colleges  DoE and FSDoE visited FET Colleges on a regular basis to assist and ensure implementation of management systems (e.g. Financial Management, Asset Management, Supply Chain Management and Recap Management Systems)  Personnel at Colleges were trained for effective delivery of the NC(V) programmes through the Recap funds.  Relevant, modern type equipment has been purchased for effective and efficient teaching and training of NC(v).  Security and control systems have been installed at all four FET Colleges - boom gates, asset registers, Coltech for learner registration and keeping of financial records, etc. OVERALL ACHIEVEMENTS: FET RECAPITALIZATION GRANT

18. 18 OVERALL ACHIEVEMENTS: FET RECAPITALIZATION GRANT  The improved appearance of college sites create a more positive image with the public and attract more learners.  715 learners received bursaries from DoE for NC(v).  1 434 learners received bursaries from the FSDoE for the Nated Programmes. The purpose of this financial aid is to improve Maths and Science performance as well as to increase the number of Engineering Students at FET Colleges.  Infrastructure developments are taking place at Colleges.  The provision of new modern facilities and equipment impacts on the improved quality of teaching and training.

19. 19 FET RECAPTITALIZATION CHALLENGES  Inadequate student support services due to shortage of human resources at FET Colleges. (Mathematics and English Language Skills needs extra student support).  Inadequate staffing of FET Colleges at Central Offices for them to be able to implement the new FET Act.  Inadequate qualified lecturing staff to teach specialized NC(v) programmes (e.g. Engineering Field of Study) is a mammoth problem at FET Colleges.  Much more attention needs to be paid to improving the skills of educators to enable them to meet the demands of the NC(v). Major efforts have already been made in this regard, but there is still a long way to go.  The challenges relating to human recruitment, retention and professional development need to be addressed.  Problems with contractors: – Do not keep to specifications in Service Level Agreements – Fall behind schedule – Not sufficient response from competent contractors to tender – Building material not delivered on time (especially steel constructions)

20. 20 EXPERIENCES AND ISSUES RELATED TO INFRASTRUCTURE GRANTS Monitoring and reporting Limited expertise within departments to effectively deal with the Infrastructure Reporting Model (IRM) Monthly reports and Quarterly reviews ensure that activities are successfully executed as planned and enhance strategic decisions regarding infrastructure delivery.

21. 21 PLANNING 2008/09 FET RECAPITALISATION GrantObjectiveTargetFunds allocation FET Recap To train educatorsCapacitate and train 394 FET Staff members to deliver NC(v) Programmes on Levels 2,3 and 4 R1,570,000 Develop systems to support delivery of NC(v) programmes To connect all 8 campuses of Maluti FET College with the Central Office. R200,000 To upgrade and refurbish of classrooms, laboratories and workshops To upgrade 1 student resource centre, 2 hospitality laboratories, 2 workshops and student toilets at 4 FET Colleges R13520,000 Upgrading of College SitesUpgrading of 6 college sites with regard to fencing, redecoration, signage, electricity and paving R8,450,000 Buying or building of new classrooms, laboratories, offices To build 2 workshops, 1 restaurant, 1 student support centre at 4 FET Colleges, as well as to purchase 1 new campus site at Harrismith R27,625,000 Purchasing of equipmentTo purchase and install equipment for 23 classrooms/ workshops/ laboratories for effective teaching of NC(v) programmes R7,110,850 Preparation for the implementation of curriculum To purchase LTSM as approved by DoE for the delivery of 11 NC(v) programmes. R1,094,150 TotalR52,200,000

22. 22 Monitoring capacity Monthly Finance Committee meetings are held to discuss underspending and remedial actions Quarterly review sessions are held to provide feedback on service delivery and the budget. Monthly expenditure reports are sent for the attention and the comment of the HOD and the Executive authority. Letters are written to managers who underspent to inform them of the status quo and the implications of their underspending. Where underspending persist affected manager are brought before the executive leadership and the MEC to account for their actions.

23. THANK YOU ? 23