VOTE 15: BASIC EDUCATION

DBE Presentation to the Standing Committee on Appropriations

03 September 2014

VOTE 15: BASIC EDUCATION

FIRST QUARTER EXPENDITURE

INTRODUCTION

• The total Appropriated budget of the Department for the 2014/15 financial year amounts to R19 680.146 million

• The majority of the budget (R14 267.387 million) is allocated to transfer payments as follows:

– Conditional Grants: R13 169.549 million– Transfers to Public Entities: R1 054.853 million– Other Transfers: R42.985 million

• The remainder of the budget (R5 412.759 million) is allocated to the following:

– Compensation of Employees: R315.560 million– Examiners and Moderators: R19.546 million– Earmarked Funds: R1 781.946 million– Office Accommodation: R158.813 million– Specifically and Exclusively Appropriated: R2 938.503 million– Departmental Operations: R127.299 million– Departmental Projects: R71.092 million

INTRODUCTION (cont.)

• The total actual expenditure of the Department for the 2014/15 financial year first quarter amounts to R6 011.267 million

• The majority of the expenditure (R5 633.535 million) consists of transfer payments as follows:

– Conditional Grants: R4 634.910 million– Transfers to Public Entities: R974.337 million– Other Transfers: R24.288 million

• The remainder of the expenditure (R377.732 million) consists of the following:

– Compensation of Employees: R75.778 million– Examiners and Moderators: R4.070 million– Earmarked Funds: R44.483 million– Office Accommodation : R38.366 million– Specifically and Exclusively Appropriated: R161.027 million– Departmental Operations: R40.699 million– Departmental Projects: R13.309 million

ALLOCATION AGAINST ACTUAL EXPENDITURE PER PROGRAMME FOR THE 2014/15 FINANCIAL YEAR

PROGRAMMES

2014/15Expenditure as % of Adjusted Appropriation

FINAL APROPRIATION

ACTUAL EXPENDITURE

VARIANCE

R’000 R’000 R’000

Administration 347 448 88 766 258 682 25.6%

Curriculum Policy, Support and Monitoring 1 954 927 154 269 1 800 658 7.9%

Teachers, Education Human Resources Development and Institutional Development 1 268 247 1 019 012 249 235 80.4%

Planning, Information and Assessment 10 379 369 2 875 695 7 503 674 27.7%

Educational Enrichment Services 5 730 155 1 873 525 3 856 630 32.7%

Total 19 680 146 6 011 267 13 668 879 30.5%

ALLOCATION AGAINST ACTUAL EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE 2014/15 FINANCIAL YEAR

PROGRAMMES

2014/15Expenditure as % of Adjusted Appropriation

FINAL APROPRIATION

ACTUAL EXPENDITURE

VARIANCE

R’000 R’000 R’000

Compensation of Employees 414 738 96 631 318 107 23.3%

Goods and Services 2 065 485 124 391 1 941 094 6.0%

Transfers and Subsidies 14 267 387 5 633 380 8 634 007 39.5%

Payment for Capital Assets 2 932 536 156 865 2 775 671 5.4%

Total 19 680 146 6 011 267 13 668 879 30.5%

ALLOCATION OVER THE 2014/15 FINANCIAL YEAR

SERVICE

2014/15

Expenditure as % of Adjusted Appropriation

FINAL APPROPRIATION

ACTUAL EXPENDITURE

VARIANCE

R’000 R’000 R’000

Compensation of Employees1 315 560 75 778 239 782 24.01%

Examiners and Moderators 19 546 4 070 15 476 20.82%

Transfers to Public Entities 1 054 853 974 337 80 516 92.37%

Other Transfers 42 985 24 288 18 697 56.50%

Conditional Grants 13 169 549 4 634 910 8 534 639 35.19%

Schools Infrastructure Backlogs Indirect Grant 2 938 503 161 027 2 777 476 5.48%

Earmarked Funds 1 781 946 44 483 1 737 463 2.50%

Departmental Operations 127 299 40 699 86 600 31.97%

Office Accommodation 158 813 38 366 120 447 24.16%

Projects 71 092 13 309 57 783 18.72%

Total19 680 146 6 011 267 13 668 879 30.54%

DETAILS OF EARMARKED ALLOCATIONS/TRANSFERS OVER THE 2014/15 FINANCIAL YEAR

SERVICEExpenditure as % of

Adjusted Appropriation

FINAL APPROPRIATION

ACTUAL EXPENDITURE

VARIANCE

R’000 R’000 R’000

Earmarked Funds: 1 781 946 44 483 1 737 463 2.50%

Kha Ri Gude Literacy Project 572 703 14 162 558 541 2.47%

EPWP: Kha Ri Gude 62 236 - 62 236 0.0%

Workbooks 915 387 4 260 911 127 0.47%

IQMS 42 250 9 981 32 269 23.62%

NEEDU 14 213 5 203 9 010 36.614%

NSNP 15 157 3 481 11 676 22.97%

National Assessment 160 000 7 396 152 604 4.62%

Conditional Grants: 13 169 549 4 634 910 8 534 639 35.19%

Education Infrastructure 6 928 908 2 598 341 4 330 567 37.50%

National Schools Nutrition Programme 5 461 915 1 841 673 3 620 242 33.72%

HIV and AIDS (Life Skills Education)

221 062 22 104 198 958 10.00%

Dinaledi Schools 111 182 27 793 83 389 25.00%

Occupation Specific Dispensation for Therapists (OSD)

213 000 51 607 161 393 24.23%

Technical Secondary Schools Recapitalisation

233 482 93 392 140 090 40.00%

DETAILS OF EARMARKED ALLOCATIONS/TRANSFERS OVER THE 2014/15 FINANCIAL YEAR

SERVICEExpenditure as % of Adjusted Appropriation

FINAL APPROPRIATI

ON

ACTUAL EXPENDITU

REVARIANCE

R’000 R’000 R’000

Transfers to Public Entities 1 054 853 974 337 80 516 92.37%

NSFAS: Fundza Lushaka Bursaries 947 499 947 499 - 100.00%

Umalusi 107 354 26 838 80 516 25.00%

Other Transfers 42 985 24 288 18 985 80.00%

ETDP SETA 177 0 177 0.0%

UNESCO Membership Fees 12 610 0 12 610 0.0%

ADEA 32 0 32 0.0%

Childline South Africa 53 0 53 0.0%

Guidance Counseling & Youth Development Centre: Malawi

113 0 113 0.0%

Households1 - 288 -288 0.00%

National Education Collaboration Framework 30 000 24 000 6 000 80.00%

COST CONTAINMENT MEASURES

• ALL employees/officials can only rent a group/class B vehicle (or equivalent or lower);

• Domestic hotel accommodation may NOT exceed R1 300.00 (including dinner, bed, breakfast and parking);

• ALL employees/officials can only book economy class tickets for domestic flights (Ministers and DG (or equivalent ranks) can fly business class);

• Only Ministers, DG and DDGs (or equivalent ranks) can fly business class for overseas trips (flights exceeding 5 hours);

• The number of employees/officials travelling by air to other centres (for example regional or district offices) to attend an official engagement on the SAME matter is limited to only three (3). This includes employees/officials travelling to Parliament. Only the DG can approve deviation from this instruction in advance;

• Trips by vehicles must be optimised to reduce costs, for example, officials travelling for the same purpose to the same destination are encouraged to travel together;

COST CONTAINMENT MEASURES

• No catering for internal meetings unless approved by the Accounting Officer;

• Usage of the Departmental venues and facilities as far as possible;

• Management of telephones;

• Reduction of outsourced services and consultation costs; and

• No year end functions are paid for from departmental budget.

Website: www.education.gov.zaCall Centre: 0800 202 933 | callcentre@dbe.gov.za

Twitter: @DBE_SA | Facebook: DBE SA

THANK YOU