EDUCATION CONDITIONAL GRANTS

Quarter One: 2010/11

Education - National School Nutrition Programme

Table: National School Nutrition Programme Expenditure as at 30 June 2010 (Section 32)

Eastern Cape 702 936 601 579 110 278 15.7% – 101 357 14.4% 15.3% 18.6% 135 158 -18.4%Free State 195 194 195 192 49 804 25.5% – 2 0.0% 24.9% 8.4% 28 912 72.3%Gauteng 388 884 388 884 38 611 9.9% – – 0.0% 11.9% 6.5% 41 957 -8.0%Kw aZulu-Natal 855 285 861 158 132 823 15.5% -5 873 – -0.7% 10.5% 22.4% 118 156 12.4%Limpopo 659 233 659 233 135 452 20.5% – – 0.0% 58.3% 22.8% 71 169 90.3%Mpumalanga 354 341 354 341 48 906 13.8% – – 0.0% 10.9% 8.2% 45 510 7.5%Northern Cape 84 536 84 536 20 860 24.7% – – 0.0% 11.8% 3.5% 10 097 106.6%North West 249 599 249 599 25 592 10.3% – – 0.0% 7.3% 4.3% 48 245 -47.0%Western Cape 173 318 173 318 30 633 17.7% – – 0.0% 6.5% 5.2% 28 041 9.2%Total 3 663 326 3 567 840 592 959 16.2% -5 873 101 359 2.6% 14.2% 100.0% 527 245 12.5%

Actual spending as % of main

budget

(Over) Under

% (Over)/ under of

main budget

Year-on-year

growth

% share of grant to

total provincial

expenditure

% share of grant to

total grant expenditure

2009/10: Pre-audited

Outcome as at 30 June

2009R thousand

Main budgetProjected outcome

Actual spending as

at 30 June 2010

National School NutritionSpending against transfers received

• Overall, of the R1 billion (or 27.5% of the budget) already transferred to provinces, R593 million was spent as at 30 June 2010.

• One province (Eastern Cape) is already projecting to under-spend by over R101 million at the end of 2010/11.

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NATIONAL SCHOOL NUTRITION PROGRAMME

Province

R thousandEastern Cape 702,936 190,353 110,278 27.1% 15.7% 601,579 101,357 Free State 195,194 53,594 49,804 27.5% 25.5% 195,192 2 Gauteng 388,884 109,116 38,611 28.1% 9.9% 388,884 - KwaZulu-Natal 855,285 235,041 132,823 27.5% 15.5% 861,158 (5,873) Limpopo 659,233 181,201 135,452 27.5% 20.5% 659,233 - Mpumalanga 354,341 97,031 48,906 27.4% 13.8% 354,341 - Northern Cape 84,536 23,183 20,860 27.4% 24.7% 84,536 - North West 249,599 67,940 25,592 27.2% 10.3% 249,599 - Western Cape 173,318 48,698 30,633 28.1% 17.7% 173,318 - Total 3,663,326 1,006,157 592,959 27.5% 16.2% 3,567,840 95,486

Provincial actual

payments

% Transferred of national allocation

% Actual payments

of total available

Projected outcome

for financial

year

Projected (over)/under

Total available

Received by province: Year

to date

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National School Nutrition Programme

• Eastern Cape: Spent R110m of R190m received, mainly due to the late approval of the tender for April to June feeding. This has also led to reduced spending for the first quarter, since many schools were forced to revert to cheaper bread based meals until the new tender was confirmed.

• Gauteng: Spent R39m of R109m received. This is mainly due to the late submission of invoices by suppliers.

• KwaZulu-Natal: Spent R133m of R235m received, mainly because a large number of claims had to be sent back to districts to be corrected and re-submitted. 

• Mpumalanga: Spent R49m of R97m received, mainly because of delays in the system which is used to validate claims. 

• North West: Spent R26m of R68m received, due to the delays caused by the process of migrating from the Walker System to the Basic Accounting System (BAS). 

• Western Cape: Spent R31m of R49m received. This is mainly due to the late submission of invoices by suppliers.

Education – HIV and Aids (Lifes Skills Education)

Table: HIV and Aids (Lifes Skills Education) Expenditure as at 30 June 2010 (Section 32)

Eastern Cape 32 189 26 777 2 825 8.8% – 5 412 16.8% 0.4% 20.8% 5 675 -50.2%Free State 10 866 10 866 1 139 10.5% – – 0.0% 0.6% 8.4% 1 600 -28.8%Gauteng 26 202 26 202 2 007 7.7% – – 0.0% 0.6% 14.8% 2 504 -19.8%Kw aZulu-Natal 42 686 41 095 681 1.6% – 1 591 3.7% 0.1% 5.0% 5 959 -88.6%Limpopo 28 322 28 322 1 721 6.1% – – 0.0% 0.7% 12.7% 2 564 -32.9%Mpumalanga 15 392 15 392 2 387 15.5% – – 0.0% 0.5% 17.6% 2 653 -10.0%Northern Cape 4 084 4 084 216 5.3% – – 0.0% 0.1% 1.6% 200 8.0%North West 12 912 12 912 839 6.5% – – 0.0% 0.2% 6.2% 2 529 -66.8%Western Cape 15 392 15 392 1 771 11.5% – – 0.0% 0.4% 13.0% 2 285 -22.5%Total 188 045 181 042 13 586 7.2% – 7 003 3.7% 0.3% 100.0% 25 969 -47.7%

Actual spending as % of main

budget

(Over) Under

% (Over)/ under of

main budget

Year-on-year

growth

% share of grant to

total provincial

expenditure

% share of grant to

total grant expenditure

2009/10: Pre-audited

Outcome as at 30 June

2009R thousand

Main budgetProjected outcome

Actual spending as

at 30 June 2010

2

HIV and Aids

• Overall spending of 7.2 per cent of 23 per cent transferred, with slow spending by all provinces.

• The slow spending is mainly because most of the grant activities took place over the June/July holidays. Payment for these activities will be effected in the second quarter.

• It is nevertheless of concern that the cash-flow projections of provinces (as outlined in business plans) continues to be significantly out of line with spending capacity in the first quarter for this and a number of other grants.

• Given that provinces typically know when grant activities are taking place, they and the national department should better align cash transfers to these activities.

Education – Technical Secondary Schools Recapitalisation

Table: Technical Secondary Schools Recapitalisation Expenditure as at 30 June 2010 (Section 32)

Eastern Cape 9 549 – – 0.0% – 9 549 100.0%Free State 7 477 7 477 – 0.0% – – 0.0%Gauteng 17 944 17 944 – 0.0% – – 0.0%Kw aZulu-Natal 15 274 13 885 – 0.0% – 1 389 9.1%Limpopo 8 479 8 479 – 0.0% – – 0.0%Mpumalanga 5 869 5 869 – 0.0% – – 0.0%Northern Cape 3 423 3 423 – 0.0% – – 0.0%North West 8 697 8 697 – 0.0% – – 0.0%Western Cape 3 288 3 288 – 0.0% – – 0.0%Total 80 000 69 062 – 0.0% – 10 938 13.7%

Actual spending as % of main

budget

(Over) Under

% (Over)/ under of

main budget

R thousand

Main budgetProjected outcome

Actual spending as

at 30 June 2010

2

Technical Secondary Schools Recapitalisation

• There has been no spending in any of the provinces.• An audit to determine the needs of technical secondary schools was

done in 2009/10, but some provinces did not use these findings and re-audited their technical schools. Procurement has now started in all of these provinces. 

• In the other provinces, goods and services were procured, but payment has not been effected. Procured services are still being delivered and invoices were not received in cases where they have been delivered.

• The above reflects poor planning, but this is the first year of this grant and the national department will need to assist provinces to improve their planning.

Education – Further Education and Training

Table: Further Education and Training Expenditure as at 30 June 2010 (Section 32)

Eastern Cape 555 208 493 273 123 152 22.2% – 61 935 11.2%Free State 256 703 256 703 79 401 30.9% – – 0.0%Gauteng 883 160 883 160 178 237 20.2% – – 0.0%Kw aZulu-Natal 642 561 642 561 193 692 30.1% – – 0.0%Limpopo 435 854 457 279 115 774 26.6% -21 425 – -4.9%Mpumalanga 285 563 285 563 84 000 29.4% – – 0.0%Northern Cape 52 101 52 101 13 905 26.7% – – 0.0%North West 214 999 214 999 50 180 23.3% – – 0.0%Western Cape 446 512 452 046 115 637 25.9% -5 534 – -1.2%Total 3 772 661 3 737 685 953 978 25.3% -26 959 61 935 0.9%

Actual spending as % of main

budget

(Over) Under

% (Over)/ under of

main budget

R thousand

Main budgetProjected outcome

Actual spending as

at 30 June 2010

2

FET Colleges grant

• Overall spending of 25 per cent across provinces.• Spending is thus generally on track.

CONCLUSION

• There has been an aggregate improvement in the spending rate for the National School Nutrition Programme (NSNP) grant. The spending rate is 12.5% higher than in the first quarter of 2009/10.

• However, this is mostly because of improvements by certain provinces (Free State, Northern Cape and Limpopo) and not all of them.

• 3 provinces (Eastern Cape – 18.4%, Gauteng -8% and North-West -47%) are spending slower than at the same time in 2009/10.

• A combination of supply chain challenges and invoicing is affecting payment rates for NSNP.

• For a number of grants, a majority of provinces are still unable to match their spending performance with their own cash-flow projections, as submitted with the conditional grant business plans to the national department.

• Ideally, in order to ensure efficient usage of fiscal resources, provinces should where possible match their plans and activities to the actual cash requirements or availability on a quarterly and monthly basis. The national department should also align as much as possible each grant payment schedule to the cash requirements and plans of each province.

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