1 STANDING COMMITTEE ON APPROPRIATIONVOTE 14: BASIC EDUCATION STANDING COMMITTEE ON APPROPRIATION 23 August 2017 MR HM MWELI Director-General

2 PRESENTATION OUTLINE Purpose Under/Over-ExpenditurePerformance Information Service Delivery Implications Addressing AGSA Findings Addressing Recommendations Scholar Transport Infrastructure Recommendation Additional Information 2

3 PURPOSE To present a progress report on key matters to the Standing Committee on Appropriation. 3

4 UNDER OR OVER-EXPENDITURE4

5 Expenditure as % of Appropria-tionALLOCATION AGAINST ACTUAL EXPENDITURE PER PROGRAMME FOR THE 2016/17 FINANCIAL YEAR Programmes 2016/17 Expenditure as % of Appropria-tion Appropriation Actual Expenditure Variance R’000 Administration 699 99.83% Curriculum Policy, Support and Monitoring 51 263 97.27% Teachers, Education Human Resources Development and Institutional Development 1 643 99.86% Planning, Information and Assessment 93.05% Educational Enrichment Services 9 039 Total 95.82% 5

6 Economic Classification Expenditure as % of AppropriationALLOCATION AGAINST ACTUAL EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE 2016/17 FINANCIAL YEAR Economic Classification 2016/17 Expenditure as % of Appropriation Appropriation Actual Expenditure Variance R’000 Compensation of Employees 14 315 96.95% Goods and Services (15 737) 100.77% Interest and Rent on Land 46 321 100% Transfers and Subsidies 6 649 99.96% Payment for Capital Assets 53.29% Total 95.82% 6

7 Curriculum Policy, Support and Monitoring (Goods and Services)UNDER-EXPENDITURE Projects Reasons Remedial Measures Curriculum Policy, Support and Monitoring (Goods and Services) Kha Ri Gude programme (EPWP) The main cost driver is stipends paid to volunteer educators whose number depends on the number of learners in the programme. The target number of learners was for 2016/17 Verification of authentic learners showed a reduced number of learners. The reduction in numbers affected the number of volunteers to be recruited and paid. Intensified verification of learners further caused withholding of payment of stipends for three to four months The campaign has been concluded as it has reached its target. 7

8 Curriculum Policy, Support and Monitoring (Goods and Services)UNDER-EXPENDITURE Projects Reasons Remedial Measures Curriculum Policy, Support and Monitoring (Goods and Services) Second Chance The programme had budgeted for the payment of teachers and centre managers for the face to face classes. However, there was low expenditure on this item due to low and/or no enrolments for face to face classes in some provinces Study Guides for Agricultural Science, History and Business Studies could not be delivered on time (the expenses will be born in the 2017/18 financial year). Planning for the Digital platform and initial development was conducted as part of the Phakisa Project and hence the project did not incur the expenses. Strengthened advocacy viz. ministerial roadshows and activations sessions Strengthened planning and communication with PEDs Increased Digital options to encourage learners to utilize more online options Printing scheduled for early in the financial year 8

9 UNDER-EXPENDITURE ASIDI ProgrammeProjects Reasons Remedial Measures PLANNING, INFORMATION AND ASSESSMENT (Payment of Capital Assets) ASIDI Programme Poor performance by implementing agents, professional service providers and contractors, which necessitated the termination of contracts and the process of appointing replacements. The process of rationalisation and mergers of schools especially in the Eastern Cape Province, also delayed the achievement of targets. DBE constituted a task team to fast track and conclude the rationalization process on ASIDI schools in the Eastern Cape; Projects re-allocated from poor performing IAs and allocated to performing IAs like DBSA; CDC and Mvula Trust. Contracts of poor performing contractors terminated; Use of the Programme Support Unit and internal capacity to implement some projects. 9

10 EDUCATIONAL ENRICHMENT SERVICESUNDER-EXPENDITURE Projects Reasons Remedial Measures EDUCATIONAL ENRICHMENT SERVICES HIV and Aids conditional grant (Limpopo Province) Delays in (i) provincial approval of bids due to provincial public service strike; (ii) filling of 4 vacant posts to enhance provincial capacity to manage the programme; (iii) Awarding of a bid to a service provider that did not have capacity to deliver the service; (iv) as well as delays in payment of invoices for activities conducted. In addition, the approval by National Treasury to pay the stipends for 108 Learner Support Agents was only approved in March 2017. The department is working with National Treasury to come up with transversal tenders to address such identified challenges.  DBE is strengthening its monitoring. 10

11 OVER EXPENDITURE ON GOODS AND SERVICESProject Reasons Remedial Measures PLANNING, INFORMATION AND ASSESSMENT (GOODS AND SERVICES) ASIDI Programme The DBE appointed a team to fast track the rationalization of ASIDI schools in the EC, in order to meet its targets Projects that were terminated from implementing agents, e.g CSIR, were in the interim, managed by the DBE through the Programme Support Unit, and additional resources were solicited to manage these projects. The rationalisation of ASIDI schools in the EC has been completed and the process of appointing contractors is in progress Replacement Implementing Agents have been appointed 11

12 PERFORMANCE INFORMATION12

13 2016/17 ANNUAL STATUS BAR FOR INDICATORSProgramme No. of indicators per programme Annual Targets Quarterly Targets Bi-annual Targets Achievements to reach the Annual Targets Not achieved Partially achieved Achieved One 3 - 1 2 Two 16 12 13 Three 8 6 Four 10 4 1 (ANA) 5 Five Total distribution 44 31 7 29 Percentage distribution 100% 70% 23% 7% 16% 18% 66% All Annual Targets are White unless FULLY ACHIEVED. Where 50% of the target has not been achieved, the status will be reflected as red. Where 50% or more of the target has been realised, the status will be reflected as amber. Where the target has been achieved, the status will be reflected as green. 13

14 APP INDICATORS NOT ACHIEVED# PERFORMANCE INDICATORS TARGET FOR 2016/17 AS PER APP ANNUAL OUTPUT 2016/17 ANNUAL STATUS 3.3.1 Number of teachers participating in the EFAL diagnostic tests 10 000 Annually ANNUAL: EFAL Teachers have been tested = negative deviation (refer to for reason for variation and remedial actions) 3.3.2 in the Mathematics diagnostic tests 10 000: ANNUAL: Mathematics teacher have been tested = negative deviation Delays in the administration of tests due to union resistance to testing at provincial level slowed the processes down as did development partner funding delays (EU). Remedial Action: A collaboration agreement was subsequently reached with the ETDP SETA (R1.7 million allocation) and VODACOM (provided R ) to assist with the administration of the tests in EFAL. The DBE engaged officials in NW, KZN, FS and MP provinces on how to deal effectively with resistance from the teacher unions.

15 APP INDICATORS NOT ACHIEVED# PERFORMANCE INDICATORS TARGET FOR 2016/17 AS PER APP ANNUAL OUTPUT 2016/17 ANNUAL STATUS 4.3.1 Number of new schools built and completed through ASIDI 59 Annually ANNUAL: 16 in 2016/17 179 in total Negative deviations The process of rationalisation and mergers of schools on the ASIDI programme also contributed to the set targets not being achieved. Poor performance by the Professional Service Providers resulting in inferior quality of work which had to be redone, Poor performance by Implementing Agents (IA). The DBE had to terminate some contracts with the IAs or reduced the scope of work due to poor performance, Inclement weather, Construction work disruptions due to community unrest, 4.3.2 Number of schools provided with sanitation facilities through ASIDI 265 30 in 2016/17 446 in total 4.3.3 Number of schools provided with water through ASIDI 280 29 in 2016/17 634 in total 4.3.4 electricity through ASIDI  620 Bi-annually Q1: 310 Q2: 310 0 in 2016/17 306 in total Remedial Actions: Weekly accountability meetings chaired by the DG held with implementing agents; DBE constituted a task team to conclude the rationalization process on ASIDI schools in the Eastern Cape; Projects re-allocated from poor performing implementing agents and allocated to performing implementing agents like DBSA; CDC and Mvula Trust. Contracts of poor performing contractors terminated; Use of the Programme Support Unit and internal capacity to implement some projects; Social facilitation intensified in communities that are prone to disruptions.

16 PUBLIC ENTITIES ENTITIES MANDATE MAJOR RISKS OPPORTUNITIES UMALUSITo set and monitor standards for general and further education as contemplated in the National Qualifications Framework Act (Section 28) and the General & Further Education and Training Quality Assurance Act. Umalusi quality assures the NSC. Resource constraints (staff personnel and expertise) for full elaboration of UMALUSI mandate in respect of the quality assurance mandate. Lack of agreement regarding roles and responsibilities in qualification development and implementation in the sector. Irregularities in the system Collaboration with DBE in curriculum implementation and development. Improvement in standards of qualifications and curriculum. Improved quality of education and training providers. SACE To regulate, protect and promote the teaching profession . SACE has successfully evaluated and accredited professional development providers, registered Institutional challenges. Resistance by Teacher Unions to participate on some activities linked to SACE including Professional development. Lack of buy in by teachers to participate in on SACE-linked activities Irregularities oversight MTSF/NDP alignment needs strengthening in terms of sector outcome. Developing professional standards and ethics for teachers will assist in improving teacher quality. Excellent coverage and reach as a registration body, so can contribute to understanding teaching corps.

17 ADDRESSING AGSA FINDINGS17

18 PROGRESS IN ADDRESSING AGSA CHALLENGES…The Department of Basic Education ( DBE) has strengthened the management of Performance Information in conducting the following: Early warning: Quarterly Reporting systems established to alert key managers at Quarterly Branch Reviews on Programme Performance ( achievements and non achievements). DBE strengthened process systems: managing performance information and heightening evidence reported by Branches. Sanctions applied in terms of consequence management in areas of non- performance. Performance agreements and assessments for all sms members for financial and programme management emphasised in relation to targets. Weekly Senior Management meeting reports, comprising of progress per Branch within each Programme with regards to statutory Planning and Reporting obligations to feed into Quarterly Reporting improvements. 18

19 PROGRESS IN ADDRESSING AGSA CHALLENGESThe Basic Education and Sector plans to strengthen the monitoring of the MTSF by undertaking the following: Strengthening and refining the DBE Technical Indicator Descriptions (TID) to close the gaps identified with the 2016/17 audit process. Strengthening alignment of DBE Annual Performance Plan (APP) and Medium- Term Strategic Framework ( MTSF) to strengthen Outcome 1 reporting. Strengthening the monitoring systems on MTSF indicators with provincially segregated information; Developing Standardised Technical Indicator Descriptions (TIDs) for all Provincial Education Departments (PEDs) but more work is still required; Development and Inclusion of MTSF standardised indicators for the Sector Validating information reported by the sector using EMIS and specialised surveys.

20 PROGRESS ON 2015/16 AUDIT FINDINGSAction taken to address findings Progress made ASIDI Commitments Departmental officials collected all the contracts from the IAs and commitments were updated. This process was only completed in the current financial year (2017/18). ESKOM provided acceptable documentation for commitments. The commitment register was fully updated during the 2017/18 financial year.  ESKOM commitments have been updated. Expired MoAs of Implementing Agencies not being extended (ASIDI) All the existing MoAs with different Implementing Agents on the ASIDI Programme have been extended till the 31 March 2018. A schedule and copies of extended MoAs have been submitted and filed by Directorate Finance.

21 PROGRESS ON 2015/16 AUDIT FINDINGSAction taken to address findings Progress made Section 42 (Transfer of completed schools to provinces) There were discussions and work sessions with the DBSA and their appointed PSP to transfer the first 49 Schools built in the Eastern Cape. Due to the schools being issued with clustered contracts, it was decided that the schools can only be transferred once all 49 Schools’ Close-out reports are received. Still awaiting Close-out reports that are being compiled by DBSA for the 49 schools. The Department has been working on getting the supporting documents from the IAs to breakdown/split the clustered schools. Non compliance with the Supply Chain Management process when appointing a service provider to render a project management service for the Kha Ri Gude mass literacy campaign for a three-year period: Tender number DBE 036 The BEC members are taken through the Specification/ Terms of Reference of all tenders before they start with the evaluation in order to understand the Evaluation Criteria. The process will minimize the misinterpretation of the Evaluation criteria. All processes followed are guided by National Treasury’s Instruction Notes, SCM Policy. Ongoing. 21

22 PROGRESS ON 2015/16 AUDIT FINDINGSAction taken to address findings Progress made Immovable Assets (ASIDI) Monthly reports are prepared by both the Implementing Agents and the ASIDI PSU indicating the progress of the ASIDI Programme. The reports are reviewed by the ASIDI Programme Manager and are safely kept for records. A letter detailing the areas of concerns and reporting timelines will be drafted and sent to all IAs through the office of the Director-General. In the process of reviewing the role of the PSU which when finalised will result in better reporting from the ASIDI Unit. From September 2016, a monthly BAS vs Immovable Asset/WIP reconciliation was performed and accounted for correctly. A detailed Work In Progress and Practical Completion certificates reconciliation was also performed for year-end at a per school level that balances back to BAS for 2011 to 2017. 22

23 PROGRESS ON 2015/16 AUDIT FINDINGSAction taken to address findings Progress made LTSM Textbook catalogue The Department requested exemption from supply chain management process from National Treasury for the compilation of the national catalogue . National Treasury granted approval for deviation / exemption on 3 March Completed. Employee costs  DPSA addressed the matter of secondments. However, the consultant rates were not addressed. The Auditor-General indicated that if payments were made on consultant rates, the Department should have followed the SCM processes.  The Department is in the process of addressing the matter. 23

24 PROGRESS ON 2015/16 AUDIT FINDINGS Action taken to address findingsProgress made Accruals (ASIDI) The IAs are required to record all their monthly accruals in the ACCRUALS AGE ANALYSIS SCHEDULE. The information submitted must be signed off at an appropriate level. ASIDI unit submitted all the quarterly information. Signed accruals were received from IAs. SCM Limitation of Scope (ASIDI) Direction given that all documentation of the programme has to reside in the Department, in particular, SCM documents. ASIDI unit be capacitated with additional human resources on document management system. Interns were trained and are actively involved in sourcing required documentation from IA’s. They have already visited a number of IA’s to obtain outstanding information. SCM on the appointment of contractors Prior approval for concurrence to appoint any service provider is sought from the DG to enable the IAs to enter into contractual agreements. The IAs will be required to submit all copies of the bid documents prior to requesting concurrence by the DG. On-going 24

25 PROGRESS ON 2015/16 AUDIT FINDINGS Action taken to address findingsProgress made Compliance - Internal Audit The Directorate has been reorganized by appointing a new Director Internal Audit (Chief Audit Executive) on 1 November 2016 the Internal Audit Charter and the Audit Committee Charter for 2016/17 were reviewed Appointed the new Audit Committee and Risk Management Committee Chairperson, Updated the risk register, Internal Audit plan revised to ensure focus on high risk areas: e.g. ASIDI, Performance Audit (Predetermined Objectives) and Kha Ri Gude and the finalisation of projects that were incomplete. Completed. Internal audit and Audit Committee Charters have been approved. (Completed). The Risk Management Committee Chairperson was appointed.  Risk register was updated. Finalized and approved 3 year strategic rolling plan and Annual Operational Plan for Internal Audit (completed). The high risk areas were audited. 25

26 PROGRESS ON 2015/16 AUDIT FINDINGS Action taken to address findingsProgress made Guarantees (ASIDI) The IAs are required to submit a register of all guarantees detailing their status on a quarterly basis. These will be included in the letter to be sent to the IAs. A detailed reconciliation was performed of all cases where construction guarantees were called up. Guarantees do not apply to basic Services as they work on a retention basis. Overpayments of contract amounts awarded for construction (ASIDI) Implementing Agents have been reminded that all Variation Orders are to be approved by the Director-General prior to implementing them. All balances of commitments are individually recorded on BAS to minimize risk of overpayments. The IA Cash Flows are checked by the delegated PSU Finance Administrators to ensure early detection of possible overpayments. Currently VOs are no longer submitted frequently due to proper planning. Cash Flows are checked monthly and scrutinised by the PSU Finance Administrators before any claim is submitted to Finance for processing on BAS.

27 PROGRESS ON 2015/16 AUDIT FINDINGS Action taken to address findingsProgress made SCM Director Post and officials doing remunerative outside their sphere of appointment The recommended declaration already forms part of the "Letter of Acceptance of Post and Assumption of Duty" documentation . A circular informing officials of their responsibilities regarding remunerative work outside their spheres of appointment with the DBE was circulated to officials on 21 July 2016. Letters have been signed by DG and sent to officials concerned. HRM managed to register for access to the CIPC database so that pre-appointment checks can be done. The post of the Director: SCM has been re-advertised. Completed  Completed The post has been re-advertised in the National print media on 23 July 2017. Key management personnel The adjustment was completed and submitted to the AG's office. Family members of key management personnel were included. 27

28 PROGRESS ON 2015/16 AUDIT FINDINGSAction taken to address findings Progress Kha Ri Gude For 2015/16 financial year, the Director-General appointed an external audit firm to investigate the amount declared fruitless and wasteful expenditure. For 2016/17 financial year, the Director-General appointed an internal investigation team to investigate reported cases of fraud and corruption. The Team consisted of senior officials from the following directorates: Internal Audit; Finance; Labour Relations; Legal Services; and Kha Ri Gude. The Team conducted investigations in 7 provinces, except in NC and WC. The Team established that there were learners who were affected by corrupt and fraudulent practices. Included in the 40 566 were learners who were fictitious, learners with matric and learners who never attended classes. The total number also includes learners who have Grade 9 that were identified by the Auditor-General. The initial total number learners reached was 164 481. After the investigation, the Team recommended that the Department subtract 40 566 from the 164 481. This means that that the Department remained with 123 914 learners who have registered in the 2016/17 Campaign. Only R1.5 million was found to be fruitless and wasteful expenditure. The remainder was declared irregular expenditure since the policy used to pay on a sliding scale was not approved at the correct level. At the beginning of the Campaign the total learner target was 295 000 for the 2016/17 KRG Mass Literacy Campaign. The verification process further reduced the number of learners after the Department discovered that Volunteers recruited learners whose IDs were either declared by the Department of Home Affairs (DHA) as invalid, or some of the recruited learners were found by the DHA to be deceased. Fraudulent payments will be deducted from the affected volunteers since the final payments have not been made. 28

29 PROGRESS ON 2015/16 AUDIT FINDINGSAction taken to address findings Progress Kha Ri Gude The investigation further determined the monies based on the affected learners. The monies were determined based on the LTSM, stationery and stipend paid to volunteers for these learners. The monies paid to the service providers were also included. The money amounted to R11.184 million that the Department disclosed as fruitless and wasteful expenditure in the 2016/17 financial year. The Investigation Team reported fraud and corruption cases to the HAWKS and Special Investigation Unit (SIU). The Team submitted the following documents when reporting the cases: List of whistles blowers; List volunteers alleged to be involved in fraud and corruption practices; Submitted reports by whistle blowers; and Summary report of the Investigation Team.  Investigations by the HAWKS and SIU are continuing. Consequence Management on IA’s not complying Warning letters were signed by the DG and submitted to affected officials on 26 October 2016. Completed 29

30 RESPONSES TO RECOMMENDATIONS30

31 Detailed Responses to Recommendations from Tabled ReportsREPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE FOURTH QUARTER EXPENDITURE PATTERNS FOR THE 2015/16 FINANCIAL YEAR AND FIRST QUARTER EXPENDITURE PATTERNS FOR THE 2016/17 FINANCIAL YEAR , DATED 29 NOVEMBER 2016 That the Minister of Basic Education should ensure the following: That the Department of Basic Education together with the Department of Planning, Monitoring and Evaluation and other stakeholders should develop mechanisms for appropriate sanctions to discourage poor performance, especially in ensuring that the attainment of targets in the annual performance plans is aligned to budget planning and spending performance. That the Department of Basic Education together with the National Treasury and other stakeholders should develop mechanisms aimed at dealing expeditiously with non-performing contractors for the effective provision and maintenance of schools’ infrastructure. The DBE with the support of DPME has developed a set of Programme Performance Indicators that will assist in tracking and improving performance with the Education Sector. The DBE also convenes quarterly Outcome 1 Meetings where performance issues are discussed and means to improve on reporting and performance of the Sector Indicators. Contract between the parties is regulated by the JBCC contracts which has provision to deal with delinquent contractors. Construction guarantees which are normally signed prior to engagement with the contractors are recalled to reimburse the Implementing Agents/National Treasury should the contractor be found to be non-performing. Further, the Department of Basic Education and the National Treasury have developed a maintenance policy to ensure that 20% of the infrastructure amount is allocated for maintenance. Contractual agreements with implementing Agents have been reviewed to strengthen the enforcement of contractual agreement with contractors to ensure effective provision and maintenance of schools’ infrastructure..

32 Detailed Responses to Recommendations from Tabled ReportsThat the Department of Basic Education together with the National Treasury and other stakeholders should develop mechanisms aimed at dealing expeditiously with non-performing contractors for the effective provision and maintenance of schools’ infrastructure. Contract between the parties is regulated by the JBCC contracts which has provision to deal with delinquent contractors. Construction guarantees which are normally signed prior to engagement with the contractors are recalled to reimburse the Implementing Agents/National Treasury should the contractor be found to be non-performing. Further, the Department of Basic Education and the National Treasury have developed a maintenance policy to ensure that 20% of infrastructure amount is allocated for maintenance. Contractual agreements with implementing Agents have been reviewed to strengthen the enforcement of contractual agreement with contractors to ensure effective provision and maintenance of schools’ infrastructure. Effective monitoring of the provision of infrastructure Professional Service Providers (PSP’s) and Implementing Agents (IAs) that the Department of Basic Education and provinces are utilising for the implementation of the infrastructure programme. Monitoring addresses planning, budgeting, expenditure, procurement and project management. These 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. Monitoring deals with both programme and project matters.

33 Detailed Responses to Recommendations from Tabled ReportsThat the Department of Basic Education together with the National Treasury and other stakeholders should develop mechanisms aimed at dealing expeditiously with non-performing contractors for the effective provision and maintenance of schools’ infrastructure Programme matters include: The pattern of overall expenditure being achieved; Comparisons of expenditure to projected cash flows; Progress being made with key groups of projects [e.g. Water, sanitation, libraries, laboratories, Grade R]; and Management of the portfolio of projects [ie evidence that the programme of projects is being managed effectively through the project cycle]. At the Project level the focus is on ensuring: that PSP appointments are being made; that planning and design processes are progressing; that the tender process for the appointment of contractors is progressing, that construction is progressing satisfactorily, [i.e. on programme, on budget, at acceptable quality…]; and that projects are being handed over and closed out and that final accounts are being wrapped up.

34 Detailed Responses to Recommendations from Tabled ReportsThat the Department of Basic Education (DBE) should finalise the rationalisation of schools process expeditiously. The DBE has established a national project team consisting of officials from different disciplines to monitor and support the Provincial Education Departments (PEDs) with the implementation of the rationalisation of small and non-viable schools. The Heads of Education Committee (HEDCOM) resolved that ongoing monitoring should be strengthened in the Eastern Cape (EC), KwaZulu-Natal (KZN) and Limpopo (LP) The national project team has determined a schedule of dates for ongoing monthly monitoring and support visits in the EC, KZN and LP. The first visits were on 04 July 2017, 14 July 2017 and 21 July 2017, respectively. The HEDCOM also resolved that all PEDs should develop multi-year plans on rationalisation. These plans have subsequently been requested from all PEDs except for EC and WC, however it should be noted that responses were positive.

35 Detailed Responses to Recommendations from Tabled ReportsREPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE ADJUSTMENTS APPROPRIATION BILL [B16 – 2016] [NATIONAL ASSEMBLY (SECTION 77)], DATED 5 DECEMBER 2016 The Minister of Basic Education should ensure the following: That the Department aligns and enhances its budget planning and strategic planning function in order to ensure that annual performance plans align with programmes budget allocations. That the Department ensures that all payments to suppliers are paid within 30 days. That the Department ensures that all critical vacant posts are filled timeously.  The DBE develops the Annual Performance Plans with the inputs from Finance to ensure that there is alignment with planned targets and budgeted funds. The DBE also convenes Quarterly Review Sessions that discusses issues of alignment of the MTSF to strengthen alignment of Performance Information within the department. Two tools i.e. Invoice Receipt Register as well Invoice Tracking Register have been implemented and is working well to ensure payments to suppliers within 30 days All critical vacant posts have been advertised. However, not all vacant posts can be filled as a result of budgetary cuts on the Compensation of Employees budget. The posts of Director: Logistical Services, Director: National Assessments, as well as posts of Chief Director: Quality Enhancement Programmes, Chief Director: National Institute for Curriculum Development and Chief Director: Legal and Legislative Services were advertised. The following 6 posts of Director: Sport and Enrichment, Director: GET, Director: FET, Director: Strategic Planning and Reporting, Director: Research Co-ordination, Monitoring and Evaluation, and Director: Internal and External Liaison have been filled.

36 Detailed Responses to Recommendations from Tabled ReportsREPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE 2016 MEDIUM TERM BUDGET POLICY STATEMENT, DATED 05 DECEMBER 2016 The Minister of Basic Education should ensure that: The Department of Basic Education, in partnership with the Department of Planning, Monitoring and Evaluation and relevant stakeholders should immediately embark on a programme for the establishment of systems for the collection, verification and monitoring of data and indicators on the scholar transport programme especially in rural areas. The Department of Basic Education, in partnership with the National Treasury and all relevant stakeholders should consider the development of innovative ways of ensuring the scholar transport is effective, affordable and adheres to the principles of value for money. The Department of Basic Education, in collaboration with the Department of transport, and as per the prescripts of the Learner Transport Policy, established the National Inter-Departmental Committee (NIDC) to oversee the implementation of the learner transport programme. The committee is comprised of national and Provincial Departments of Transport and Education. The Committee meets on quarterly basis to receive progress on the implementation of the learner transport programme and reports to the Ministers of Basic Education and Transport. The following are standard matters addressed and reported on: Progress on implementation of the policy ; Plans for learner transport per province; Learners transported quarterly per province; Budget/financial performance per province; Accident information per quarter; Transportation of learners with disabilities; and Challenges and mitigation.

37 Detailed Responses to Recommendations from Tabled ReportsREPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE 2016 MEDIUM TERM BUDGET POLICY STATEMENT, DATED 05 DECEMBER 2016 The Minister of Basic Education should ensure that:    The Department of Basic Education, in partnership with the National Treasury and all relevant stakeholders should ensure the appointment of critical technical skills; enhance support and oversight to contractors especially in the rural areas and strengthen oversight over implementing agents in the rollout of schools’ infrastructure programme. Through the Division of Revenue Act, DBE and NT continue to support provinces with the employment of critical technical skills to enhance support and oversight to contractors through the HR capacitation Programme. The HR Oversight Committee meets quarterly to review progress, and provide reports. To date, 322 built environment professionals e.g. electrical, mechanical and civil engineers, quantity surveyors, architects, town and regional planners, works inspectors and project managers have been appointed.

38 Detailed Responses to Recommendations from Tabled ReportsREPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE DIVISION OF REVENUE BILL [B4 –2017] (NATIONAL ASSEMBLY – SECTION 76), DATED 14 MARCH 2017 That the Ministers of Finance, Basic Education, and Transport should ensure the following: That the scholar transport function within provinces is clearly assigned with defined sector roles for the Departments of Basic Education and Transport. That there is effective coordination between the Department of Transport and the Department of Basic Education;    That there is reliable, accurate and consistent data on the number of learners in need of scholar transport; and That budget allocations are responsive and aligned to scholar transport needs and requirements in provinces. The scholar transport policy clearly assigns roles and responsibilities for the Departments of Basic Education and Transport.    The Scholar Transport policy provides clarity in terms of ensuring effective coordination between the Department of Transport and the Department of Basic Education. This is done through the National Inter-Departmental Committee (NIDC) to oversee the implementation of the learner transport programme. Key stakeholders are being engaged to ensure improved effective coordination. Department of Basic Education, National Treasury and Department of Transport have put in place quality assurance mechanisms to ensure that there is reliable, accurate and consistent data on the number of learners in need of scholar transport. One of the deliverables of the review of the learner transport programme is to ensure that adequate funding and funding mechanisms are developed and put in place to ensure that allocations are responsive to needs and requirements.

39 Detailed Responses to Recommendations from Tabled ReportsREPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE APPROPRIATION BILL [B5-2017] (NATIONAL ASSEMBLY – SECTION 77), DATED 7 JUNE 2017 The Minister of Basic Education should ensure that: The Department of Basic Education strengthen learner support programmes such as learner counselling in order to improve throughput rates and minimise learner dropouts.    Department of Basic Education and National Treasury have prioritized the provision of basic services by including the programmes in the sector’s budget as well as in the Accelerated School’s Infrastructure Delivery Initiative (ASIDI). The Department of Basic Education has implemented the following innovative ideas to strengthen learner support programmes: Health Promotion The Minister has launched the National School Hygiene Programme, a collaboration with Unilever South Africa, where all Grade 1 learners in the country will be provided with soap for handwashing, toothbrush and toothpaste for oral hygiene and dosmestos disinfectant for schools with water-resourced ablution facilities. This is a behavior change programmes that will educate learners about personal hygiene to prevent worm infestation and other infections that keep vulnerable learners away from school. National School Nutrition Programme The Department has managed to consolidate innovations around NSNP to ensure maximum access and optimal quality of the lunch menu. However, the need for an in- school breakfast feeding programme prevails. With partners, an in-school breakfast feeding programme has started in a modest number of selected schools. The DBE is working with more partners to take on more schools for same.

40 Detailed Responses to Recommendations from Tabled ReportsREPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE APPROPRIATION BILL [B5-2017] (NATIONAL ASSEMBLY – SECTION 77), DATED 7 JUNE 2017 The Minister of Basic Education should ensure that: The Department of Basic Education strengthen learner support programmes such as learner counselling in order to improve throughput rates and minimise learner dropouts.    Psychosocial Support In many instances, the Social Workers who are available in communities are not accessible to schools as they cover the entire community. Learners could benefit a great deal from a Social Worker accessible to schools. The Department is working with the National Committee on School Social Work Education and Practice South Africa (NACOSSWEP - SA) to explore the design of School Social Work specialization. School Safety With the plight of bullying in our schools, which has been identified as one of the negative elements that affect learner performance and keep learners away from school, the Department has developed an anti-bullying campaign that consists of a television production, social media campaign and toolkits for educators to deal with bullying in schools.

41 Detailed Responses to Recommendations from Tabled ReportsThe Ministers Basic Education, Higher Education and Training should ensure that the Departments of Basic Education, Higher Education and Training: strengthen policy aimed at improving the quality of school curriculums and the student throughput rates to meet the needs of a modern economy The Maths, Science and Technology (MST) Conditional grant is responsive to the MST targets set in Chapter 9 of the NDP and Goals 1-9, 16 and 20 of the Action Plan 2019, Towards Schooling 2030. The schools were supported during the financial year 2016/17: 44 schools, were supplied with Information, Communication and Technology (ICT) resources such as laptops, tablets and software for Maths, Science and Technology curriculum to support curriculum and teaching methodology 223 workshops were supplied with equipment, tools and machinery for Technology to support curriculum and practical teaching methodology at FET level; (18 workshops: Free state; 136 workshops: Mpumalanga; 45 workshops: Northern Cape; and 24 workshops: Western Cape)

42 Detailed Responses to Recommendations from Tabled ReportsThe Ministers Basic Education, Higher Education and Training should ensure that the Departments of Basic Education, Higher Education and Training: strengthen policy aimed at improving the quality of school curriculums and the student throughput rates to meet the needs of a modern economy The 296 Physical Sciences Laboratories; (977: Free State; 136: Mpumalanga; 10 Northern Cape and 73: Western Cape), were supplied with consumables and subject related apparatus to support curriculum and practical teaching methodology 3641 learners (650: Free State; 237: Northern Cape, 2754 learners: Western Cape), were funded to participate in Maths and Science Competitions including Coaching and Revision Camps to improve learner preparedness for the NSC examinations:  Subjects Specialists and Teachers were trained in 2016, in preparation for implementation of CAPS for Technical Schools in Grade 11 in 2017: 1647 Grade 11 Educators trained in Specialisations (Civil Technology, Electrical Technology & Mechanical Technology) in 345 Grade 11 Subject Advisors trained in Technical Mathematics & Technical Sciences in 2016

43 SCHOLAR TRANSPORT 43

44 The National Learner Transport Policy was approved by Cabinet in May 2015 after consultations with various stakeholders. The National Policy provides that national government will oversee the implementation of the policy in consultation with relevant stakeholders, including provinces, municipalities and school governing bodies (SGBs). The policy further provides for a National Interdepartmental Committee (NIDC) to oversee and monitor the implementation of the Policy. The NIDC consist of representatives from the DoT, DBE and provinces. The NIDC reports to the Ministers of Transport and Basic Education on the overall implementation of learner transport programmes. The NIDC submits a quarterly report and meet quarterly to discuss the progress on implementation of learner transport nationally. The following issues are discussed in meetings: Progress on implementation of the policy; Plans for learner transport per province; Learners transported quarterly per province; Budget/financial performance per province; Accident information per quarter; Transportation of learners with disabilities; and Challenges and mitigation measures SCHOLAR TRANSPORT

45 LEARNER TRANSPORT NEEDS AND PLANS FOR 2016/17 FINANCIAL YEARTable 1: Learner Transport 2016/17 plans PROVINCE NAME Total enrolment in public schools as per 2016/17 snap survey Total number of learners that require learner transport in 2016/17 Number of learners to be transported 2016/17 (planned) %learners to be transported 2016/17 (planned) against the need Eastern Cape 1  68 576 62% Free State 9 736 8 053 83% Gauteng 2  97 114 100% KwaZulu-Natal 2  71 000 47 747 67% Limpopo 1  37 272 23 391 63% Mpumalanga 1  60 231 Northern Cape 27 803 22 874 82% North West 52 684 37 254 71% Western Cape 1  57 416 55 000 96% TOTAL 80%

46 Learners transported per quarterProvinces have identified learners who are in need of learner transport. The plan for 2016/17 financial year was to transport learners, which amounts to 80% of all learners who needed transport for the 2016/17 financial year. GP, MP and WC provided transportation for all the learners in need, whilst other provinces provided less than the numbers requiring transport due to financial constraints. EC has the highest number of learners in need and provided for only 62% of the learners against the need. Learners transported per quarter Table 2: Learners Transported in quarter 4 PROVINCE No of learners in need of transport 2016/17 Target for 2016/17 Actual No transported Q4 % of learners transported in Q4 against the need % of learners transported against the target Eastern Cape 68 576 78 061 70% 114% Free State 9 736 8 053 11 929 123% 148% Gauteng 97 114 113% KwaZulu-Natal 71 000 47 747 67% 100% Limpopo 37 272 23 391 34 321 92% 147% Mpumalanga 60 231 60 119 Northern Cape 27 803 22 874 23 684 85% 104% North West 52 684 37 254 42 281 80% Western Cape 57 416 55 000 58 217 101% 106% TOTAL 89% 111%

47 Budget and expenditureBudget and expenditure in 4th quarter 2016/17 Table 3: Budget and expenditure 2016/17 Budget and expenditure PROVINCE NAME Budget allocation Actual expenditure Actual expenditure% EC R R 105.90% FS R R 126.00% GP R R 127.10% KZN R R 136.58% LP R R 96.40% MP R R 98.50% NC R R 71.20% NW R R 99.80% WC R R 91.50% Total R R 106% The total budget allocation was R for the 2016/17 financial year. Total expenditure as at end of March 2017 was at R , indicating an over expenditure of 6% in the 2016/17 financial year. Four provinces, EC,GP,FS and KZN overspent their budgets, whilst the five provinces, LP,NC,MP,NC and WC underspent.

48 CHALLENGES AND MITIGATION STRATEGIES ON LEARNER TRANSPORTInsufficient funding- Most provinces have reported that funding is a challenge as the demand for learner transport always exceeds the supply, which results in the exclusion of a number of qualifying leaners. This is particularly so in the provinces such as EC, NW, KZN. Some provinces had to require additional funding to cater for the increasing demand for learner transport in their services. Integration of Learner Transport with other educational programmes: Lack of integration with programmes like school infrastructure programme and rationalisation of schools have an effect on the provision of learner transport. There should be integration to ensure that a common objective is achieved as these programmes can have an effect of increasing demand for transport, which results in increasing costs and inability to provide full coverage. Road Safety: Lack of focused learner transport road safety programme focusing on the learner transport operators, parents and learners in order to raise awareness about road safety and law enforcement is critical. This is particularly so in privately arranged learner transport where there is minimal involvement of government as contracts are entered into by parents and operators. Evaluation of the learner transport programme: The Department of Transport in conjunction with the Department of Performance, Monitoring and Evaluation (DPME), Department of Basic Education (DBE), National Treasury (NT) is undertaking an evaluation review of the current learner transport programme. The focus of the evaluation is to assess the efficacy in terms its efficiency and effectiveness. The project is co-funded by the Department of Transport, Department of Basic Education and Department of Performance, Monitoring and Evaluation (DPME). The project is expected to be completed in March 2018

49 INFRASTRUCTURE 49

50 50

51 TOTAL NUMBER OF SCHOOLS COMPLETED SINCE 2009Prov TOTAL NUMBER OF SCHOOLS COMPLETED (ASIDI AND PROVINCIAL) Total School Delivered 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 ASIDI EC 34 62 33 13 5 32 11 10 134 334 FS 4 2 3 12 45 GP 14 21 24 6 110 KZN 19 17 87 LP 7 99 MP 1 66 NC 20 NW 8 38 WC 9 23 22 121 TOTAL 111 103 72 100 57 179 920 51

52 PROGRESS ON ASIDI (as at 31 March 2017)Province Inappropriate Structures Electricity Sanitation Water Baseline Completed EC 442 134 317 180 344 167 619 248 FS 30 12 143 23 68 101 49 GT 3 2 28 14 n/a KZN 116 43 140 91 230 197 LP 142 5 77 75 121 95 MP 148 44 8 27 17 20 NC 1 26 10 NW 41 29 16 WC 22 7 21 19 4 Totals 510 179 916 306 741 425 1 120 615 52

53 PROGRESS ON ASIDI 53 SUB-PROGRAMME IPMP BASELINENO OF SCHOOLS CANCELLED *TOTAL NO OF SCHOOLS BEING ADDRESSED NO PROJECTS COMPLETED NO OF PROJECTS AT DIFFERENT STAGES OF IMPLEMENTATION PROJECTS COMPLETED + PROJECTS BEING IMPLEMENTED Inappropriate Structures 510 225 647  180  190 370 Sanitation 741 275 993  445 548  Water 1120 273 1305  635  670 Electricity 383  306  77 *No of schools being addressed includes non-ASIDI schools benefitting as a result of being merged with ASIDI schools Revision of the No of projects being implemented is due to: Closure of schools initially on the list Mergers of schools Facilities having been provided though other programmes A total of 647 schools will be addressed under the ASIDI programme as a result of mergers 53

54 RECOMMENDATION It is recommended that the SCOA discusses the report on key matters pertaining to the Department of Basic Education. 54

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