Technical Secondary Schools
Recapitalisation Grant Framework – 2011/12
Conditional Grant, Division of Revenue Act,
2011, as amended
Select Committee on Appropriation
29 May 2012
Technical Secondary Schools
Recapitalisation Grant Framework
Strategic goal
•
To improve conditions of technical schools and modernise them to meet the teaching requirements
of learners in the technical fields and increase the number of suitably qualified and technically skilled
graduates from these schools
Grant purpose
•
To recapitalise up to 200 technical schools to improve the capacity to contribute to skills
development and training in the country by:
–
building workshops at technical schools to support the technical subject offerings;
–
refurbishing or re-designing workshops in technical schools to comply with safety laws and
regulations and to meet minimum industry standards;
–
buying and installing new machinery and equipment consistent with the technical subjects that are
offered in technical schools; and
–
training and up-skilling teachers at technical schools to acquire new trends, practical skills, and
developments in their technical subjects
Purpose of the Technology Subjects
The four technology subjects of the curriculum (Civil Technology, Electrical
Technology, Mechanical Technology and Engineering Graphics and
Design) are intended to offer learners elementary engineering and
technological skills, which are suitable for (1) the world of work, (2) higher
and or further education and training and (3) self employment.
_______________________________________________________________
Delivery of Technology Subjects within the
Education Landscape
According to the Education Management Information System (EMIS)
database of 2010, there are 960 public secondary schools offering one
or more technology subjects. The grant has identified 200 of the 960
schools for recapitalisation during the period 2010/11 - 2014/15.
The profile of the 200 selected Technical High
Schools per Province
Province
Table 1: Profile of the 200 Identified Technical Schools according to the Audit Results
Number
of
Learners
Average
Number of enrolled
Number of
Number
Number of Number of Learners
for
Number of new
Number of
of
Technical
Technical
enrolled in Technical Teachers
workshops Workshop
teachers
Schools
Subjects
Technical Subjects
involved in required
Refurbishmen identified
per
Offered per Schools in per
Technical
per
t required per for
Province
Province
Gr’s 10-12 Province
Subjects
Province
Province
Training
Number of
Workshops
to receive
Equipment,
Tools and
Machinery
Eastern Cape
31
3.0
20,291
8,948
302
40
41
302
93
Free State
18
3.9
16,850
8,071
358
3
23
358
70
Gauteng
42
3.5
44,736
15,195
642
7
44
642
137
KwaZuluNatal
32
3.5
34,130
13,654
461
25
50
461
112
Limpopo
24
3.0
18,795
4,794
247
27
22
247
72
Mpumalanga
15
2.7
13,241
3,344
144
11
32
144
41
Northern
Cape
10
3.2
7,988
3,130
132
3
12
132
70
North West
19
3.7
18,188
8,214
335
1
19
335
37
Western
Cape
9
3.4
7,536
3,499
128
1
23
128
31
TOTALS
200
3.3
181,755
68,849
2,749
118
266
2,749
663
4
Allocation of Funding for the Grant
The Department of Basic Education (the Department) was
initially allocated R80 million (2010/11), R200 million
(2011/12), R210 million (2012/13 to implement the grant
through provinces respectively.
During the budget review period of 2011/12 the financial
allocations were revised as follows: R210 million: 2011/12
(approval of a roll-over of R10,5 million for EC, MP & LP),
R209 million: 2012/13, R221 million: 2013/14 and R233
million: 2014/15.
NB: Funds were reduced for the MTEF period (2012/132014/15)
5
Relevance of the Grant to the Department’s
Goals
The Conditional Grant aims to contribute to the achievement
of the following goals and outputs of the Action Plan 2014:
•Teachers
•Goal 16:
Improve the professionalism, teaching skills, subject
knowledge and computer literacy of teachers
throughout their entire careers. (GRANT OUTPUT 4)
•Learner resources
•Goal 20:
Increase access amongst learners to a wide range of
media, including computers, which enrich their
education. (GRANT OUTPUT 3)
•School infrastructure and support services
•Goal 24:
Ensure that the physical infrastructure and
environment of every school inspires learners to want
to come to school and learn, and teachers to teach.
(GRANT OUTPUT 1 & 2)
6
Financial Performance over the period
2010/11-2011/12
Table 2
2010/11
Annual
Allocation/
Adjusted Amount
Province Budget
Transferred
Amount
Spent
(Excluding % Spent on
Commitmen total
ts)
Allocations
2011/12
Variance
Amount
Annual
Spent
% Spent
Allocation/ Amount (Excluding on total
Adjusted Transferre CommitmeAllocation
Budget
d
nts)
s
%
Increase/
Decrease
EC
9,549
3,342
6,030
63%
40,272
40,272
34,492
86%
22%
FS
7,477
7,477
6,758
90%
14,428
14,428
14,428
100%
10%
GP
17,944
17,944
14,247
79%
30,596
30,596
10,649
35%
-45%
KZN
15,275
15,275
15,038
98%
38,563
38,563
35,276
91%
-7%
LP
8,479
2,968
2,500
29%
31,894
31,894
11,043
35%
5%
MP
5,869
2,054
1,738
30%
21,464
21,464
21,780
101%
72%
NC
3,423
3,423
2,689
79%
7,667
7,667
7,829
102%
24%
NW
8,696
8,697
7,595
87%
17,015
17,015
7,662
45%
-42%
WC
3,288
3,288
3,103
94%
8,619
8,619
8,610
100%
6%
80,000
64,468
59,698
75%
210,518
210,518
151,769
72%
-3%
TOTAL
7
Detail Financial Performance for the period
2011/12
Total Amount
Retained/Unspent
Total Amount
Witheld to date
Balance to cover
commitmt
% Total Spent on
Transfers (Incl.
Comms)
Total Amount
Spent (incl
Commitments)
Amount
Committed to
Goods and
Services
% Spent on Actual
Payments/Allocatio
n
Amount Spent per
Province
Amount
Transferred
Annual Allocation
Province
EC
40,272
40,272 34,492
86%
8,750
43,242
107%
5,780
0
-2,970
FS
14,428
14,428 14,428
100%
0
14,428
100%
0
0
0
GP
30,596
30,596 10,649
35%
19,947
30,596
100% 19,947
0
0
KZN
38,563
38,563 35,276
91%
3,832
39,108
101%
3,287
0
-545
LP
31,894
31,894 11,043
35%
9,400
20,443
64% 20,851
0
11,451
MP
21,464
21,464 21,780
101%
0
21,780
101%
-316
0
-316
NC
7,667
7,667
7,829
102%
0
7,829
102%
-162
0
-162
NW
17,015
17,015
7,662
45%
765
8,427
50%
9,353
0
8,588
WC
8,619
8,619
8,610
100%
9
8,619
100%
9
0
0
210,518 210,518 151,769
72%
92% 58,749
0
16,046
TOTAL
42,703 194,472
8
Analysis of Financial Performance for the
period 2011/12
•The financial expenditure has declined by 3% compared to the previous
period (R60 million of R80 million, 75% in 2010/11 and R151 million of R210
million 72% in 2011/12);
•The overall expenditure (when financial commitments at the end of the
financial period are taken into consideration) is 92%, which is similar to the
previous period;
•The following provinces have recorded expenditure lower than the national
average of 70%: Gauteng (35%), (Limpopo (35%), and North West (45%);
•Limpopo was also part of the under-performing provinces in the previous
period; and
•The following provinces recorded the highest expenditure: Eastern Cape
(86%), Free State (100%), KwaZulu-Natal (91%), Mpumalanga (101%),
Northern Cape (102%) and Western Cape (100%). It should be noted that
three of the six provinces transfer funds directly to schools for implementation.
9
Non-Financial Performance for the period
(2011/12)
Table 4: Performance Outputs Projected and Completed for the period (2011/12)
Performance Output
NC
NW
WC
TOTAL
Actual
Projected
Actual
Projected
Actual
Projected
Actual
Projected
Actual
Projected
Actual
0
14
14
0
0
8
0
6
0
8
8
0
0
3
0
1
1
8
2
64
64
24
4
43
25
7
3 16 16 56 56
1
0 28 28 247 198
21
21
4
4
28
0
36
10
31
31
55
55
28 28
50
59 140 140 120 120 48 48 100 55 16 18 588 554
62
54 137
137
80 32 137
94 177 166 159 159 160 160 107 72 73 75 1,092 949
87%
100%
40%
69%
94%
100%
100%
Actual
Projected
2
24 23 15 15 56 56
Projected
Actual
% Completed (Targets)
MP
Projected
Total Targets Projected
and Completed
LP
Actual
Target Output 4:
Teacher Training
KZN
Projected
Target Output 3: New
Equipment
GP
Actual
Target Output 2:
Refurbishment of
Workshops
FS
Projected
Target Output 1: New
Workshops
EC
42 23
3 17 28 28 215 174
67%
103%
87%
10
Non-Financial Performance for the periods
(2010/11 - 2011/12)
Table 6: Summary Comparison of Non-Financial Performance for the periods 2010/11 - 2011/12
ELEMENT
Total Targets Projected
2011/12
Total Targets Completed
(2011/12)
% Completed (Targets)
2011/12
EC
FS
GP
KZN
LP
MP
NC
NW
WC
TOTAL
S
62
137
80
137
177
159
160
107
73
1,092
54
137
32
94
166
159
160
72
75
949
87%
100%
40%
69%
94%
100%
100%
67%
103%
87%
151
52
15
167
174
67
10
53
42
731
95
52
14
167
89
9
10
47
33
516
63%
100%
93%
100%
51%
13%
100%
89%
79%
71%
Variance in Targets
Projected (2011/12-2010/11)
-89
85
65
-30
3
92
150
54
31
361
Variance in Targets
Completed (2011/12-2010/11)
-41
85
18
-73
77
150
150
25
42
433
24%
0%
-53%
-31%
43%
87%
0%
-21%
24%
16%
Total Targets Projected
(2010/11)
Total Targets Completed
(2010/11)
% Completed (Targets)
2010/11
% Increase/Decrease in
Performance
11
Analysis of Non-Financial Performance
•
The EC achieved 87% of its targets by refurbishing 2 of 8 workshops,
supplied equipment for EGD and electrical technology to 21 workshops
and trained 31 teachers. The building of new workshops is currently
under construction;
•
The Free State, Mpumalanga, Northern Cape and Western Cape
completed all their targets for the year. Western Cape trained 2 teachers
more than the target.
•
Gauteng is the worst performing province in terms of delivery of outputs
because all payment to suppliers were withheld from February 2012
therefore all suppliers could not complete the work at 28 schools.
•
Limpopo and Northern Cape have the highest number of outputs with
Limpopo having the lowest expenditure. The lowest expenditure is due to
infrastructure costs paid for by the infrastructure budget not the grant
within the province.
12
Additional Analysis of Annual Performance
(Cont.)
• The following provinces recorded over-expenditure (MP: 1% and NC:
2%). These deviations will be dealt with by provincial treasuries and
provincial equitable shares will also be considered to supplement where
necessary.
• Financial commitments for incomplete projects or unpaid invoices
(accruals) amounted to R42 million.
• The most completed output is teacher training (94%), followed by supply
of equipment (81%), followed by refurbishment of workshops (80) and
the least completed being the building of new workshops (55%).
• In financial terms, the performance has declined by 3% compared to the
previous period (2010/11) at 72% expenditure, however, in non-financial
terms, the output performance has significantly improved from 71% to
87% achievement of targets.
13
Academic Performance (Learner Participation
and Success)
% Pass
Total
Wrote
Total
Passs
% Pass
Total
Wrote
Total
Passs
% Pass
Total
Wrote
Total
Passs
% Pass
Mechanical
Technology
Total
Passs
Engineering Graphics
and Design
Total
Wrote
Electrical Technology
Provinc
e
Civil Technology
EASTERN CAPE
FREE STATE
GAUTENG
KWAZULUNATAL
LIMPOPO
MPUMALANGA
NORTH WEST
NORTHERN
CAPE
WESTERN
CAPE
632
725
2184
592
714
2102
94
98
96
484
377
1286
383
360
1153
79
95
90
1897
1609
6799
1701
1579
6370
90
98
94
527
485
1729
481
475
1590
91
98
92
1303
402
449
672
1272
397
446
655
98
99
99
97
1198
397
331
352
1091
356
317
334
91
90
96
95
5999
1475
1453
1647
5691
1445
1407
1593
95
98
97
97
1287
254
362
501
1216
247
346
484
94
97
96
97
157
153
97
132
121
92
445
436
98
158
157
99
1703
1638
96
279
247
89
2500
2461
98
528
512
97
8227
7969
97
4836
4362
90
23824
22683 95
5831
5508
94
Total
The four technology subjects pass rate is satisfactory averaged at 90% but the major
concern is the decline in learner numbers over the years for all provinces in all the four
subjects, which is not illustrated in the table.
14
Interventions to Improve Learner Participation
and Success
TABLE 8: REASONS FOR DECLINE OF ENROLMENTS
•
•
•
•
The NCS curriculum has combined 18 subjects into 
The
four (4) subjects taking away the specialization
specialisation in the technical/technology subjects will
component as a result most learners cannot cope
have a positive effect in the content and delivery of
with the demand of the subjects;
the three subjects;
Lack of specialisation does not offer learners 
The proposal to introduce technical mathematics and
sufficient skills for employment;
technical science will attract more learners into the
Some learners might have gone to the FET college
technical stream while bringing direct relevance
sector.
between the content of mathematics and physical
Negative perceptions around attending vocational
science and the technology subjects.
school.
•
•
IMPROVEMENT STRATEGY

current
review
of
CAPS
to
introduce
The impact of the ongoing recapitalisation process
Most technology teachers leaving the schooling
will provide resources, facilities and assist teachers in
system because they have only specialised in one or
the practical teaching methodologies of the subjects;
two subjects and cannot cope with the demand of the
this will further improve the pass rate while attracting
subjects.
more learners into the stream.
The design of the subject in the GET phase does not 
The development of a clear articulation model/policy
prepare learners for the Technology subjects in FET.
between technical schools and FET colleges will also
assist in retaining the learners within the system
15
Challenges and Mitigating factors for the Grant
Implementation
Table 9: Challenge
Delays in the development and approval of
tender specifications for building and
refurbishment of workshops resulted in the
annual targets not being met
Irregular monitoring, collection of data and
reporting resulted in the absence of
information to detect early warning signals
for underperformance especially
Affected Provinces
Mitigating Strategy
Gauteng, Eastern Cape, KwaZulu-Natal, Standard templates for procurement and
Limpopo and North West
uniform architectural plans for buildings
have been developed at provincial levels.
Limpopo, Gauteng and Eastern Cape
The late development of provincial and KwaZulu-Natal
schools’ business plans delayed the
implementation of the grant
Unrealistic projections in the business Eastern Cape
plans and the lack of skills to coordinate
the project resulted in the province not
meeting its performance targets
The failure to consult other departments Eastern Cape, North West and Gauteng
and directorates such as Public Works and
Infrastructure continue to delay the
implementation of building of workshops by
the other Departments
•Monthly visits are being undertaken
•Implementing agencies (e.g. COEGA for
EC have dual reporting)
•Schools also report on a monthly basis to
the project manager where necessary
Business planning process improved to be
completed earlier than previous periods
(Jan –cut off date)
Business plans reviewed in partnership
with provincial departments such treasury
and public works and other implementing
agents.
Business plans developed and reviewed in
consultation with provincial departments
such public works and infrastructure
directorates.
16
Compliance with the conditions of the Division
of Revenue Act, as amended
Compliance with section 10(5) of the Act (submission of monthly reports by the
transferring department) was met.
Compliance with section 12(2) (submission of monthly and quarterly reports by the
receiving departments) was met by four provinces (monthly reports) and by all
nine provinces (quarterly reports). A concern was however raised with regards
to late submission and unapproved/unsigned reports.
The application of Section (16)(1)(c) of the Act (withholding of funds for underexpenditure) was effected once and funds were released in January 2012 after
significant improvements were recorded.
The fulfillment of Section 10(6) of the Act (evaluation of the grant) is currently
underway, and will be completed at the end of June 2012.
Thirty (30) schools in eight provinces were visited by the project manager as part of
the monitoring and support process during the period under review (KZN has not
been visited).
17
Conclusion
The gradual increase in funding between the previous period had a
positive effect in the increase of the projected outputs.
Overall expenditure has declined by 3%, but the increase in the
outputs achieved is a sign that operational systems at provincial
and school level are maturing and significant improvements in
coordination can now be identified.
In order to ensure that improvements are made and sustained, A
DEDICATED UNIT TO DRIVE THE IMPLEMENTATION OF THE
GRANT HAS BEEN PROPOSED.
18
Responses to the Specific
Parliamentary Committee
Questions
Meeting of the Select Committee
on Appropriations held on 09
May 2012
19
a) What accelerated the expenditure during March in KwaZuluNatal and Eastern Cape?
• Expenditure at KwaZulu-Natal and Eastern Cape was accelerated
within the last quarter of 2011/12 because both provinces
completed their procurement processes late in the year (October
2011). The provinces managed to complete and pay for the minor
outputs and the building of new workshops has not been
completed at both provinces.
b) What guides the implementation of the grant?
• The conditional grant is guided by the grant framework, which
stipulates all the required conditions and responsibilities of each
stakeholder, in accordance with the provisions of the Division of
Revenue Act, 2011, as amended.
20
c) What informs the expenditure at school level?
• The amount of expenditure at each school is informed by the
needs analysis, which was derived from an audit conducted by an
external service provider in 2009. The school’s operational plan
indicates the requirements according to the minimum
specifications developed by the Department. And the school’s
information feeds into the provincial business plan.
d) Has the grant experienced price escalations and does the
Department has control over price escalations?
• The Department provides allocation of funds to the provinces
based on average costs per item but does not have an influence
on the final tendered/contracted price at provincial or school
level. It has been noticed that price escalations do happen at
different provinces such as Eastern Cape and Mpumalanga.
21
e) What causes the over-expenditure in other provinces and why
provinces must use their equitable share allocations to cover
the over-expenditure?
• Over-expenditure is caused by price escalations, over-allocation
of space in architectural plans and professional fees
(implementing agency costs). Provinces are mandated to ensure
that the grant allocation is not exceeded, and in the case where it
has been exceeded, equitable share allocations are used to cover
the difference.
22
End of
Presentation
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