The Western Cape Education Department (WCED) has increased the total allocation in respect of the Norms and Standards Funding for Schools (N&S) to R229 million for 2004. This allocation is awarded in addition to the special allocations made in support of the revised national curriculum statements for the Foundation Phase (Circular 0126/2003).
The funds were divided according to the formula used for previous years. As a result of adjustments to the input values, the allocations to schools have not all been changed to the same extent. However, no school will receive less per learner than in the previous year.
A line has been drawn next to each important amended paragraph (The Internet version has a grey background).
| 1. |
For what this allocation may be used |
| 1.1 |
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The allocation is intended for learning support materials (LSM), municipal services, day-to-day maintenance of school buildings, grounds and equipment (non-scheduled maintenance), and other current expenses. |
| 1.2 |
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The WCED has in view that every learner must have a textbook for each learning area/subject. |
| 1.3 |
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Schools must allocate at least R140 per learner in the primary grades for text- and other books irrespective of the schools’ allocation, and whether it is a section 21 school or not. For learners in the secondary grades the amount is R220. See paragraph 4 of Annexure A for the list of items included under text- and other books.
Schools may allocate less to text- and other books on the following conditions:
If every learner in the school has a textbook for every learning area/subject AND
if the governing body has taken a formal decision to this effect, which has been supported in writing by the circuit manager, after he or she has ensured that each learner has a textbook for every learning area/subject.
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- If the decision of the governing body is explained in the budget that has been submitted at the parents' meeting and the amount spent on text- and other books per learner is made known. Whether the circuit manager supports the decision or not, it must still be submitted to the parents’ meeting.
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| 1.4 |
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Equipment for equipment-intensive subjects/learning areas such as technology or art may be acquired as local purchases. |
| 1.5 |
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Schools are responsible for their own payment of rental and maintenance of equipment. |
| 1.6 |
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Non-scheduled or day-to-day maintenance aims to prevent later greater damage and expenditure by attending to the problem when it occurs. Such action can prevent the need for emergency maintenance. This includes the cleaning, repairing or replacement of items in respect of buildings and grounds. |
| 1.6.1 |
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Schools must budget for day-to-day maintenance in accordance with the condition of their buildings and grounds. The department requires schools to spend at least R25 per learner per year on this (at least R1 200 for smaller schools). This amount may only be used for the maintenance of buildings and grounds and not for the purchasing of, e.g. LSM or equipment and tools for the maintenance of grounds and buildings. |
| 1.6.2 |
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A further amount must be provided for the maintenance of equipment. Non-section 21 schools indicate allocations for maintenance of buildings, grounds and equipment as a single amount on the WCED 032. This amount will be paid to these schools in two equal biannual instalments. |
| 1.6.3 |
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The WCED 005 has been replaced by the WCED 043 (see later). |
| 1.7 |
The day-to-day maintenance and running of hostels may not be funded by the N&S allocation. Boarding bursaries may be used for this purpose. |
| 1.8 |
The WCED does not accept responsibility for the payment of any accounts where schools spend more than the amount allocated to them. Where non-section 21 schools exceed their allocations for any reason whatsoever, any overspending will be recovered by the WCED from the following year’s allocations to the school. If a non-section 21 school does not utilise its full allocation, the following amount will be rolled over:
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| 2. |
Own income
The State cannot fund schools adequately from state funds. In terms of section 36 (1) of the South African Schools Act, 1996 (Act 84/1996) (SASA), as amended, governing bodies must take reasonable steps to supplement the State allocation. |
| 3. |
Major emergency repairs
The department accepts responsibility in accordance with section 114 of the N&S regulations for major emergency repairs to buildings, subject to the funds available for this purpose. The following repairs will be considered according to the procedures in Circular 175/2000:
CATEGORY A
Serious damage caused by natural disasters, structural problems and fires. The WCED will accept responsibility for these emergency repairs only if the cost exceeds R5 000 and provided that sufficient funds are available. The WCED will also, at its own discretion, consider making a transfer payment for the materials in relatively less serious cases. |
CATEGORY B
The WCED will take responsibility for only the following unforeseen EMERGENCY REPAIRS, provided that sufficient funds are available:
Replacement/repair of underground water and sewer pipes Repair of underground electric cables Repair of electric geysers (hostels only) Repair of major hostel equipment (Assistance may take the form of providing funds only for the purchase of materials.) |
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| 4.1 |
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The allocation to schools is intended, amongst others, for the payment of their monthly municipal services accounts, i.e., electricity, water, sewerage, refuse removal, etc., and excludes the payment of property tax. As in the past, the State will pay the property tax on property registered in the name of the RSA. |
| 4.2 |
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Up till now the WCED has paid the service accounts of non-section 21 schools on their behalf. It has been decided that the payment of municipal services accounts will devolve upon all schools with effect from the commencement of the 2004 school year. The WCED will accept that schools will manage their municipal services unless they indicate on the attached WCED 032 form that they do not accept the function. Schools must arrange that the account details are changed to the name of the school with the local authority or ESKOM. Schools must report quarterly on form WCED 043 regarding expenses for municipal services. Non-section 21 schools must indicate the amount reserved for municipal services accounts on the WCED 032 form. This amount will be paid to schools in two equal biannual payments, with the funds for maintenance. |
| 4.3 |
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The savings measures indicated in Annexure B must, amongst others, be implemented. |
| 4.4 |
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ESKOM and most municipalities have indicated they can make pre-paid electricity meters available to schools. This will enable schools to exercise better control over their consumption of and expenditure on electricity. The tariffs for pre-paid electricity are in many cases cheaper than those for conventional systems. |
| 4.5 |
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The WCED will be responsible for any outstanding debt which accumulated prior to the acceptance of this function by schools. |
| 5. |
What schools must do now in order to obtain LSM |
| 5.1 |
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Schools that are currently not listed as section-21 institutions must follow the procedures as prescribed in Annexure A. |
| 5.2 |
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Section-21 schools must purchase their LSM and incur other expenses themselves. The allocations to these schools will be paid in two instalments:
First semester 70% in November of the preceding year
Second semester 30% In July of the year concerned
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| 5.3 |
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Should schools require assistance with the choice of LSM and the negotiation of best prices, they may contact their EMDCs. |
| 6. |
Further conditions
The following conditions will also apply in respect of this allocation: |
| 6.1 |
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The governing body must exercise proper control over expenditure as set out in the Manual of the Basic Financial System for Schools issued for this purpose. If the governing body does not have the expertise, they must co-opt someone who does have the expertise. |
| 6.2 |
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All the school's funds, obtained from the State allocation as well as own income, must be used for purposes directly connected to education, and especially for buying text- and other books and other learning support materials. Expenditure with respect to parties, entertainment, excursions or travelling must be avoided. |
| 6.3 |
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The WCED has the right to inspect records relating to school funds and to act against any staff member or members of the governing body, should they be involved in the mismanagement of school funds. For this purpose schools must keep all proof of income and expenditure. |
| 6.4 |
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The school must submit an audited set of financial statements for the previous financial year by 30 June, in accordance with section 43(5) of the South African Schools Act. (For attention Director: Budget Management, WCED). |
| 6.5 |
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All schools must adhere to the Preferential Procurement Policy of the Province in the utilisation of their N&S funds for text- and other books. For this purpose, there are two lists of suppliers. The first list (the preferential list) represents those suppliers who must receive preference. They are the so-called Historically Disadvantaged Individuals (HDIs) and Small, Medium and Micro Enterprises (SMMEs). Schools must buy text- and other books to the value of at least 70% of their N&S allocation from the suppliers on this first list. Text- and other books for the balance (30% of the allocation for text- and other books) may be bought from suppliers on the second list. Refer to Annexure A for further details. |
| 6.6 |
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Schools must note that the 10% discount on publishers’ prices has lapsed. Instead it is left to schools to vigorously negotiate their own bigger discounts with their suppliers. The lists will be availed when schools re-open for the third term. |
| 6.7 |
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From 1 January 2004, all schools must submit a WCED 043 every quarter. Funds will only be paid to schools if satisfactory WCED 043 reports regarding the financial activities of previous quarters are submitted to the EMDC concerned within 30 days of the end of each quarter. |
| 7. |
Application for section 21 status |
| 7.1 |
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Advantages of section 21 status
Transfer payment of the full allocation in two instalments. Good cash flow management may allow the investment of available funds, with the approval of the WCED, resulting in additional income. It has no effect on the calculation of the allocation. Effective planning and management is possible as goods and services may be acquired more quickly. As schools they have cash funds available, and owing to their independence, schools have more bargaining power. Schools retain unspent funds. |
| 7.2 |
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Approval
Schools wishing to apply for section 21 status must duly complete the attached form and submit it together with the required documentation. Evaluation of the documentation will determine if a school has the necessary knowledge and competency to cope with the sound financial management of the school. Applications for section 21 status must be submitted to the EMDC concerned by
30 September. The change in status will become effective on 1 January of the following year. Schools which apply now, must still order their LSM via the department. |
| 8. |
Appeals
Should you suspect calculation errors in the N&S allocations or if a unique situation exists at a school, the school may appeal against its allocation to the Director: Budget Management (Private Bag X9114, Cape Town 8000). Appeals must be brief and concise and must reach the department before 31 August. |
| 9. |
Enquiries
The contact numbers referred to in this circular are as follows:
| Subject | Name | Telephone number |
| Application for section 21 status and WCED 043 forms |
EMDC |
Applicable EMDC |
| Appeals |
Ms V Barkhuizen |
021 467 2177 |
| Classification of annual allocation - WCED 032 |
Mr C Prins |
021 467 2801 |
Purchase of text- and other books (WCED 034)
and local purchases (WCED 026).
All non-section 21 schools |
Mr AMS Josias |
021 900 7062 |
| Transfer payments to schools (N&S payments) |
Mr I Morkel |
021 467 2768 |
| Emergency repairs |
Mr G Martin |
021-467 2137 |
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SIGNED: C.J. FOURIE
HEAD: EDUCATION
DATE: 2003:06:24
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