| 1.1 |
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The allocation of funds in accordance with the Norms and Standards Funding for Schools (N&S) will henceforth be made for the financial year of the Western Cape Education Department (WCED), i.e. from 1 April to 31 March of each year. This change has been necessitated by the fact that from 1 April 2004 the WCED changed to a new financial management system in order to improve budget control over the allocation of funds to schools. The change in the N&S allocation period has the following implications for schools: |
| 1.1.1 |
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In future schools will receive their N&S allocations for a relevant school year in two payments, namely during April and November. As schools will be informed of their allocation for a school year timeously, e.g. during September 2004 for the 2005 school year, they will be able to plan their budgets for the following school year well in advance. |
| 1.1.2 |
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The 2005 N&S allocation will be calculated according to the 2001 census and the national policy regarding the grading of schools which places schools in various different poverty index categories. |
| 1.1.3 |
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The funds that have already been allocated to schools for the 2004 school year in accordance with Circular 0138/2003 and which have not yet been spent (approximately 30% of schools' allocations for the 2004 school year) will be paid to all section 21 schools immediately. The remaining funds for non-section 21 schools (also approximately 30% of schools' allocations for the 2004 school year) are still available for spending until 31 March 2005 according to the division of funds reflected on the WCED-032 form of the 2004 school year. You have, however, spent funds since 1 April 2004 and non section 21 schools who are not sure what their balance are, may contact Mr EJ Lindoor or Mr KL Lackay at telephone 021 467 2777 or 467 2776 for this information. |
| 1.1.4 |
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A bridging allocation for the remainder of the 2004 school year, calculated according to the same criteria used for the initial 2004 allocation, and which must be spent before 31 March 2005, will be made available to schools as follows:
To section 21 schools during November 2004 to enable them to purchase learning support materials (LSM) to be available for the commencement of the 2005 school year and for other expenditure up to and including 31 March 2005. To non-section 21 schools for LSM and other expenditure up to and including 31 March 2005. non-section 21 schools must, however, divide the funds into three categories, namely LSM, municipal services and maintenance to 31 March 2005 on the WCED 032 form.
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| 1.1.5 |
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It is suggested that schools divide the available funds (this allocation is only for January to March 2005 when the new allocation comes into effect) amongst the various expenditure categories as follows:
The bridging allocation -
will be used to cover the cost of textbooks and other books ordered for 2005 (71% of the allocation).
will be used to cover the cost of municipal services (10% of the allocation), maintenance (3% of the allocation) and local purchases (16% of the allocation).
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| 1.2 |
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Note that this change in the allocation period has no negative financial implications for schools. It merely means that schools must do their financial planning according to the allocation payments that they will, henceforth, receive annually during April and November, based on the allocation letter to be issued annually, during August. |
| 2.1 |
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The allocation is intended for LSM, municipal services, essential day-to-day maintenance of school buildings, grounds and equipment (non-scheduled maintenance), and other current expenses. |
| 2.1.1 |
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Learning Support Material (LSM)
| (a) |
The WCED envisages that every learner must have a textbook for each subject or learning area. All schools must use at least 71% of the bridging allocation to cover expenses on LSM orders for 2005. See paragraph 4 of Annexure A for the list of items included under textbooks and other books. |
| (b) |
Schools may allocate less to textbooks 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. 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 textbooks and other books per learner is made known. This decision must be submitted at the parents’ meeting, irrespective of whether the circuit manager supports it or not.
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| 2.1.2 |
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Day to day maintenance
| (a) |
Essential day-to-day maintenance, i.e. attending to the problem when it occurs, prevents emergency maintenance, and later greater damage and expenditure. This includes the cleaning, repairing or replacement of items in respect of buildings and grounds. |
| (b) |
Schools must budget for day-to-day maintenance according to the condition of their buildings and grounds. Where necessary the part of the N&S allocation used for this purpose must be augmented from own funds. |
| (c) |
A further amount must be set aside for the maintenance of equipment. non-section 21 schools must indicate allocations for the maintenance of buildings, grounds and equipment as a single amount on the WCED 032 form. |
| (d) |
Boarding bursaries may be used for the funding of the day-to-day maintenance and operating costs of hostels. The N&S allocation may not be used for this purpose. |
| (e) |
Schools are responsible for their own payment of rental and maintenance of equipment. |
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| 2.1.3 |
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Reporting
| (a) |
The attached form (Annexure C) must be completed by all schools, both Section 21 and non-Section 21, in respect of the 2004 school year, i.e. the period 1 January 2004 to 31 December 2004 and submitted to the relevant EMDC by no later than 31 March 2005. |
| (b) |
Quarterly reports on the expenditure of funds must be submitted on the WCED 043 form. |
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| 2.2 |
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The WCED does not accept responsibility for the payment of any accounts where schools spend more than the amount allocated to them. Schools will have to cover these costs themselves. If, for any reason whatsoever, non-section 21 schools exceed their N&S allocations, any overspending will be recovered by the WCED from the following year’s allocation to the school. Note that if a non-section 21 school does not utilise its full allocation, no savings will be rolled-over to the following school year. |
| 3. |
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), as amended (SASA), governing bodies must take reasonable steps to supplement the State allocation.
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| 4. |
MAJOR EMERGENCY REPAIRS
In accordance with paragraph 114 of the N&S Regulations for major emergency repairs to buildings, the WCED accepts responsibility for such repairs, but the department is limited to the funds available for the 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 accept responsibility for the following categories of EMERGENCY REPAIRS only, provided that staff and learner health or safety is threatened and 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 Repair of drinking water access
(Assistance may take the form of providing funds for the purchase of materials only.)
Schools must submit 3 quotations. Repairs may only commence after approval has been obtained from Head Office. |
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| 5.1 |
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The N&S allocation to schools is intended, amongst others, for the payment of their monthly municipal services accounts, e.g. electricity, water, sewerage and refuse removal, 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. |
| 5.2 |
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Non-section 21 schools must calculate the amount reserved for municipal services according to the expenditure tendencies for these services and indicate it on the WCED 032 form. This amount and the funds for maintenance will be paid to schools which accepted the function, at the same time. |
| 5.3 |
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Non-section 21 schools must calculate the amount reserved for municipal services according to the expenditure tendencies for these services and indicate it on the WCED 032 form. This amount and the funds for maintenance will be paid to schools which accepted the function, at the same time. |
| 5.4 |
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Schools must, amongst others, implement the savings measures indicated in Annexure B. |
| 5.5 |
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ESKOM and most municipalities have indicated they can make meters for pre-paid electricity available to schools. This will enable schools to exercise better control over their consumption of and expenditure on electricity. In many cases the tariffs for pre-paid electricity are cheaper than those for conventional systems. |
| 6.1 |
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Schools not currently listed as section 21 institutions must follow the prescribed procedures in Annexure A. |
| 6.2 |
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Section 21 schools must purchase their LSM and incur other expenses themselves. |
| 6.3 |
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Schools may contact their EMDCs should they require assistance with the choice of LSM and the negotiation of best prices. |
| 7.1 |
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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. (The Manual is being revised at present and schools are invited to e-mail input in this regard to Maggie van Eeden at mvaneeden@pgwc.gov.za.) If the members of the governing body do not have the necessary expertise to exercise this control, they must co-opt someone who will be able to assist them. |
| 7.2 |
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All the schools' funds, obtained from the State allocation as well as from own income, must be used for purposes directly connected to education, and especially for buying textbooks, other books and further LSM. In terms of WCED policy, textbooks and readers may not be photocopied as this amounts to an infringement of the Copyright Act (No. 98 of 1978). Expenditure on functions, entertainment, excursions or travelling must be avoided. |
| 7.3 |
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The WCED has the right to inspect records relating to school funds and to act against any staff or governing body member should he or she be involved in the mismanagement of school funds. Schools must keep all proof of income and expenditure for this purpose. |
| 7.4 |
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In terms of section 43(5) of the SASA schools must submit (for attention of the relevant EMDC Director) an audited set of financial statements for the previous financial year by 30 June of each year. |
| 7.5 |
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All schools must adhere to the Preferential Procurement Policy of the Province in the utilisation of their N&S allocations for textbooks 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 textbooks and other books to the value of at least 70% of their N&S allocation from the suppliers on this first list. Textbooks and other books for the balance (30% of the allocation for textbooks and other books) may be bought from suppliers on the second list. The latest lists have been provided to schools under cover of separate circulars. |
| 7.6 |
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Schools are reminded that it is their responsibility to make serious attempts to negotiate their own bigger discounts with suppliers. |
| 7.7 |
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All schools must submit a WCED 043 form to the EMDC concerned within 30 days of the end of each quarter. Funds will only be paid to schools if satisfactory WCED 043 reports regarding the financial activities of previous quarters have been received. The electronic format of the WCED 043 is available from the relevant EMDC or can be requested from mvaneeden@pgwc.gov.za . |
| 8. |
APPLICATION FOR SECTION 21 STATUS
New applications to change from non-section 21 status to section 21 status will only be dealt with in the 2005 N&S allocation letter to be issued during September 2004.
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| 9. |
APPEALS
Should a school suspect calculation errors in its 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 by no later than 31 August 2004.
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| 10. |
CONTACT NUMBERS FOR ENQUIRIES
| Subject | Name | Telephone
number |
| WCED 043 quarterly reports and audited annual financial statements | EMDC: Deputy Director Administration | Applicable EMDC |
| Appeals | Ms V Barkhuizen | 021 467 2177 |
| Classification of annual allocation - WCED 032 | Mr C Prins | 021 467 2801 |
| Purchase of textbooks 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 allocations) | Mr I Morkel | 021 467 2768 |
| Emergency repairs | Mr G Martin | 021 467 2137 |
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SIGNED: L.J. ELY
HEAD: EDUCATION
DATE: 2004:08:17
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