| 1.1 |
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Pursuant to Circular 0041/2004 of 17 Augustus 2004, details of the allocation for the financial year extending from 1 April 2005 to 31 March 2006 are attached. Your attention is drawn to the following: |
| 1.1.1 |
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Although the Western Cape Education Department (WCED) indicated in the above-mentioned circular that schools would be notified of their Norms and Standards (N&S) allocations for the period 1 April 2005 to 31 March 2006 during September 2004, the finalising of the 2005/06 budget and the subsequent finalising of the provision of teaching posts to educational institutions delayed the process. This delay should not affect future N&S allocations and it is envisaged that schools will henceforth be notified of their allocations during August of each year to enable them to plan their budgets for the following school year well in advance. The delay in the announcement of the latest N&S allocations is regretted. |
| 1.1.2 |
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The N&S allocations for the 2005/2006 financial year were calculated on the basis of the 2004 annual survey. An audit of learner enrolment will take place during 2005 and, should the audit numbers be considerably lower than those of the annual survey, your N&S allocation could be reduced accordingly. |
| 1.1.3 |
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Section 21 schools will receive their N&S allocations for the 2005/06 financial year in two payments, namely 60% in April and 40% in November. |
| 1.1.4 |
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Section 21 schools must use their first transfer payment, which will be made during April 2005, to purchase learning support materials (LSM) so that these will be available before the end of September 2005, and also for other expenses, as stipulated in paragraph 2.1 below, up to and including 31 October 2005. The further transfer payment (40%) that will be made during November 2005 must be used to cover these expenses up to 31 March 2006. Schools must therefore note that all funds must be used in the financial year for which they are made available.
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| 1.1.5 |
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Non-section 21 schools must divide their N&S allocation for the financial year ending 31 March 2006 into the three categories on form WCED 032, namely LSM, municipal services and maintenance before 30 April 2005. On receipt of the WCED 032 form, the WCED will check the budgets and inform schools whether their forms are in order so that they can proceed with the submission of their requisitions.
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| 1.1.6 |
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The funds allocated to schools in terms of Circular 0041/2004 must be spent by non-Section 21 schools by 31 March 2005, as they will lapse on that date. The funds of Section 21 schools that were retained because schools neglected to submit their quarterly reports on expenditure on form WCED 43, will also lapse on 31 March 2005. |
| 2.1 |
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The allocation is meant 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) |
It is suggested that schools divide their available allocation as follows among the various expenditure categories:
60% for expenses in connection with the textbook and other book orders for 2006. Each learner must have a textbook for each learning area/subject. See Addendum A for the list of items included with textbooks and other books. 20% for expenses with regard to municipal services 4% for maintenance 16% for local purchases
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| (b) |
Schools may, subject to the following conditions, assign less money to textbooks and other books:
If each learner in the school has a textbook for each learning area/subject AND if the governing body has taken a formal decision regarding the deviation. If the decision of the governing body regarding the budget which was submitted at the parents' meeting is explained and the amount spent per learner on textbooks and other books is mentioned. This decision must be put before the parents' meeting, whether it is supprted by the circuit manager or not. |
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| 2.1.2 |
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Municipal Services
| (a) |
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, but 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. |
| (b) |
A few schools have indicated that they do not wish to manage their own municipal services and their accounts will still be paid by the relevant EMDC. The EMDC will provide each school with a copy of its accounts each month for examination and confirmation that the accounts are correct. |
| (c) |
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 simultaneously to those schools which accepted the function. |
| (d) |
Schools must still, amongst others, implement the savings measures indicated in Annexure B. |
| (e) |
ESKOM and most municipalities have indicated they can make meters for prepaid 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 prepaid electricity are cheaper than those for conventional systems. |
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| 2.1.3 |
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Day to day maintenance
| (a) |
Essential day-to-day maintenance, in other words, handling a problem as it arises, will prevent emergency maintenance and bigger damage and expenses later. This includes the cleaning, renovation, repair or replacement of items concerning 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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| 2.2 |
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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, the WCED will recover any overspending from the following financial year's N&S allocation to the school. If a non-Section 21 school does not utilise its full N&S allocation, the remaining amount will lapse. |
| 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. |
REPORTING
Quarterly reports on the expenditure of funds must be submitted on the WCED 043 form (expenditure to 31 March, 30 June, 30 September and 31 December).
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| 5. |
MAJOR EMERGENCY REPAIRS
In terms of 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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| 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. Should the members of the governing body not have the necessary expertise to carry out this function, 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. See paragraph 1.1.4 in this regard. The electronic format of the WCED 043 is available from the relevant EMDC. |
| 8. |
APPLICATION FOR SECTION 21 STATUS
Applications to change from non-Section 21 status to Section 21 status must be submitted before 31 January 2005 on the attached application form. Successful schools will only receive Section 21 status from the following financial year, i.e. with effect from 1 April 2005.
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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 briefly and concisely against its allocation to the Director: Budget Management (Private Bag X9114, Cape Town 8000) by no later than 15 December 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 B Stoffels | 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: 2004:11:15
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