1.1 Although the Western Cape Education Department (WCED) indicated in Circular 0062/2004 of 15 November 2004 that schools would be notified of their Norms and Standards (N&S) allocations for the period 1 April to 31 March during August of each year to enable budget planning for the following school year well in advance, this has again not been possible. The reason for the delay is that the national Department of Education (DoE) was revising the policy regarding the Norms and Standards for School Funding (NSSF) with the revisions to be effective from the 2006 school year.
1.2 However, the DoE has now informed this department that, due to time constraints, the prerequisites for the implementation of the revised NSSF with effect from the 2006 school year will not be met and that provincial education departments must make the N&S allocations to ordinary public schools for 2006 according to the current NSSF.
1.3 This delay should, however, not affect future N&S allocations and it is still 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.

Details of the N&S allocation for your school for the financial year extending from 1 April 2006 to 31 March 2007 are attached. Your attention is drawn to the following:

2.1 The N&S allocations for the 2006/07 financial year were calculated on the basis of the learner numbers in the 2005 Annual Survey. Once again it needs to be brought to your attention that your N&S allocation could be reduced should actual learner numbers be less than that used in the calculation of your N&S allocation.
2.2 Section 21 schools will receive their N&S allocations for the 2006/07 financial year in two payments, namely 60% in April and 40% in November. Section 21 schools must use their first transfer payment, which will be made during April 2006, to purchase learning and teaching support materials (LTSM) so that these will be available before the end of September 2006, and also for other expenses, as stipulated in paragraph 3.1 below, up to and including 31 October 2006. The further transfer payment (40%) that will be made during November 2006 must be used to cover these expenses up to 31 March 2007..
2.3 Non-Section 21 schools must divide their N&S allocation for the financial year ending 31 March 2007 into the three categories on form WCED 032, namely LTSM, municipal services and maintenance before 30 April 2006. On receipt of the WCED 032 form, the WCED will check the budgets. Schools will be informed if their forms are not in order so that they can submit new WCED 032 forms.
2.4 The funds allocated to schools in terms of Circular 0062/2004 must be spent by non-Section 21 schools by 31 March 2006, 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 2006 unless the outstanding forms are received before 15 March 2006.
3.1 The allocation is meant for LTSM, municipal services, essential day-to-day maintenance of school buildings, grounds and equipment (non-scheduled maintenance) and other current expenses. The N&S allocation is intended primarily to cover expenses related to the above. Own income, as intended in paragraph 4, must first be used to cover shortfalls in the above regard before it is used to finance Governing Body posts.
3.1.1 Learning and teaching support material (LTSM)
(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 2007. 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

(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.

(c) 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 be given 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.
(d) Schools are reminded that it is their responsibility to make serious attempts to negotiate their own bigger discounts with suppliers.
(e) How to obtain LTSM
  • Schools not currently listed as Section 21 institutions must follow the prescribed procedures in Annexure A.

  • Section 21 schools must purchase their LTSM and incur other expenses themselves.

  • Schools may contact their EMDCs should they require assistance with the choice of LTSM and the negotiation of best prices.

3.1.2 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.
3.1.3 Day to day maintenance
(a) Day-to-day maintenance includes the maintenance of grounds as well as the maintenance, cleaning, renovation, repair and/or replacement of specific items concerning buildings. If the day-to-day maintenance is not attended to timeously, then the condition of the buildings will deteriorate to such an extent that expensive emergency repairs will be required.
(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) N&S allocations may not be utilised for day-to-day repairs to hostels. Such repairs should be funded from the learners’ boarding bursaries.
3.1.4 Maintenance of equipment
(a) Schools should ringfence a further amount of their annual day-to-day maintenance allocation for the maintenance of equipment used to beautify the school grounds e.g. servicing the lawnmower, cutting grass, painting benches on the school grounds, purchasing lime, fertilizer, etc.
(b) Rentals should not be confused with maintenance. Schools are responsible for the payment of rental agreements/leases and for the repairs/servicing of equipment e.g. photocopiers, computers, etc. Repairs to these do not form part of the day-to-day maintenance to school buildings and grounds.
3.2 Non-Section 21 schools must indicate the allocations for the maintenance of buildings, grounds and equipment as a single amount on the WCED 032 form.
3.3 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. Please refer to paragraph 2.4 above.

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.

5.1 All schools must submit a WCED 043 form (quarterly report) to the EMDC concerned within 30 days of the end of each quarter (expenditure to 31 March, 30 June, 30 September and 31 December). 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 EMDCs.
5.1 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.


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:


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.

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.

7.1 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 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 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.

Applications to change from non-Section 21 status to Section 21 status must be submitted before 31 January 2006 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 2006.


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 November 2005.

WCED 043 quarterly reports and audited annual financial statementsEMDC: Deputy Director AdministrationApplicable EMDC
AppealsMs V Barkhuizen021 467 2177
Classification of annual allocation - WCED 032Mr 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 Stoffels021 900 7062
Transfer payments to schools (N&S allocations)Mr I Morkel021 467 2768
Emergency repairs Mr G Martin
Mr P Beukes
021 467 2137
021 467 2134

DATE: 2005:10:03

Annexure A  (size: 20 KB)
Annexure B  (size: 8 KB)
Annexure C  (size: 23 KB)
Application for Section 21 Status  (size: 8 KB)
Form WCED - WKOD 26  (size: 10 KB)
Form WCED - WKOD 32  (size: 11 KB)
Form WCED - WKOD 34  (size: 8 KB)
Form WCED - WKOD 43  (size: 33 KB)