1. In terms of the Norms and Standards for the Funding of Schools, the Western Cape Education Department (WCED) transfers large amounts of state funds to schools in the Western Cape
2. In terms of the Public Finance Management Act (PFMA), 1999 (Act 1/1999), as amended, schools are required to manage funds transferred into their bank accounts in an efficient and transparent manner. The Head of Department, as Accounting Officer for the WCED, is therefore compelled to have control measures in place to ensure that all state funds paid to public schools are used for the purposes for which they were allocated and that these funds are properly accounted for.
3. The WCED continually reminds schools, in its Norms and Standards circulars and allocation letters, that they are required to conform to the requirements of the PFMA and that funds must be used correctly. Schools are also told that specified financial reports (WCED 043) and proofs of purchase and/or payment must be submitted to Head Office or the EMDCs.
4. The Department, therefore, wishes to make it clear that if the requested documentation is not submitted, the subsequent transfer payment will be withheld from the school concerned.
5. Governing bodies and principals of schools are once again reminded of their responsibility to ensure that proper records of the school’s income, liabilities, expenditure and balances are kept so that the school and the WCED are not put at risk.

They are also requested to make certain that systems are in place to ensure that

  • monthly accounts (municipal services) are received and timeously paid;

  • transfer payments are used for the purpose specified in Departmental circulars and letters;

  • all income and expenditure is properly recorded;

  • financial reports are submitted to Head Office or EMDCs as requested from time to time;

  • proofs of purchases or payments are submitted timeously and without delay; and

  • accounts are paid.
6. The Norms and Standards allocation letters must be consulted for clarity on the appropriate use of funds.
7. EMDC advisers have been appointed to give guidance to schools and to provide appropriate capacity building. Schools that require assistance with the management of their funds should contact these officials.
8. Kindly bring this circular to the attention of all concerned.


SIGNED: L.J. ELY
HEAD: EDUCATION
DATE: 2006:03:14