| 1.1 |
The South African Schools Act (SASA), 1996 (Act 84 of 1996), as amended, and the National Norms and Standards for School Funding (NNSSF) (Government Gazette 29178, dated 31 August 2006) were amended to allow for the re-ranking of schools in terms of poverty. All schools of the WCED were re-ranked in terms of paragraph 101 of the NNSSF. Paragraph 101 of the mentioned standards reads as follows:
"101" The provincial education department (PED) must assign to each school a poverty score that will allow the PED to classify all schools from poorest to least poor. The principles governing the determination of a school's poverty score are the following:
| (a) |
The score should be based on the relative poverty of the community around the school, which in turn should depend on individual or household advantage or disadvantage as regards income, wealth and/or level of education.
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| (b) |
The score should be based on data from the National Census conducted by StatsSA, or any equivalent data that can be used as a source. In order to eliminate the possibility of receiving distorted information, the recipients of school allocations (such as schools and districts) should never be the source of data.
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| (c) |
The derivation and calculation of the score should be sufficiently comprehensive to provide a reasonable indication of the relative poverty of the school community. However, it should not be the intention of those calculating each score to incorporate the complete range of poverty indicators in the score.
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| (d) |
The method of calculating each score must be one that is used throughout South Africa so that equally poor schools receive the same treatment, regardless of the province they are in."
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| 1.2 |
The national poverty distribution table (poverty table), according to paragraph 109 of the NNSSF, must be used by PEDs in determining how the targeted amounts are allocated in each province. The table below indicates the percentage of learners in the Western Cape that may be placed in the various national quintiles (NQs).
| | NQ1 | NQ2 | NQ3 | NQ4 | NQ5 | Total |
| National | 20% | 20% | 20% | 20% | 20% | 100% |
| Western Cape | 6.54% | 8.02% | 23.09% | 27.72% | 34.63 | 100% |
Note that only 14,56% of learners (approximately 132 000 of the 906 000 learners) in the Western Cape may be placed in the two poorest NQs.
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| 1.3 |
Owing to unique circumstances at some of the schools in the Western Cape, the data received from StatsSA was compared to provincial data, and a combined index was created where necessary. This was done to ensure that schools with similar circumstances and in similar geographical regions were placed in the same NQ.
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| 2.1 |
In order to curb the rising cost of education for parents of limited financial means, the SASA was also amended to allow for the implementation of no-fee schools, i.e. public schools that may not charge compulsory school fees.
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| 2.2 |
The national Minister of Education (MoE) declared, and published in Government Gazette 29179 dated 31 August 2006, a national target for 2007 that accommodates 40% of learners in no-fee schools, i.e. schools that fall under NQs 1 and 2. A list of the schools per province that will not be permitted to charge compulsory school fees, in terms of this target and as compiled by the Member of the Executive Council (MEC) for Education in each province, will also be published in the Government Gazette.
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| 2.3 |
Paragraph 109 of the NNSSF indicates the minimum adequacy benchmark level of funding (no-fee school threshold), as determined by the MoE. The adequacy benchmark funding level has been set at R554 per learner, inclusive of the norms and standards (N&S) allocations, for the 2007/08 financial year (i.e. for the period 01 April 2007 to 31 March 2008). Schools receiving at least this funding level and which are placed under NQs 1 and 2, may not charge compulsory school fees.
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| 2.4 |
Furthermore, since the Western Cape Province has a low percentage of learners in NQs 1 and 2, compared to all the other provinces, the province has decided to also extend the no-fee school status to schools in NQ 3. As this could not be done by way of the Government Gazette, it was done by means of a voluntary arrangement with the identified NQ 3 schools. These schools, also, may not charge compulsory school fees.
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| 3. |
ALLOCATION
Details of the N&S allocation for your school for the financial year extending from 1 April 2007 to 31 March 2008 are attached. Your attention is drawn to the following:
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| 3.1 |
Allocations are calculated in accordance with the prescripts in paragraph 108 to 113 of the NNSSF.
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| 3.2 |
The N&S allocations for the 2007/08 financial year were calculated on learner numbers obtained from the 2006 CEMIS survey. The funds allocated to schools in terms of Circular 0056/2005 must be spent by non Section 21 schools before 31 March 2007, as unused funds they will be forfeited on that date. The funds of Section 21 schools that are being retained because schools have neglected to submit their quarterly reports on expenditure on form WCED 043, will also be forfeited on 31 March 2007, unless the outstanding forms are received before 28 February 2007.
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| 4.1 |
Schools charging school fees
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| 4.1.1 |
Non Section 21 schools must, before 28 February 2007, divide their N&S allocation for the financial year ending 31 March 2008 into the four categories on form WCED 032, namely LTSM, local purchases, municipal services and maintenance. On receipt of the completed 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.
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| 4.1.2 |
The transfer payment to all non Section 21 schools for maintenance and the transfer payment to non Section 21 schools who pay their own municipal services accounts, will be paid as follows: 50% of the budgeted amounts will be paid in April and the remaining 50% in November.
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| 4.1.3 |
Section 21 schools will receive their N&S allocation for the 2007/08 financial year in two installments, namely 60% in April 2007 and 40% in November 2007. Section 21 schools must use their first transfer payment (60%), which will be made during April 2007, to purchase their 2008 learning and teaching support materials (LTSM) so that it is available before the end of September 2007, and to pay for other expenses, as stipulated in paragraph 5.1 below. The second transfer payment (40%), which will be made during November 2007, must be used to cover appropriate school-related expenses up to the end of the financial year, i.e. 31 March 2008.
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| 4.2.1 |
For non Section 21 schools, 20% of the total N&S allocation, deemed to be the annual income from school fees, will be paid over to the school in April 2007. Schools will be informed of this amount in the attached N&S allocation letter. It must be borne in mind that this amount must tide the school over until April 2008, when the payment will be received for the next financial year. Non Section 21 schools must divide their N&S allocation for the financial year ending 31 March 2008 into the four categories on form WCED 032, namely LTSM, local purchases, municipal services and maintenance, and submit the completed form to the Department by 28 February 2007. On receipt of the completed forms, 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.
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| 4.2.2 |
In addition, the transfer payments to all non Section 21 schools for maintenance and the transfer payment to non Section 21 schools who pay their own municipal services accounts, will be paid as follows: 50% of the budgeted amounts will be paid in April and the remaining 50% in November.
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| 4.2.3 |
The N&S allocations in respect of the 2007/08 financial year for Section 21 schools will be paid over to the schools in April 2007 (60%) and November 2007 (40%). It is important to note that the total N&S allocation is for the 2007/08 financial year, as the allocation must tide schools over until April 2008, when the payment will be received for the next financial year. Similar to the non Section 21 schools (see paragraph 4.2.1 above), 20% of the total allocation must be reserved for expenditure previously covered by school fees. The balance must be managed in terms of paragraph 5 below.
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| 5.1 |
The N&S allocation is intended primarily for LTSM, local purchases, municipal services, essential day-to-day maintenance of school buildings, grounds and equipment (non-scheduled maintenance) and other everyday expenses. Own income, as intended in paragraph 6, must first be used to cover shortfalls in the above regard before it is used to finance Governing Body posts.
It is suggested that schools divide their available allocation as follows among the various expenditure categories:
60% for textbook and other book orders for 2008. Each learner must have a textbook for each learning area/subject. See Annexure A (paragraph 4) for the list of items included under textbooks and other books.
20% for municipal services
4% for maintenance
16% for local purchases
Schools may budget a larger percentage for municipal services if local municipal services tariffs necessitate this.
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| 5.1.1 |
Learning and teaching support material (LTSM)
| (a) |
Subject to the following conditions, schools may assign less money to textbooks and other books
if each learner in the school has a textbook for each learning area or subject AND if the governing body has taken a formal decision regarding this deviation.
if this decision of the governing body regarding the budget, which must be submitted at a parents' meeting, is explained and the amount spent per learner on textbooks and other books is provided. This decision must be put before the parents' meeting, whether the circuit manager supports it or not.
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| (b) |
All schools must adhere to the Preferential Procurement Policy of the province in the spending 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.
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| (c) |
Schools are reminded that it is their responsibility to make serious attempts to negotiate a bigger discount with their suppliers.
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| (d) |
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.
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| 5.1.2 |
Municipal Services
| (a) |
The N&S allocation to schools is intended for the payment of, amongst others, 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.
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| (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 copies of its accounts each month for examination and for confirmation that the accounts are correct.
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| (c) |
Non Section 21 schools must calculate, using their past expenditure on these services, the amount they reserve for municipal services and indicate it on the WCED 032 form. This amount and the funds for maintenance will be paid simultaneously to those schools that accepted the function.
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| (d) |
Schools must still implement, amongst others, the savings measures indicated in Annexure B.
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| (e) |
ESKOM and most municipalities have indicated they can make meters for prepaid electricity available to schools. This will enable schools to control their electricity consumption better.
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| 5.1.3 |
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 parts of school buildings. If regular maintenance is carried out, then the condition of the buildings will deteriorate to such an extent that expensive emergency repairs will be required.
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| (b) |
Schools must budget for their day-to-day maintenance repairs in accordance with the condition of the school building and grounds. The N&S allocation for day-to-day maintenance may be insufficient. In such cases schools should supplement the allocation from school funds.
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| (c) |
N&S allocations may not be used for day-to-day repairs to hostels. Such repairs should be funded from the learners' boarding bursaries.
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| 5.1.4 |
Maintenance of equipment
| (a) |
Schools should set aside 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, purchasing paint for benches on the school grounds, and purchasing lime and fertilizer.
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| (b) |
Rentals should not be confused with maintenance. Schools are responsible for the payment of rental agreements or leases and for the repairs and servicing of equipment such as photocopiers and computers. Repairs to these do not form part of the day-to-day maintenance to school buildings and grounds.
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| 5.2 |
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.
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| 5.3 |
The WCED does not accept responsibility for the payment of accounts when 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 3.3 above.
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| 6. |
OWN INCOME
In terms of Section 36(1) of the SASA, school governing bodies (SGBs) must take all reasonable steps to supplement the resources supplied by the state in order to improve the quality of education provided by the school. No-fee schools may not charge compulsory school fees. They are, however, encouraged to collect voluntary contributions and raise funds by way of donations, fund-raising functions, etc.
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| 7.1 |
The approved budget of the school must be submitted to the relevant EMDC by 31 December of each year.
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| 7.2 |
All schools must submit a WCED 043 form (quarterly report) to the relevant EMDC within 30 days of the end of each quarter (expenditure to 31 March, 30 June, 30 September and 31 December). Funds will be paid to schools only if satisfactory WCED 043 reports on the financial activities of previous quarters have been received. The electronic format of the WCED 043 is available from the EMDCs. Refer to paragraph 3.3 above, as well as to paragraph 140 of NNSSF.
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| 7.3 |
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.
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| 8. |
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 this purpose. The following repairs will be considered according to the procedures in Circular 175/2000:
CATEGORY A
Serious damage as a result of natural disasters, structural problems and fires
The WCED will accept responsibility for such emergency repairs only if the cost exceeds R5 000 and provided that sufficient funds are available.
The WCED will, at its own discretion, consider making a transfer payment for the materials in relatively less serious cases.
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CATEGORY B
The WCED will accept responsibility for only the following categories of EMERGENCY REPAIRS, provided that staff and learner health and/or safety is/are threatened and that sufficient funds are available:
Replacement or 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 source of supply of drinking water
(Assistance may take the form of providing funds for the purchase of materials only.)
Schools must submit 3 quotations. Repairs may commence only after approval has been obtained from Head Office.
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| 9.1 |
The SGB must exercise proper control over revenue and expenditure as set out in the Manual of the Basic Financial System for Schools. Should the members of the SGB not have the necessary expertise to carry out this function, they must co-opt someone who will be able to assist them.
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| 9.2 |
All school funds, obtained from both the State allocation and own income, must be used for purposes directly connected with education, as stated in section 37(6) of SASA, and especially for buying textbooks, other books and other LTSM. In terms of WCED policy, textbooks and readers may not be photocopied as this amounts to an infringement of the Copyright Act, 1978 (Act 98 of 1978).
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| 9.3 |
The WCED has the right to inspect records relating to school funds and to act against any member of the staff or SGB should he or she be involved in the mismanagement of school funds. Schools must, therefore, keep all proof of income and expenditure for this purpose.
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| 10. |
APPLICATION FOR SECTION 21 STATUS
Applications to change from non Section 21 status to Section 21 status must be submitted before 31 January 2007 on the attached application form. Successful schools will receive Section 21 status only from the following financial year, i.e. with effect from 1 April 2007.
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| 11. |
APPEAL REGARDING INCREASED LEARNER NUMBERS
As mentioned in paragraph 3.2 above, the learner numbers from the 2006 CEMIS statistics were used in the determination the N&S allocations. Should the CEMIS information not have been completed in full by 11 September 2006, then it could happen that a school will not receive all of the funds for which it qualifies. Schools were informed in Circular 0046/2006 of the process for the updating of learner numbers (according to which corrections must be submitted to the WCED by 20 October 2006). The WCED will use the updated information to revise schools' allocations.
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| 12. |
CONTACT NUMBERS FOR ENQUIRIES
| Subject | Name | Telephone |
| WCED 043 quarterly reports and audited annual financial statements | EMDC: Deputy Director: Administration | Applicable EMDC |
| 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 A.Ngxoza | 021 467 2212 |
| Emergency repairs | Mr G Martin
Mr P Beukes | 021 467 2137
021 467 2134 |
| General enquiries | Mr J Kitshoff
Mr R Eyssen | 021 467 2665
021 467 2662 |
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SIGNED: L.J. ELY
HEAD: EDUCATION
DATE: 2006:10:06
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