| 1.1 |
In order to determine the norms and standards funding for schools, school are ranked in term of poverty according to the National Norms and Standards for School Funding (NNSSF) (Government Gazette 29179, dated 31 August 2006).
| (a) |
During 2006, all the schools of the WCED were re-ranked in terms of paragraph 101 of the NNSSF, which states that the poverty of a school is based on the relative poverty of the community around the school, which in turn depends on individual or household advantage or disadvantage as regards income, wealth and/or level of education.
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| (b) |
Data from the National Census conducted by StatsSA was used as the source. The NNSSF stipulates that "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." For this reason, the WCED is not able to use individual surveys received from schools relating to the poverty of individual learners.
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| 1.2 |
According to paragraph 109 of the NNSSF, the provincial education departments must use the national poverty distribution table (poverty table) to determine 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% |
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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 target for no-fee schools is still NQ 1 and 2, as determined by the national Minister of Education (MoE) in 2006.
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| 2.3 |
Since the Western Cape Province has a low percentage of learners in NQs 1 and 2, compared to all the other provinces, the province decided in 2007 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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| 2.4 |
Furthermore, as no change has been made to the poverty table (paragraph 1.2 above), no additional schools can therefore be declared no-fee schools for 2008/09.
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| 3. |
ALLOCATION
Details of the N&S allocation for your school for the financial year extending from 1 April 2008 to 31 March 2009 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. |
| 3.2 |
The N&S allocations for the 2008/09 financial year were calculated on learner numbers obtained from the 2007 CEMIS survey.
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| 3.3 |
The funds allocated to schools in terms of Circular 0049/2006 must be spent by non-Section 21 schools before 31 March 2008, as unused funds 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 2008, unless the outstanding forms are received before 29 February 2008.
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| 4.1 |
Schools charging school fees
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| 4.1.1 |
Non-Section 21 schools must, before 29 February 2008, divide their N&S allocation for the financial year ending 31 March 2009 into the four categories on form WCED 032, namely text and other books, 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 2008 and the remaining 50% in November 2008.
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| 4.1.3 |
Section 21 schools will receive their N&S allocation for the 2008/09 financial year in two instalments, namely 60% in April 2008 and 40% in November 2008. Section 21 schools must use their first transfer payment (60%), which will be made during April 2008, to purchase their 2009 learning and teaching support materials (LTSM) so that it is available before the end of September 2008, and to pay for other expenses, as stipulated in paragraph 5.1 below. The second transfer payment (40%), which will be made during November 2008, must be used to cover appropriate school-related expenses up to the end of the State's financial year, i.e. 31 March 2009.
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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 schools in April 2008. 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 2009, 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 2009 into the four categories on form WCED 032, namely text and other books, local purchases, municipal services and maintenance, and submit the completed form to the Department by 29 February 2008. 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 2008 and the remaining 50% in November 2008.
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| 4.2.3 |
The N&S allocations in respect of the 2008/09 financial year for Section 21 schools will be paid over to the schools in April 2008 (60%) and November 2008 (40%). It is important to note that the total N&S allocation is for the 2008/09 financial year, as the allocation must tide schools over until April 2009, 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 text and other books, 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 2009. 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. Schools may budget for a larger percentage if expenditure tendencies necessitate this.
- 4% for maintenance
- 16% for local purchases
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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 not carried out, 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, where applicable.
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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 fees/bursaries.
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| 5.1.4 |
Maintenance of equipment
| (a) |
Schools should set aside an 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 fertiliser.
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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. This does not mean that the N&S allocations may be exceeded. 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 to 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 1 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 over 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.
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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 97 of the NNSSF, the WCED accepts responsibility for major emergency repairs to buildings, 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: 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 29 February 2008 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 2008.
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| 11.1 |
Learner numbers
As mentioned in paragraph 3.2 above, the learner numbers from the 2007 CEMIS Annual enrolment statistics were used in the determination the N&S allocations. Should the learner numbers of a school increase substantially, by more than 7% in the beginning of the new (2008) school year, the N&S allocations will be adjusted. Applications for increased funding due to growth in learner numbers should be submitted by 15 February 2008. No late applications will be accepted.
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| 11.2 |
Poverty
The WCED received numerous written and telephonic requests in 2007/08 for the revision of the NQs of schools based on the unemployment of parents, learners attending schools from poorer areas, non-payment of school fees, etc. In this regard the NNSSF is quite clear that schools (beneficiaries of the allocation) may not be the source of this information, but that StatsSA or similar data must be used.
No adjustments could be made due to the reasons submitted by schools in 2007/08. Only in cases where the WCED instructs schools to enrol learners from areas other than the surrounding community due to a) inadequate spaces or b) problems with the quality of teaching may consideration be given to adjusting a school's NQ ranking. Learners that attend a school from outside the community by own choice may not be considered for revision of poverty placement.
Furthermore, the WCED may only allocate the number of learners per national poverty quintile(NQ) as indicated in the poverty table in paragraph 1.2 above. Due to the relative wealth of the Western Cape, 62% of our learners (Schools) are in NQ 4 & 5. It should be borne in mind that the placement in a NQ is based on a comparison with other schools (and their communities) throughout the country.
Should schools, considering the above, still wish to appeal the allocation or quintile placement, this should be done by 30 November 2007. No applications will be considered after this date.
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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 P Steyl | 021 467 2762 |
| Purchase of textbooks and other books (WCED 034) and local purchases (WCED 026). All non-Section 21 schools | Mr M Josias | 021 903 8453 |
| 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 |
| Appeals: learner numbers and 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: 2007:09:21
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