4TH Quarter 2006/7 Conditional Grant Expenditure: Education, & Sport & Recreation Provincial Department briefings

FINANCE SELECT COMMITTEE & SPORT AND RECREATION PORTFOLIO COMMITTEE
23 May 2007
4^th QUARTER 2006/7 CONDITIONAL GRANT EXPENDITURE: EDUCATION, & SPORT & RECREATION PROVINCIAL DEPARTMENT BRIEFINGS

Chairperson: Mr T Ralane (ANC, Free State)

Documents handed out:
Free State Department of Sports, Arts and Culture presentation
North West Department of Sport, Arts and Culture presentation: Part1 and Part2
Free State Department of Public Works 4th quarter 2006/ 07 infrastructure review
Gauteng Department of Education presentation: Part1 and Part2
Limpopo Province Mass Participation grant presentation
Gauteng Department of Public Transport, Roads and Works presentation: Part1 and Part2
Mpumalanga Department of Public Works presentation
Northern Cape Department of Education presentation

Gauteng Department of Sport, Arts, Culture & Recreation presentation
Northern Cape Department of Sport, Arts and Culture presentation to select committee on finance
Western Cape Provincial Government: presentation to select committee on finance
Eastern Cape: Conditional Grant mass participation fourth quarter report 06/07: Part1 & Part2
KZN Department of Sport and Recreation Public Hearings on conditional grants fourth quarter 2006/7 report [please email [email protected]]
North West  Department of education: 4^th quarter provincial expenditure report for 2006/7
Western Cape Education Department: Report to the select committee on finance
Eastern Cape Department of Education: public hearings on conditional grants: Part1 and Part2
North West Public Works: Presentation to the NCOP select committee on finance
National Treasury: Preliminary outcome of conditional grants & capital expenditure as at 31 March 2007
Department of Sport, Recreation, Arts and Culture (Easterne Cape): 2006/7 Infrastructure Expenditure Report
Department of Education presentation on Conditional Grants

SUMMARY
The Committee was briefed by the provincial departments of Sport and Recreation and Education regarding their 4^th quarter expenditure of conditional grants. The Public Works provincial departments submitted documentation and participated in questions.

The provincial Sport and Recreation departments presented their expenditure on the Siyadlala and School Sport Mass Participation Programmes. There had generally been fair spending on these and most departments commented that a number of people had participated and several more had been trained. Lack of staff and lack of monitoring presented challenges. Questions asked by Members related to the existence of business plans, development of sport at schools, whether the provincial departments had the capacity to deal with increased allocations, and the contribution of the local soccer leagues to refurbishment of stadiums. The Chairperson indicated that Municipal Infrastructure Grants should be accessed and taken into account in the reports. The Chairperson requested lists of clubs developed in line with the mass participation programmes as some of the provincial departments were said to be performing inadequately.

Moreover, the provincial Education departments presented their expenditure on school feeding programmes, HIV/ Aids and FET recapitalisation. Most reported under spending, often in very significant percentages, which were variously attributed to delays in supply, infrastructure backlogs, personnel and funding shortages and suspension of the school feeding schemes. Only the Northern Cape had extended the school feeding programmes to high schools, and the Committee Members expressed concern on this, and on the under spending. Further concerns were raised in regard to the transfer of programmes from North West to Northern Cape without transfer of the budgetary allocations, which resulted in difficulties in implementing health, education and social services programmes. It was decided that a joint discussion on these issues must be arranged between the relevant departments and National and Provincial Treasuries. IT was further decided that answers to some of the more general questions posed to all departments may be submitted in writing, as many of the presenters were new in their positions.

MINUTES
Fourth quarter conditional grant expenditure briefings by Provincial Departments
Free State Department of Sports Arts and Culture briefing
The Head of Department, Free State Department of Sports, Arts and Culture, informed the Committee that he would present on the conditional grants for the Siyadlala Mass Participation Programme (MPP) and the school sport MPP. The budget for the Siyadlala MPP was R6.5 million and 99% of it was spent. The School Sport MPP had a budget of R3.4 million, with under spending of 3%. The under spending was attributed to improper and late submission of documents required for payment. A corrective measure put in for this financial year was the budget Control Register.

Siyadlala MPP was a success as over 280 000 people participated. Moreover, many people were trained, including 25 in events management and another 25 in first aid, and over 169 clubs were established. School MPP had identified 50 schools for the programme and 13 200 students took part. There was training for educators and volunteers for coaching athletics, volleyball and cricket. A further 55 educators were trained in sport administration and events management.

Reporting on capital expenditure (capex), the HOD stated that R180 000 out of a Budget of R138 892 000 was unspent. Transfers were made according to a pre- approved cash flow plan and the Department had managed to comply with this cash flow plan to a great extent. The monitoring capacity for capex was ensured by monthly meetings, attended by the HOD and other senior managers, to monitor expenditure trends, reports produced during the year, and the Free State Legislature’s Portfolio Committee on Finance.

Kwazulu Natal Department of Sport and Recreation Briefing
Ms Sumaya Khan, HOD, KZN Department of Sport and Recreation, informed the Committee that her Department had spent its entire conditional grant budget of R21 300 000. She elaborated that a greater part had been spent in the 2^nd half of the year owing to delays in tendering which also led to delays in payments for equipment. She stated that the MPP was managed through the Recreation Director’s Office and that its success was being hampered by a lack of staff both regionally and at head office, which led to ineffective marketing and a lack of continuous monitoring of the programme.

The programme objectives of the school sport MPP were highlighted as facilitating participation in sport and recreation within disadvantaged schools, with a focus on high crime areas, farm and rural areas and government priority nodes. A total of 162 schools in 9 clusters had been identified for the school sport MPP. 173 contract employees had been appointed, and the dates for the cluster festivals were indicated.

Ms Khan said that there was ongoing recruitment and training for the Siyadlala MPP, with the budget for training being R2 050 000 while the number of hubs in KZN had increased to 650. A new marketing strategy was being prepared to create greater awareness of MPP in the community.

Northern Cape Department of Sport Arts and Culture Briefing
The representative from the Northern Cape Department of Sport, Arts and Culture reported that the departmental budget for conditional grants in 2006/ 07 amounted to R6.2 million and that the entire budget had been spent. R5 million had been allocated to the Siyadlala MPP and R1,2 million to the school MPP.

The Siyadlala MPP had been extended to all 27 municipalities and over 30 jobs had been created by this programme. The school sport MPP had been implemented in 38 schools and 35 school sport MPP coordinators had been employed on an annual contract. The monitoring and management of the MPP was done by 7 district coordinators and through the MMIS (Management Monitoring Information System). It had been hindered by staff shortage and limited support from municipalities.

The Malibu Multi- purpose sport and cultural centre had been constructed at a cost of R40 million. The Department was to take occupation of the building in June 2007. Reasons for the under spending on the centre were alluded to, including unexpected geological problems and delays in awarding construction tenders.

Western Cape Department of Cultural Affairs and Sport
Mr Mxolisi Lindie, HOD, Western Cape Department of Cultural Affairs and Sport, informed the Committee that their budget for 2006/ 07 was R12,1 million. R7,25 million had been allocated to Siyadlala MPP with R4,85 million allocated to the School Sport MPP. There had been 97, 4% spending. The HOD informed the Committee that expenditure trends in the Siyadlala MPP in the first two quarters were extremely slow owing to the renewal of contracts. New hubs had been created in both the Siyadlala and school sport MPPs with a total of 117 schools involved. The monitoring of the Siyadlala MPP was done by two support staff managers and an operational manager. There were quarterly meetings and the submission of monthly reports. In school sport MPP there were two support staff, a training and recruitment team had been established, and monthly reports were submitted by cluster coordinators.

Mr Lindie informed the Committee of the many employment opportunities created and the positive impact the MPP had on communities. The challenges included chronic staff shortages.

Limpopo Department of Sport Arts and Culture
Ms Joyce Mashamba (MEC, Limpopo Department of Sports, Arts and Culture) informed the Committee that the Siyadlala MPP was aimed at reducing poverty through job creation, promoting participation in recreational activities in disadvantaged communities and addressing issues of national importance such as crime and HIV/ AIDS. The total number of hubs had increased to 25, with 175 coordinators. 368 coaches and referees had been trained, 168 people had been trained in administration and events management, and more than 37 000 people participated in the programme. She indicated that monthly reports were received from coordinators. The budget for the Siyadlala MPP was R8.3 million, of which 86,4% was spent.
 
The School sport MPP now involved 84 schools with 85 coordinators. Activities included athletics, soccer, netball, volleyball, rugby and cricket. Of the R6.5 million budget, R1.8 million remained unspent. The reasons for under spending were the late approval of the school sport MPP, protracted procurement processes and the late appointment of coordinators. Other challenges presented were frequent resignations by coordinators from the MPP, the Department’s inability to fill posts as speedily as they would like, delays in the procurement process and lack of facilities in schools. Corrective measures to be put in place were the recruitment of new coordinators in 2008, additional manpower in the supply chain directorate and the employment of 3 MPP deputy managers.

Discussion
Mr D Botha (ANC, Limpopo) asked the provincial departments if business plans were in place for the new financial year. He also enquired if capacity had been increased where it was found to be lacking, and whether the provinces were involved in sport development at schools.

The Chairperson stated that in terms of the Division of Revenue Act there would be additional funding for club development and school sport development. He asked whether the provincial departments had the capacity to deal with the new monies being availed to them, in view of their record of under spending in the past.

The HOD from the Free State Department of Sports, Arts and Culture informed the Committee that his Department had business plans in place and had increased its capacity. With regard to mass participation programme: a memorandum of understanding (MOU) with the Free State Department of Education had been signed. He further indicated that 203 educators and volunteers had been trained and that 169 clubs had been established.

The Chairperson enquired how 169 clubs could have been developed owing to the fact that money had only recently been allocated to club development.

The HOD indicated that the Free State Department had used unspent monies from other projects to develop clubs. Additionally, she stated that a further allocation came from the National Department of Sport and Recreation.

Ms Khan indicated that the KZN Department in KZN also had business plans in place. Furthermore, to increase the Department’s capacity, additional administrative staff had been employed, there was close collaboration with the Departments of Education and Sport and Recreation. Club development had commenced in the previous financial year and had been funded by monies from the National Department of Sport (SRSA)

The Chairperson asked how much money had been spent on club development and sought a categorical breakdown of amounts spent on each sporting code.

Ms Khan stated that R1 million had been allocated by SRSA to her Department for goods and services. It had been spent on football and netball, development of 30 clubs and on human resources and administrative staff. She indicated that unfortunately she could not give a further breakdown of costs at this stage.

Northern Cape Department of Sport, Arts and Culture stated that its business plans had been submitted. An MOU regarding School Sport MPP had recently been signed with the provincial Department of Education. Moreover, a quarterly municipal forum had been established to increase capacity. The Mayibuye Centre would be operational in June, but the Department required R1,2 million to finalise the centre. This department had focused its club development on the two districts of Pixley Ka Seme and Namaqua. An agreement with the South African Football Association (SAFA) had been concluded and would aid football development.

Limpopo MEC Ms Mashamba indicated that business plans and plans to increase capacity at the Department in Limpopo were in place. An MOU was soon to be signed with the Limpopo Education Department. A number of coaches and referees had been trained, with 168 more being trained in events management. She informed the Committee of her Department’s inability to fill vacancies as quickly as they wished.

Eastern Cape Department of Sport, Recreation, Arts and Culture
Mr B Mfenyana, HOD, Eastern Cape Department of Sport, Recreation, Arts and Culture, stated that the MPP was his Department’s flagship for the resuscitation of sport in the province. He stated that all local municipalities would have a hub and that further targets were set out in the Department’s business plan. The Siyadlala MPP was being implemented in 43 local municipalities, while school sport MPP covered 120 schools in 7 district municipalities. 357 new jobs had been created owing to the MPP and the total number of participants in both MPPs amounted to 200 676.

Mr Mfenyana noted that the budget amounted to R 17.06 million, which was spent in its entirety. There had been low expenditure in the first quarter owing to recruitment delays and an increase in spending in the 4^th quarter due to journal entries showing wrong payment of stipends. He indicated that a manager for MPP and 2 provincial coordinators, as well as support staff, had been appointed and a further 7 district coordinators had been employed.

North West Department of Sports, Arts and Culture
Ms Irene Mpolweni, HOD, North West Department of Sports, Arts and Culture, indicated that business plans were in place and that a MOU would soon be signed with the provincial Department of Education. The total grant received for the Siyadlala MPP amounted to R 7 million of which R6.1 million (87%) had been spent as at 31 March 2007. The Department would approach the provincial Treasury for a roll- over of funds and if approved equipment would be purchased with this money.

24 clubs had been developed with 187 114 people participating in the MPP. The monitoring of the MPP was achieved through the submission of weekly plans from the hub coordinators, monthly hub visits by provincial coordinators to confirm the smooth running of activities and a monthly submission to the provincial coordinator by the departmental coordinators.

The School Sport MPP received a total grant of R4.1 million of which 83% was spent. The Provincial Treasury was to be approached for a rollover of the funds.

Challenges highlighted for the conditional grants were the rapid resignation of contract workers and the long procedures of recruitment of contract workers. The capital projects for 2007 were also presented.

Discussion
The Chairperson stated that the Committee would require the locations of the clubs created and developed, as the Committee would be doing constituency work and may want to visit these clubs to verify their existence.

Mr Lindie attested to the fact that Western Cape department had a business plan in place and that it intended to increase its capacity. A MOU had been signed with the provincial Education Department and the Western Cape MPP was now increasingly geared to rural areas. He indicated that the targeted areas for club development were soccer, netball and rugby.

The Chairperson stated that provincial departments were entitled to a certain percentage of the Municipal Infrastructure Grant (MIG) and that as they engaged with municipalities they must inform them of the percentage allocation to sport and stop pleading poverty when presenting to the Committee.

Gauteng Department of Sport Arts Culture and Recreation
Ms Dawn Robertson, HOD, Gauteng Department of Sport, Arts, Culture and Recreation, indicated that her department’s conditional grant budget amounted to R16.8 million of which 78% was spent in the 2006/07 financial year. The Capital Expenditure (CAPEX) budget amounted to R53.4 million and funding was made available to municipalities for the implementation of infrastructure projects. She indicated it would be used to upgrade four named stadiums to be used as training grounds for 2010 in Gauteng. After refurbishment, these would be leased to Premier Soccer League (PSL) soccer teams for upkeep.

The MPP was the flagship of the department, and would eventually include 40 hubs in the various municipalities. A total of 121 schools had been identified for the school sport MPP and the six codes to be played were football, netball, cricket, rugby, volleyball and athletics.

A deputy director and project manager had been appointed for monitoring and monthly reports were received. Moreover, to increase capacity, staff had been transferred to hubs, and trainees and volunteers had also been used. Club development was still in its infancy as baseline studies were still being conducted. The MPP had created jobs, but there was a high staff turnover owing to these people being poached.

Discussion
Mr B Tolo (ANC, Mpumalanga) asked what contributions professional soccer clubs were making to the refurbishment of stadiums

Mr M Goieiman (ANC, Northern Cape) enquired about the contractual relationship between provinces and stadiums and who had the final say in such stadiums. He noted that government was refurbishing Ellis Park Stadium, although it was in fact private property.

Ms Robertson stated that Gauteng Department was looking at implementing long term leases with PSL clubs at the stadiums being refurbished. These clubs would have the responsibility to maintain the stadiums. Both Ellis Park and Loftus stadiums were the responsibilities of the respective metros.

Mr E Sogoni (ANC, Gauteng) feared that the long term leases would decrease public access to public property. He asked about club development in Gauteng.

Mr Tolo noted that Gauteng constantly under spent on Capex and that there were no facilities for school sport in township schools.

Mr Goeieman (ANC, Northern Cape) stated that between the North West and Northern Cape there were assets owned by the Department of Public Works that had not yet been registered. He indicated that some had been put on auction and that this may be a good revenue base for municipalities. He asked how departments were dealing with asset registration.

Mr Howard Yawa, MEC for Public Works, North West, stated that he thought that the Northern Cape had received an asset register from the North West regarding areas that had fallen into the Northern Cape after demarcation. He would verify that this had been done.

The Chairperson requested a list of areas of overspending as the Committee may want to visit these projects. Moreover he stated that the Public Works department in Gauteng seemed to be charging departments exorbitant rent.

Mr Seiso Mohai, MEC for Public Works, Free State, indicated that his department had overspent owing to floods that had occurred in the Free State, and yet had not been declared a disaster area.

Northern Cape Department of Education Briefing
Mr E Williams, HOD, Northern Cape Department of Education, indicated that R 72,4 million had been allocated to his department and that 95,7% had been spent. He indicated that R27 812 000 had been spent on infrastructure, R29 284 000 on food nutrition, R2 279 000 on life skills and HIV/ AIDS and finally R10 million on further education centres (FET). He stated that a total of 60 classrooms, 2 new laboratories, 7 ablution blocks and 3 administration blocks had been built. There had also been an upgrade to water borne sanitation in eleven schools and eight schools had minor rehabilitation work done.

Reasons for the under expenditure were elucidated. There had been delays in supply and the Department only paid on delivery of equipment. The major challenges presented were infrastructure backlogs in the Kgalagadi District which hindered the implementation of school feeding, non-functional Health Advisory Committees, and contractors experiencing difficulties in completing projects timeously owing to a lack of capacity.

The Department had met the overall goals outlined in their business plan on the four conditional grants, notwithstanding the many challenges, and looked forward to increased management and implementation in the 2007/ 08 financial year.

Western Cape Department of Education
The representative from the Western Cape Education Department indicated that it had had a budget of R126 829 000 of which R123 286 000 (97, 2%) had been spent. The rate of expenditure was good since sites for most of the school building projects were handed over timeously to the contractors.

Owing to the increased migration into the Cape metro and to seaside towns the Education Department requested an increased PIG (Provincial Infrastructure Grant).

Of the R48 313 000 received for the national school nutrition programme, the Department had spent R48 178 000 (99, 72%). The Department possessed the capacity to monitor expenditure. 203 535 learners were fed at 991 targeted schools, 219 school gardens had been established at schools and 95 structures were provided at schools to serve as food preparation areas.

In regard to FET recapitalisation, the Department stated that the entire R70 million budget had been spent. It was further added that 403 educators were capacitated to deliver 11 NCV programmes, that there was constant staff training and that equipment and learning and teaching materials had been procured and were in use.

The entire HIV/ AIDS budget of  R11 870 000 had been spent. Challenges were still faced in both personnel and funding.

Eastern Cape Department of Education
Ms N Mahanjama, Superintendent General: Eastern Cape Education Department, outlined the types of conditional grants for 200/07 as HIV/ AIDS, school nutrition programme and FET recapitalisation. Her Department had received a total allocation of R355.1 million, of which R248 789 000 had been spent.

The key objectives of the HIV/ AIDS programme included the integration of HIV/ AIDS across learning areas, training and development, promotion of peer education and research, monitoring and evaluation. The entire R25.8 million budget allocated had been spent, with over expenditure of R174 000.

Of the R267 219 000 school nutrition budget, only 63, 6% was spent. The under spending was explained by the suspension of all activities of the programme after the forensic audit in December 2006. There was also poor supplier performance and a lack of capacity within district offices. In order to address these issues, electronic financial management of tender contracts and payments was to be implemented, and establishment of new communication networks and the placement of unemployed graduates would bolster district monitoring capacity.

FET recapitalisation had a budget of R61 million budget but 85% was spent, owing to slow tender processes, slow submission of invoices and a lack of qualified staff.

Discussion
Mr Goeieman stated that there were 14 villages recently transferred to the Northern Cape from the North West that still had their budget allocations in the North West. He added that in the Kgalagadi district the transport services that were to take children to school could not cater for all children owing to the increased numbers resulting from reallocation of cross boundary municipalities. There had been no transfer of budgetary allocations from the North West to the Northern Cape. This also affected health services, social services and education. He requested a comment on this matter from the National Treasury.

The Chairperson suggested convening an indaba with the Departments of Health, Education, Social Services, Provincial Treasuries and National Treasury to resolve this pertinent matter.

Mr Z Kolweni (ANC, North West) commended the Northern Cape for having increased school nutrition to include high schools.

The Chairperson stated that all departments must be mindful of the Bill of Rights as they carried out their duties and added that learners must not be prejudiced. He added that the core business of provincial education departments was to teach.

The meeting was adjourned.