REPORT ON THE UNDER-EXPENDITURE OF THE HIV / AIDS CONDITIONAL GRANT FOR THE 3RD QUARTER OF 2010/2011 FINANCIAL YEAR 13 APRIL 2011
A. Introduction • The programme: Life Skills HIV and AIDS focuses on education, HIV and AIDS Prevention strategies such as peer education, substance abuse programmes in schools and provision of care and support to infected and affected children. The activities engaged in with regard to the programme are in the business plan and they include advocacy workshop, teacher training, distribution of LTSM, monitoring, support and management.
B. Expenditure 2010/2011 • The expenditure for the Lifeskills HIV/AIDS conditional grant registered 52% at the end of the third quarter of the previous financial year, however the province instituted remedial processes to ensure satisfactory performance. The low 3rd quarter expenditure was due to various circumstances. • Despite this slow start, the expenditure as at 31 March 2011 peaked at 100%, as shown by the Treasury report for the Department • This is not attributable to the financial year-end rush or the fiscal dumping- as shall be demonstrated in the ensuring slides
C. Expenditure patterns for the 2009/10 and 2010/11 Financial YEARS
1. Strike Action D. Causes Of Under Performance by 3rd Quarter • Public Servants embarked on strike action in August 2010, for the duration of 3 weeks. Life Skills HIV and AIDS commenced with the HIV Prevention workshops for 713 teachers immediately after the strike action ended on the 8th September 2010. • Life Skills HIV and AIDS activities were not conducted as planned in October due to the catch up teaching programmes, which were the priority of the Department after the strike action. • Training of 376 principals, teachers and SGB members started immediately after the writing of examinations (26 -28 November).
2. Delay to submit invoices by Service Provider • 3rd Quarter invoices activities were only received on 15 December 2010, which resulted in payments being effected in the beginning of the 4th quarter.
3. Procurement of First Aids Kits Top-ups • The Department has been granted permission by the National Treasury to participate in transversal tenders RT42-2008MF and RT76-2009ME for the procurement of medical supplies. Control forms (amounting to R 1 143 297.00) to procure First Aid Kits top-ups were submitted in July 2010. • All the Companies that are to supply First Aid Items were put on hold by the Provincial Tender Board due to the implementation of BAS. • Service Providers were requested to submit required documents in order to be registered on the BAS system, however we struggled to get these documents from the Service Providers well in time. Their reason was that they were also struggling to get original Tax Clearance Certificates from SARS. • This procurement could only be concluded in the 4th Quarter.
4. Care and Support for Teaching and Learning (CSTL) • In line with Department of Basic Education’s 9 priorities for (Care and Support for Teaching and Learning)CSTL the department allocated R 3 345 000.00 for the purchase supplies for Orphans and Vulnerable Children. These priorities are intended to improve access and retention in schools. • Procurement was scheduled for June 2010, but the Service Provider who was allocated the tender failed to deliver on time. • Subsequently, the Provincial Treasury granted permission for the Department to effect direct transfers to selected schools to purchase these supplies for the( Ophans and Vulnerable children) OVCs. The transfers were actually paid to schools in January 2011. Strict monitoring was conducted to ensure compliance with the terms and conditions of the transfers.
5.Tender of Hygiene Packs • The Service Provider who was awarded the tender to supply the Hygiene Packs for Orphans and Vulnerable Children did not deliver according to the sample submitted to the Bid Evaluation Committee for approval. • The matter was then referred to Department of Education’s Legal Services on the 30 March 2010, to ensure specific compliance by the Service Provider. • This breach of specific compliance resulted in a dispute which led to under-expenditure of R 3 707 000.00 in the Life Skills HIV & AIDS Conditional Grant in the 2009/10 financial year.
5. Tender of Hygiene Packs cont... • Hence R 3 707 000.00 was rolled over to the Life Skills HIV and AIDS conditional grant in September 2010. the rollover increased the allocation from R 12 912 000 to R 16 619 000. • Legal process took 8 months, the outcome of the proceedings allowed the service provider an opportunity to deliver the correct goods. The new Service Level Agreement with the same service provider was then signed off on the 16 November 2010. • The Service Provider delivered the first consignment on 6th January 2011. • This had the biggest negative impact on expenditure up to the 3rd Quarter.
6. Transport Claims • The North West Department of Education’s Finance Section attributed the transport Claims of HIV and AIDS staff to Cost Centre G44( Cost Centre for the Directorate of Curriculum Services) instead of AB4( Cost Centre for the Conditional Grants and Life Skills HIV & AIDS). • The journal entries were effected in March 2011.
E. Monitoring • The 2010/2011 target for monitoring was 200 schools, but we managed to monitor 236 schools. This is despite the acute staff shortages in the section ( only 4 staff at head office and nine in the districts for all the projects of this programme) • Evaluation of the impact of the programme was conducted in 54 schools in the Dr Ruth Segomotsi Mompati District. The other three districts will be evaluated in 2011 and 2012
F. Monitoring (continued) • Lack of transport poses a challenge for monitoring • The province is largely rural, and schools are far apart. • Life Orientation officials are mainly concerned with monitoring the Life Orientation subject, which is 100% School Based Assessment of the Curriculum, and cannot monitor this programme as well
G. Challenges • Inadequate number of staff to implement, support and monitor the programme • Lack of transport • Short academic year (less than nine months) • Schools far apart on poor roads (Bad road infrastructure creates accessibility problems especially to remote schools). • Service providers unable to deliver on time or according to specifications • Delays with transition to BAS • Social problems, e.g. poverty, substance abuse, unemployment and child headed families
G. Challenges (continued) • Industrial action by employees jeopardise an already fragile school calendar year
H. Responses to Challenges • 1 Transport shortages:- Officials use their own cars • 2 Monitoring:- Contract staff trained to monitor and support programme • 3 Service providers unable to deliver to specifications Sinceall schools in the province have Section 21 status, direct transfers were made to schools to procure the shoes for learners
H. Responses to Challenges (cont) Strict monitoring and procurement processes in place • 4 Poverty, Substance Abuse, Unemployment and child-headed families:- Food gardens functional at 182 schools established with communities to augment school nutrition. Substance abuse prevention programmes reached 557 Grade 10 learners, 877 principals and SGB members trained, 379 home visits conducted, 148 learners returned to school, 3 403 ID documents and 1 017 social grants secured .
H. Responses to Challenges (cont) • 6 Delays with Transition to BAS This is a provincial competency, but it has now been completed • 7 Short Academic Year (Approx 9 months) All training conducted during weekends/holidays. Monitoring on-going • 8 Industrial Action:- Activities planned for earlier in the year as far as possible.
I. Conclusion • As per the report from the North West Provincial Treasury the Conditional Grant for Life Skills HIV/AIDS, AB4 has spent 100% of the allocated R16 619 000 (i.e. R12 912 000 plus R3 707 000 rollover). • Despite above challenges, the department put measures in place. • For the new financial year planning and implementation strengthened.