DG: Department of Basic Education - PowerPoint Presentation

Slide1

DG: Department of Basic Education

Mr HM MweliDate: 4 May 2016

THIRD QUARTERLY REPORT ON FINANCIAL PERFORMANCE OF THE DEPARTMENT OF BASIC

EDUCATION

STANDING COMMITTEE ON APPROPRIATIONSlide2

PART A THIRD QUARTER EXPENDITURE REPORT2Slide3

ALLOCATION AGAINST ACTUAL EXPENDITURE PER PROGRAMME FOR THE 2015/16 FINANCIAL YEARPROGRAMMES

2015/16Expenditure as % of AppropriationAPROPRIATIONACTUAL EXPENDITUREVARIANCER’000R’000R’000Administration357 697

306 037

51 660

85.56%

Curriculum Policy, Support and

Monitoring

1 847 5221 476 804370 71879.93Teachers, Education Human Resources Development and Institutional Development1 170 7591 007 839162 92086.08%Planning, Information and Assessment11 966 6269 284 7052 681 92177.59%Educational Enrichment Services5 943 8224 931 7801 012 04282.97%Total 21 286 426 17 007 1654 27 26179.90%

3Slide4

SUMMARY PER PROGRAMMEProgramme 1: AdministrationThe bulk of the remaining balance is in respect of payments for the unitary fee due in the fourth quarter for the office accommodation.Programme 2

: Curriculum Policy, Support and Monitoring96.37% of the allocation in this programme is for Kha Ri Gude, Workbooks and Maths, Science and Technology Conditional Grant.Kha Ri GudeThe classes for Kha Ri Gude started later than expected which led to lower expenditure for the period under review. The bulk of the expenditure on this project is in respect of stipends for volunteer educators that are paid as and when tuition has been provided. WorkbooksThe printing and delivery of workbooks Volume 1 was completed in September 2015. The printing of workbooks volume 2 has been completed and the delivery was 99% complete in the period under review.MST Conditional GrantThe transfer on this grant to provinces was made on 13 November 2015, except the transfers to 3 provinces, namely, the Free State, Northern Cape and the Western Cape that were withheld due to low spending. 4Slide5

SUMMARY PER PROGRAMME Programme 3: Teachers, Education Human Resources Development and Institutional DevelopmentThe high spending is mainly due to the transfer of the

Funza Lushaka Bursaries funds to NSFAS. The last transfer was made in January 2016.Programme 4: Planning, Information and AssessmentThe delay in the process of rationalisation of schools had an impact on the spending trends for the ASIDI project. Of the targeted 510 inappropriate Schools, 211 Schools in the Eastern Cape are affected by school rationalisation process.Furthermore, the fourth transfer of the Education Infrastructure Grant to the Eastern Cape Province amounting to R529.549 million was not transferred due to low spending. This was eventually re-allocated to Gauteng (R400 million) Limpopo (R79.549 million) and Western Cape (R50 million).Programme 5: Educational Enrichment ServicesThe last and final transfers to provinces for the HIV and Aids and National School Nutrition Programme conditional grants amounting to R44.203 million and R949.145 million, respectively, were made in January 2016.5Slide6

DETAILS OF EARMARKED ALLOCATIONS/CONDITIONAL GRANT FOR THE 2015/16 FINANCIAL YEARSERVICE

Expenditure as % of AppropriationAPPROPRIA-TIONACTUAL EXPENDITUREVARIANCER’000R’000R’000Earmarked Funds:

1 665 7951 279 126

386 669

76.79%

Kha Ri Gude Literacy Project

439 584

359 07280 51281.68%EPWP: Kha Ri Gude65 0998 88156 21813.64%Workbooks957 827825 270132 55786.16%NEEDU14 93919 478-4 542130.38%MST5 0003 6931 30773.86%NSNP 15 98610 8855 10168.09%Annual National Assessment167 36051 847115 51330.98%Conditional Grants:15 631 77113 025 8392 605 93283.33%Education Infrastructure

9 354 443

7 848 184

1 506 259

83. 90%

National Schools Nutrition Programme

5 685 381

4 736 236

949 145

83.31%HIV and AIDS (Life Skills Education)208 730164 52744 20378.82%Occupation Specific Dispensation for Therapists (OSD)66 27544 66721 60867.40%MST316 942232 22584 71773.27%

6Slide7

SUMMARY PER EARMARKED FUND Kha Ri Gude

Literacy Project:The bulk of the current expenditure reflected on this project, is in respect of stipends for volunteer educators that were accrued in the 2014/15 financial year. The Department requested roll-overs and it was not approved. There was a delay in commencement of classes for 2015/16 was due to the process of confirmation of learners and volunteers with Department of Home Affairs.This process led to the delay in processing of payments.Workbooks:Delivery of volume 1 workbooks from grade R – 9 was completed in September 2015 and the delivery of volume 2 workbooks for Grade R-9 was completed in November 2016.All Volume 1& 2 workbooks were delivered to schools as per provincial requests. 7Slide8

SUMMARY PER EARMARKED FUND National Assessments:The Annual National Assessment was scheduled to take place during September 2015 but it was postponed to December 2015. However, only 20% of schools wrote the 2015 ANA test, the remaining schools were to write in January 2016. Expenditure was to increase once invoices for printing and claims from provinces are received. NEEDU

The reflected shortfall on NEEDU will be covered in the Adjustment budget.8Slide9

PART B PERFORMANCE OF CONDITIONAL GRANTS9Slide10

NSNP EXPENDITURE PER PROVINCE AS AT 31 DECEMBER 201510Approved BudgetAdjustmentsAdjusted Budget

Actual Expenditure as at 31 December2015Available balance as at 31 December 2015% Spent as at December 2015PROVINCESR'000R’000R’000R'000R'000%Eastern Cape1 020 116(7 059)1 013 057744 329 268 72873.5%

Free State 317 157

(2 757)

314 400

236 159

  78 241 75.1%Gauteng 678 974(219)678 755 540 080138 675 79.6%KwaZulu-Natal1 287 0341 287 0341 097 302189 732 85.3%Limpopo1 030 799(6 711)1 024 088 750 827 273 26173.3%Mpumalanga 545 910(1 560) 544 350 425 417118 93378.2%Northern Cape 142 724(8) 142 716 113 42029 29679.5%North West 381 566 381 566 282 363  99 203 74.0%Western Cape 299 435(20) 299 415 229 00070 415 76.5%Total 5 703 715(18 334)5 685 3814 418 897 1 266 48477.3%Slide11

PROGRESS ON NSNPIn the quarter under review; All nine (9) Provincial Education Departments (PEDs) successfully implemented the school nutrition programme in line with the conditions of the Grant. In total 20 534 schools Q1-3 public and identified special schools served meals to 9 298 431 learners. In addition, some PEDs have declared some quintile 4 and 5 schools as “no fee paying schools” (Gauteng (416 287 learners), KwaZulu-Natal (166 453) and Northern Cape (56 100) and Western Cape (76 053), that significantly increased coverage to 10 013 324 learners in 21 203 schools. On average, learners were fed for 41 of the 45 days mainly affected by lower attendance/absenteeism after the final examinations. Slide12

HIV/AIDS LIFE SKILLS PER PROVINCE12Approved BudgetAdjustmentsAdjusted Budget

Actual Expenditure as at 31 December 2015Available balance as at 31 December 2015% Spent as at December 2015 PROVINCESR'000R’000R’000R'000R'000%Eastern Cape 37 086(2 582) 34 504 28 212 6 292

81.8%Free State 10 462

(518)

9 944

9 646298 97.0%Gauteng 29 945(1 016) 28 929 23 4705 459 81.1%KwaZulu-Natal 50 588 50 588 34 57616 012 68.3%Limpopo 30 875(7 824) 23 051 17 2795 77275.0%Mpumalanga 19 631 19 631 17 8881 743 91.1%Northern Cape 5 281 5 281 3 1082 173 58.9%North West 17 531(320) 17 211 15 9741 237 92.8%Western Cape 19 631(40) 19 591 14 1755 416 72.4%Total 221 030(12 300) 208 730 164 32844 40278.7%Slide13

PROGRESS ON HIV AND AIDSThe reach of the programme was exceeded in Advocacy on TB (71 979)Establishment of functional peer education programmes (Target: 85 300 - Reached 87 416) Curriculum-based learner pregnancy and learner retention programmes (Target: 73 500- Reached 84 332) Prevention of

Alcohol and Drug use (Target: 57 850- Reached 76 997)Establishment and training of School Based Support Teams (Target: 16 500- Reached 15 469). Slide14

MST GRANT EXPENDITURE PER PROVINCE14Approved BudgetAdjustmentsAdjusted Budget

Actual Expenditure as at 31 December 2015Available balance% Spent as at 31 December 2016 PROVINCESR'000R’000R’000R'000R'000%Eastern Cape 45 059(8 473) 36 58617 625 18 961 48.2%Free State

32 145(456)31 689

6 104

25 585

19.3%

Gauteng

47 842(678) 47 164 40 6666 498 86.2%KwaZulu-Natal 59 998 59 998 28 80131 197 48.0%Limpopo40 979(11 955) 29 024 11 47117 55339.5%Mpumalanga 39 136(7 651)31 485 35 194( 3 709)111.8%Northern Cape 22 113(430)21 683 17 2364 44779.5%North West 33 378(600) 32 778 18 77114 007 57.3%Western Cape 26 535 26 535 13 79712 738 52.0%Total 347 185(30 243) 316 942 189 665127 27759.8%Slide15

MATHS, SCIENCE AND TECHNOLOGY (MST)Activity Identified area of under-performanceRemedial MeasuresTimeline

ResponsibilitySet-up a team of procurement specialists to draft the specification for TenderConsolidated item specificationsApril 2016DBEIdentify service providers for all Technical CAPS training for Grade 11List of accredited service providers is availableMarch 2016DBEAppoint the MST additional personnel and enhance monitoring and support at provincial levelPersonnel appointed and placed at underperforming provincesMay 2016DBEConvert the scheduling of the conditional grant from schedule 5 to 7 in order to centralise the management of the grant

New schedule is approved and publishedOctober 2016

DBE and

National Treasury

Institute the development of MST Provincial Strategies to align the activities of the grant and provincial priorities

Provincial MST Strategies are approved by TDCM, HEDCOM and CEM

October 2016DBE and Provincial Curriculum ManagementSlide16

OSD GRANT EXPENDITURE PER PROVINCE16Approved BudgetAdjustmentsAdjusted Budget

Actual Expenditure as at 31 December 2015Available balance AS 31 December 2015% Spent as at 31 December 2015 PROVINCESR'000R’000R'000R'000%Eastern Cape 2 067(9) 2 058 1 86619290.7%Free State

5 775 5 775

5 398

377

93.5%

Gauteng29 442(567) 28 8756 473 22 40222.4%KwaZulu-Natal 13 079 13 079 10 4892 59080.2%Limpopo  Mpumalanga 337 337 3370100.0%Northern Cape 2(1) 1 10.0%North West 446(148)298 23662 79.2%Western Cape 15 852 15 852 15 8520100.0%Total 67 000(725) 66 275 40 651 25 62461.3%Slide17

OSD CONDITIONAL GRANTThe OSD conditional grant has came to an end. National Treasury requested DBE to compile a close out report on the grant.

DBE is in the process of assessing modalities to effect the translation of education therapists within the limited financial confines of the resources from the grant.PEDs will be advised on those guidelines once finalised. Slide18

EDUCATION INFRASTRUCTURE GRANT EXPENDITURE PER PROVINCE18Approved BudgetAdjustmentsAdjusted Budget

Actual Expenditure as at 31 December 2015Available balance% Spent as at 31 December 2015 PROVINCESR'000R’000R'000R'000%Eastern Cape1 703 877(638 954)1 064 923 645 005 419 91860.6%Free State

762 552

762 552

582 421

180 131 76.4%Gauteng 935 725394 183 1 329 908 484 878845 030 36.5%KwaZulu-Natal1 978 6841 978 6841 437 418541 26672.6%Limpopo 805 12867 246 872 374 759 233113 14187.0%Mpumalanga 857 247(221) 857 026620 830236 19672.4%Northern Cape 446 998(26) 446 972 278 998167 97462.4%North West 995 107(35 340)959 767801 070158 69783.5%Western Cape1 032 23750 0001 082 237 770 220312 017 71.2%Total 9 517 555(163 112)9 354 4436 380 073 2 974 37068.2%Slide19

EDUCATION INFRASTRUCTURE GRANTLow- spending in Eastern Cape: the following has been done:Action: A task team comprising of officials from the DBE, Eastern Cape PED, National Treasury and the Eastern Cape Provincial Treasury has been formed to intervene.Purpose of Task team:

Fast tracking implementation of the current infrastructure delivery programme;Planning to ensure readiness for implementation in the next financial year. Slide20

PART C SERVICE DELIVERY IMPLICATIONS, CHALLENGES AND REMEDIAL ACTION20Slide21

ANNUAL NATIONAL ASSESSMENT21The fifth round of ANA was scheduled to be administered from 15 to 18 September 2015 in Mathematics and Language to all grades 1-9 learners in public schools. About 9 million learners were expected to write the assessment, and for the first time including Grades 7 and 8. During the week of 4 to 11 September 2015 teacher unions indicated their dissatisfaction

with ANA and threatened not to participate in the writing thereof.An agreement was reached with the Unions on the establishment of a Task Team to undertake the remodelling of ANA and an Inter-Ministerial Committee (IMC) to attend to the broader issues of dispute presented by the Unions. In addition a mediation process was set up to specifically address the writing of ANA in December 2015.As a result of the impasse: the normal budgetary cycle was negatively affected. Expenditure was slow and limited to payments to service providers and provincial education departments (PEDs) for work done in preparation for the test administration, highlighted earlier. Expenditure on marking processes, data capturing, analysis and reporting was not considered. Slide22

INFRASTRUCTURE BACKLOG CONDITIONAL GRANT

Province

Inappropriate Structures

Electricity

Sanitation

Water

Baseline

CompletedBaselineCompletedBaselineCompleted

Baseline

Completed

EC

442

100

317

172

344

168

619

237

FS

30

6

143

23

68

13

101

30

GT

3

0

2

2

28

14

0

n/a

KZ

3

0

116

43

140

88

230

186

LP

3

3

142

5

77

75

121

94

MP

5

5

148

40

8

19

17

20

NC

1

1

0

0

26

6

12

0

NW

1

2

41

2

29

10

16

3

WC

22

21

7

7

21

19

4

3

Totals

510

138

(27%)

916

294

(32%)

741

412

(55%)

1 120

573

(51%)Slide23

ASIDI PROGRAMME CHALLENGES AND MITIGATORY MEASURES CHALLENGESMITIGATORY MEASURESSchool Rationalisation Process taking longer than anticipated, especially in EC, delaying implementation process

Focussed Rationalisation Team set up in the EC with appointed Project Manager;Rationalisation and allocation to Implementing Agents (IAs) to run concurrently to shorten time to implementation;Poor performance by some IAs and limited number of competent IAs in the market Draft Guidelines on Minimum Standards for IAs developed and discussed with National Treasury, and agreed in principle;Projects taken away from non-performing IAs; Review MoAs to include punitive measures;General poor performance by various Services Providers (Consultants and Contractors)Review of the penalty clauses proposed especially for consultants and review of the PI Cover;Tighten the management of Performance Guarantees;Relatively long time it takes to get replacement

Service Providers after termination of initial contractsNew procurement reforms

proposed in the Draft Guidelines on Min

Stds

for IAs, to shorten the process;

Utilisation of the

Transversal Framework Agreement;Baseline figures not static therefore affecting completion deadline and budget allocation New Condition Assessments carried out on identified schools to firm up the baselines, following the EC Court Case;Slide24

PART D RESPONSE TO COMMITTEE OBSERVATION AND RECOMMENDATIONS ON APPROPRIATION BILL AND 2014/15 THIRD QUARTER EXPENDITURE PATTERNS24Slide25

OBSERVATIONS25National School Nutrition Programme: The annual target is developed and monitoring is conducted every month. The Department has targeted to monitor 43 districts and 150 schools in the 2016/17 financial year. In addition, the PEDs monitor and provide support to districts/circuits and schools.

RecommendationsAlign and enhance budget planning and infrastructure planning function:The DBE and National Treasury has introduced the performance based assessment which enhances proper planning and budgeting. Further, provinces have through the Human Resources capacitation process, appointed IDMS technical advisors who monitor and advice on Infrastructure Delivery Management Systems(IDMS), which provides guidance on planning, budgetary and delivery of infrastructure.Enhance data systems, development of indicators and monitoring to ensure that all schools provide nutritious meals: The monitoring tools which have NSNP key indicators are used to monitor the quality and efficiency of the programme in partnership with FUEL, an NGO on Monitoring, Reporting and Response (MRR) to train monitors to improve quality of meals and efficiency of the programmeEnsure that vacant post are filled in a timely manner:The Department is presently in the process of finalising the reconfiguration of the organisational structure. Once the process has been finalised and the structure approved, the DBE will move expeditiously towards the filling of all vacant posts in the Department.Slide26

PART ERESPONSES TO AUDITOR-GENERAL’S PRESENTATION26Slide27

27AUDIT OUTCOMES FOR THE SECTOR Slide28

PROVINCIAL EDUCATION DEPARTMENT LTSMFindingsAction taken

Progress Schools did not receive workbooks at all from DBE, during the academic yearThe DBE has in place an electronic system that verifies delivery to each school. Once the list is received the delivery will be checked against the systemShortages are addressed on monthly and quarterly basis Schools did not receive supplementary textbooks at all from DBE, during the academic yearSchools were instructed to report shortages and excess for the department to redirect to other schools Monitoring against the sector plan is taking place monthly

Excessive

textbooks/workbooks stock were received from the PED which was kept at schools

Schools

were instructed to report shortages and excess for the department to redirect to other schools

The Free State LTSM system has been identified for roll out to

PEDs to ensure that the correct number of learners are procured for. Workbooks and supplementary textbooks in the incorrect language and /or subjects were ordered and deliveredRemedial deliveries where incorrect languages were ordered Deliveries have taken place for the 2016 school year.Appropriate steps to prevent over/under spending of the budget allocation for LTSM was not takenThe Department has developed a Sector Plan to guide the procurement and delivery of LTSMProvinces have aligned their plans to that of the DBE to ensure that the required LTSM is procure for the correct number of learners on time. Due to the (non-delivery/ late delivery) of books, schools had to make photocopies of textbooks at an extra costTimeous procurement and delivery of LTSMMonitoring against the sector plan is taking place monthlySchools received textbooks from PED only after academic year startedMonitoring of provincial procurement and delivery of LTSM against the LTSM Sector PlanProgress for 2017 is monitored to ensure timeous delivery.No processes in place to monitor the timeous delivery of textbooks to schoolsThe DBE is implementing an electronic LTSM monitoring systemThe Free State LTSM system has been identified for roll out to PEDs. Processes are underway to adapt, enhance and implement the system. 28Slide29

AUDITOR-GENERAL PEDS FINDINGS 2014/15 PROGRESS REPORTFindingsAction taken

Progress Teacher professional development (Focus area 1)1.1 Funding need to be allocated to districts1.2 Provincial Teacher Development Institution (PTDI) only in three provinces (Gauteng, Limpopo and Western Cape) The PEDs advised to have central organising system for Teacher Training Development Institution in the other provinces.Funding has been increased substantially over the MTEF2. Learner Transport Scheme (Focus are 2)2.1 No written p

olicy in place or objectives2.2 Tenders

were

awarded

to contractors without valid operating licenses for the duration of contracts

2.3 Tenders were awarded to contractors without valid operating licenses for the duration of contracts 2.4 Buses declared un-roadworthy by private or state-controlled testing centres & drivers with no public permit driver’s license. The learner transport policy was developed in collaboration with the Department of Transport to address weaknesses identified in the implementation of the learner transport programmeThe learner transport policy was gazetted in June 2015 and is being implemented. Operational guidelines for the implementation of the policy have been finalised and provinces are being trained in the implementation of the policy. 3. Findings on EMIS (Focus area 3)3.1 Deficiencies in EMIS Business PlansStrategic planning sessions were held with the implicated provinces, coordinated by DBE, In order to improve on the findingsThere is evidence of progress in KZN, MP, NW and EC, in terms of following the Business Plans. This will also be measured again by DBE EMIS facilitated auditing of provinces to be done in October/November 20163.2 Administering LURITS (LURITS should be uploaded quarterly by all PEDs) The five identified provinces have closely been supported by the DBE EMIS. As part of provincial EMIS Audits done by DBE EMIS in October/November 2015, province specific turnaround plans were recommended. There are elements of progress shown in 2016, but have been affected by change of doing EMIS business as provinces are now supposed to administer the LURITS process four times a year, instead of just one target of 30 September of each year. This could now be correctly measured in December 2016.29Slide30

AUDITOR-GENERAL PEDS FINDINGS 2014/15 PROGRESS REPORTFindingsAction taken Progress

3.3 Provincial EMIS division reporting tools and Data warehousing (All PEDs should have a set up warehouse) A plan was established by the DBE EMIS to support KZN, MP and NC with Setup, Support and training on the data warehousing. All SA-SAMS schools upload status to LURITS in KZN and MP has been changed to data warehouse, which in itself is indication of progress and readiness to do batch uploads from the warehouses. NC warehouse support is scheduled for 24-27 May 2016. 3.4 Rolling out SA-SAMS to all schools and TrainingThe DBE supports GP with the 2016 SA-SAMS implementation strategy as follows: Presenting on the importance of SA-SAMS to standardize data and reporting at the Summit in February 2016; andParticipating the SA-SAMS Steering Committee meetings and District meetings to assist with planning and roll out in GP. SA-SAMS Training:Refresher training to update the provincial and district EMIS on all changes on SA-SAMS was conducted in seven provinces from August 2015 to December 2015.New users that were trained on SA-SAMS are Western Cape EMIS and the Department of Correctional Services (DCS). The DCS were also assisted with setting up of local warehouse for reporting.

Ad Hoc information sessions were conducted when need arose.

 The following provinces are being

supported

by National office: MP, NW, FS and NC.

                   30Slide31

AUDITOR-GENERAL PEDS FINDINGS 2014/15 PROGRESS REPORTFindingsAction taken Progress

3.5 No quality data Audit performedMpumalanga had appointed External service provider to conduct physical head count in 680 public schools. The Directorate Internal Audit will conduct data quality Audit in KZN. In Free State, a tender to appoint a service provider to conduct a data quality Audit of SA-SAMS data at sampled schools was advertised. Data verification visits in on the 2016 SNAP Survey is currently being undertaken with 210 schools. The data Quality Audit was completed and the Final report is available. While in KZN HoD has approved the Data Audit Project ,Free State will conduct DQA in the 2016/17 financial year.  

No Budget was allocated to conduct Data quality Audits in the Eastern Cape.  

Still in

progress.

3.6 Geographic Information Systems (GIS) and Business intelligence (Some PEDs didn’t have GIS)With regard to GIS and BI in Limpopo, the tender was re-advertised in February 2016. Mpumalanga had appointed GIS Specialist.   In KZN the GIS server was procured In Free State, the ArcGIS licences were obtained and installed The bid was evaluated in March and a service provider was recommended for appointment. The province is still in the process of Procuring GIS hardware. The server was delivered on the 18th November 2015 In the process of procuring Server machine(s)31Slide32

NSNPFindingsAction taken Progress

5. NSNP (Focus area 5)5.1 Meal costs not at the required average:The three provinces that have findings in this regard (EC, FS, NW) are transferring funds to schools, which reduces the value chain and results in lower meal costs. Meal cost figures have been removed from the 2016/17 NSNP Conditional Grant Framework as they are often misunderstood by stakeholders including the AG. The actual meals served now form part of quarterly reports. 5.2 Nutritious meals not served to learners on all school days DBE conduct monitoring visits to selected schools on monthly and

receive quarterly reports from PEDs.No non feeding of

nutritious meals

was

reported by the Provincial Education departments

5.3 Absence of contracts for Volunteer Food Handlers (VFH)

The VFHs Terms of Engagement template was shared with provincial Managers/Coordinators during inter-provincial meetings. Provinces were also requested to share templates used.The monitoring tool was adjusted to assess if provinces/schools adhered to the template. This was not the case in some schools. Province will be instructed to draw up ‘contracts’ with all VFHs and send circulars to all School Principals. 32Slide33

INFRASTRUCTUREFindingsAction taken Progress

7. Basic education infrastructure (Focus area 7)7.1 Projects were not effectively managed and monitored 7.2 Findings from the contractors and the PEDs documentations 7.3 Original documentations not provided for audit purpose.  Capacity of provincial education infrastructure units has been identified as one of the major constraints in infrastructure planning and delivery. To address this, an Infrastructure HR capacitation plan was developed with National Treasury to appoint built environment specialists to infrastructure units to address planning, implementation and monitoring challenges.

To date, 231 (target 469) built

environment

specialists

have been appointed in provinces. These include

engineers, architects, quantity surveyors, GIS experts, town and regional planes, works inspectors

as well as infrastructure finance personnel and education infrastructure planners.8. Action plans not always implemented and monitoredPEDs action plan are analysed and departments given feedback. Progress on action plan is a standing agenda item - HEDCOM sub-committee on finance.The number of findings identified by AG has reduced in 2014-15 as compared to previous financial years. 9. Lack of proper record keeping PEDs have reported that they will appoint a dedicated official to who will be a notable point of communication with the AG. S/he will attend to queries and provide information (documentation) as required.  The monitoring visits have been planned for May 2016. 33Slide34

PERFORMANCE AUDITFindingsAction taken Progress

10. Policy and planning (No links between the performance agreements and APPs) All senior managers signed performance agreement, improvement of audit as one of the key performance area.  DBE planned to organise a sector needs to organise more internal and external capacity building sessions on data analysis, reporting, research and education indicators for planners, line managers and monitoring and reporting officials. These training can either facilitated by an internal officials or external officials.   The benefits include:Continuity in the system even if there is staff turnoverEnhancing productivity and efficiency11. Internal audit (lack of person power and dedicated [personnel) 

The PEDs have indicated that they will nominate a dedicated senior official

who

will respond to both AG and Internal audit queries and respond to questions. The internal audit is a shared service in most of the

PEDs.

 12. Budget management – 12.1 The lack of financial management discipline particularly with regard to overspending on compensation of employees is not addressed , which impacts the extent of unauthorised expenditure).The PEDs on a monthly basis are provided with reports that indicate area of possible over or material under expenditure. The budget and expenditure is a standing agenda item with all PEDs in all forums. The department conducted two monitoring meetings with the PEDs to address the challenges. Eight(8) out of nine (9) PEDs have not exceeded the allocated budget on compensation of employees as per the preliminary expenditure for 2015/16.34Slide35

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