UMnyango WezeMfundo
Department of Education
Lefapha la Thuto
Departement van Onderwys
Circular 22 / 2005
Date: 22 April 2005
An Indicative (Projected) Allocation of
Funds to ELSEN Schools for the
2005/2006 Financial Year
Topic
Annexure A:
Enclosure
Indicative Allocation per
individual school
Available in English only
 Principals and staff of all Schools for Learners
with Special Education Needs
 All Divisional Managers and Senior Managers
at Head Office and District Offices
 Members of School Governing Bodies
Distribution
Distribution
Enquiries
General Education and Training (GET)
Tel: (011) 355 0639
On request, this circular will be
made available in isiZului
within 21 days
Also available on the GDE website: www.education,gpg.gov.za
Office of the Chief Executive Officer
Room 1009, 111 Commissioner Street, Johannesburg 2001 P.O. Box 7710, Johannesburg, 2000 Tel: (011)
355-1511 Fax: (011) 333-5546 E-mail: [email protected] OR [email protected]
English: Page 1 of 4
ALLOCATION OF SUBSIDIES TO ELSEN SCHOOLS FOR THE 2005/6
FINANCIAL YEAR
1.
THE PURPOSE OF THE CIRCULAR
The aim of the circular is to provide schools and their Governing Bodies (SGBs) with an
indicative (projected) allocation for the 2005/6 financial year and the terms and
conditions governing the transfer of funds to section 21.1 public special schools.
The prime purpose of the indicative allocation is to assist the SGBs with the
development of their budgets as required by Section 34 of the South African Schools’
Act, 1996 (Act No. 4 of 1996).
2.
THE FORMULA FOR SUBSIDY ALLOCATION
The formula for the funding of ELSEN schools was provided in Circular 51 of 2002. This
formula takes into account the following:
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
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3.
A percentage of the total budget is set aside for Top Slice / Redress
A percentage of the budget remaining after the Top Slice has been deducted is
then set aside for the purchase of assistive devices
The balance is then available for allocation to individual schools
Firstly, those schools that have hostels receive R2 100 per learner admitted to a
hostel, and the remainder is then allocated to schools in terms of its weighted
enrolment. The weighting is based on the Weighting Norms set out in
Appendix 1 of the “Regulations for the creation of educator posts in a
Provincial Department of Education and the Distribution of such posts
to the educational institutions of such departments” in terms of the
“Employment of Educators Act, 1998 (Act No. 76 of 1998)”.
THE INDICATIVE (PROJECTED) ALLOCATION
The indicative allocation to your school is indicated as Annexure A.
SGBs are reminded that the indicative allocations to their schools are based on the
learner data (including hostel data) that were used to determine funding for 2004/5,
i.e., the 2004 10th School Day Snap Survey.
The final allocation to an individual school for the 2005/6 financial year will be
determined using the 2005 10th School Day Snap Survey. Once approved, the final
allocations to individual schools will be issued, via a circular, in March 2005.
English: Page 2 of 4
4.
RESPONSIBILITY OF THE GOVERNING BODY
Section 36 of SASA imposes a responsibility on the governing body of a public school to
take all reasonable measures within its means to supplement the resources supplied by
the state in order to improve the quality of education provided by the school to all
learners at the school. The school is not only entitled, but indeed obliged to endeavour
to obtain further funds from the community in which it operates.
The governing body must prepare a budget each year, which shows the estimated
income and expenditure of the school for the following financial year. Before the budget
referred to is approved by the governing body, it must be presented to a general
meeting of parents convened on at least 30 days notice, for consideration and approval
by a majority of parents present and voting.
School fees may be determined and charged at a public special school only if a
resolution to do so has been adopted by a majority of parents attending the meeting
referred to above. The resolution must provide for the amount of fees to be charged,
and equitable criteria and procedures for the total, partial or conditional exemption of
parents who are unable to pay fees.
A governing body may not enter into any loan or overdraft agreement so as to
supplement the school fund, without the written approval of the Member of Executive
Council (MEC) for Education.
Note must be taken of Section 60(4) of SASA. This indicates that the state is not liable
for any damage or loss caused as a result of any act or omission in connection with any
enterprise or business operated under the authority of a public school for the purposes
of supplementing the resources of the school as contemplated in section 36 of SASA,
including the offering of practical educational activities relating to that enterprise or
business. It is important that schools take out insurance to cover any liability for
damages awarded against the school. The payment of the insurance fee must be
covered out of income derived from the commercial enterprise.
5.
THE TERMS AND CONDITIONS GOVERNING THE TRANSFER OF FUNDS
TO SECTION 21.1 PUBLIC SPECIAL SCHOOLS
In terms of the South African Schools Act 84 of 1996, section 21(3), the Head of
Department delegated the functions listed in section 21(1). However, he was guided by
the contents of the Public Finance and Management Act (PFMA) No1 of 1999 section
38(1)(j) that, as the accounting officer of the Gauteng Department of Education, he/she
must obtain a written assurance from the entity that that entity implements effective,
efficient and transparent financial management and internal control systems, or, if such
written assurance is not or cannot be given, render the transfer of the funds subject to
conditions and remedial measures requiring the entity to establish and implement
effective, efficient and transparent financial management and internal control systems.
English: Page 3 of 4
While the delegation of functions to public schools in Gauteng is underpinned by the
terms and conditions of SASA, the delegation of authority must be seen within the
context of PFMA and the Public Service Act. These Acts place mutual obligations on the
Head of Department and School Management (including Governing Bodies) to exercise
control over utilisation of State resources. Transfers to schools can only be efficiently
utilised if they are used for the purpose for which they are intended.
‘Efficiently utilised’ means that the money is used for that for which it was intended, at
the right time, price and quality. By implication, for anything to be seen as efficient or
not, it must be preceded by a plan which will act as a standard, which plan must
address the issue of effectiveness in that it must be drawn with an intention to achieve
what the funds were transferred for.
The Public Finance Management Act (1999) also addresses the issue of transparency.
This implies that the entity that will be receiving the funds must disclose to all
stakeholders its plans that show where the funds come from, what they were intended
for, what they will be used for and when and how they will be used. It must also
disclose when and how the funds were used, and who benefited from such utilisation.
Schools are expected to adhere to stringent financial management and reporting
systems that are reliable, efficient and verifiable. Of particular importance, the GDE
expects SGBs to commit to prudent administrative processes and to improved levels of
performance at their schools.
6.
ANNUAL FINANCIAL STATEMENTS OF PUBLIC SCHOOLS
Please note that in compliance with Section 43(5) of SASA, a copy of the audited
financial statements for the period 1 January 2004 to 31 December 2004 must be
submitted to the Head of Department by 30 June 2005.
Failure to meet the above compliance requirement could result in subsequent transfer
payments to the school being unnecessarily delayed.
In addition, for the purpose of on-going monitoring in respect of financial management,
schools are required to maintain monthly cash flow projections and actual expenditure
statements.
I trust that the conditions being attached to the transfer of funds to public special
schools will assist us all in ensuring proper financial management and accountability. It
should also contribute towards school effectiveness and improvement.
MALLELE PETJE
CHIEF EXECUTIVE OFFICER
English: Page 4 of 4