North West Department of North West Department of Education Education

Presentation to the Select Committee on Appropriation

Parliament of the Republic of South Africa

Wednesday 21 April 2010

Report on the Under-Report on the Under-Expenditure of the HIV/AIDS Expenditure of the HIV/AIDS Conditional Grant Conditional Grant There has been a number of

differing factors that has impacted on the North West Department of Education achieving 100% expenditure in terms of the conditional grant availed to the Department. This presentation will provide detailed information in this regard.

Data On Trends in Allocations, Transfers Data On Trends in Allocations, Transfers and Actual Expenditure of Conditional and Actual Expenditure of Conditional Grants of the Department Grants of the Department

ITEM BUDGET ROLLOVERS

ADJUSTED BUDGET

YTD EXPENDITURE

% SPENT AVAILABLE BUDGET

R’000 R’000 R’000 R’000 % R’000

HIV/AIDS

12,912 1,207 14,119 10,412 73.7% 3,707

Monitoring Capacity of the Monitoring Capacity of the Department Department Monitoring is undertaken by Life

Orientation and Life Skills Specialists in the District. Currently there are 36 specialists, who work on the curriculum programme.

The monitoring exercise is also undertaken by child care coordinators (CCC). The Department has 35 CCCs.

Monitoring Capacity of the Monitoring Capacity of the Department Department It is important to note however that

whilst these officials are in the system, there is an acute shortage of transport which hampers the actual work on the ground.

The 35 CCCs are allocated 8 schools each for monitoring purposes in respect of the Care and Support Programme. These officials extend their monitoring functions beyond the mandatory 8 schools.

Monitoring Capacity of the Monitoring Capacity of the Department Department

Beyond those officials who are responsible for the task at the cold face, monitoring is undertaken by the Internal Audit Unit of the Department and regular meetings are convened with the HIV/AIDS Life Skills Unit.

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure First Aid Kits • Early in 2009 the Department

initiated the process of purchasing top-up items for First Aid Kits for schools.

• Following advice received from the Department of Health we approached the National Treasury for details of suppliers. We were requested to make formally solicit permission by the National Treasury.

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure On 20 May 2009 permission was

formally requested from the National Treasury. Permission to participate in the national tender was granted by the National Treasury on 19 August 2009.

On 2 September 2009 orders were dispatched to Icembe Medical Supplies and Central Medical Suppliers. These suppliers failed to deliver items to the value of R200 740.60.

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure Interventions undertaken to

address the delay include:i. Regular telephonic follow-ups were

made with both service providersii.Matter was brought under

discussion with the Departmental CFO and the National Treasury

iii.On 9 November 2009 the National Treasury was requested to intervene

iv.On 2 February 2010 the order was cancelled

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure Career Guides • Career guides to the total value

of R519840.00 were purchased during August 2009.

• Payment was however only processed on 14 March 2010 due the service provider being unable to provide the Department with a valid tax clearance certificate.

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure Tender for Hygiene Packs for

Orphans and Vulnerable Children• A tender for the purchase of hygiene

packs was advertised and the tender was consequently awarded to Industrimed.

• The amount allocated to this activity was R4 519 200.00, constituting 35% of the HIV/AIDS conditional grant.

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure Chronological Order of Events

DATE EVENT

August 2009 Process of purchase of hygiene packs initiated

Approached other government institutions to utilize their service providers. We were informed that there were no existing suppliers

Specifications were drafted.

30 September 2009 Submission for open bid tender was submitted to Departmental Procurement Committee

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure DATE EVENT

5 November 2009 The Departmental Procurement Committee approved a request to invite suppliers to tender

19 November 2009 Tender was advertised

30 November 2009 Briefing session with prospective bidders was convened

14 December 2009 Closing date for suppliers to submit bid documents

8 February 2010 Bid Evaluation Committee inspects the samples submitted for compliance with the specifications

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure

DATE EVENT

8 February 2010 The tender was adjudicated by the Departmental Procurement Committee

18 February 2010 Letter of award dispatched to Industrimed

19 February 2010 Industrimed formally accepts the tender and further confirms that complete consignment will be delivered by the end of March 2010

8 March 2010 First consignment of hygiene packs were delivered to the Department. Supplier was immediately informed that consignment differed from the approved sample

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure

DATE EVENT

9 March 2010 Acting Chief Financial Officer informed of discrepancy. Service provider telephonically requested by the Acting CFO to correct the sample

Acceptance of hygiene packs and payment of Industrimed has become a litigation issue

Factors That Have Factors That Have Contributed to Under Contributed to Under Expenditure Expenditure The Department has handed the

matter over to the Office of the State Attorney

The order in the amount of R3.6 million has not been cancelled.

A request has been made for a rollover of funds (i.e R3.6 million) to enable the Department to pay the service provider once the error with the products has been addressed.

Once this issue has been resolved expenditure in respect of this cost centre will register 100%.

Receipt of Monthly Receipt of Monthly Reports Reports Monthly as well as quarterly reports

are submitted to the following authorities:

Life Skills HIV/AIDS Coordinator at the National Department of Basic Education

Senior Management Team of the North West Department of Education

Provincial Treasury who receive only quarterly reports

THANK YOU

EXECUTIVE MANAGEMENT TEAM

NORTH WEST DEPARTMENT OF EDUCATION