Browsing by Author "Martin, Derek"

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    Assessing the distribution and utilisation of education funds in the Northern Cape
    (Stellenbosch : Stellenbosch University, 2016-03) Martin, Derek; Burger, Johan; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
    ENGLISH SUMMARY: This study focused broadly on the School Funding Norms (SFN) and the effect of this policy on the resource allocation framework of schools. The Northern Cape Education Department (NCED) was used as a case study to explore the extent to which the SFN affects decisions taken by the provincial government in the allocation of funds to schools with ever-increasing learner numbers. These funding allocations, being considered at a time of adverse economic conditions in the country, led to government introducing cost containment measures. This meant that the continuous demand for additional resources by the NCED would hardly be met. The research was mainly based on a non-empirical study of quantitative data obtained from the NCED to determine the financial management systems used by the department in order to allocate funds to the schools under its jurisdiction. This included all the legislative, regulatory and policy instruments at the department’s disposal as well as all the reporting documents through which it accounts. The study also looked at literature concerned with development theories, which included a socio-economic statistical overview, the role of education in development, as well as perspectives on public finance management. Exploring the socio-economic realities of the Northern Cape in relation to the country was especially important, given that the SFN policy is geared towards directing resources to poor and underprivileged schools. The financial management practices of the NCED are also examined in chapters 4 and 5 of the study. One of the key elements is the issue of learner numbers in the province as a major cost driver of the department’s budget. The budget allocation to education as one of government’s key priorities was also an important factor. The amount of funding received by the NCED for the provision of education services in the province has been steadily rising over the years in accordance with increasing learner numbers. While learner numbers increased from 208 877 in 1998 to 285 494 in 2014, the education budget grew substantially from R965 million in 2000/01 to R4.44 billion for the 2013/14 financial year. The NCED received the highest allocation, followed by the Department of Health. Most of the education budget was spent on personnel costs, which amounted to over R3 billion in 2014/15. A major portion of the budget was also taken up by transfer payments to schools. While an amount of R160 million was earlier budgeted for transfer payments to schools, this budget item grew to over R400 million in 2013/14, mainly as a result of an increase in the number of no-fee schools. The number of public schools that received funding from the NCED in 2014/15, for example, stood at 550 with over forty mainly no-fee schools receiving over a million rand each. Allocations were also made to special schools, independent schools and Grade-R institutions, including grants for the Nutrition Programme. Reports from the office of the Auditor-General, however, indicate that there was a lack of sufficient controls within the NCED as well as inadequate capacity to effectively monitor expenditure. It also found that schools did not always submit their audited financial statements as required. The study thus concludes that the NCED did not do enough to address inefficiencies in the system.