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UMnyango WezeMfundo Lefapha la Thuto
Department of Education Departement van Onderwys
Circular 48 / 2003
Date: 08 October 2003
Indicative Resource Allocation for
Topic Public Ordinary Schools for
2004/2005
Annexure 1: Indicative Resource Target List
Enclosures User’s Guide
Annexure 2: Indicative Resource Allocation
District Divisional Managers
Distribution Senior Managers at District Offices
Principals of all public schools
Members of School Governing Bodies
Staff members in Public institutions
Enquiries Mr. Rennie Nair
Tel: (011) 355 1779
On request, this circular will be
made available in isiZulu, Sepedi
and Afrikaans within 21 days
Also available on the GDE website at: 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: ceogde@gpg.gov.za OR mallelep@gpg.gov.za
English: Page 1 of 5
RESOURCE ALLOCATION FOR 2004/5
1. AIM
The aim of this circular is to inform schools of their indicative financial resource
allocations for the financial year, which begins on April 1, 2004, and ends on March
31, 2005. This is in terms of the National Norms and Standards for School Funding.
Principals are required to take cognizance of Annexure 2, which indicates the
school’s indicative resource allocation for recurrent cost, and Annexure 1 which
explains how allocations are arrived at.
2. LEGAL FRAMEWORK
According to the National Norms and Standards for School Funding (Government
Notice No. 2362 of 1998), section 35 and 61 of the South African Schools Act, 1996
(Act No. 84 of 1996), and section 3(4)(g) of the National Education Policy Act, 1996
(Act No. 27 of 1996), the state must fund public schools on an equitable basis in
order to ensure the proper exercise of the rights of learners to education and the
redress of past inequalities in education provision.
3. SCOPE OF APPLICATION
3.1 The norms apply to capital and recurrent cost allocations. The former are
defined by new classroom and other construction and the latter by
immovable capital improvements and repairs, recurrent costs easily separated
from other costs, other recurrent and minor capital equipment costs, and
hostel costs. The categories under which the allocations are reported to the
national Department of Education are:
New buildings and other land improvements
Land acquisitions
Maintenance of buildings
Supplies and Services – others
School books
Stationery
Equipment
Media Collections
3.2 The recurrent cost allocations are targeted on the basis of need, determined
according to the physical conditions, facilities and crowding at the school, and
the relative poverty of the community around the school.
4. RESPONSIBILITY OF GOVERNING BODY
Section 36 of the South African Schools’ Act (SASA) imposes a responsibility on the
governing body of a public school to take all reasonable measures within its means
English: Page 2 of 5
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. According to section
39 of SASA, school fees may be charged at a public school only if a resolution to do
so has been adopted by a majority of parents attending the meeting referred to in
section 38(2) of SASA. This 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 school fees.
5. AUDITED FINANCIAL STATEMENTS
Please note that in keeping with Section 43(5) of the South African Schools Act,
1996 (Act No. 84 of 1996), a copy of the Audited Financial Statements for the period
1 January 2003 to 31 December 2003 must be submitted to the Head of Department
by the 30th June 2004.
6. DEDICATED SPECIAL LSM FUNDING FOR GRADES 4, 5 AND 6
Learners in Grades 4, 5, and 6 will be given a special Learner Support Material
allocation with respect to the 2004 implementation of the new curriculum in these
grades. This indicative amount is R250.00 per learner based on the 2003 tenth day
headcount statistics. This amount may change subject to changes in the 2004 tenth
day headcount statistics with respect to the aggregate number of learners in Grades
4, 5, and 6 in the province.
Kindly ensure that this circular is circulated to all those affected.
___________________________
MALLELE PETJE
CHIEF EXECUTIVE OFFICER
English: Page 3 of 5
ANNEXURE 1
Indicative Resource target list user’s guide
1. PREAMBLE
The National Norms and Standards for School Funding (NNSSF) regulations
(Government Notice 2362 of 1998) set out the procedures, which have to be
adopted by Provincial Education Departments (PEDs) in determining resources
allocation to schools.
1.1 Target expenditure is aimed at affecting redress, equity and quality. To effect redress
and improve equity, public spending on schools is targeted at the needs of the poorest
communities and the physical conditions of the school. The area around the school is
indicative of the relative poverty of the school and its community and the ability of
parents to pay fees.
1.2 PEDs are required to draw a resource-targeting list of all schools in the province, sorted
on the poverty of the community around the school and the physical conditions of the
school buildings, facilities and crowding at the school. Both factors are equally
weighted.
1.3 The resource allocation amount covers total recurrent costs for the school for the whole
year. Major capital works and personnel costs remain the responsibility of the GDE.
1.4 Ordinary public schools’ resource allocations are determined by the resource-targeting
list, irrespective of their Section 21 status.
1.5 The South African Schools Act (SASA) imposes a responsibility on schools to raise
additional funds to augment on what the state provides, but the schools are not
required to charge compulsory school fees.
2. INPUTS AFFECTING THE RANKING OF SCHOOLS
2.1 The poverty index
2.1.1 In the determination of this index, school communities were consulted on how
poverty manifests itself and how it can be observed. Their contributions were
compiled into a survey tool, which after being tested for validity and relevance was
utilised to survey the whole province.
2.1.2 District Directors indicated areas where learners attend schools that are not
representative of their own communities because of shortage or non-existence of
facilities, for example, in informal settlements. The weights of affected schools were
adjusted to cater for this.
2.1.3 Per capita income data, integrating income, unemployment and size of households
was acquired from Statistics South Africa and incorporated into the index of the
school.
2.1.4 Methodology
Each characteristic within each category in the poverty survey (refer to
resource schedule), was assigned a weight, which was then “normed”.
Norming is done to define all components of the index to run from 0 to 1 in
order to give all characteristics exactly the same range. Weighting is thus
not dominated by an index that has a high range whereas another has a low
range. Also, all variables run in the same direction, e.g. low numbers denote
high poverty and vice versa.
English: Page 4 of 5
2.2 Buildings audit
The physical conditions of school buildings were audited, and the audit also included
overcrowding, and the availability of required facilities. Aspects that were
covered in the audit were site works, accommodation, institutional support,
support systems, utility services and recreational facilities.
2.3 The resource-targeting list
ALL FIGURES USED BELOW ARE FOR INDICATIVE PURPOSES
The combined weight from the poverty index and the schools’ audits determines
each school’s position on the list. Having listed all schools from poorest to least
poor, the list is divided into five groups of schools, which are called quintiles. Each
quintile has its own budget and weighted learners, e.g.
TABLE A
Budget available for R395,000,000 Total weighted learners
distribution
Quintile 1 35% R 138,250,000 Quintile 1 179.546
Quintile 2 25% R 98,750,000 Quintile 2 148,097
Quintile 3 20% R 79,000,000 Quintile 3 126,665
Quintile 4 15% R 59,250,000 Quintile 4 89,421
Quintile 5 5% R 19,750,000 Quintile 5 45,267
Interpretation of the allocation print out (Annexure 1)
A lower value denotes a higher degree of poverty, and therefore more resources.
Blank spaces in the poverty survey data indicate that the variable does not apply.
Zero indicates the weakest weight for the variable
Example:
TABLE B
Weight National National Per Capita Poverty Number of Final
Constant Constant Income data Learners average
Building
Data
12.5 2.173 0.5 0 12.5 1618 49.833
(A) (B) (C) (D) (E) (G) (F)
Percentage Weight= 1- [2.173(Poverty data + Per capita income) + (0.5) (Building data)/100]
= 1- [2.173(E + D) + (0.5) (F)/100]
= 1- 0.52079
= 0.4792
Weighted Learners = Percentage Weight x Number of Learners
= 0.4792 x 1618 = 775.3456
RESOURCE ALLOCATION AS PER TARGETING TABLE
Allocation = [(Weighted Learners / Total Weighted Learners for Quintile 2] x Quintile budget
= 775.3456 / 148,097 x R98, 750,000 = R516, 994.79
English: Page 5 of 5
