0.1 Literature review  (Page 9/19)

34. (1) The State must fund public schools from public revenue 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.

35. Subject to the Constitution and this Act, the Minister must determine norms and minimum standards for the funding of public schools after consultation with the Council of Education Ministers, the Financial and Fiscal Commission and the Minister of Finance.

According to the National Norms and Standards for School Funding (2000; 8) schools are viewed as cost centres and funds are allocated at the level of the provinces to types of costs:

(i) personnel costs – which includes salaries of educators and non-educators. These costs are paid by the PED.

(ii) non-personnel costs – which includes the cost of textbooks, stationery, maintenance, municipal services, and so on. These monies are paid into the current banking account of schools in the case of a Section 21 school or paid to the service providers on behalf of schools in the case of Non-Section 21 schools.

Regardless of whether the school is Section 21 or Non-Section 21 the allocation (the amount the school will receive) is the same as it is based on the number of learners enrolled at the school and the quintile in which the school is ranked. The National Norms and Standards budget allocation does however have limitations and restrictions to its use. According to KZN Circular 29 (2009; 1) schools’ allocations are intended to cover non-personnel recurrent items and small capital items required by the school as well as normal (minor) repairs and maintenance to all the physical infrastructure of the school. The school allocation is primarily and exclusively intended for the promotion of efficient and quality education in public ordinary schools. KZN Circular 29 goes on to give school governing bodies “Guidelines for the Apportionment of the Allocation” and the recommended fund split is 60% for Learning, Teaching Support Materials (LTSM) and 40% for Non Learning, Teaching Support Materials (Non LTSM). Even though a “fund split” guide is given schools are compelled to abide by the guidelines and these funds are said to be “Rind Fenced” for their intended purpose/s.

The 60% LTSM funds must be split as follows:

30% for textbooks

18% for stationery

12% for other LTSM

The 40% Non LTSM must be split as follows:

20% for materials, furniture and equipment

10% for domestic account payments

5% for security services

5% for minor repairs and maintenance

In the case of Non-Section 21 schools the Norms and Standards budget allocation is not paid into the school’s current banking account – that is, the KwaZulu-Natal Department of Education (KZNDoE) manages the school’s the Norms and Standards budget allocation and this is commonly referred to as a “paper allocation” or a “paper budget”. The school therefore may only procure goods and services through the department of educations’ education district office and regional service centre. One of the greatest disadvantages for Non-Section 21 schools, according to Mestry (2004; 130) is in the event of requisitions not being processed at financial year end, schools lose their allocation since there is no “roll over” of unspent budgeted amounts, that is the unspent portion of the allocation cannot be carried over to the following financial year. In the case of Section 21 schools the Norms and Standards budget allocation is paid into the school’s current banking. These schools may carry out their own procurement and may deal directly with suppliers and contractors for the relevant budgeted items in accordance with standard procurement procedures – [KZN Circular 29 (2009; 2)]. One of the greatest advantages of a school being allocated Section 21 functions, according to Mestry (2004: 130), is in the event of the school being unable to spend all of the states (budget) allocation in time, the school governing body may still process orders for services to be rendered or for Learning, Teaching Support Materials (LTSM) and (for goods and services) to be purchased because the money allocated by the Provincial Education Department is still in the school’s banking account.