5 Year Strategic Plan 2005/06 - Department of Education

15.6 Performance Management System
The Department has implemented a Performance Management System for Senior Managers
which has been discussed under the section 14.2: Delegations and performance agreements.
15.7 Financial Management Plan
15.7.1 Budget and Expenditure
Since 2003/04 the Department of Education has had the challenge of bringing expenditure
within budget. The Department ended 2003/04 with over-expenditure of R244 million, of
which R221 million was on personnel. The recruitment of between 1 500 and 2 000 teachers
in 2002 and the accumulation of personnel backlogs both played a role in the Department
slipping back into deficit.
The strategy for addressing over expenditure has been to surrender funds from the budget to
provincial Treasury to pay back accumulated debt. In 2004/05 R204 million was surrendered
from the budget. It is currently expected that around R550 million and R350 million will be
‘top-sliced’ from the budget in this way in 2005/06 and 2006/07. It is expected that all debt will
have been repaid by 2007/08 and the Department will have full access to its budget.
As financial management has strengthened in the Department progress has been made. A
number of achievements should be noted from the financial year 2004/05:
For the first time in three years there was no over-expenditure in total.
For the first time in five years there was no over-expenditure on personnel.
For the first time in five years there was no unauthorized expenditure.
The Department of Education will maintain this improvement in performance through the
ongoing strengthening of systems and staff (see below).
The tables below show firstly audited expenditure 2002/03 to 2004/05 and estimated outcome
2005/06, and secondly the current MTEF figures 2006/07 to 2008/09.
p a r t C : b a c k g r o u n d i n f o r m a t i o n
5 Year ECDoE Strategic Plan for 2005/06 to 2009/10. March 2006 Page 102
5 Year ECDoE Strategic Plan for 2005-06 to 2009-10. 21 F (5) Page 98