23 April 2024 Lesson 6 - SASA - Finance (1).pptx

Education Law & Policy: South African School Act - Finance WEEK 3: LESSON 6 - 23 APRIL 2024  Structure of Chapter 4 of SASA  Section 34 - The Responsibility of the State  Section 35 - Norms & Standards for School Funding  Section 36 - Responsibility of the Governing Body  Section...

Education Law & Policy: South African School Act - Finance WEEK 3: LESSON 6 - 23 APRIL 2024  Structure of Chapter 4 of SASA  Section 34 - The Responsibility of the State  Section 35 - Norms & Standards for School Funding  Section 36 - Responsibility of the Governing Body  Section 37 - School Funds and assets of Public Schools  Section 38 - Annual Budget of a Public School  Section 38A - Prohibition of Payment of unauthorised remuneration, or giving of Financial benefit or Benefit in Kind to certain employees  Section 39 - School Fees at Public Schools  Section 40 - Parent’s Liability for Payment of School Fees  Section 41 - Enforcement of Payment of School Fees  Section 42 - 44 - Financial records, audits & the financial year of a public  Responsibility of the State - Section 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.”  Sources of Funding for Public Ordinary Schools  State funding - Money raised at a national level (mostly through taxes) is divided between the 9 Provinces using a formula called the “Equitable share formula”.  The Provincial government then decides how much of their portion of the Equitable share is spent on, for example, education, health care, housing – Provinces are therefore responsible for determining their own education budget.  Section 12 “MEC must provide schools for the education of learners out of funds appropriated for this purpose by the provincial legislature” (votes funds)  Provinces also decide on how much of the allocation to education is spent on ordinary public schools, early childhood development, inclusive education, special schools and independent schools - so public ordinary schools receive a particular allocation.  Sources of School Funding  Government funding through the Equitable share is not the only source of funding education  Monies are also raised by School Governing Bodies of public schools through school fees (not all schools charge school fees) 2 main categories of costs that state funding covers  Personnel Costs - salaries for teachers, principals and administrative staff (educator and non-educators) – Salaries of teachers and other staff form the greatest part of spending  Non - personnel costs - textbooks, stationery, maintaining infrastructure, and other day-to-day expenses.  Norms and Standards for School Funding  Section 35 states:  “… the Minister must determine national quintiles for public schools and national norms and standards for school funding after consultation with the Council of Education Ministers and the Minster of Finance.”  Norms and Standards for Public School Funding These norms and standards must: (a) Set out criteria for the distribution of state funding to all public schools in a fair and reasonable manner (b)Provide for a system in terms of which learners at all public school can be placed into quintiles…according to financial means (c) Provide for a system in terms of which all public schools can be placed into quintiles … according to the distribution of learners in the national quintiles for learners.” (d)Determine the procedure in terms of which the MEC must apply the criteria in para (a).  What is a quintile?  These are 5 categories of public schools, ranked from poorest (quintile 1) to richest (Quintile 5)  Every public school in SA is ranked according to this system.  This grouping is according to the poverty of the community around the school (household income/ unemployment/ literacy rates)  State determines how much schools are allocated, according to the quintile each school is in  School Quintiles  The DBE determines the amount PEDs should allocate per learner in each quintile – details are published annually in the government gazette  Quintile 4 & 5 schools receive much less money per learner as they are allowed to supplement their funding through the collection of schools fees.  Quintile 1-3 schools receive much more money per learner as they are not able to charge their learners school fees – “no fee schools” Annual Amended NNSSF allocations - gg 1 January 2024 2024 2025 2026 NQ1 – NQ3 R1672 R1754 R1836 NQ4 R838 R879 R920 NQ5 R289 R301 R315 Small schools: R38 763 R40 662 R42 574 National Fixed Amount Responsibility of a governing body – Section 36  1) A governing body of a public school must take all reasonable measures within its means to supplement the resources supplied by the State in order to improve the quality of education provided by the school to all learners at that school.  2) Despite subsection (1), a governing body may not enter into any loan or overdraft agreement so as to supplement the school fund, without the written approval of the MEC.  School Funds and assets of public schools - Section 37 1. The governing body … must establish a school fund.. 2. … all money received … must be paid into the school fund; (incl. school fees & voluntary contributions) 3. The governing body … must open and maintain one banking account, but … with approval of the MEC invest surplus money in another account; 4. All assets acquired on or after the commencement of this Act are the property of the school; 5. The school fund … must be used only for – a) educational purposes …  Annual Budget - Section 38 1) A governing body of a public school must prepare a budget each year … which shows the estimated income and expenditure of the school for the following financial year. 2) Before a budget referred to in subsection (1) is approved by the governing body, it must be presented to a general meeting of parents convened on at least 30 days' notice, for consideration and approval by a majority of parents present and voting.  Prohibition of Payment of Unauthorised remuneration or giving of financial benefit or Benefit in Kind to certain employees – Section 38A  A governing body may not pay or give to a state employee employed in terms of the EEA or Public Service Act, any unauthorised:  Remuneration  Other financial benefit, or  Benefit in kind.  (Payments may be made but there are many conditions and a specific process has to be followed to obtain permission to do so.)  School Fees at Public Schools - Section 39 1) “... school fees may be determined and 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) 2) A resolution contemplated in subsection (1) must provide for - a) the amount of fees to be charged; b) equitable criteria and procedures for the total, partial or conditional exemption of parents who are unable to pay school fees; and c) a school budget that reflects the estimated cumulative effect of- i) the established trends of non-payment of school fees; and ii) the total, partial or conditional exemptions granted to parents in terms of the regulations contemplated in subsection (4). 3) The governing body must implement a resolution adopted at the meeting contemplated in subsection (1). School Fees at Public Schools - Section 39  (5)No public school may charge any registration, administration or other fee except school fees.  No fee schools - Section 39 (7) Despite subsection (1), the Minister must by notice in the Government Gazette annually determine the national quintiles for public schools or part of such quintiles which must be used by the Member of the Executive Council to identify schools that may not charge school fees. “In terms of section 39(7) of the SASA, I hereby determine all learners in quintiles 1-3 (60% of the public school learners nationally) to be in no fee schools for 2023” - Minister (15 December 2022 Amended NNSSF)  Parent’s Liability for Payment of School Fees - Section 40 A parent is liable to pay the school fees determined in terms of section 39 unless or to the extent that he or she has been exempted from payment in terms of this Act. Schools can hand parents over to lawyers to collect outstanding school fees!  School Fee Exemptions Parents may apply for school fee exemptions: Automatic exemption – total exemption available to:  a person who has the responsibility of a parent in respect of a child placed in a foster home; Youth Care Centre; a place of safety; or an orphanage  A person who is a kinship caregiver or an orphan or a child who has been abandoned by his/ her parents; and is without any visible means of support  A person who receives a social grant on behalf of a child;  A child who leads a household (See Definitions Section 1 of National Regulations relating to the Exemption of parents from Payment of School Fees)  School Fee Exemptions Conditional Exemption - Means an exemption granted to a parent who:  Qualifiesfor a partial exemption but, owing to personal circumstances beyond his or her control, cannot pay even a reduced amount; or  Does not qualify for an exemption but supplies information indicating his/ her inability to pay school fees owing to personal circumstances beyond his/ her control.  Which exemption the school governing body grants with the condition that the parent agrees to certain conditions for the payment of school fees.  School Fee Exemptions  Partial exemption – Means a “discount” or that a portion of the school fees have been deducted.  Total Exemption - the whole amount is exempted in terms of the calculation made by the SGB. Anyone qualifying for an automatic exemption will receive a total exemption.  Saffer Judgment  In 2017, the Supreme Court of Appeal delivered judgment in Head of Department Western Cape Education Department and Others vs Saffer.  Ms Saffer had a daughter in Fish Hoek High School, and could not afford school fees. She applied for a partial fee exemption, but was denied because she could not provide the financial details of her ex- husband. (Regs (6)(2) request the combined annual income of parents)  Ms Saffer had custody of the child, and a difficult history with her ex- spouse.  Saffer Judgment  Court held that in circumstances where one parent has refused or failed to provide their income details, a public schools shall grant a conditional fee exemption to the custodial parent, having only regard for his/ her income.  This conditional exemption shall be a total or partial fee exemption, to which the applicant would have been entitled to if he/ she were the only parent of the learner concerned.  Saffer Judgment: checklist  If a learner at a fee charging school has two living parents and one of the parents applies for a partial or total fee exemption, that parent must give particulars of her / his total annual gross income.  If the parent does not give the particulars of the total annual gross income of the other parent, the applying parent may show that the other parent has refused or failed to provide their particulars (Schools can interrogate this - e.g. protection orders, proof of steps taken to obtain financial info e.g. affidavit of response, if spouse is not contactable - affidavit stating this)  Saffer Judgment  After the parent has provided the details in steps one and two above, the school must consider the applying parent’s financial information as if they were the sole parent of the learner. If the parent qualifies for a total or partial fee exemption, the school must grant that parent a conditional fee exemption (either total or partial). A fee-charging school cannot refuse a qualifying parent a fee exemption if these steps have been met.  Saffer Judgment  It is a conditional fee - exemptions because the SGB will impose certain conditions on the parent related to any increase in gross annual income during the school year, which (if it had been their income at the time of application) would have disentitled them from receiving the exemption Victory for single parents!  Enforcement of payment of School Fees - Section 41 1) A public school may by process of law enforce the payment of school fees by parents who are liable to pay in terms of section 40. 2) The exemption from payment of school fees must be calculated according to the regulations contemplated in section 39(4) Questions to think about… (Special thanks to Prof. Fleisch) 1. Is Basic Education free in South Africa? 2. What ways can a governing body supplement the resources of the school? 3. Who decides how school funds are spent? 4. Can a teacher in charge a sporting activity, say soccer, collect subscriptions from learners and raise funds and then keep the money in a bank account called “Soccer Fund”? 5. Is the governing body allowed to pay you for giving extra lessons to learners on a Saturday morning?  More questions to think about … 6. Is the governing body allowed to pay your transport costs to come to school every day? 7. Is the governing body allowed to pay you transport costs when you attend a cluster meeting at another school? 8. Can you refuse to allow a learner to attend the matric farewell because her/his fees have not been paid? 9. Are you, as a teacher, permitted to see the school’s financial statements and audited accounts? What about a parent? What about a District official? Mestry, R. (2014) A critical analysis of the National Norms and Standards for School Funding policy: Implications for social justice and equity in South Africa. Educational Administration &Leadership. Vol 42(6) 851-867.