Understanding Government Grants

Understanding Government Grants Basic education is one of the key sectors identified in the Government's Poverty Reduction Action Plan. Schools can receive government funding from four main sources: • School Facilities Grant, SCHOOL FACILITY GRANT (SFG) School Facilities Grants support the construction of school buildings and infrastructure. However, in most districts, this money is managed and handled by the district in consultation with its individual schools. • Local Government Development Program LOCAL GOVERNMENT DEVELOPMENT PROGRAMME (LGDP) Additional funding for schools for school development may also be provided for schools at Subdistrict level, as part of the Local Government Development Program (LGDP). Currently, as with SFG, it is unusual for schools to receive money directly. Payments are usually managed on their behalf by the sub-District. Schools need to familiarize themselves with local procedures for applying for such money, and should develop advocacy efforts to access such support. • Decentralized Procurement of Instruction Materials DECENTRALIZATION OF PROCUREMENT MATERIAL INSTRUCTIONS (DIMP) In a growing number of designated districts, schools have budgets allocated to them for Decentralized Learning Material Procurement. Typically, management of DIMP funds is carried out at the district level and is under the responsibility of the District School Inspector. The school itself does not receive money or handle payments. However, schools are expected to make decisions on textbook choices within their allocated budget. • UPE Capitation Grant The main source of income for most schools is the UPE Capitation Grant, which aims to: • Increase equitable access to basic education by removing the burden of paying school fees from parents Improve the quality of basic education by providing the resources schools need to run the UPE Capitation Grant is usually received in three installments per year. Grants must be received in the school's bank account and all aspects of fund management and accountability are managed at the school level. In all districts, the annual amount provided to all schools consists of two parts: a) A flat rate amount is provided to each school, regardless of how many students are enrolled. For example, in Masindi District the figure was 900,000 shillings per school in 2003-4. This is calculated based on Shs 100,000. per month for nine months of the school year. b) All schools also receive additional amounts directly related to school enrollment. In 2003-04 the figure in Masindi District was Shs 4,244. per child. Therefore, if a primary school in Masindi District had 803 students in 2003-04, it would be expected to receive: 9 months x 100,000 / = per month = 900,000 / = 803 students x 4,244 / = per student = 3,407,932 / = Total = 4,307,932 Schools can spend UPE grants on the following: (a) Instructional / Scholastic Materials Complementary books or readers, teacher reference books, syllabi, lesson preparation books, pens, markers, teaching aids, blackboards, chalk, blackboards, teacher's tables and chairs, maps, wall charts, globes , paper etc. (b) Co-curricular Activities For example - games, sports, music, dance, drama, arts and crafts and clubs. (c) School Management For example - registers, notebooks, wall clocks, stapler machines, file/folder covers, manila cards, paper and ink, ledgers, sound books, banking books, stationery, work equipment, brooms, consumables such as stationery, replacement of school furniture etc (d) Administration For example - transportation rental, official travel allowance, electricity, water, telephone, bank fees, security arrangements, and emergencies. (e) Contingency It is important to understand what is meant by contingency. An emergency fund is unbudgeted money held in reserve that can be reallocated to the other four categories based on need.