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close this bookCosts and Financing of Teacher Education in Lesotho (CIE, 2000, 62 p.)
View the document(introduction...)
View the documentMulti-Site Teacher Education Research Project (MUSTER)
View the documentAcknowledgements
View the documentAbstract
View the documentChapter 1: Overview of National Issues
View the documentChapter 2: The Teacher Education System
View the documentChapter 3: The System of College Funding and Sources of Costs
View the documentChapter 4: Internal Efficiency of the NTTC
Open this folder and view contentsChapter 5: Selection and Performance in the NTTC
View the documentChapter 6: Utilization and Deployment of Newly Trained Primary Teachers
View the documentChapter 7: Teacher Supply and Demand
View the documentChapter 8: Preliminary Conclusions
View the documentReferences

Chapter 3: The System of College Funding and Sources of Costs

The education sector in Lesotho is funded by a mixture of public funds, parental contributions and donor monies. The GOL has designated the World Bank as the leading donor agency for education (World Bank, 1999). Generally speaking, recurrent expenditures in the school system are covered by the government and parents, while most capital costs are met by donors. The NTTC is run like any other department of the MOE. Through its various departments the college prepares budget estimates, which are submitted to the MOE. Here they will be subjected to cuts and/or revisions to keep them within budgetary limits while ensuring that priority items are funded. Budgeting is thus conducted on an essentially historic basis with each year reflecting incremental gains on the previous year. The MOE indicates a percentage increase which reflects inflation and any special demands on the NTTC, and the NTTC prepares a budget bearing this in mind which it presents to the MOE for negotiation. Formula funding related to activities is not employed. Nor has a zero base budget exercise been carried out. In the past five years the college’s expenditure and the institutional unit cost stood thus (Table 13):

Table 13: NTTC Expenditure and Unit Costs (1992 - 1997)

Year

Expenditure (Maloti Millions)

Cost per Student (Maloti)

1992/93

5.0

6,901

1993/94

5.6

7,457

1994/95

7.3

9,385

1995/96

7.7

10,116

1996/97

7.7

9,514

1997/98

10.3

11,922

The bulk of college funds are used for salaries and for the up-keep and the running of college activities. Salaries account for 53% of recurrent expenditure. Upkeep of the institution is the largest other cost at about 20% which taken with other operating costs accounts for over 40% of expenditure. Budget estimates for the college which were approved by the government for the current financial year (1997/98) are given here below in Table 14.

Table 14: 1997/1998 Approved Estimates for NTTC (in Millions of Maloti)


Maloti (Millions)

% of Total

Personnel



Salaries - In post

5.63

41.79

Salaries - Vacant posts

1.00

7.45

Allowances

0.45

3.33

Local Training

0.04

0.30

Sub Total

7.12

52.87

Transport



Maintenance and Repairs

0.06

0.48

Fuel and Lubricants

0.04

0.28

short-term hire

0.04

0.30

Motor mileage

0.01

0.07

Fares (local)

0.03

0.21

subsistence (local)

0.06

0.44

Sub Total

0.24

1.77

Operating Costs



Power

0.89

6.61

Communications

0.05

0.40

Printing

0.18

1.36

Stationery

0.14

1.04

Maintenance of public assets

0.44

3.26

Upkeep of Institutions

2.66

19.73

Running Costs

0.10

0.74

Purchase/Production of Materials

0.37

2.71

Minor works

0.44

3.23

Counterpart Contribution

0.19

1.43

Drugs

0.01

0.04

Dressings

0.00

0.02

Sub Total

5.46

40.57

Special Expenditure



Office Equipment

0.08

0.59

Books and Publications

0.01

0.08

Vehicles, Cycles and Engines

0.55

4.11

Sub total

0.64

4.78

Grand Total

13.46

100.00

Actual expenditure appears to have been less than this estimate and is accounted for at 11.7 million Maloti. The revised budget for 1998/9 is 14.1 million Maloti and for 1999/2000 the approved estimate is now 13.7 million Maloti. Currently therefore NTTC is experiencing some measure of budgetary restraint.

Student fees provide the second source of funding for NTTC. Boarders pay M1,087,

M660 and M1,162 in the first, second and third year of study respectively. Day students on the other hand pay M705, M462 and M870. Table 15 shows a breakdown of student fees. Total fees for boarding students represent about 10% of the total cost per student.

Table 15: Student Fees at NTTC (Maloti)


Boarding



Non Boarding




Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Registration Fee

16

16

16

16

16

16

Tuition fee

437

292

437

437

292

437

Room and Boarding Fee

525

265

252




Lunch Fee




233

81

233

Activities Fee

58

43

58

58

43

58

Caution Fee

50

50

50

50

50

50

Graduation Fee



76



76

Total

1087

666

1162

794

482

870

In-service accounts do not break down expenditure. PTC in-service students pay M206 per course parts (2 parts constitutes an academic year) which comes to M1,442 for the three and a half years programme. LIET VI students pay M1,030 for the two and a half years programme. The last part of both programmes includes a graduation fee of M76. The total for PTC is therefore M1,518 and for LIET VI it is M1,106.

Based on these figures it is possible to estimate the budgeted cost per student. Taking 1998 enrolments lead to the following calculation.

Fee Income


554 boarding students

= M516,838

563 non-boarders

= M251,838

401 in-service PTC

= M608,718

70 LIET VI

= M 77,420



Total Student Payments

= M1,454,814



Total NTTC Budgeted Allocation

= M14,100,000



Total no. of NTTC students

= 1388

Number corrected for part time9

= 1212



Average cost per student(excluding fee contribution)

= M11,63310

Average cost per student(including fee contribution)

= M10,430

9 Corrected by pro rata adjustment related to teaching hours i.e. student full time equivalents rated by the proportion of a full time student’s teaching hours they receive.

10 The NTTC does not receive fee income into its budget. However the MOE does.

This represents the public cost per full-time student per year and is equivalent to about US$1660 (including fee contribution). It assumes that there are no other public costs. The Institute of Development Management (IDM 1997) report draws attention to a variety of methods of calculating costs taking into account different types of student subsidy and opportunity costs. Its estimates are consistent with this analysis. It should be noted that students at the NTTC forego income equivalent to a primary school teacher’s salary of M10,000 - M20,000 whilst they are on full-time courses. Students receive an allowance for dependants which gives them a full salary for six months and half salary thereafter. For those who qualify the cost of this is likely to be between M7,500 and M10,000.

Two further points need noting. First, these are costs per year. The full-time course last for three years and thus the cost per trained teacher graduate assuming no failure is three times greater i.e. about M31,500 or about US$5,000.

Second these unit costs are an average across all programmes at NTTC. The secondary training programmes have smaller enrolments and teaching group sizes. They are therefore more expensive. The staffing of NTTC allocates 63 academic staff to primary and 44 to secondary. Assuming average salary costs are similar across the two groups then about 59% of salary costs can be attributed to primary and 41% to secondary. However, the number of full-time equivalent students is split in the ratio 73% to 27% in favour of primary. As a result the weighted average cost of primary students will be about 80% of the calculated figure (M8,360 per annum), and those of secondary about 50% greater (M15,670 per annum). If average secondary lecturers’ salary costs are higher than those of primary lecturers, these cost differences will be larger.

Total salary costs to the GOL per student in the full-time and part-time programmes at the primary teacher training level can be calculated by considering the student-teacher ratio and the salaries of teaching staff. The enrolment in the two programmes in 1998 was as shown in Table 16.

Table 16: Enrolment for NTTC Primary Full-time and Part-time Programmes

Full-time

Enrolment

Diploma in Primary Education

165

Diploma in Education (Primary)

101

Primary teachers Certificate

330

Total

596

Part Time


LIET PTC

401

LIET VI (Headteachers Programme)

70

Total

471

As noted above there are 43 lecturers on the full-time primary programme and 20 on the part time giving student teacher ratios of 13.9 and 23.6 respectively. Using current lecturer’s salaries, the salary cost per student in the full-time programmes is M3,510 and for the part-time programmes it is M1,986. These are costs per year. This is about one third of the simple NTTC costs per student. Other costs are therefore associated with non-salary and non-teaching salary costs.

The NTTC budget is not presented according to the various departments of the college. However the number of hours of taught time on each programme is specified (Table 17). If the cost of a teaching hour does not vary widely then each course shown below will have similar costs (noting the differences between part time and full-time courses). Total course costs will vary with the size of the course roughly in the ratio of the number of student hours committed.

Table 17: Courses, Enrolments and Number of Student Hours Taught.


PTC

DPE

DEP

STC

DTE

PTC (LIET)

LIET VI

Total

Student/hrs per programme

2025

2250

2160

2025

2190

1200

857

12707

Enrolment

330

165

101

281

40

401

70

1388

Total student hours

668250

371250

218160

569025

87600

481200

59990

2455475

If the basic assumptions indicated above do not hold and the cost of a teaching hour does vary widely, then course costs will differ. This may occur if there is a wide range of lecturer’s salaries. More likely the organisation of teaching may take place in such a way that teaching group size varies widely and this will result in high costs for courses with small groups. Data from NTTC can be used to establish the extent to which this occurs.

It is clear that in principle the cost of a trained teacher could be reduced (or conversely more teachers could be trained for the same cost) if the length of training was reduced, or if the cost of a teaching hour was diminished. It has been suggested that a distance education programme may be introduced under the next World Bank agreement. According to the World Bank Appraisal Document the Distance Teacher Education Programme which is to be funded by the World Bank would improve upon the existing part-time programmes in that:

- the length of training required will be reduced from three and a half years to two years for the certificate programme

- certified teachers will progress to the Diploma level after 1-2 years of study

- the annual intake will increase from 200 to 500 teachers

- LIET VI will be upgraded

- most of the training will be school-based

The programme is yet to be costed. If its length is shorter than existing programmes it should be cheaper. It cannot be assumed that the costs of delivery are necessarily cheaper per year. Some distance programmes are cheaper than conventional PRESET but some have proved more expensive. It all depends how they are organised (Rumble 1997).