The Basic Education Laws Amendment (BELA) Act, signed into law by President Ramaphosa on 20 September 2024, introduces major changes to public school governance and operations. For accountants working with schools need to consider how these changes will significantly alter budgeting, financial planning, and compliance responsibilities.

Key Changes Brought by BELA

1. Centralised Control: Admissions and Language Policies

   Authority over school admissions and language policies is transferred from local school governing bodies (SGBs) to provincial education officials. This centralisation aims to standardise policies across schools and raises concerns in terms of potential implementation challenges.

2. Compulsory Education Expansion and Budgetary Implications

   One of the most significant impacts of the BELA Act is the expansion of compulsory education to include Grade R and Grades 10-12.

   The act expands compulsory education beyond grades 1-9 to now include Grade R (early childhood development) and Grades 10-12. In addition, parents face the risk of jail time if their children are found to be truant.

   While expanding compulsory education makes sense to enhance early education and ensure learners complete their schooling, schools must accommodate more students under the new law without a corresponding increase in funding. Public schools are expected to accommodate the increased number of learners under existing budgets, placing financial strain on institutions.

3. Broader Definition of Corporal Punishment

   The act expands the definition of corporal punishment to include not only physical acts but also actions that undermine a child’s dignity, such as emotional abuse or making students endure uncomfortable situations. While this may be a welcomed addition, there is extensive effort needed in raising awareness to teaching staff, pupils and parents.

4. Stricter Homeschooling Regulations

   Homeschooling now requires formal registration with the provincial education department, along with an approved curriculum. Homeschooled children must undergo independent assessments, and government site visits may be conducted to ensure compliance. Learn more about the process of Applications to do home education on the South African Government’s website.

Implementation timelines

A three-month delay was announced in the implementation of two critical clauses. Clause four shifts the responsibility for student admissions at public schools from the school governing bodies (SGBs) to the provincial education department. Similarly, clause five moves the authority to set a school's language policy from the SGB to the provincial department.

The delay will enable further consultation with stakeholders and discussions on potential amendments to these provisions. Should no consensus be reached during this period, the clauses will be fully implemented as originally drafted. The final implementation date for these clauses will be announced following the consultation process.

Key Impacts on Accountants

The provisions of the BELA Act will significantly impact accountants in public schools, both in terms of managing aspects of compliance and financial management. Below is a summary of how these changes may affect accountants' work in public schools.

1. Managing Strain on Budgets

   With no additional funding allocated for the increased number of learners due to compulsory Grade R and Grades 10-12, schools must operate within their existing budgets. Accountants will need to balance financial resources more effectively, ensuring that the school can meet operational needs despite these new demands. This may mean optimising current funding by identifying areas where costs can be minimised, implementing efficiency measures, and finding ways to stretch limited resources without compromising educational quality.

2. Increased Financial Reporting and Compliance

   The centralisation of decisions, particularly around admissions and language policies, could increase administrative work. Accountants may need to assist school governing bodies in ensuring that financial plans and budgets reflect these centrally determined changes.

   Stricter homeschooling regulations will add compliance tasks for accountants, especially if they manage funds or resources related to homeschooling setups or assessments. Schools that support homeschooling will need to track these programs more closely.

3. Addressing New Capital and Operational Costs

   The potential need for dual-medium instruction in previously single-language schools will require additional financial resources for teacher training, curriculum changes, and possible infrastructure modifications. Accountants must forecast these additional costs and ensure schools can handle these new financial obligations.

   Budgeting for expanded Grade R programs will necessitate careful planning, as schools may need to invest in additional classrooms, resources, and staffing without receiving extra government funding.

4. Risk Management and Debt Control

   With increased operational demands and limited funding, schools may experience rising debts or financial deficits. Accountants will need to develop risk management strategies to avoid excessive debt and ensure financial sustainability over the long term. These strategies might include negotiating with suppliers, managing cash flows tightly, and working with school governing bodies to secure alternative funding sources.

5. Corporal Punishment and Legal Compliance Costs

   The broadened definition of corporal punishment means that schools will have to invest in training staff and developing non-punitive disciplinary measures. Accountants will need to budget for these training sessions and the potential legal and administrative costs associated with any breaches of the new guidelines.

Steps to Take

Following the steps below, you can help public school clients manage the financial challenges brought by the BELA Act while ensuring they continue to meet their educational goals.

Step 1. Understand the Financial Impact

Review the school’s current finances and consider different scenarios to plan for the increased number of students and changes in operations. Identify areas where funds can be reallocated to meet future needs.

Step 2. Create a Resource Plan

Focus spending on key areas, such as expanding early childhood education and preparing for language policy changes. Ensure the school’s financial plan meets the new compliance requirements to avoid any penalties.

Step 3. Work with School and Provincial Authorities

Collaborate with school governing bodies and provincial education departments to make sure financial decisions related to admissions, language policies, and homeschooling are included in the school's budget planning.

Step 4. Find Additional Funding

Look for other sources of funding, like grants, donations, and sponsorships, to help cover the costs of the new regulations. Consider partnerships with businesses to ease financial pressures.

Step 5. Improve Compliance Systems

Review the School’s policies to ensure the school meets the new homeschooling and reporting rules, helping avoid fines or penalties.

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