31 october 20151select committee1 dsd annual performance report (01 april 2013 – 31 march 2014)...

April 20, 2023 1Select Committee 1

DSD Annual Performance Report

(01 April 2013 – 31 March 2014)

Presentation to Select Committee

on Social Services

11 November 2014


Presentation outline

PART A:

• Purpose

• Overview

• Vision, Mission & Strategic Priorities

PART B:

• Contextual Analysis

• Programme performance

• Annual Achievements/performance

PART C:

• International Obligations

• Summary of performance

• Challenges

PART D: Legislative Programme

PART E: Finance


PURPOSEPURPOSE

Purpose:Purpose: To inform the Select Committee of : To inform the Select Committee of :

– The Department’s performance against its pre-determined objectives for The Department’s performance against its pre-determined objectives for the 2013/14 financial year;the 2013/14 financial year;

– The State of Expenditure of the Department for the 2013/14 financial The State of Expenditure of the Department for the 2013/14 financial year as at 31 March 2014.year as at 31 March 2014.


Part AOverview


MissionTo ensure the provision of comprehensive social services

which protect the poor and vulnerable within the framework of the South African Constitution and

subsequent legislation; create an enabling environment for sustainable development; and deliver integrated,

sustainable, and quality services in partnership with all those committed to building a caring society together.

Vision

A caring and integrated system of social development services that facilitates human development and improves the quality of life.


The Department has identified and committed itself to addressing the following key priorities:

Expand Child and Youth Care services (Isibindi programme)

Promote Early Childhood Development

Combat Substance Abuse

Provision of food to poor households (Food for all/Zero Hunger)

The protection and promotion of the rights of older people and people with disabilities

Strategic Priorities

"Building a Caring Society. Together"

7

The Department also contributes to some of the following government outcomes – prior to the inclusion of Outcomes 13 & 14:

1. Improved quality of basic education2. A long and healthy life for all South Africans3. All people in South Africa are and feel safe4. Decent employment through inclusive economic growth5. A skilled and capable workforce to support an inclusive growth path6. An efficient, competitive and responsive economic infrastructure network7. Vibrant, equitable and sustainable rural communities and food security

for all8. Sustainable human settlements and improved quality of household life9. A responsive, accountable, effective and efficient local government system10.Environmental assets and natural resources that are well protected and

continually enhanced11. Create a better South Africa and contribute to a better and safer Africa and

World12.An efficient, effective and development oriented public service and empowered,

fair and inclusive citizenship

Government outcomes


"Building a Caring Society. Together" 8

PROGRAMMES PURPOSE Programme 1: Administration

• To provide leadership, management and support services to the Department and the Social Development Sector.

Programme 2: Social Assistance

• To provide income support to vulnerable groups.

Programme 3: Social Security Policy and Administration

• To provide for social policy development and the fair administration of social assistance.

Programme 4: Welfare Services Policy Development and Implementation

• To create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices and the provision of support to the implementation agencies.

Programme 5: Social Policy and Integrated Service Delivery

• To support community development and promote evidence-based policy making in the Department and the Social Development Sector


9

Part B Programme Performance

10

CONTEXT/SITUATIONAL ANALYSISCONTEXT/SITUATIONAL ANALYSISThe Social Development Sector delivers its services in an environment marked by high levels of The Social Development Sector delivers its services in an environment marked by high levels of

poverty, unemployment and inequality.poverty, unemployment and inequality.

Some recent policy developmentsSome recent policy developments

•The social assistance programme remains government’s single most significant poverty The social assistance programme remains government’s single most significant poverty

alleviation programme:alleviation programme:

•Studies carried out by among others Statistics South Africa; including the Presidency’s Fifteen Studies carried out by among others Statistics South Africa; including the Presidency’s Fifteen

Year Review, suggest that the Social Assistance Programme is the single most important driver Year Review, suggest that the Social Assistance Programme is the single most important driver

of the decline in poverty has had a significant impact on reducing poverty, redistributing income of the decline in poverty has had a significant impact on reducing poverty, redistributing income

and reducing inequality.and reducing inequality.

•Studies carried out by the Department and other institutions have uncovered various positive Studies carried out by the Department and other institutions have uncovered various positive

developmental impacts of the child support social grant in promoting nutritional, educational and developmental impacts of the child support social grant in promoting nutritional, educational and

health outcomes, including a significant contribution to the attainment of Millennium health outcomes, including a significant contribution to the attainment of Millennium

Development Goal (MDG) Goal 1, the eradication of extreme poverty and hunger.Development Goal (MDG) Goal 1, the eradication of extreme poverty and hunger.

10"Building a Caring Society. Together"

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CONTEXT/SITUATIONAL ANALYSISCONTEXT/SITUATIONAL ANALYSIS

• Project Mikondzo: Project Mikondzo: The project is a service delivery improvement The project is a service delivery improvement

intervention focusing on 1300 wards poorest wards in 23 priority district intervention focusing on 1300 wards poorest wards in 23 priority district

municipalities in the country. The project was implemented successfully in municipalities in the country. The project was implemented successfully in

all provinces and immediate interventions were provided in some of the all provinces and immediate interventions were provided in some of the

areas visited. A comprehensive service delivery improvement plan is being areas visited. A comprehensive service delivery improvement plan is being

developed. developed.

• Call centre on Gender Based Violence: Call centre on Gender Based Violence: as part of the fight against as part of the fight against

Gender Based Violence, we launched a command centre for victims of Gender Based Violence, we launched a command centre for victims of

gender based violence which operates a 24-hour toll free line staffed by 42 gender based violence which operates a 24-hour toll free line staffed by 42

social workers and 7 social work veterans.social workers and 7 social work veterans.


12

CONTEXT/SITUATIONAL ANALYSISCONTEXT/SITUATIONAL ANALYSIS• The Social Development Sector delivers its services in an environment marked by high The Social Development Sector delivers its services in an environment marked by high

levels of poverty, unemployment and inequality.levels of poverty, unemployment and inequality.

• Although the Department is largely responsible for policy formulation, it also renders Although the Department is largely responsible for policy formulation, it also renders

some of its services directly to the public, e.g. Registration of NPOssome of its services directly to the public, e.g. Registration of NPOs

• The Department works with other institutions within and outside government in the The Department works with other institutions within and outside government in the

execution of its mandate: Critical partners include amongst others the Departments of execution of its mandate: Critical partners include amongst others the Departments of

Basic Education, Labour, Justice, Health and Rural developmentBasic Education, Labour, Justice, Health and Rural development.

• Areas of collaboration include critical projects on issues affecting Children, HIV & AIDS, Areas of collaboration include critical projects on issues affecting Children, HIV & AIDS,

Older Persons, Victim Empowerment, Youth, Social Security.Older Persons, Victim Empowerment, Youth, Social Security.

• Given the collaborative and interdependent nature of some of the department’s work, it Given the collaborative and interdependent nature of some of the department’s work, it

can only meet some of its targets if the other institutions deliver on their commitments can only meet some of its targets if the other institutions deliver on their commitments

as well . – This is a government-wide integration challenge.as well . – This is a government-wide integration challenge.



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Annual Achievements/Performance

14

Government Outcome An efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship

DSD Specific outcome Strengthened collaboration with stakeholders in order to enhance service delivery

Annual Target Achievement

Form Partnership with stakeholders in support of DSD initiatives projects

The Department hosted DSD-CONTRALESA and Interfaith summits during the reporting period.The Department also facilitated the hand over of 9 vehicles as well as 2 houses sponsored by the Alimdaad Foundation built at Kwa- Mhlanga in Mpumalanga Province


Programme 1: Stakeholder Management

15


DSD Specific outcome Improved Social Development Sector Performance


Produce social profile of vulnerable groups

Key statistical and social security trends reports profiling vulnerable groups were produced.

Annual Target Achievements

Develop a multi-year evaluation strategy

An evaluation strategy and multi-year evaluation plan for the financial years 2014/2015-2016/17 were finalised.


Programme 1: Monitoring and Evaluation

16


DSD Specific outcome Improved Social Development Sector Planning


Implement 9 DSD customer service empowerment programmes

9 DSD customer service empowerment programmes were implemented in support of Ministerial programme.


Train 200 women in Business Management

595 women were trained in business management (Eastern Cape, Northern Cape and KZN)


Programme 1: Strategy Development and Business

17


DSD Specific outcome Efficient and effective legal services for the Social Development Sector


Implement the contract management system

Contract management system was implemented


Programme 1:Legal Services

18


DSD Specific outcome Informed, educated, mobilised stakeholders and public in support of DSD mandates


Reach 55 000 people via the DSD website and social media

A total of 36 476 620 people were reached through the DSD website and social media. 73 500 people reached through the website, 14 169 through Facebook and Twitter, and 36 388 951 through electronic newspapers.


Organise 16 public participation events for the Minister and 16 for the Deputy Minister

The Minister and Deputy Minister conducted 89 evidence-based public participation programmes. Public participation/ outreach programmes were intensified, reaching 126 900 people.


Programme 1:Communications

19

PROGRAMME 2: COMPREHENSIVE SOCIAL SECURITYSocial Assistance

Government outcome A long and healthy life for all South Africans

Outcome DSD specific Poor and vulnerable people are protected against income poverty

Targets Annual Achievements/performance

Increase Old Age Grant beneficiary coverage to 2 956 641

The total number of Old Age Grant beneficiaries is 2 969 933

Increase War Veterans Grant beneficiary coverage to 393

The total number of War Veterans Grant beneficiaries is 429

Increase Child Support Grant beneficiary coverage to 11 488 501

The total number of Child Support Grant beneficiaries is 11 125 946

Increase Disability Grant beneficiary coverage to 1 135 218

The total number of Disability Grant beneficiaries is 1 120 419.


20

PROGRAMME 2: COMPREHENSIVE SOCIAL SECURITYSocial Assistance

Government outcome

A long and healthy life for all South Africans

Outcome DSD specific

Poor and vulnerable people are protected against income poverty


Increase Care Dependency Grant beneficiary coverage to 135 347

The total number of Care Dependency Grant beneficiaries is 120 632. There was a slow uptake for this grant

Increase Foster Care Grant beneficiary coverage to 515 939

The total number of Foster Care Grant beneficiaries is 512 055.

Increase Grant-in-Aid beneficiary coverage to 71 879

The total number of Grant-in-Aid beneficiaries is 83 059


21“Building a Caring Society. Together"

PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATIONSocial Security Policy Development


Produce 2 oversight reportson adherence to normsand standards for the socialassistance programme

2 oversight reports on adherence to norms andstandards for the social assistance programme wereproduced. The two visit were done in Northern Cape and North West provinces.

Complete discussion paperon the universalisation of theOld Age Grant

Discussion paper on the Universalisation of the Old Age Grant was completed after a series of consultations with internal stakeholders

Government Outcome

An effective, efficient and development-orientated public service and an empowered , fair and inclusive citizenship


An efficient, effective and transparent social security system that promotes active citizenship


PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATIONAppeals Adjudication


Adjudicate 50% of appeals within 90 days of receipt

A total of 1 696 appeals were adjudicated. Of these, 48.76% (827) were adjudicated within 90 days of receipt)

Implement IntegratedAppeals Business InformationSystem

The development of the Integrated Appeals BusinessInformation System was completed

Government Outcome

An effective, efficient and development-orientated public service and an empowered , fair and inclusive citizenship


Effective, efficient and accessible social assistance appeals service


PROGRAMME 4 : WELFARE SERVICESService Standards and Service Provider Management Support


Review implementation of the White Paper in two provinces

Conducted the national and provincial review of the WhitePaper in Northern Cape and Gauteng where presentationswere made by senior managers from DSD, SASSA, NDA and the NGO sector

Monitor implementation of generic intervention processes in the provinces

The implementation of generic intervention processes wasmonitored in all provinces

Award 800 scholarships (raising total to 5 550)

997 new scholarships were awarded for the 2013 academicyear, increasing the total to 5 747.


Outcome DSD specific Standardise Social Welfare Services to improve quality service delivery by 2015


PROGRAMME 4 : WELFARE SERVICESService Standards and Service Provider Management Support


Monitor implementation ofthe Policy on Financial Awards

Workshop were held with provincial co-ordinators in all provinces on progress made in implementing the PFA, and reports were submitted to the DSD


Outcome DSD specific Standardise Social Welfare Services to improve quality service delivery by 2015


PROGRAMME 4 : WELFARE SERVICESOlder Persons


Assess 108 residential care facilities (12 per province)

109 residential care facilities were assessed for compliance to norms and standards in 7 provinces except in Western Cape and Mpumalanga

Draft Older Persons Amendment Bill Draft Amendment Bill developed

Government Outcome All people in South Africa are and feel safe

DSD specific Outcome Improved protection and quality of life for older persons


PROGRAMME 4 : WELFARE SERVICESPeople with Disabilities


Draft Bill Draft Bill on Social Development Services to People with Disabilities developed. Baseline disability policy approved by Heads of Social Development

Develop norms and standardsfor residential facilities

Norms and standards for residentialfacilities were drafted

Government Outcome Sustainable human Settlement and improved quality of household life

DSD specific Outcome Improved quality of life for people with disabilities


PROGRAMME 4 : WELFARE SERVICES

Children


Develop ECD policy ECD policy developed

Develop comprehensive packageof ECD services

A comprehensive ECD programme was developed

Build HR capacity in the ECDsector

HR plans were received from 6 provinces, namely MP, LP, GP, FS,NC and NW.

Conduct a comprehensive auditof 12 526 ECD centres in all provinces

12 987 ECD centres were audited in all provinces in 2013/14. This bring the total of all audited ECD centres to 19 023

Government Outcome A quality of basic education

DSD specific Outcome Improved access to Early Childhood Development ( ECD) programmes



Children


Increase the number of children adopted by 10% 1 452 adoptionsregistered (an increase of 55%)

Increase the number of children adopted by 10% 1 452 adoptions registered (an increase of 55%)

Monitor the implementation of theFoster Care Project Plan in all 9 provinces

Implementation of Foster Care Project Plan was monitored in all provinces

Secure approval of the guidelines Guidelines for the registration of drop-in centres were approved


DSD specific Outcome Safe and friendly society for children



Children


Monitor implementation in all 9 provinces

Monitored implementation of transformation plan forCYCCs in all 9 provinces

Screen 30 000 employees 41 441 employees working with children were screened against the CPR Part B. Only 227 were found unsuitable to work with Children.

Draft Amendment Bill (Phase 1) of the Children’s Act

Draft Amendment Bill was finalised

Monitor implementation of the Isibindi model in the provinces

Implementation of the Isibindi model was monitored in all provinces


DSD specific Outcome Safe and friendly society for children

3030

PROGRAMME 4: WELFARE SERVICESFamilies

Targets Annual Achievements /performance

Build stakeholder capacityon the White Paper on Families

All nine provinces were capacitated on the White Paperon Families

Build capacity on the Fatherhood Strategy and Active Parenting ofTeenagers programme

• All provinces were capacitated on the Fatherhood Strategy

• Five provinces were capacitated on Active Parenting for Teenagers programme namely EC, NW, NC, FS and KZN


Government Outcome Sustainable human settlement and improved quality of household life.

DSD-specific outcome Restored family values and responsibilities in order to build cohesive communities.

3131

PROGRAMME 4: WELFARE SERVICESSocial Crime Prevention


Train 63 panel members on thePolicy Framework for the Accreditation of Diversion Services

A total of 59 Quality Assurance Panel members weretrained on the policy framework for the Accreditation ofDiversion Services in all provinces. 4 appointed members withdrew before training took place

Capacitate 120 stakeholders on socialcrime prevention programmes

169 stakeholders capacitated on social crime preventionprogrammes

Monitor implementationof the social crime prevention strategy Action Plan

The Action Plan was monitored in all provinces, and allprovinces had implementation plans


Government outcome All people in South Africa are and feel safe

DSD-specific outcome Reduced incidence of social crime

3232

PROGRAMME 4: WELFARE SERVICESVictim Empowerment


Finalise Draft Bill on Victim Empowerment Support Services

The Draft Bill on Victim Empowerment Support Services was finalised

Provide immediate and integrated collaborative services intervention in respect of GBV incidents ona 24-hour basis

A Command Centre was established to provide immediate and integrated collaborative services to victims of GBV. The Command Centre was launched and a Toll Free line was advertised on national and community radio

Finalise the Policy Framework The National Policy Framework for the accreditation oforganisations providing antihuman trafficking services wasfinalised

Develop an Intersectoral Strategy for the VEP

An Intersectoral Strategy was developed with the clusterdepartments and national CSOs


Government outcome All people in South Africa are and feel safe

DSD-specific outcome Reduced incidence of social crime


PROGRAMME 4 : WELFARE SERVICESSubstance Abuse


Monitor implementation of POA by 9 national departments

Implementation by 9 national departments monitored namely Justice, SAPS, Correctional Services, DSD, Basic Education, Health, Trade and Industry, Higher Education and Training, and Transport

Capacitate 120 stakeholders on the implementation of the Prevention and Treatment of Substance Act and Regulations

458 stakeholders in all provinces capacitated to implement the Act and Regulations

Review and monitor implementation of theNDMP 2013-2017

The NDMP 2013/2017 was approved by Cabinet in June. Subsequently 8 provinces except WC and one national department (the Department of Transport) were capacitated to implement the plan


DSD specific Outcome Reduce incidence of Substance abuse in communities


PROGRAMME 4 : WELFARE SERVICESYouth


3 000 participants in youth dialogues

9 786 youths participated in youth dialogues nationally

1 800 participants in mobilisation programmes

16 070 young people participated in mobilisationprogrammes nationally

450 participants in skills development programmes

8 080 young people participated in skills development programmes nationally. These programmes include Entrepreneurship, computer skills, and vocational training, to mention a few

1 000 participants attending leadership camps

1 128 participants attended National youth camps.

Government Outcome Vibrant, equitable, sustainable rural communities contributing towards food security for all

DSD specific Outcome Youth participate and influence social change


PROGRAMME 4 : WELFARE SERVICESHIV/AIDS


Reach 500 000 youths reached through social and behaviour change Programmes

549 355 youths were reached

Train 450 organisations to implementsocial and behaviour change programmes

501 organisations trained

Facilitate 64 community conversations on HIV and AIDS

86 community conversations facilitated

Government Outcome A long healthy life for all South Africans

DSD specific Outcome Decrease in risky sexual behaviour among targeted populations


PROGRAMME 4 : WELFARE SERVICESHIV/AIDS


Reports from 1 200 CBOs in accordancewith the community based M&E system

1 355 organisations submitted administrative data to the CBIMS

Train 90 officials on HIV and AIDS management programme

24 provincial and district officials were trained on TB management as a co-infection with HIV in 8 provinces except WC. 92 officials were trained on HIV and AIDS management in LP,KZN and GP.

Strategic review of the NationalAction Plan for children affectedby HIV and AIDS

Report produced on children affected by HIV and AIDS

Finalise evaluation report on the HCBC programme

Evaluation report on HCBC programme produced

Government Outcome A long healthy life for all South Africans

DSD specific Outcome Mitigate the psychosocial and economic impact of HIV and AIDS, TB, and other chronic illnesses

3737

PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY

Social Policy Research and Development


Develop and review one social policy in collaboration with the relevant directorate.

• A Social Development Sector Community Development Policy was developed and submitted to stakeholders for review

Develop and disseminate 4 policy briefs

4 policy briefs were developed, e.g. • Discussion note on the Partnership between DSD and Traditional Authorities

•A DSD reference document on addressing the triple challenge of unemployment, poverty and inequality –partnership with Faith-Based Organisations and Religious Communities

Government outcome

An efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship

DSD Outcome Deepening of social policy discourse and evidence-based policy making


3838


Special Projects and Innovation


Create 33 307 job opportunities through social sector sub-programmes.

• 33 504 job opportunities created by the Department only.

Create 27 814 non-EPWP job opportunities

• 32 590 non-EPWP job opportunities created

Facilitate the provision of integrated DSD services to 9 Community Works Programme (CWP) sites.

• DSD services were provided at 15 CWP sites in seven provinces except GP and WC

Government outcome

Decent employment through inclusive economic growth

DSD Outcome Increased decent work opportunities, skills and income levels in the community


3939


Population Policy Promotion


Conduct 13 advocacy workshops andseminars

• 15 advocacy workshops/seminars were held in all provinces except Northern Cape, with exhibitions at each event. Events included the commemoration of World Population Day at the University of North West; the media launch of the State of the World Population Report 2013 at Khayelitsha in the Western Cape; and the BRICS Inaugural Seminar in Hazyview in Mpumalanga.

Government outcome

An efficient, effective and development oriented public service, and an empowered, fair and inclusive citizenship

DSD Outcome Increased capacity to mainstream population issues into development plans and activities


4040


Population Policy Promotion


Train 300 people on integrating population factors into development

• 394 people were trained on integrating population factors into development plans

Conduct nine capacity building sessions

• 12 capacity building session were conducted on integrating population factors into development plans

Produce 10 thematic research reports on progress made with implementing Population Policy and on the ICPD Programme of Action in South Africa

• 13 thematic research reports were produced. The review processes on Policy+15/ICPD+20 were managed into a single multisectoral review process

Government outcome

An efficient, effective and development oriented public service, and an empowered, fair and inclusive citizenship

DSD Outcome Increased capacity to mainstream population issues into development plans and activities


41


DSD Specific outcome A conducive environment for civil society organisations and communities


Process 90% of applications of NPOswithin two months of receipt

29 812 applications were received and 28 798 were processed 96.6% of applications were processed within two months

Train 2 500 NPOs on governance and compliancewith the NPO Act

2 667 NPOs were trained on NPO governance and compliance with the NPO Act

Train 300 provincial officials on governance and compliancewith the NPO Act

970 provincial officials in all provinces were trained on governance and compliance with the NPO Act


Programme 5: Registration and Monitoring of Non-Profit Organisations

42

Government Outcome A skilled and capable workforce to support an inclusive growth path

DSD Specific outcome A skilled workforce able to deliver high-quality community development services


Train 600 Community Development Practitioners (CDPs)

859 CDPs were trained

Train 400 Community Based Organisations (CBOs)

A total number of 411 CBOs were trained

Profile 300 000 households 784 137 households were profiled

Reach 200 wards 148 wards were reached through community mobilisation programmes


Programme 5: Community Development

43

Government Outcome A skilled and capable workforce to support an inclusive growth path

DSD Specific outcome A skilled workforce able to deliver high-quality community development services


Develop Service DeliveryImprovement Plan for the 23 priority districts

A Template for Service Delivery Improvement Plans for the targeted wards was developed and Service Delivery Improvement Planswere developed

Promote equitable access to food by 300 000 households

122 612 households accessed food through food securityprogrammes

700 000 people to accessfood through food banks

346 632 people accessed food through Food Bank SA


Programme 5: Community Development

PART C

International Obligations for 2013/14


4545

International Obligations for period 2013/14

In support of South Africa’s foreign policy goals, the Department plays an active role in promoting the country’s social development agenda internationally.

The Department is an active member of the African Union (AU), Southern African Development Community (SADC) and United Nations structures, which includes among others, the UN Commission on the Status of Women.

During the reporting period, the Department participated in the International AIDS Conference, UN Commission on the Status of Women and International Inter- Ministerial Conference on Evidence for action

Government Outcome: Create a better South Africa, a better Africa and a better world

Outcome: DSD specific To promote and support participation in key identified bilateral and multilateral initiatives


4646

International Obligations for period 2013/14

The Department also participated in several international events including among other the following:

- The 46th Session of the United Nations Commission on Population and Development (UNCPD)

- The African Population Commission (APC) of the African Union (AU);

The Department finalised three agreements with Benin, Lesotho and Namibia

The Department also facilitated technical exchanges with Zimbabwe, Vietnam, Ghana, Botswana, Namibia and Lesotho.

All these initiatives provide a platform for sharing social development experiences and provide us with an opportunity to help create a better South Africa, a better Africa and a better world.

Government Outcome: Create a better South Africa, a better Africa and a better world

Outcome: DSD specific To promote and support participation in key identified bilateral and multilateral initiatives



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Performance Summary & Challenges

4848

Trends in achievement of targets


49

• There has been improvement in the achievement of targets in the

period 2011 – 2014

• In 2011/12, only 54% of the set targets were fully achieved at the end

of the financial year.

• Performance improved in 2012/13 where 61% of the targets were

achieved.

• Improvement in achievement of targets continued in 2013/14

where 69% of the set targets were achieved.

PERFORMANCE TRENDS

50

CHALLENGES

51

Office Accommodation:

•Target to conduct a feasibility study on shared offices for DSD, SASSA and

NDA not completed. Options for a suitable accommodation is being

consulted with DPW.

Policy Development

•The policy for amending the NPO Act was developed and consulted with

NPOs. It was not approved due to extended consultations.

•The Community Development Occupational framework was not approved

due to extended consultations with HWSETA and DHET

CHALLENGES

PART D

Legislative Programme for 2013/14


5353

Legislative Programme for period 2012/13

No Bills were submitted to Parliament during the year under review



54

Part E Finance

April 20, 2023 55

Part E : Finance2013/14

Section 1: National ExpenditureSection 2: Public EntitiesSection 3: Provincial ExpenditureSection 4: Sector Audit Outcome

2015 MTEFSection 5: MTEF Social Sector Analysis

Select Committee

CONTENT for Part E.CONTENT for Part E.• Audited Actual Expenditure for the

2013/14 financial year for the National and Provincial Social Sector

• 2010 – 2017 Expenditure Trend Analysis• Challenges • Audit Outcome for the DSD Sector• Commitments Made on Audit Outcomes

April 20, 2023 56Select Committee

April 20, 2023 57

Part E Finance

Section 1 : 2013/14 National DSD Expenditure

Select Committee

April 20, 2023 58

SUMMARY – SOCIAL DEVELOPMENT

R’000

Select Committee

April 20, 2023 59

SUMMARY EXPENDITURE PER PROGRAMME

ProgrammeFinal

AppropriationAudited Actual

Expenditure % Spent Variance

R’ 000 R’000 R’000

P1: Administration 262 782 261 301 99,44% 1 481

P2: Social Assistance 111 006 841 109 596 591 98,73% 1 410 250

P3: Social Security Policy and Administration 6 376 646 6 376 560 100,00% 86

P4: Welfare Services Policy Development and Implementation Support

548 098 546 015 99,62% 2 083

P5: Social Policy and Integrated Service Delivery 317 233 304 482 95,98% 12 751

TOTAL 118 511 600 117 084 949 98,80% 1 426 651

Select Committee

REASONS FOR UNDER SPENDING• Programme 1: Administration – R 1,481 million

– The under-expenditure is due to the unpaid interdepartmental claims (Public Works).

• Programme 2: Social Assistance – R 1,410 billion

– The under-expenditure is due to the re-registration process which had an impact on the anticipated actual take-up rates of grant beneficiaries.

• Programme 4: Welfare Services Policy Development and Implementation Support –

R2,083 million – The under expenditure is mainly due to non-payment of NGO's due to non-

compliance.

• Programme 5: Social Policy and Integrated Service Delivery – R12,751 million – The under-expenditure is due to change in the strategy of food security programs.


April 20, 2023 61

SUMMARY EXPENDITURE PER ECONOMIC CLASSIFICATION

Economic ClassificationFinal



R’ 000 R’000 R’000

Compensation of Employees 323 699 323 699 100,00% 0

Goods and Services 333 991 331 813 99,35% 2 178

Transfers and Subsidies 117 847 485 116 413 348 98,78% 1 434 137

Payments of Capital Assets 6 425 6 425 100,00% 0

Payments for Financial assets - 9 664 - -9 664

TOTAL 118 511 600 117 084 949 98,80% 1 426 651

Select Committee

HIGH SPENDING ITEMS


HIGH SPENDING ITEMS• Marketing & Promotional Material – R40,647 million

– Advertising, Promotional Material, Recruitment and Tenders amongst other relating to the following:

• Mikondzo project – community outreach,• Golden Games – active ageing programme;• National Parliament for the Aged;• Presidential Luncheon for the Aged;• Child Protection Week;• Youth Camps;• Anti- Substance Abuse Festive Season Campaign;


Marketing & Promotional Material


HIGH SPENDING ITEMS• Venues & Facilities – R38,207 million

– Expenditure relating amongst other to the following:

April 20, 2023 65

Child Protection Week Tzaneen Country Lodge City Lodge in Durban

Golden Games Birchwood Hotel

Anti- Substance Abuse Policy Consultation Burgers Park Hotel Eldorado Park

Youth Camp SANDF-MILITARY BASE

Orphans Vulnerable Children & Youth Conference ICC Durban

National Action Committee for Children Affected by HIV & AIDS Workshop

Manhattan Hotel

Select Committee

HIGH SPENDING ITEMS (cont.)• Consultants – R45,967 million

– Consulting services amongst others relating to the following:

April 20, 2023 66

Service Provider Services rendered / output

Nkanyezi Development Services The services of the consultants were procured to provide support in preparation for DSD month in the Eastern Cape in two districts these included Chris Hani and Alfred Nzo district for the editing of support group guidelines manual

Bimshire Investment Development of Treatment model, Advert and Artwork for festive season anti-substance abuse campaign

National Institute Community Development and Management

Accreditation of caregiver manual

Ororiseng Trading Printing of generic intervention process forms

Mintiro Trading Enterprise Editing and printing of the strategy on services for vulnerable children in drop in centres.

Select Committee

HIGH SPENDING ITEMS (cont.)

April 20, 2023 67


BM Holtmann

Facilitation of Social Transformation Workshops in 10 poor and vulnerable communities to build their capacities to change their status from vulnerability to resilience and sustainability

Mmapula Community DevelopmentTraining of Community Development Practitioners on the asset based community driven development approach. 90 CDPs will be trained in Gauteng and the Eastern Cape

Seeletso Health Information (pty) Ltd

To conduct an analysis of the questioners for norms and standards on the effectiveness and improvement of Community Development Practice. The analysis is aimed at ensuring that there is standardisation, uniformity and integration of services for community development practitioners by developing Norms and Standards for community development practice.

Continuing Education for Africa (CEFA)

The key deliverable is the draft community development practice policy which will guide the implementation of community development and also the basis for the regulation of the practice which will clearly outline the roles and responsibility of community development practioners in facilitating the community development programmes

Select Committee



April 20, 2023 68


The Institute for Social law and PolicyDevelopment of a policy on inclusion of non-citizens in the South African social security system

Alexander Forbes Financial ServicesBuilding a Micro-Simulation Model that is able to perform social policy and scenario analysis

LIMA

Purpose of a service provider to design and implement a pilot aimed at linking able bodied persons of working age residing in grant beneficiary households to economic opportunities

Impact Research International

The undertaking of the project to conduct a study on understanding the current poor access of the child support grant(SCG) within the 0-4 age cohort

Karabo Media and MarketingThe undertaking of the project to develop a basic financial book for Social Grant Beneficiaries and their caregivers

Disaster Management Solutions(DMS)

Consultant to develop a community-Based Disaster Risk Mitigation Toolkit for practitioners; Booklets and posters to strengthen community capacity; advocacy materials and provide training to practitioners

Select Committee



April 20, 2023 69

Service Provider Services rendered / outputSAS Programmer (Real Global Business Solutions) Management of M&E data warehouse

Ink Design Printing of APP

Economic Policy and Research Institute (EPRI) Conduct the audit of 18000 ECD’s

University of Stellenbosch To update the profile of Social Security beneficiaries

Aurecon Spatial Optimization Model

Select Committee

TRAVELLING & SUBSISTENCE


April 20, 2023 71

SUMMARY PROG 1: ADMINISTRATIONR’000

99.4% Spent 99.4% Spent

Select Committee

72

SUMMARY PROG 1: ADMINISTRATION

SUB PROGRAMMES Final Appropriation Audit Actual % Spent Deviation

R'000 R'000 R'000

Ministry 33 235 33 235 100,00% -

Departmental management 47 800 47 800 100,00% -

Corporate management 102 706 102 706 100,00% -

Finance 49 331 49 331 100,00% -

Internal audit 5 671 5 671 100,00% -

Office accommodation 24 039 22 558 93,84% 1 481

Total 262 782 261 301 99,44% 1 481

April 20, 2023 Select Committee

April 20, 2023 73

SUMMARY PROG 1: ADMINISTRATION

Economic Classification

Final Appropriation

Audited Actual Expenditure % Spent Variance

R’ 000 R’000 R’000

Compensation of Employees 139 514 139 514 100,00% 0

Goods and Services 119 975 118 494 98,77% 1 481

Transfers and Subsidies 246 246 100,00% 0

Payments of Capital Assets 3 047 3 047 100,00% 0

TOTAL 262 782 261 301 99,44% 1 481

Select Committee

• Under spending – R1,481 million– The under-expenditure is due to unpaid interdepartmental

claims (DPW).

April 20, 2023 74

PROG 1: ADMINISTRATION

Select Committee

April 20, 2023 75

SUMMARY PROG 2: SOCIAL ASSISTANCE

R’000


Select Committee

76



R'000 R'000 R'000

OLD AGE 44 328 024 44 064 239 99,40% 263 785

WAR VETERANS 8 167 7 657 93,76% 510

DISABILITY 18 116 970 17 768 631 98,08% 348 339

FOSTER CARE 5 551 084 5 332 093 96,05% 218 991

CARE DEPENDENCY 2 268 799 1 993 084 87,85% 275 715

CHILD SUPPORT 39 907 203 39 623 748 99,29% 283 455

GRANT-IN-AID 276 337 274 092 99,19% 2 245

SOCIAL RELIEF 550 257 533 047 96,87% 17 210

Total 111 006 841 109 596 591 98,73% 1 410 250


April 20, 2023 77





R’ 000 R’000 R’000

Compensation of Employees - - - -

Goods and Services - - - -

Interest and rent on land - - - -

Transfers and Subsidies 111 006 841 109 586 927 98,72% 1 419 914

Payments of Capital Assets - - - -

Payments for Financial assets - 9 664 - -9 664

TOTAL 111 006 841 109 596 591 98,73% 1 410 250

Select Committee

• Transfers and subsidies – R 1,419 billion– Expenditure is driven by beneficiaries numbers, application

process and grant values, which is linked to economic factors, policy changes, payment model efficiency and CPI inflation rates;

– The under-expenditure is due to the re-registration process which had an impact on the anticipated actual take-up rates of grant beneficiaries.

• Payment for financial assets – R 9,664 million– Approval was granted for Social Grant Debtors related to the

previous financial years to be written off.

April 20, 2023 78

PROG 2: SOCIAL ASSISTANCE GRANTS

Select Committee

April 20, 2023 79

SUMMARY PROG 3: SOCIAL SECURITY POLICY AND ADMINISTRATION

R’000

100% Spent 100% Spent

Select Committee

80



R'000 R'000 R'000

Social Security Policy Development 33 846 33 760 99,75% 86

Appeals Adjudication 27 078 27 078 100,00% -

Social Grants Administration 6 240 467 6 240 467 100,00% -

Social Grants Fraud Investigations 70 581 70 581 100,00% -

Programme Management 4 674 4 674 100,00% -

Total 6 376 646 6 376 560 100,00% 86


April 20, 2023 81





R’ 000 R’000 R’000

Compensation of Employees 35 785 35 785 100,00% -

Goods and Services 28 360 28 360 100,00% -

Transfers and Subsidies 6 312 339 6 312 253 100,00% 86

Payments of Capital Assets 162 162 100,00% -

TOTAL 6 376 646 6 376 560 100,00% 86

Select Committee

April 20, 2023 82

SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT

R’000


Select Committee

83



R'000 R'000 R'000 Service Standards 21 358 21 358 100,00% - Substance Abuse 29 525 29 485 99,86% 40 Older Persons 22 710 22 371 98,51% 339 People with Disabilities 9 309 9 309 100,00% - Children 56 402 56 309 99,84% 93 Families 6 338 6 338 100,00% - Social Crime Prevention and Victim Empowerment 39 495 38 237 96,81% 1 258

Youth 22 169 22 169 100,00% - Hiv and Aids 77 857 77 504 99,55% 353 Social Worker Scholarships 250 000 250 000 100,00% - Programme Management 12 935 12 935 100,00% - Total 548 098 546 015 99,62% 2 083


April 20, 2023 84




R’ 000 R’000 R’000


Goods and Services 134 236 133 560 99,50% 676

Transfers and Subsidies 320 594 319 187 99,56% 1 407

Payments of Capital Assets 1 712 1 712 100,00% -

TOTAL 548 087 546 004 99,62% 2 083


Select Committee

• Goods and Services – R 676 000

– The under spending relate to the following delays on the finalisation of projects.

• Transfers and Subsidies – R 1,407 million

– The under expenditure is mainly due to non-payment of the following NGO's due to non-compliance:

• NAPWA

• SA Older Persons Forum

• Sonke Justice

– International memberships (e.g) United Nations International Drug Control Programme and International Federation for the Aged



• Substance Abuse – R 40– The under spending relate to the non receipt of invoice from Dirco for the

United Nations International Drug control• Older Persons – R 339

– The under expenditure is mainly due to non-payment for SA Older Persons Forum due to non-compliance and lesser than projected payment for International Federation for the Aged

• Social Crime Prevention & Victim Empowerment – R 1,258 mil– The under expenditure is mainly due to non-payment for Sonke Justice due to

non-compliance, payment for the post retirement benefits and lesser than projected payment for Gender Based Command Centre

• HIV & Aids – R 353– The under expenditure is mainly due to non-payment for NAPWA due to non-

compliance.• Children – R 93

– The under spending relate to the provision for the leave gratuities and the payment to International Social Services



April 20, 2023 87

SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY

R’000


Select Committee

88



R'000 R'000 R'000 Social Policy Research and Development 4 603 4 603 100,00% -

Special Projects and Innovation 9 326 9 326 100,00% - Population Policy Promotion 27 267 27 246 99,92% 21 Registration and Monitoring of NPO 24 707 24 707 100,00% - Substance Abuse Advisory Service and Oversight 4 325 4 325 100,00% -

Community Development 71 043 58 313 82,08% 12 730 National Development Agency 171 713 171 713 100,00% - Programme Management 4 249 4 249 100,00% - Total 317 233 304 482 95,98% 12 751


April 20, 2023 89

Economic Classification

Final Appropriation

Audited Actual Expenditure % Spent Variance

R’ 000 R’000 R’000


Goods and Services 51 420 51 399 99,96% 21

Transfers and Subsidies 207 465 194 735 93,86% 12 730

Payments of Capital Assets 1 493 1 493 100,00% -

TOTAL 317 233 304 482 95,98% 12 751


Select Committee

• Transfers and subsidies – R12,730 million – The under-expenditure is due to change in the strategy of food

security programme.

April 20, 2023 90


Select Committee

April 20, 2023 91

Part E Finance

Section 2 : Public Entities

Select Committee

SASSA

April 20, 2023 Select Committee 92

106.98% Spent 106.98% Spent R’000

SASSA• SASSA has two key focus areas:

– administrative functions relating to processing applications for social grants which are currently carried out by SASSA employees, and

– the payment of social grants, currently provided by the contractor, CPS.

• SASSA spent an amount of R6,742 billion up to the end of March 2014, which is exceeds the budget allocation for the 2013/14 financial year.

• SASSA reported a deficit of R430 899 million at the end of March 2014 as opposed to a deficit of R4 503 million reported for February 2014. The average expenditure rate against the transferred funds from the Department is 95%. SASSA reported over expenditure during August 2013, February and March 2014.


NATIONAL DEVELOPMENT AGENCY


98.75% Spent 98.75% Spent R’000


Line Items Annual Budget

R

AnnualSpending2013/14

R

(Over)/ under expenditure

R

AnnualSpent

%

Mandate Expenditure

135 531 708.00 137 254 513.00 -1 722 805.00 101%

Good and services 36 825 875.00 34 232 221.00 2 593 654.00 93%

Employee Costs 49 415 541.00 47 925 363.00 1 490 178.00 97%

Board Expenditure 1 025 000.00 933 000.00 92 000.00 91%

Capital Expenditure 2 471 404.00 1 872 741.00 598 663.00 76%

Grand Total 225 269 528.00 222 217 838.00 3 051 690.00 99%



• The NDA’s financial report for the 2013/14 financial year submitted to the Department, reflected revenue amounting to R225 269 million, comprising of the government grants amounting to R171,713 million and other revenue of R53,556 million.

• The total expenditure up to 31 March 2014 amounted to R222,218 million which represents 98,75 % spending on the total allocation for the 2013/14 financial year.

• NDA was able to fund additional projects worth R44 million, these projects were funded from the resources that were acquired from other government departments and donors outside government. This is the reason for the reported over-expenditure of R1,723 million (1%) in Mandate Expenditure.

• Included in goods and services is depreciation (1,650 million) which is a non-cash item and as a result, it was not budgeted for at the beginning of the financial year.


• Of the total expenditure reflected, an amount R137,255 million relates to mandate expenses (62%). Administrative costs were underspent at the end of the 2013/14 financial year by an amount of R4,176 million and included the following expenditure categories:

– Expenditure of R47,925 million (22%) was incurred on employee costs

– An amount of R34,232 million (16%) for goods and services

– Board expenses amounted to R933 000 (<1%)



April 20, 2023 98

Part E Finance

Section 3 : Provincial DSD Expenditure

Select Committee

2013/14 SPLIT PER PROVINCE


SUMMARY-PROVINCESSUMMARY-PROVINCES

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

EC FS GP KZN LP MP NC NW WCFinal Approp Audit Actual

April 20, 2023 100

Average Spending of 98,78% across provinces

R’000

Select Committee

SUMMARY-PROVINCESSUMMARY-PROVINCES


Summary 2013/14

Final Audited Under/ over

Appropriation Expenditure % Spending

31-Mar-14 Spent 2013/14

R'000 R'000 R'000

Eastern Cape 2 043 841 1 942 281 95,03% 101 560

Free State 965 096 962 711 99,75% 2 385

Gauteng 2 916 248 2 899 683 99,43% 16 565

KwaZulu-Natal 2 315 947 2 329 906 100,60% (13 959)

Limpopo 1 380 779 1 315 001 95,24% 65 778

Mpumalanga 1 169 257 1 133 049 96,90% 36 208

Northern Cape 607 507 604 415 99,49% 3 092

North West 1 057 461 1 039 133 98,27% 18 328

Western Cape 1 587 244 1 580 143 99,55% 7 101

Total 14 043 380 13 806 322 98,31% 237 058

2013/14 SPLIT PER PROGRAMME


SUMMARY- PROGRAMMESSUMMARY- PROGRAMMES

2 441 363

10 158 102

1 443 915

2 359 493

10 017 020

1 429 809

-

2000 000

4000 000

6000 000

8000 000

10000 000

12000 000

Admin Social Welf Dev and Res

Final Approp Audit Actual

96,65%

98,61%

99,02%

April 20, 2023 103

R’000

Select Committee

SUMMARY- PROGRAMMESSUMMARY- PROGRAMMES


Summary

2013/14

Final Appropriation

AuditedExpenditure31-Mar-14

%

Spent

Over / underExpenditure31-Mar-14

R'000 R'000 R'000Administration 2 441 363 2 359 493 96,65% 81 870

Office of MEC 61 868 58 750 94,96% 3 118 Corporate Management 1 393 587 1 302 190 93,44% 91 397 District Management 985 908 998 553 101,28% (12 645)

Social Welfare Services 10 158 102 10 017 020 98,61% 141 082 Professional & Administration Support 2 136 054 2 324 428 108,82% (188 374)Substance Abuse, Prevention and Rehabilitation 346 980 341 101 98,31% 5 879 Care and Services to Older Persons 889 978 878 251 98,68% 11 727 Crime Prevention and Support 848 637 793 575 93,51% 55 062 Services to the Persons with Disabilities 477 439 471 041 98,66% 6 398 Child Care and Protection Services 4 168 160 3 925 566 94,18% 242 594 Victim Empowerment 224 712 208 258 92,68% 16 454 HIV and AIDS 732 494 728 894 99,51% 3 600 Social Relief 92 776 97 395 104,98% (4 619)Care and Support Services to Families 240 872 248 511 103,17% (7 639)

Development and Research 1 443 915 1 429 809 99,02% 14 106 Professional & Administration Support 589 600 615 920 104,46% (26 320)Youth Development 209 277 204 762 97,84% 4 515 Sustainable Livelihood 351 639 346 909 98,65% 4 730 Institutional Capacity Building and Support 240 633 218 741 90,90% 21 892 Research and Development 33 858 26 265 77,57% 7 593 Population Capacity Development and Advocacy 18 908 17 212 91,03% 1 696

Total 14 043 380 13 806 322 98,31% 237 058

MAIN REASONS FOR UNDER-/OVER EXPENDITURE

• Programme 1: Administration - Projected under expenditure of R81,870 million

- Delays in the filling of funded vacant posts;

- Cost cutting measures implemented

• Programme 2: Social Welfare Services – Projected under-expenditure of R141.082 million

- Delays in the appointment of Social Service Professionals.

- Delays in the commencement of planned programmes.

- Delays with the transfer of funds to Organisations.

• Programme 3: Development and Research – Projected under-expenditure of R14.106 million

- Delays in the appointment of Assistant Community Development Practitioners and other personnel.

- Cost cutting measures implemented.


SUMMARY- ECONOMIC CLASSIFICATIONSUMMARY- ECONOMIC CLASSIFICATION

5 991 224

2 002 217

5 345 008

704 891

5 861 841

2 067 676

5 295 736

593 618

-

1000 000

2000 000

3000 000

4000 000

5000 000

6000 000

7000 000

Personnel Goods & Services Transfers Capex

Final Approp Audit Actual

103.27%

99.08% 84.21%

97.84%

April 20, 2023 106

R’000

Select Committee

SUMMARY- ECONOMIC CLASSIFICATIONSUMMARY- ECONOMIC CLASSIFICATION


Summary 2013/14 Final Audited Audited Appropriation Expenditure % Expenditure 31-Mar-14 Spent 31-Mar-14 R'000 R'000 R'000

Current payments 7 993 481 7 916 968 99,04% 76 513 Compensation of employees 5 991 224 5 861 841 97,84% 129 383 Goods and services 2 002 217 2 067 676 103,27% (65 459) Interest and rent on land 40 336 840,00% (296) Financial transactions in assets and liabilities - (12 885) 0,00% 12 885 Unauthorised expenditure - - 0,00% - Transfers and subsidies (Total) 5 345 008 5 295 736 99,08% 49 272 Provinces and municipalities 1 663 500 30,07% 1 163 Departmental agencies and accounts 25 311 57 702 227,97% (32 391) Universities and technikons 2 917 2 874 98,53% 43 Non-profit institutions (T) 5 216 714 5 136 588 98,46% 80 126 Households 98 272 97 941 99,66% 331 Payments for capital assets 704 891 593 618 84,21% 111 273 Buildings and other fixed structures 452 922 380 003 83,90% 72 919 Machinery and equipment 238 966 199 893 83,65% 39 073 Software and other intangible assets 12 932 13 722 185,01% (790) Land and subsoil assets 71 - 0,00% 71 TOTAL 14 043 380 13 806 322 98,31% 237 058

MAIN REASONS FOR UNDER-/OVER EXPENDITURE PER ECONOMIC CLASSIFICATION• Compensation of employees – Under-spending of R129.3 million

- Delays in the filling of vacant funded posts

• Goods and Services – Over-expenditure of R65.459 million

- Invoices accrued from the previous financial year.

• Transfers and subsidies – Under-expenditure of R49.272 million

- Delays in the transfer of funds due to administrative and compliance requirements.

• Payments for capital assets – Under-expenditure of R111.273 million

- Delays in the commencement of building and infrastructure projects.

- Delays in receiving of invoices from appointed service providers

- Delays in the delivery of pool vehicles, machinery and equipment.


April 20, 2023 109

Part E Finance

Section 4 : Social Sector Audit Outcome

Select Committee

Movement from audit outcomes from 2012-13


Figure 2: Movement from audit outcomes from 2012-13

Improved 2 (WC, MP)

2 (KZN, NW)

Unchanged 3 (GP, NC,

Nat)

2 (EC, FS)

1 (LP)

2013-14

PFMA

5

Unqualified with no findings

Unqualified with findings

Qualified with findings

6

ANALYSIS OF AUDIT FINDINGS• Only one province namely Limpopo had a qualified opinion. Limpopo was

also qualified in the 2012-13 financial year.

• KwaZulu-Natal and North West province improved from a qualified opinion to an unqualified opinion with findings.

• Western Cape province and Mpumalanga improved from an unqualified opinion with findings to a unqualified opinion with no findings.

• Eastern Cape and Free State province remained unqualified with findings.

• The National Department , Gauteng and Northern Cape remained unqualified with no findings.


Status of quality of annual performance report


Findings on quality of annual performance reports


North West and Western Cape Province addressed the material findings as reported in the previous year. Only the Free State province had material findings on information not being reliable for the 2013-14 audit cycle.

April 20, 2023 114

Part E Finance

Section 5 : Social Sector Expenditure Analysis

Select Committee

2015 Preliminary allocations


2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

R thousand

Original

budget

National Social Development 103 139 182 111 115 576 117 084 950 128 799 378 138 260 100 148 158 424 157 921 625

of which:

Current pay ments 523 121 588 776 655 508 679 369 685 234 725 880 767 328

Pay ments for capital assets 17 911 10 861 6 428 6 698 7 006 7 377 7 746

Transfers and subsidies 102 587 932 110 506 036 116 413 350 128 113 311 137 567 860 147 425 167 157 146 551

Provincial Social Development 11 593 124 12 094 354 13 904 794 15 504 077 16 651 763 17 564 366 18 436 715

of which:

Current pay ments 6 398 181 6 951 602 7 915 019 8 795 696 9 581 955 10 157 714 10 680 187



South African Social Security Agency 5 273 704 5 782 364 6 265 002 7 158 550 7 135 820 7 387 986 7 563 616

of which:


Transfers and subsidies 10 097 19 266 19 910 22 695 23 739 26 979 26 979

National Development Agency 166 575 193 083 241 200 177 813 184 381 194 153 202 900

of which:

Current pay ments 94 239 103 694 117 140 128 128 132 543 140 605 145 859

Transfers and subsidies 72 336 89 389 124 060 49 685 51 838 53 548 57 041

Outcome Medium-term estimates

SOCIAL SECTOR ANALYSIS• The budget for the social sector grows in line with inflation.

• NDSD growth is driven by social grant transfers and operations are managed with only 0.5 per cent of the budget, which has placed the department under some budget pressure. The operational budget for NDSD has been driven by goods and services spending in the past. This relates mainly to the department’s travelling for monitoring of policy implementation, consultation on key policies and legislation and community outreach programmes. The department’s budget has been under pressure because of under-budgeted outreach campaigns which have compromised outcomes in social security policy

• NDA’s growth is driven by compensation of employees while SASSA’s growth is driven by social grant payment contractor fees under goods and services.

• PDSD’s growth is driven by compensation of employees and this was primarily due to annual wage adjustments in excess of inflation, and provisioning for the absorption of social work graduates from the scholarship scheme by the provincial departments.


SUMMARY - PROVINCES

April 20, 2023 117

Annual Average increase of 10.13%

Select Committee


ALLOCATION PER PROGRAMME2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

R thousand

Projected

outcome

Administration 2 190 650 2 235 535 2 445 547 2 501 714 2 660 799 2 784 236 2 923 439

Social w elfare serv ices 3 483 253 3 735 629 3 728 792 3 823 864 3 606 580 3 786 742 3 976 081

Children and Families 3 592 260 3 712 976 4 716 078 5 710 148 6 398 604 6 783 381 7 118 154

Restorativ e Serv ices 1 137 589 1 225 649 1 598 994 1 882 814 2 274 915 2 398 586 2 517 049

Dev elopment and research 1 189 340 1 184 411 1 415 383 1 586 296 1 710 866 1 811 421 1 901 992

Total 11 593 093 12 094 200 13 904 794 15 504 836 16 651 763 17 564 366 18 436 715

Percentage of totalAdministration 18.9% 18.5% 17.6% 16.1% 16.0% 15.9% 15.9%

Social w elfare serv ices 30.0% 30.9% 26.8% 24.7% 21.7% 21.6% 21.6%

Children and Families 31.0% 30.7% 33.9% 36.8% 38.4% 38.6% 38.6%

Restorativ e Serv ices 9.8% 10.1% 11.5% 12.1% 13.7% 13.7% 13.7%

Dev elopment and research 10.3% 9.8% 10.2% 10.2% 10.3% 10.3% 10.3%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Percentage growth (average annual)2011/12 –

2014/15

2014/15 –

2017/18

Administration 4.5% 5.3%

Social w elfare serv ices 3.2% 1.3%

Children and Families 16.7% 7.6%

Restorativ e Serv ices 18.3% 10.2%

Dev elopment and research 10.1% 6.2%

Total 10.2% 5.9%


Provincial expenditure on social development by programme, 2011/12 – 2017/18

SPLIT PER ECONOMIC CLASSIFICATION


ALLOCATION PER ECONOMIC ALLOCATION PER ECONOMIC CLASSIFICATIONCLASSIFICATION


2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

R million

Projected

outcome


of which:

Compensation of employees 4 554 638 5 124 003 5 867 708 6 695 618 7 309 127 7 760 469 8 163 079

Goods and services 1 842 501 1 827 492 2 046 983 2 090 438 2 272 828 2 397 245 2 517 108


of which:

Non-profit institutions 4 395 553 4 378 728 5 167 995 5 848 991 6 174 706 6 485 635 6 791 744


Pay ments for financial assets 2 571 9 740 9 652 45 – – –

Total 11 593 093 12 094 200 13 904 794 15 504 836 16 651 763 17 564 366 18 436 715

Percentage of totalCurrent pay ments 55.2% 57.5% 56.9% 56.7% 57.5% 57.8% 57.9%

of which:

Compensation of employees 39.3% 42.4% 42.2% 43.2% 43.9% 44.2% 44.3%

Goods and services 15.9% 15.1% 14.7% 13.5% 13.6% 13.6% 13.7%

Transfers and subsidies 39.8% 36.9% 38.3% 38.6% 38.1% 37.9% 37.8%

of which:

Non-profit institutions 37.9% 36.2% 37.2% 37.7% 37.1% 36.9% 36.8%

Pay ments for capital assets 5.0% 5.6% 4.7% 4.7% 4.4% 4.3% 4.3%

Pay ments for financial assets 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Percentage growth (average annual)

2011/12 –

2014/15

2014/15 –

2017/18

Current pay ments 11.2% 6.7%

of which:

Compensation of employees 13.7% 6.8%

Goods and services 4.3% 6.4%

Transfers and subsidies 9.1% 5.2%

of which:

Non-profit institutions 10.0% 5.1%

Pay ments for capital assets 7.6% 2.7%

Pay ments for financial assets -74.0% -100.0%

Total 10.2% 5.9%


COMPENSATION OF EMPLOYEES

April 20, 2023 121


Select Committee

COMPENSATION OF EMPLOYEES• Social development services are dependent on social workers, auxiliary

workers, youth development workers, community development workers, and probation officers.

• Spending on compensation of employees increased by 13.7 per cent per year from R4.6 billion in 2011/12, to a projected R7.0 billion in 2014/15.

• This growth was driven primarily by annual wage adjustments in excess of inflation, and provisioning for the absorption of social work graduates from the scholarship scheme by the provincial departments. This growth has, however, not been sufficient to sustain the number of social work graduates that need to be absorbed.

• In the 2013 MTEF process the sector received an additional R938 million to appoint social work graduates.


GOODS AND SERVICESGOODS AND SERVICES

April 20, 2023 123


Select Committee

GOODS AND SERVICES• The goods and services budget of provincial departments comprises just over

13 per cent of the budget, leaving little room to reprioritise from goods and services to fund services.

• If one takes a closer look at the goods and services budget, the main items funded are for operating leases and property payments as well as for travel and subsistence.

• Travel and related costs are directly linked to work undertaken by social workers who are required to travel to communities on a daily basis.


TRANFERS AND SUBSIDIESTRANFERS AND SUBSIDIES

April 20, 2023 125


Select Committee

TRANSFERS AND SUBSIDIES• Transfers and subsidies to NPOs grew by 10.0 per cent, from R4.4

billion to R5.8 billion between 2011/12 and 2014/15, and this spending category is expected to grow at an average annual rate of 5.1 per cent from 2014/15 to 2017/18.

• The share of total social development spending that goes to non-profit organisations remained relatively stable at around 37 per cent between 2011/12 and 2014/15, but is projected to decline over the MTEF reaching 36.8 per cent in 2017/18.

• There is, however, notable provincial variation in the share of total budgets for transfer payments to NPOs.


PAYMENT OF CAPITAL ASSETSPAYMENT OF CAPITAL ASSETS

April 20, 2023 127


Select Committee

PAYMENT OF CAPITAL ASSETS

• From a low base, spending on capital increased from R584 million in 2011/12 to R727 million in 2014/15.

• Currently capital expenditure accounts for 4.7 per cent of overall provincial expenditure.

• Spending is projected to increase further over the MTEF period to R789 million in 2017/18, albeit at a lower average growth rate.


SUMMARY – P 1 : ADMIN

April 20, 2023 129


Select Committee

SUMMARY – P 1 : ADMIN


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

R millionOutcome Outcome Medium-term estimates

Office of the MEC 42 52 55 171 62 66 70 Corporate Management Services 1 346 1 331 1 266 1 307 1 361 1 437 1 521

District Management 732 802 907 877 1 074 1 130 1 171 Total 2 121 2 185 2 228 2 356 2 497 2 633 2 762 Percentage of total Office of the MEC 2,0% 2,4% 2,5% 7,3% 2,5% 2,5% 2,5%Corporate Management Services 63,5% 60,9% 56,8% 55,5% 54,5% 54,6% 55,1%

District Management 34,5% 36,7% 40,7% 37,2% 43,0% 42,9% 42,4%

Total 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%Percentage growth (average annual)

2010/11 – 2013/14

2013/14 – 2016/17

Office of the MEC 59,5% -26,0%Corporate Management Services -1,0% 5,2%

District Management 6,2% 10,1%Total 3,6% 5,4%

EXPENDITURE ANALYSISEXPENDITURE ANALYSISP 1 AdminP 1 Admin

• In 2011/12, provincial departments spent 18.9 per cent of their total social development allocation on Programme 1: Administration.

• Provinces are projecting a lower proportion in 2014/15 at 16.1 per cent and a further decline to 15.9 per cent by 2017/18.

• This downward trend is welcomed and is the result of a focus on reducing spending on administrative functions, as well as a move towards correctly allocating core and support functions to the relevant programmes and subprogrammes


P 2 : SOCIAL WELFARE SERVICES

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SUMMARY – P 2 : WELFARE SERVICESSUMMARY – P 2 : WELFARE SERVICES


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

R millionOutcome Outcome Medium-term estimates

Management and Support 1 433 1 752 1 991 1 584 1 475 1 658 1 727

Services to Older Persons 715 868 822 884 958 1 036 1 067

Services to Persons with Disabilities 354 404 432 477 473 503 528

HIV and AIDS 564 678 663 727 701 692 724 Social Relief 38 41 41 98 82 46 46 Total 3 105 3 742 3 949 3 770 3 689 3 936 4 092 Percentage growth (average annual) 2010/11 –

2013/14 2013/14 – 2016/17

Management and Support 3,4% 2,9%

Services to Older Persons 7,3% 6,5%

Services to Persons with Disabilities 10,5% 3,4%

HIV and AIDS 8,8% -0,1%Social Relief 36,3% -22,4% Total 6,7% 2,8%

EXPENDITURE ANALYSISEXPENDITURE ANALYSISP 2 Welfare ServicesP 2 Welfare Services

• Programme 2: Social Welfare Services sees its share of the total allocation decrease over the MTEF period, from 24.7 per cent in 2014/15 to 21.6 per cent in 2017/18.

• This partly reflects the re-allocation of funds over the MTEF period in line with the new budget structure, and is also indicative of the focus on spending on children in Programme 3


P 3 : CHILDREN AND FAMILIES

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P 3 : CHILDREN AND FAMILIESP 3 : CHILDREN AND FAMILIES


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

R million Outcome Outcome Medium-term estimates

Management and Support 187 346 337 516 722 776 788

Care and Services to Families 138 190 205 240 240 249 264

Child Care and Protection 859 1 023 1 165 1 643 1 653 1 903 2 106 ECD and Partial Care 994 1 216 1 197 1 359 1 835 1 858 1 936 Child and Youth Care Centres 446 506 594 618 890 932 1 001

Community-Based Care Services for Children 108 135 73 304 483 574 615

Total 2 732 3 416 3 571 4 680 5 824 6 292 6 709 Percentage growth (average annual) 2010/11 –

2013/14 2013/14 – 2016/17


Care and Services to Families 20,3% 3,2%

Child Care and Protection 24,1% 8,6%ECD and Partial Care 11,0% 12,5%Child and Youth Care Centres 11,5% 17,5%

Community-Based Care Services for Children 41,2% 26,4%

Total 19,6% 12,8%

EXPENDITURE ANALYSISEXPENDITURE ANALYSISP 3 Children and FamiliesP 3 Children and Families

• The share of total funds allocated to Programme 3: Children and Families increases from a projected 36.8 per cent in 2014/15 to 38.6 per cent in 2017/18, continuing the strong growth seen in the historical period.

• This is explained in part by the focus on early childhood development, which is a subprogramme in Programme 3 that has received significant additional allocations over the years.

• Secondly, this growth is driven by the re-allocation of funds over the MTEF period from Programme 2 to Programme 3, in line with the new budget structure


P 4 : RESTORATIVE SERVICES

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P 4 : RESTORATIVE SERVICES


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


Management and Support 65 86 98 235 314 351 365

Crime and Prevention and Support 563 594 641 812 925 958 1 006

Victim Empowerment 102 122 134 207 276 311 329

Substance Abuse, Prevention and Rehabilitation 233 254 281 344 379 441 469

Total 962 1 054 1 154 1 598 1 895 2 060 2 169 Percentage growth (average annual) 2010/11 –

2013/14 2013/14 – 2016/17


Crime and Prevention and Support 13,0% 7,4%

Victim Empowerment 26,6% 16,8%

Substance Abuse, Prevention and Rehabilitation 14,0% 10,8%

Total 18,4% 10,7%

EXPENDITURE ANALYSISEXPENDITURE ANALYSISP 4 Restorative ServicesP 4 Restorative Services

• The addition of R124 million for the construction of substance abuse treatment centres in Eastern Cape, Free State, North West, and Northern Cape results in the share of total funds allocated to Programme 4: Restorative Services, escalating from 12.1 per cent in 2014/15 to 13.7 per cent by 2017/18.


P 5 : DEVELOPMENT AND RESEARCH

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P 5 : DEVELOPMENT AND RESEARCH


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


Professional and Administrative Support

393 514 555 601 626 667 695

Community Mobilisation 4 5 4 8 18 21 23 Institutional Capacity Building and Support for NPOs

134 164 149 220 284 332 351

Poverty Alleviation and Sustainable Livelihoods

244 265 246 330 351 373 402

Community Based Research and Planning

9 12 9 19 15 16 18

Youth Development 119 164 174 208 225 223 239 Women Development 31 32 16 20 38 37 37

Population Policy Promotion 37 34 31 28 43 45 49

Total 971 1 189 1 184 1 432 1 600 1 714 1 813 Percentage growth (average annual)

2010/11 –

2013/14

2013/14 – 2016/17

Professional and Administrative Support

15,2% 5,0%

Community Mobilisation 28,4% 44,5%Institutional Capacity Building and Support for NPOs

18,0% 16,9%

Poverty Alleviation and Sustainable Livelihoods

10,5% 6,8%

Community Based Research and Planning

26,2% -1,9%

Youth Development 20,4% 4,8%Women Development -14,3% 23,3%

Population Policy Promotion -8,7% 20,4%

Total 13,8% 8,2%

EXPENDITURE ANALYSISEXPENDITURE ANALYSISP 5 Development and ResearchP 5 Development and Research

• The share allocated to Programme 5: Development and Research, remains constant at 10.3 per cent over the MTEF period, after a very slight increase from 10.2 per cent in 2014/15.


FUNDING PRESSURES• ECD:

– There is lack of quality assurance in terms of ECD centres, as all centres are not funded for 264 days a year. There is shortage of funds to increase the coverage to more children.

• Social Worker Absorption: – There is lack of funding for carry-through costs of the absorbed Social Worker

Graduates as well as the absorption of additional graduates.

• ISIBINDI: – There is a lack of funding for provision of CYCC stipends and employment of

these workers.

• Substance Abuse Centre: – Eastern Cape, Free State, North West and Northern Cape lack funding for the

running costs of the Substance Abuse Centres.


THANK YOU!


31 october 20151select committee1 dsd annual performance report (01 april 2013 – 31 march 2014)...

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