eastern cape department of social development provincial budgets and expenditure review...

Eastern Cape Department of Social Development

Provincial Budgets and Expenditure ReviewProvincial Budgets and Expenditure Review2001/02-07/082001/02-07/08

18-October-200518-October-2005

Presentation OutlinePresentation Outline Strategic Responsibilities of Social Development

Overview-2001/02-07/08

Budget Allocations-2001/02-07/08

Explanation of Expenditure trends

Challenges

Strategic Responsibilities Strategic Responsibilities Social Development sector is responsible for the

provision of:Social assistance transfers, as income support, to

eligible poor and vulnerable individuals, mostly the elderly, people with disabilities and children under the age of 14.

Social welfare services to address the causes and impact of HIV and AIDS, drugs and substance abuse, vulnerability during certain phases of the lifecycle (especially childhood and old age) and services to people with disabilities.

Community and household programmes which provide food relief, alleviate poverty, community support and development.

Overview 2001/02Overview 2001/02 As early as 2001/02, the delivery process of the

department was based on the thrust to shift from “Welfare” approach to social development.

The following groups were targeted for service delivery: Children Women Youth People with disabilities and Older persons

Overview 2002/03Overview 2002/03 During 2002/03, the President announced a

turnaround plan aimed at enhancing service delivery, uprooting corruption and promoting good governance.

The ten year provincial development and growth plan was developed, and gave the department a framework for the acceleration of the movement from traditional welfare to social development.

During this year, 300 000 children were in receipt of social grants.

Overview 2002/03 Cont..Overview 2002/03 Cont.. This huge success can be attributed to an integrated

community registration campaign conducted jointly with the departments of Home Affairs, Health, Education, The South African Police Services as well as Housing, Local Government and Traditional Affairs.

The department also established the first ever centralized electronic filing system in the country.

Food parcels were also distributed to 36 513 poor household in the most needy communities including child-headed household and families affected by HIV and AIDS through the food emergency scheme.

Overview 2003/04Overview 2003/04 During 2003/04 the department continued its focus

towards social development, which had an impact on the competencies required of the work cadre and the budget.

The province resolved to improve service delivery through a district development model, with a view to ensuring that what the district will be doing is different from the province

In an endevour to improve Social security the President in the State of the Nation address, made a commitment to improve access to child support grant.

Overview 2003/04 Cont..Overview 2003/04 Cont.. This resulted in the EC province mobilizing

communities through IMBIZOs to market and increase the levels of capturing of child support beneficiaries.

The province appointed panelists in 24 districts to assist in fast tracking the assessment of disability grant beneficiaries.

Overview 2004/05Overview 2004/05In 2004/05, the following priorities were identified Transformation of Welfare Services which focuses

on New Service Delivery Model and Child Care and Protection.

Integrated Social Security with a view to improving Grant administration and fraud management

Special development areas which include HIV and AIDS and Victim empowerment programme.

Extension of the Child Support Grant to include children between the ages of 7 and 11.

Overview 2005/06Overview 2005/06 In 2005/06, while the department continues with

all other programmes from previous years, there is more emphasis on strengthening Social Welfare Services as well as Integrated Poverty Eradication programme through an Integrated Social Development Services Grant, which replaced NFEP.

In the same year, the department started with the anticipation of the excision of Social Security and enthusiasm to establish the new Department of Social Development.

Overview 2005/06 Cont.The service delivery model seeks to promote the

development paradigm and seeks to strike a balance between social and economic development, mediate between Welfare and Social Development and champion social development approach.

The departmental priorities are further integral part of PGDP and integrated into social needs cluster priorities in which the department leads some priority areas.

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Expenditure vs. Budget Allocation 2001/02-07/08

2001/02 Actual 4,663,013 12%2002/03 Actual 6,425,476 -1%2003/04 Actual 8,444,747 -8%2004/05 Actual 9,785,791 -1%2005/06 Est. Actual 10,910,334 2%2006/07 MTEF - - 2007/07 MTEF - -

637,817

Expenditure R'000

% Unspent

Financial Year Variance Budget

R'000

7,846,796 9,687,860

11,136,295

5,300,830

12,353,529 13,343,745

-71,654 -597,951 -97,931 225,961

- -

6,353,822

13

EXPENDITURE TRENDS

Rmillion2001/02 Actual

2002/03 Actual

2003/04 Actual

2004/05 Actual

2005/06 Est. Actual

2006/07 MTEF

2007/08 MTEF

Budget Allocation 4,663 6,425 8,445 9,786 11,136 12,354 13,344

Transfers and Susidies 4,347 5,973 7,668 9,004 10,187 11,301 12,213

Percentage growth (Average annual)37,8% 31,4% 15,88% 28,3% 10,9%

Expenditure, 2004/05 to 2007/08

2001/02-2004/05 2004/05-2007/08

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Expenditure Trends

Expenditure trends reflect that Eastern Cape spending has more than doubled over the last three years.

Between 2001/02 and 2004/05, average growth reflects 28,3% which is almost the same as Social Development in the country (28,8%)

Budget allocated for 2005/06 has increased by 13,8% from previous year 2004/05, and between 2004/05 and 2007/08 the average growth in the EC province is 10,9%, while country wide it is on average 11,6%

Growth is expected to slow down because Child Support Grant has been phased out.

15

EXPENDITURE TRENDS Cont..

Rmillion 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08Compensation of employees 160 192 210 227 331 353 372 Other Current Payments 156 229 556 549 528 641 720 Transfers and Subsidies 4,347 5,973 7,668 9,004 10,020 11,301 12,213 of which: Social Security 4,216 5,826 7,535 8,843 9,767 11,049 11,951 Payments for Capital Assets - 32 11 5 31 59 39 Total 4,663 6,426 8,445 9,785 10,910 12,354 13,344 Percentage ShareCompensation of employees 3.4% 2.99% 2.49% 2.32% 3.03% 2.86% 2.79%Other Current Payments 3.3% 3.56% 6.58% 5.61% 4.84% 5.19% 5.40%Transfers and Subsidies 93.2% 92.95% 90.80% 92.02% 91.84% 91.48% 91.52%of which: Social Security 90.4% 90.66% 89.22% 90.37% 89.52% 89.44% 89.56%Payments for Capital Assets - 0.50% 0.13% 0.05% 0.28% 0.48% 0.29%Total 100.0% 100.00% 100% 100.00% 100.00% 100.00% 100.00%

Eastern Cape DoSD: Expenditure by Economic Classification

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Expenditure Trends- Economic Classification

The highest proportion of expenditure between 2001/02 and 2004/05 goes to Social Security ( average 90,1%)

The concern is on Compensation of Employees which has been declining slightly between 2001/02 and 2004/05, and which reflecting an increase in 2005/06, it is once again declining in the MTEF

The province is also experiencing a challenge in funding of Capital Assets.

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Percentage growth (Average annual) Overall OverallCompensation of employees 15.9% 17.50%Other Current Payments 33.20% 13,2%Transfers and Subsidies 29.10% 11,3%Payments for Capital Assets 34,4% 8%Total

19,3%

27,7% 10,72

Eastern Cape DoSD: Expenditure by Economic Classification2001/02-2004/05 2004/05-2007/08

12,5%

-60%

10%

192%

62,8%

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Rmillion 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08Administration 77 119 117 125 113 132 157 Social Assistance Grants 4,488 6193 7960 9367 10,597 11,746 12,668 Developmental Welfare Services 88 97 255 252 339 386 423 Developmental and Support Services 9 15 112 41 86 89 93 Demographic Trends 1 1 1 1 1 1 2 Total 4,663 6,425 8,445 9,786 11,136 12,354 13,343 Percentage of total expenditureAdministration 1.65% 1.85% 1.39% 1.28% 1.01% 1.07% 1.18%Social Assistance Grants 96.25% 96.39% 94.26% 95.72% 95.16% 95.08% 94.94%Developmental Welfare Services 1.89% 1.51% 3.02% 2.58% 3.04% 3.12% 3.17%Developmental and Support Services0.19% 0.23% 1.33% 0.42% 0.77% 0.72% 0.70%Demographic Trends 0.00 0.02% 0.01% 0.01% 0.01% 0.01% 0.01%Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%Percentage growth (Average annual) National NationalAdministration 29,3% 5,9%Social Assistance Grants 30% 11,6%Developmental Welfare Services 9% 11,6%Developmental and Support Services 37% 22,8%

19,3%28,06%58,1%

10,5%

217% 39,3%

Eastern Cape DoSD: Expenditure by Programme

2001/02-2004/05 2004/05-2007/0819,9% 8,7%

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R'000 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08Financial Management 642 1,200 - - - - - Child Support Extension - - 272,130 784,399 - - - Social Security Grants - - - - 9,946,979 11,049,415 11,951,314 Social Assistance Administration - - - - 649,890 696,113 717,079 HIV and AIDS 1,500 4,798 6,658 6,815 13,979 14,026 14,424 Integrated Social Development Services Grant 94,133 9,891 94,133 99,781 104,770 Women Flagship 150 - - - - Regulation 11 449,515 449,515 -

Total 451,807 455,513 372,921 801,105 10,704,981 11,859,335 12,787,587 Percentage of total expenditureFinancial Management 0.14% 0.26% - - - - - Child Support Extension - 0.00% 72.97% 97.91% - - - Social Security Grants 0.00% 0.00% - - 92.92% 93.17% 93.46%Social Assistance Administration - 0.00% - - 6.07% 5.87% 5.61%HIV and AIDS 0.33% 1.05% 1.79% 0.85% 0.13% 5.87% 0.11%

0.00% 25.24% 1.23% 0.88% 0.84% 0.82%

Women Flagship 0.03% - - - - - - Regulation 11 99.49% 98.68% - - - - -

Total

Eastern Cape DoSD: Conditional Grant Expenditure

Integrated Social Development Services Grant

0.00%

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Expenditure Trends-Conditional Grants

HIV and AIDS Conditional grant reflects 87% average growth in spending between 2001/02 and 2004/05, while from 2004/05 to 2007/08 there is a decline of 51% in average growth (i.e. from 87% to 36%).

With effect from 2005/06, the bulk of Social Development spending is funded through conditional grants in preparation for the excision of SASSA.

Social Security grant for the current financial year is R9,947 billion, and Social Assistance Administration is R650 million, which together make 99% of the total grant allocations.

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Expenditure Trends-Conditional GrantsSpending growth on Disability grant between

2001/02 and 2004/05 is on average 50% because the province has strengthened monitoring measures for eligibility.

As the province becomes more efficient at eliminating the problem of in eligible people getting grants, spending and beneficiary numbers have declined noticeable.

These improvements assisted in reducing the projected over-spending for 2004/05 financial year which was initially R1,2 billion and as at 31 March 2005, the province only reflected an over-spending of 98 million.

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Rand Value of Grants per monthRand value of grants, per month, with effect from

Type of Grant Jul 1999 Jul 2000 Jul 2001 Oct. 20002 Apr. 2003 Apr. 2004 Apr 2005Old Age 520 540 570 640 700 740 780War Veterans 538 558 588 658 718 740 780Disability 520 540 570 640 700 740 780Grant-in-aid 94 100 110 130 150 170 180Foster Care 374 390 410 460 500 560 590Care Dependency 520 540 570 640 700 740 780Child Support 100 100 110 140 160 170 180

Social grants expenditure by type of grant and province, 2001/02 to 2007/08R million 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 % growth Old Age 12,954 15,285 17,146 18,504 19,996 21,443 23,105 War Veterans 23 27 34 36 29 25 22 Disability 4,585 7,201 10,329 12,570 14,438 15,510 16,932 Grant-in-aid 1 1 2 20 - - - Foster Care 364 787 1,142 1,563 2,044 2,376 2,712 Care Dependency 226 309 639 760 938 1,040 1,147 Child Support 2,400 4,558 7,690 11,431 14,483 16,575 17,805 Total 20,553 28,168 36,982 44,884 51,928 56,969 61,723 Eastern Cape 4,215 5,819 7,553 9,006 9,928 11,030 11,930

Eastern Cape DoSD: Value of Scial Grants by type of grant, July 1998 to April 2004

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Expenditure & Beneficiary Numbers

R million2001/02 Actual

2002/03 Actual

2003/04 Actual

2004/05 Actual

2005/06 Est. Actual

2006/07 MTEF

2007/08 MTEF

2,921 3,232 3,492 3,694 3,999 4,279 4,577 Beneficiary numbers as at end April

39,720 401,204 409,785 414,161 415,082 Disability Grant expenditure, 2001/02 to 2007/08

856 1,656 2,419 2,698 2,750 2,932 3,182 Beneficiary numbers as at end April

138,847 156,307 218,273 301,415 236,400 Care Dependency Grant expenditure, 2001/02 to 2007/08

- 94 123 191 224 249 273Beneficiary numbers as at end April

5,957 7,343 11,737 17,578 19,930

Old Age and War Veterans grants expenditure and beneficiary numbers, 2001/02 to 2007/08

24

Expenditure & Beneficiary Numbers

R million2001/02 Actual

2002/03 Actual

2003/04 Actual

2004/05 Actual

2005/06 Est. Actual

2006/07 MTEF

2007/08 MTEF

Child Support grant expenditure, 2001/02 to 2007/08438 703 1,333 1,945 2,546 3,079 3,335

Beneficiary numbers as at end April168,249 333,117 405,815 728,854 1,012,816

Foster Care grant expenditure, 2001/02 to 2007/08- 133 182 306 410 491 564

Beneficiary numbers as at end April16,258 17,030 24,638 36,565 50,413

Social Assistance Compensation of Employees expenditure, 2001/02 to 2007/0829 36 48 55 116 117 123

Personnel numbers440 388 172 485 468

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Beneficiary Numbers

Apr 2001 Apr 2002 Apr 2003 Apr 2004 Apr 2005Type of GrantOld Age 1,877,538 1,903,042 2,009,419 2,060,421 2,093,075 2.8%War Veterans 6,175 5,266 4,594 3,961 3,340 -14.2%Disability 627,481 694,232 953,965 1,270,964 1,307,459 20,1%Grant-in-aid 9,489 10,332 12,787 18,170 23,131 25.0%Foster Care 85,910 95,216 138,763 200,340 256,325 31.4%Care Dependency 28,897 34,978 58,140 77,934 85,818 31,3%Child Support 974,724 1,907,774 2,630,826 4,309,772 5,633,647 55,1%Total 3,610,214 4,650,840 5,808,494 7,941,562 9,402,795 27.0%Eastern Cape 722,440 903,975 1,071,448 1,501,031 1,741,152 24,9%

Eastern Cape DoSD: Scial Grants beneficiary numbers by type of grant, April 2001 to April 2005% growth (average annual)

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Expenditure per programme

R'0002001/02 Actual

2002/03 Actual

2003/04 Actual

2004/05 Actual

2005/06 Est. Actual

2006/07 MTEF

2007/08 MTEF

Administration 70,168 86,063 55,463 98,573 127,528 149,027 156,416 2,455 3,646 3,370 3,345 3,935 4,135 4,342

Care of the Aged 49,714 47,468 52,835 45,636 58,513 44,727 46,964 Crime Prevention, Rehabilitation 1,281 1,382 3,149 3,372 26,718 58,651 79,933 Services to the disabled 13,510 13,722 17,326 10,933 16,959 17,823 18,714 Child and Family Care and 82,637 91,311 123,187 89,327 105,129 111,471 116,944 Total 219,765 243,592 255,330 251,186 338,782 385,834 423,313 Number and level of social workers working in government

SW SSW PSW ASWM SWMNumber of Social Workers Level 7 Level 8 Level 9 Level 10 Level 11

Social Welfare Services expenditure 2001/02 to 2007/08

Treatment and prevention of substabce abuse

27


Rmillion2001/02 Actual

2002/03 Actual

2003/04 Actual

2004/05 Actual

2005/06 Est. Actual

2006/07 MTEF

2007/08 MTEF

Administration 848 15,227 2,281 22,166 25,360 16,333 19,872 Youth Development 2,545 - 217 2,501 18,026 18,181 18,340 HIV and AIDS - 3,231 7,465 6,815 21,579 21,759 22,296 Poverty Alleviation 3,393 - 99,803 9,891 22,349 22,468 22,593 NPO and Welfare organisation development 1,696 - 2,408 3 10,235 10,247 10,259 Total 8,482 18,458 112,174 41,376 97,549 88,988 93,360

Development and Support Services expenditure 2001/02 to 2007/08

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Social Welfare Services reflects an average declining growth between 2001/02 and 2004/05, however, between 2004/05 and 2007/08, average growth has picked up by 14,9% (i.e. from 4,6% to 19,5%).

This growth is visible in Administration due to improvement of Social Workers’ salaries as well as in Child and Youth Care and Protection.

29


Social Welfare Services reflects an average declining growth between 2001/02 and 2004/05, however, between 2004/05 and 2007/08, average growth has picked up by 14,9% (i.e. from 4,6% to 19,5%).

This growth is visible in Administration due to improvement of Social Workers’ salaries as well as in Child and Youth Care and Protection.

30


Development and support programmes reflects a significant increase in spending of 194,5% between 2001/02 and 2004/05, while growth has declined drastically between 2004/05 and 2007/08 by 149,7% (i.e. from 194,5% to 44,8%.

The growth is mainly due to HIV and AIDS and Integrated Social Development Services Grant (ISDSG).

The ISDSG focuses on youth development, HIV and AIDS etc.

Expenditure TrendsIn 2001/02, the department recorded an under-

spending of R638 million (12% of the allocated budget)

This was mainly due to Re-registration campaign as well as reviews of Social Security grants

In 2002/03, the department reflected an over-spending of R71 million due to Social Security (In respect of Care of the aged and Care of Disabled R133 million and R344 million respectively)

Expenditure Trends Cont.In the same year, Child and Family Care

reflected an under-spending of R363 million.This was mainly due to non- registration of

children and parents had no ID’s especially those from former homelands.

In 2003/04, the department reflected an over-spending of R598 million as a result of under-funding in respect of grants.

The department was never allocated the requested amount during the budget process.

Expenditure Trends Cont. In 2004/05 overall the department overspent by

R98 million mainly due to Child Support Grant and Foster Care Grant

Programme 4 (Development and Support Services reflected an under-spending of R84 million in respect of NFEP grant.

There was a delay in the tender process by National DoSD, and rollover request has been made to Provincial Treasury.

34

Conditional Grants2001/02

Financial Management Actual 642 0

HIV and AIDS Actual 1,500 0

Women Flagship Actual 150 0

Social Grants Actual - 0

TOTAL - 2,292

-

-

-

-

Expenditure R'000

% Unspent Variance Budget

R'000 Grant

642

1,500

150

451,807

449,515 449,515

35


Financial Management Actual 1,100 100 8%

HIV and AIDS Actual 3,231 1,567 33%

Actual 240,312 46%

Actual 1,312 5,048 79%

TOTAL - 245,955

202,843 443,155

1,200

4,798

455,513

Grant

54%

Expenditure R'000 % Unspent Variance Budget

R'000

Regulation 11-Back Pay Transfers

Regulation 11-Back Pay Administration

6,360

209,558

36


Child Support Grant Ext. Actual 178,837 34

HIV and AIDS Actual 6,658 - 0

Actual 94,133 - 0

Social Grant Arrears 58,944

TOTAL - 338,572

272,130

6,658

94,133

372,921

Variance Budget R'000 Grant

93,293

Expenditure R'000

% Unspent

Food Energency Relief (NFEP

- -

-

37


2004/05 Actual 9,891

HIV and AIDS Actual 6,815 274

Child Support Ext. Actual 784,399

TOTAL TOTAL 801,105

118,578 902,977

94,133

7,089

1,004,199

84,242

Expenditure R'000

Financial Year Variance Budget

R'000 Grant

Food Energency Relief (NFEP

203,094

38


Social Security Grants Est. Actual 9,766,394 1.8%

60,587 9.3%

-

HIV and AIDS Est. Actual 13,979 - 0.0%

Est. Actual 94,133 - 0.0%

-

TOTAL - 10,463,809

589,303

-

Food Emergency Relief

94,133

10,704,981

Est. Actual

-

Budget R'000 Grant

9,946,979

13,979

Administration of Social Assistance Grants

649,890

180,585

Projected Expenditure As at September 2005

R'000

% Unspent Variance

2.5%271,564

Conditional Grants Expenditure Trends

In 2001/02 unspent Regulation 11 grant only received from National in March 2002 and was rolled over to 2002/03

In 2002/03 Regulation 11 Back Pay Transfers and Regulation 11 Back Pay Administration under-spent by 46% and 79% respectively

In 2003/04, 34 % of Child Support Grant was not spent.

In 2004/05, Food Security grant reflected an under-spending of 89,5% due to delays in tender processes by NDoSD

Conditional Grants Expenditure Trends Cont.

In 2005/06 projected under-spending of R241 million on Social Security Grants is reflected as at September 2005.

Priorities for 2006/07-08/09

In view of the changes that are taking place in the department, the Chief Directorate, which comprises of programme 3 and 4 had to review its focus to that of facilitating the development towards fully integrated interdependence of individuals, families, groups, organizations and communities into mainstream society.

The department views itself as agents of a planned social change.

Priorities for 2006/07-08/09 Cont..

In order to deliver on its mandate, the following strategic objectives have been developed:Elimination of absolute hunger and reduction of

poverty.Provision of programs that mitigate against

vulnerability to social risks (disablement, abuse, HIV and Aids, ageing etc).

Empowerment and development of communities.


The principles that drive our service delivery are as follows:Strength based approach.People’s centerednessSustainable livelihood andValue for human dignity and capability.


Transfer payment to NGO’s There is no harmony on tariffs for childcare and older

persons. The department is already exposed to litigations by

funded organizations who claim that they are discriminated, which is an issue covered by the promotion of Administrative Justice Act.

In spite of the fluctuation in the inflation rate the department has been unable to increase the tariffs for older persons since 2000/2001 financial year and in respect of children, tariffs were not increased since 1995/96.


The services are still concentrated in the urban areas and the rural poor are not accessing social services in the same manner as those who reside in the former Republic.

The department will be implementing a policy on financial awards with effect from 1 April 2006.

The policy is presenting a shift from per capita funding which is mainly focusing on unit cost to programme based funding which embraces delivery according to clear outputs and outcomes.


This approach presents a shift from business as usual that lacked significant impact to intervention that will facilitate greater impact and sustainability.

The danger of per capita funding is that it limits itself to direct benefits by beneficiaries without necessary focusing on the overall impact of the programme as reflected on the stated outputs.


Implementation of Child Justice BillThe Child Justice bill has been costed and is

presenting spikes on the budget for Social Crime Prevention.

The department in the Eastern Cape has been contributing to delays in the finalization of Child Justice Bill due to poor state of readiness for the implementation of the bill.

The province is unable to assess every arrested child within 48 hours because of the shortage of personnel.


Implementation of Child Justice Bill Cont.Some children are kept in police cells and prison

which is also illegal. The National department provided the province

with the conditional grant to implement the home based supervision which is one of the critical diversion programme and sentencing option in Child Justice Bill.

While the hot spots on crime have been identified we are unable to mitigate against the social impact on the youth.

Priorities for 2006/07-08/09 Cont...

Implementation of Child Justice Bill Cont.The department is facing litigations on children

who have committed crimes and placed in custody of parents and who re-offended thus leading to victims of crime suing the state.


Operationalisation of Community Development Centers

Over the years the department constructed 6 Community Development centers and 12 multi purpose centers were sourced on partnership with Transnet.

The communities will receive integrated package (range of services) of developmental social service located in their close proximity. These centers will serve as outreach points in which communities will be actively participating in their own development.


HIV AND AIDSThe department has relied on conditional grant

from the National Department for HIV and Aids until provincial Equitable Share allocation was received.

The provincial statistics reflect the incidents of HIV and Aids as 27,7 % in the Province and there has been a noticeable increase on child headed households.


HIV AND AIDSWith the roll out of ARV the demand will increase

for the department to provide services to the infected individuals just like any sick person is not allowed to take medication on an empty stomach.

The departmental focus on HIV and Aids is implementation of Home Community Based Care Programme (HCBC) which targets orphans and vulnerable children, while food supplements are provided to people living with Aids.


HIV AND AIDS In order to respond significantly to the

pandemic the department requires at least a fully-fledged HCBC per magisterial district.


Poverty Eradication ProgrammeThe province is second poorest Province with

67 % poverty rate among individuals and 77,7 % poverty rate among children.

The department relies on conditional grant for implementation of Poverty relief programme.

The key strategy to deal with poverty is Community Development strategy, which is driven from this programme.


Appointment of Social Workers, Probation Officers and Community Liaison Officers

The department benefited from Social Security on appointment of 100 Social Workers on contract to deal with backlogs on foster care and social relief of distress.

Services of 50 Community Liaison Officers is needed to strengthen the implementation of integrated development Services Grant.

CHALLENGES

In 2001/02, the department received a qualified audit report due to non-submission of supporting documentation deemed necessary to confirm validity, accuracy and completeness of transactions in ledger and expenditure accounts.

Engaged in a risk assessment process and identified the following key risk areas: Inadequate Human ResourcesFraud and, Inadequate Infrastructure.

CHALLENGES Cont.

During 2002/03 Social Security files continued to be a challenge.

The department received a qualification due to Ledger accounts and Treasury Balance.

Paying more attention to the participation and empowerment of communities in their own development in order to achieve sustainable development.

Strengthening and resourcing back office support at provincial and district level.

CHALLENGES Cont. During 2002/03 financial year, there was a need to

monitor closely CPS and All Pay to whom the department had outsourced payment of grants.

At beginning of 2004/05 financial year, the department was projecting to overspend by R1, 2 billion, however, because of improvements on efficiencies driven by the DoSD with the support from Provincial Treasury, the department managed to turn around the situation hence R98 million overspending.

2005/06 is faced with cost pressure on Goods and Services in respect of Fleet costs, while Transfers to NPOs reflect a projected overspending

CHALLENGES

For 2006/07 and MTEF, the remaining 5% (R608 million), after the excision of SASSA will have a negative impact on the mandate and operations of the department.

In order to avert that kind of a scenario, the additional R 585 million will greatly assist the department to deliver on its mandate.

In monetary terms, the overall amount that has been requested by the department without Social Security from Provincial Treasury for the next financial year is R1,2 billion.

CHALLENGES CONT. In the current financial year, the department is sharing

some of the administration costs with Social Security, e.g. IT costs, Security costs, and by next year, that kind of assistance will no longer be available.

The challenges faced by the department are such that if demands are not provided with appropriate resources the department may face litigations as some are obligatory in nature

The pressure exerted by these demands to the department poses challenges in which the available resources cannot match the demands for effective service delivery.

END END

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