PUBLIC HEARINGS ON CONDITIONAL GRANTS

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PUBLIC HEARINGS ON CONDITIONAL GRANTS CAPITAL
EXPENDITURE

• GAUTENGDEPARTMENT OF SOCIAL DEVELOPMENT
• 3 MAY 2006

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CONDITIONAL GRANTS ALLOCATION AND EXPENDITURE
FOR 2005/06 FINANCIAL YEAR
R 000 2005/2006 BUDGET 2005/2006 ACTUAL EXP SPENT AT YEAR END
1. HIV/AIDS Community-based Care 20,341,000 20,341,000 100
2. Integrated Soc. Dev. Serv. 27,904,000 22,148,000 79
3. Social Assist. Admin 350,000,000 293,949,000 84
4. Social Assist. Transfers 6,454,145,000 6,128,956,000 95
6,852,390,000 6,465,394,000
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(A)HIV/AIDS CONDTIONAL GRANTS

• The National HIV was spent entirely for the
  2005/06 financial year.
• This can be attributed to long established
  relationships which existed with Service
  Providers that have been rendering the services
  on behalf of the Department.
• All approval letters were completed in time to
  ensure almost immediate disbursement of funds
  from the beginning of the financial year

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(B)INTERGRATED SOCIAL DEVELOPMENT SERVICE GRANT

• The integrated program was introduced in the
  financial year under review as a replacement of
  the Emergency Food Security program
• 79 of the Allocation for the 2005/06 financial
  year was spent as at the end of the financial
  year as the business plan for the programme was
  concluded by the Province and approved by
  National Department in August 2005

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(B)INTERGRATED SOCIAL DEVELOPMENT SERVICE GRANT

• On approval of business plans by National
  Department additional staff charged with the
  responsibility of implementing this programme had
  to be appointed which further resulted in timing
  savings realized in this programme.
• Through the Departmental Monitoring and
  Evaluation initiatives, funding which was
  earmarked for disbursement to two Service
  Providers had to be reduced as they did not
  comply with the terms of the Service Level
  Agreements entered into with the Department.

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(C)SOCIAL ASSISTANCE ADMINISTRATION AND TRANSFERS

• The reason for the underspending during the
  2005/06
• financial year in respect of grant transfer
  payments are
• For the first time in many years the allocation
  was sufficient and no transfer money from social
  grants was used to fund NGOs who provide social
  development services on behalf of the Department.
  In previous financial years substantial amounts
  were taken from Programme 2 in this regard.
• 2005/06 was a year in which the antifraud and
  corruption campaign championed by the National
  Minister and spearheaded by the Special
  Investigation Unit, gained momentum and enjoyed
  high visibility. The Indemnity Campaign allows
  identified 7500 persons who were receiving grants
  to which they were not entitled. This high
  profile campaign as well as the prosecution of
  corrupt staff members and the public severed to
  deter people from applying and make false
  declarations and the number of new applications
  per month decreased.

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(C)SOCIAL ASSISTANCE ADMINISTRATION AND TRANSFERS

• The decline in the number of applications also
  meant a decrease in the number of new grants
  added to the system and a subsequent decline in
  the amount spent on administrating these grants.
  (Less computer time, less in handling fees etc)
• In terms of Social Relief of Distress less than R
  1 Million was spent in previous financial years
  yet for 2005/06 an amount of R 12 Million was
  allocated. Despite intensified efforts to assist
  those in situation of dire need the allocation
  was not spent
• Provincial Treasury was informed in this regard
  through the monthly In Year Reports.

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CAPITAL ALLOCATION (Excludes Infrastructure
allocation suspended to Public Works)
BUDGET EXPENDITURE SPENT
Programme 1 9,957,000 7,964,000 80
Programme 2 2,000,000 1,769,00 88
Programme 3 987,000 707,000 72
Programme 4 322,000 142,000 44
Programme 5 21,000 16,000 76
Programme 6 20,000 19,000 95
Avg.Spending for the Department Avg.Spending for the Department Avg.Spending for the Department 76
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CAPITAL ALLOCATION (Excludes Infrastructure
allocation suspended to Public Works)

• Though the Department spent in excess the average
  76 in other programmes ,the new reporting
  framework still posses a challenge in properly
  budgeting for items of expenditure which have to
  be incurred against this economic class. (ScOA).
• PROGRAMME 2 There were delays in the appointment
  of support staff in this programme which resulted
  underspending in this Economic Class
• Programme 3 This has been as a result of delays
  experienced with the ordering of Equipment
• Programme 4 As a result of the Introduction of
  new conditional grants (Integrated Social Dev.),
  there was a need to appoint additional staff to
  be in charge of this programme.

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INFRASTRCTURE ALLOCATION 2005/06
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Department of Social DevelopmentCapital
Maintenance Expenditure 2005-06

• Allocations From Provincial Treasury R
  24,420,000
• Transfers to DTRPW
  (R 17,420,000)
• Remaining in the Department R
  7,000,000
• DTRPW Rollover from 2004-05 R
  3,200,000
• Amount suspended to Public Works during the
  Adjustments
• period
• Amount was with Public Works as result of
  approval of Roll
• Over request made

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INFRASTRUCTURE 2005-2006

• Capital Expenditure
• Walter Sisulu Centre R 5,220,000
• Jabulani R 214,000
• Jubileum R 103,000
• Magaliesoord R 1,100,000
• Tutela R 451,000
• Van Ryn R 409,000
• TOTAL R 7,520,000

• Maintenance
• Retention R 7,000,000
• Preventative R 3,600,000
• Statutory R 5,400,000
• Routine R 4,100,000
• Total R 20,100,000
• Actual Expenditure incurred during
• 2005/06 financial year

After the end of the 2005/06 Financial year, the
DPWTR reported variation in the cost of the
project on the conversion project in Walter
Sisulu from Place of Safety to Secure Care of an
estimated additional R 1,5m.
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Trends in Expenditure

• The planning of the Capital project took place in
  the 1st and 2nd Quarter and scheduled to commence
  in the 3rd Quarter.
• There were however delays experienced in the 4th
  Quarter which resulted in rescheduling the
  handing over to July 06.
• DTRPW experiencing quality control challenges
  resulting in repeat works and extended timeframes
  for completion of works

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Thank you!