Presentation to the Select Committee on Finance on Conditional Grants and Capital Expenditure for the 4th quarter of the 2005/06 financial year

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Presentation to the Select Committee on Finance
on Conditional Grants and Capital Expenditure
for the 4th quarter of the 2005/06 financial year

• Presented on behalf of the Honorable MEC
• by the Acting Head of the Department of Health
  and Social Development
• Mr. M Mogane
• For Vote -12 Social Development
• 3 May 2006

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Past Departmental Expenditure Trends Total -
Equitable Share - Con Grants
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Capital Budget Expenditure trends
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Capital Budget - MTEF
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Capital Actual Expenditurefor the 2005/06 year
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Capital Expenditure

• The department has managed to spend all of its
  capital budget for 2003/04 while 97.3 was
  utilized in the 2004/05 financial year.
• 87.9 of Equitable Share and 95.9 of the Con
  Grant for the 2005/06 year has been utilised.
• The budget for Buildings has been committed and
  payments are dependant on the progress made by
  the contractors on site
• The department is responsible for capital
  planning while the Dept of Public Works is the
  implementing agency.
• The IDT has also been engaged to assist in
  implementing capital works projects
• The department did transfer R 101 m to the IDT to
  complete the Infrastructure plans for SASSA.
• A SLA has been entered into to formalize the
  arrangement to implement the SASSA infrastructure
  plan.

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Previous expenditure Trend onConditional Grants
- 2003/04 2004/05
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Notes on Conditional Grants

• The conditional grants had shown a steady
  increase to grow from R 7,713 million in 2001/02
  to R 639.732 million in 2004/05.
• HIV AIDS increased from R1.601m to R4.634m in
  2004/05.
• The main increases are in respect of new grants
  that were added as per the schedule above.
• Social Grants Arrears
• Child Support Grant Extension
• Food Security / Integrated Social Services
• The MTEF saw the introduction of Programme 2
  Social Security Services being fully funded by a
  conditional grant to prepare for SASSA.
• A full transfer of the budget was received for
  the period 2001/03 to 2005/06.
• As from 1 April 2006 the Vote does not have any
  Conditional Grants as the amounts are included in
  the Equitable Share

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Conditional Grants Actual expenditure of the
financial year 2005 / 06
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Conditional Grants

• HIV AIDS
• The grant was utilised at 82.6 .
• There was no new staff employed under this
  programme on the conditional grant resulting in
  an under expenditure of R 1.23 m in respect of
  Personnel.
• Non expenditure on Capital and Goods and Services
  related to the non employment amounted to R 188
  000
• R 170 000 of the R 6.67 m for transfer to NGOs
  was due to late receipt of their business plans,
  they will be allocated funds in the current year.
  
• The conditional grant is now part of the
  Equitable Share and is added to the funds already
  budgeted for this priority in the 2006/07
  financial year

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Conditional Grants

• Integrated Social Development Services
• The amount received as a roll over of R 42.947 m
  has been fully utilised in respect of Food
  Security.
• The current grant has only been utilised by 40
  or R 24.1 million for development projects run by
  NGOs and CBOs and for capacity building of 30
  community development practitioners.
• The funds for food security R 36.9 m (TO BE
  ROLLED OVER) will be fully utilised and food
  distribution will commence in May 2006 to 32 000
  identified families.
• The delay in implementation is due to the late
  awarding of the tender because the business plan
  was approved late.
• The department will advertise a tender in August
  for the current financial year that is funded
  from the Equitable Share.

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Conditional Grants

• Expenditure - SASSA Grants
• Administration
• The Grant was not fully utilised and R 37.5 m is
  unspent
• This is due to
• Late advertisement of Posts for SASSA and non
  filling of the posts due to a SASSA decision.
• Non splitting of the SASSA function from the
  Department resulting in savings.
• Late acquisition of leased property

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Conditional Grants

• Expenditure - SASSA Grants
• The actual amount was R 5.37 m over the budgeted
  amount.
• This is as a result of an over expenditure of R
  5.492 m on the payment of Social Grants.
• National will be requested to fund this
• The department was continually engaging the
  National office on the projections and expected
  over expenditure and Provincial Treasury was
  informed by means of the IYM process and
  Achievability Exercises
• As from 1 April 2006 SASSA takes over this
  function and the department does not have any
  budget but will assist on an Agency basis to
  ensure service delivery is not compromised while
  the transfer of the function takes place.