Eastern Cape Department of Social Development

1
Eastern Cape Department of Social Development
Provincial Budgets and Expenditure
Review 2001/02-07/08
18-October-2005
2
Presentation Outline

• Strategic Responsibilities of Social Development
• Overview-2001/02-07/08
• Budget Allocations-2001/02-07/08
• 2005/06 First Quarter Expenditure trends
• Challenges

3
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.

4
Overview 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

5
Overview 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.

6
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.

7
Overview 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.

8
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.

9
Overview 2004/05

• In 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.

10
Overview 2005/06

• In 2005/06, while the department continues with
  other poverty alleviation 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.

11
Expenditure vs. Budget Allocation
2001/02-07/08
12
Departmental Financial Summary-First Quarter
13
Prog 1 Administration
14
Explanatory Notes Programme 1

• The projected savings is as result of delays in
  appointments, and has been offset by projected
  over expenditure of R15 million, which is
  directly as a result of budgetary constraints in
  respect of the fleet.
• Action taken
• Prioritization based on the new Service Delivery
  Model has been completed and posts have been
  advertised.
• The department is in the process of analysing the
  usage of vehicles to ensure that those which are
  not critically needed by the programmes may be
  returned back to Fleet Africa.
• If successful, the department is also looking
  forward to reprioritizing by approving subsidized
  cars to Social Workers.

15
Prog 2 Social Assistance
16
Explanatory Notes Programme 2

• To date, spending trends with regard to Social
  Grants reflect an under-spending of R164,7
  million because of the following reasons-
• Child Support Grant
• A possible over-spending R178,7 million as a
  result of
• Starting the year at a higher baseline than
  projected. This was as result of a large push of
  these grants in the last quarter of the previous
  financial year.
• The higher than projected take on rate this year
  for grants for children between 11 and 14 years
  of age
• A take on rate of 360 000 was projected this
  year, and as at the end of July 2005, 143 000
  attestations for children between the ages of 11
  and fourteen years of age had been taken.
• This trend is however expected to slow down as
  the saturation point is reached.

17
Explanatory Notes Programme 2

• Disability Grant
• A possible under-spending of R257,4 million is
  projected.
• This is as a result of commencing the year at a
  lower baseline than projected as a result of TDG
  suspensions.
• The growth rate for DGs has also been lower than
  projected as temporary grants are removed in the
  month of expiry. Thus attrition has an effect on
  the growth.
• Old Age Grant
• A projected under-spending of R37,1 million as a
  result of beneficiaries who were too young for
  the grant being removed (approximately 2 500).
• Foster Care
• A projected under-spending of R22 million as a
  result of slow court processes, and thus a slower
  take-on rate than projected.

18
Explanatory Notes Programme 2

• Care Dependency Grant
• A projected under-spending of R14,9 million as a
  result of the removal of over age children from
  the system.
• Comparison with previous financial year
• At this time last year, an over-spending of R1,2
  billion was projected, however as a result of the
  initiatives undertaken by the department to
  ensure that correct beneficiaries are paid and
  the elimination of fraud, the department has
  turned this situation around.

19
Explanatory Notes Programme 2

• The department has now put a process in place to
  suspend expired disability grants when they
  expire.
• The Disability Assessment Unit ensures that only
  legitimate DG beneficiaries come onto the system
• The Child Support teams are ensuring an
  accelerated uptake of CSG beneficiaries
• The MIS ensures that only legitimate
  beneficiaries do applications. Verifications at
  attesting stage eliminates PERSAL and GEPF cases.
• The inspectorate unit ensures that fraudulent
  cases on SOCPEN are eliminated.

20
Prog 3 Developmental Welfare Services
21
Explanatory Notes Programme 3

• The Chief Directorate has appointed 50 Social
  Workers who have already started in July. 100
  more Social Workers posts will be advertised in
  August.
• The projected savings also take into account the
  budget that has not been spent in the first
  quarter of the financial year, which we intend
  utilising in appointing contract Social Workers
  for the remaining period of the financial year.
• The Sub-programme Care of Older persons had
  budget cut of - R13 million in 2005/06 as
  compared to 2004/05, hence the projected
  overspending of R5,3 million.

22
Prog 4 Developmental and Support Services
23
Explanatory Notes Programme 4

• Funds were only received from National in June
  hence no spending in the period under review.
• Under-spending due to the fact that Business
  Plans for priority projects of the programme have
  only been evaluated in July with a view to
  disburse funds in August 2005 as the last date of
  submission of Business Plans was end of June
  2005.
• The Chief Directorate only finished the rounds in
  the districts on Operational Plans in early June,
  and there was full explanation of how to prepare
  Business Plans for the communities.

24
Explanatory Notes Programme 4

• The Business Plans will be approved and the
  roll-out of funds will be done during November
  2005, pending the approval of the rollover
  request.
• The appointment of contract Social Workers will
  address the backlog on Foster Care which is 12
  263 cases throughout the province
• This backlog includes cases that require
  visitation by Social Workers which is as a result
  of the high turnover of Social Workers in the
  department.
• 100 Social Workers are expected to assume duties
  on the 1st October 2005.

25
Explanatory Notes Programme 4

• Overall, the projected over-spending of R15
  million is as a result of misallocation of budget
  on Personnel to Programme 3.
• The newly introduced grant named Integrated
  Social Development Services (ISDS) was made known
  to the provinces in April 2005.
• The deadline for the submission of Provincial
  Business Plans was scheduled for 15th April 2005.
• Re-orientation of the staff on the ISDS grant was
  carried out immediately after the 15th of April
  2005.
• Project appraisals and community support towards
  compilation of Business Plans was done in May.
• Evaluation of Business Plans was done mid June,
  and were finally approved mid July.
• Funds started flowing after that and as at end
  June, R16,3 million has been disbursed.

26
Prog 5 Demographic Trends
27
EXPENDITURE TRENDS
28
EXPENDITURE TRENDS Cont..
29
EXPENDITURE TRENDS Cont..
30
EXPENDITURE TRENDS Cont..
31
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.

32
Expenditure Beneficiary Numbers
33
Expenditure Beneficiary Numbers
34
Expenditure Trends Programme 3
35
Expenditure Trends Programme 3

• 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.

36
Expenditure Trends Programme 3

• 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.

37
Expenditure Trends Programme 4
38
Expenditure Trends Programme 4

• 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.

39
Conditional Grants Actual Projected
Expenditure-June 2005
40
Conditional Grants 2005/06 Projected
Expenditure September 2005
41
Challenges

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

42
Challenges Cont.

• 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.

43
QUESTIONS