DEPARTMENT OF SOCIAL DEVELOPMENT

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DEPARTMENT OF SOCIAL DEVELOPMENT

• PRESENTATION TO THE JOINT BUDGET COMMITTEE ON THE
  MTBPS
• 2 NOVEMBER 2006

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PURPOSE OF PRESENTATION

• The presentation focuses on the following
• Social Development Priorities
• Implementation challenges
• Measures to improve delivery of social
  development services
• Pressures on future provincial expenditure
• Spending trends in social development budgets
• Adjustment estimates

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SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES

• Institutional reform of the social security
  service delivery system
• Establishment of Social Security Agency
• Head Office fully functional capacitating
  regional offices
• Service delivery improvement systems
  integration
• Implementation of norms standards
• Implementation of Fraud Prevention Eradication
  Strategy
• Institutional Reform of NDSD
• Business System Re-engineering
• Strengthening the Strategy, Oversight and ME
  function

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SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES

• Expansion and consolidation of welfare and
  community development programmes services
• Welfare programmes
• Services to older persons and people with
  disabilities
• Prevention and Treatment of Substance Abuse
• Expansion of services to fulfill the rights of
  children
• Implementation of new policies including Victim
  Empowerment Policy, Family Policy Disability
  Policy
• Community development
• Community based care and support programmes
• Development of norms and standards
• Capacity building for our implementation partners
• NGO funding
• Compliance with non-profit organizations Act 71
  of 1997

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SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES

• Human Capital Development.
• Social workers
• Auxillary social workers
• Community development practitioners
• Child and youth workers
• Expanded Public Works Programme
• Expansion of services
• Home/Community Based Care
• Early Childhood Development
• Challenges for DSD as co-ordinating department
• ME
• Review of Social Assistance Act to address
• Social Relief of Distress
• Disability new definition

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Key challenges

• Disparities in service provision and expenditure
  per capita among provinces, e.g.
• Subsidies paid to childrens and older persons
  institutions,
• Number of childrens homes per province,
• Distribution of social service professionals by
  province
• Lack of human resources
• Capacity building of key service delivery
  stakeholders (e.g. social workers, NGOs, etc.)
• Information management systems e.g. for services
  to children
• Increase in the demand due to high numbers of
  orphans

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MEASURES TO IMPROVE SERVICE DELIVERY EXPANSION
AND CONSOLIDATION OF WELFARE AND COMMUNITY
DEVELOPMENT SERVICES

• Implementation of the new integrated service
  delivery model
• Development Implementation of norms and
  standards
• Increase numbers strengthen capacity of social
  service professionals
• Recruitment retention strategy
• Improvement of conditions of service
• Capacity building for our implementation partners
• Implementation of new policy on financial awards

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MEASURES TO IMPROVE SERVICE DELIVERY EXPANSION
AND CONSOLIDATION OF WELFARE AND COMMUNITY
DEVELOPMENT SERVICES

• Prevention and Treatment of Substance Abuse
• Development implementation of norms standards
  for in-patient out-patient treatment centres.
• Review of legislation Prevention Treatment of
  Substance Abuse Act.
• Implementation of the national drug master plan.

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Measures to improve co-ordination in the sector

• The national and provincial departments are all
  undergoing restructuring to re-position
  themselves towards delivering social development
  services
• DSD sector reform
• DSD Macro plan Sector Strategy
• Norms and Standards
• Integrated Information Management system
• HR Plan
• Mobilise resources based on the macro plan and
  sector strategy
• Effective and Integrated ME System
• Plan for establishment, management and
  maintenance of sector facilities and institutions

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PRESSURES ON FUTURE PROVINCIAL EXPENDITURE

• Implementation of new legislation (Childrens
  Act, Older Persons Act Child Justice Bill)
• Expansion of other Social Welfare Services
• Expansion of HCBC and ECD services as part of the
  EPWP programme
• Improving systems for monitoring and reporting
• Extension of social benefit to refugees
• Social Security pending litigation

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SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS

• The social assistance function shifted to the
  national sphere of government with effect from
  the 2005/06 financial year.
• The funding for the social assistance function no
  longer form part of the equitable share
  allocations to provinces and
• Funding were allocated as two conditional grants
• social assistance administration and
• social assistance transfers to provinces.
• With effect from the 2006/07 financial year the
  budget for social assistance have been Voted to
  the national Department of Social Development

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SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS
Cont.

• A large portion of social welfare services is
  dependent on social workers.
• Spending on compensation of employees increased
  by 12,5 per year from R949 million in 2002/03 to
  R1,4 billion in 2005/06.
• Further growth is estimated at an average annual
  rate of 21,7 per year over the MTEF to R2,4
  billion by 2008/09.

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SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS
Cont.

• Spending on other social development services has
  been growing at an annual average rate of 16,4
  (R2,3 billion in 2001/02 to R3,6 billion in
  2004/05)
• Historically social welfare services have not
  been adequately funded due to
• Pressure exerted by growth in social assistance
  expenditure
• Lack of costed norms and standards for welfare
  services
• The social welfare service programme makes up the
  largest share of the total provincial social
  development spending at 61,3 in 2006/07.
• Social Welfare services expenditure will grow by
  22,0 p.a. from R2,6 billion in 2005/06 to nearly
  R4,8 billion in 2008/09.

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Provincial Expenditure Outcomes2005/2006 FY

• Provinces collectively underspent by R416 million
  or 9 of total budget, excluding social security
  expenditure.
• Most underspending was in FS (10,6) KZN
  (17,3) NW (10,8) LP (10,0).
• Underspending is largely on conditional grants,
  specifically on the integrated social development
  grant.
• Main reasons for underspending
• Late introduction of ISD Grant impacted on
  planning
• Capacity constraints in some provinces,
  especially capacity of implementing agencies and
  staff shortages within provinces
• Delays in filling of posts procurement of
  capital assets

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National Department
2006/07 ADJUSTED ESTIMATES

• Adjustments of the original Vote funds of the
  national Department of Social Development
• A total amount of R376,965 million has been
  received as additional allocation for the 2006/07
  financial year.
• R55.772 million of the above-mentioned amount
  were approved as rolled-over funds from the
  under- spending realized on the Voted funds to
  the national Department of Social Development for
  the 2005/06 financial year.
• The funds will be utilized for the
  implementation and finalisation of the first
  phase of the Management Information System for
  social security.
• The full amount has been earmarked for transfer
  to the South African Social Security Agency
  (SASSA) during the remainder of the 2006/07
  financial year, who will be responsible for the
  administration and management of this project as
  part of the improvement of the grant
  administration and payment system.

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2006/07 ADJUSTED ESTIMATE

• An additional amount of R51,5 million was
  approved by the Treasury Committee and will be
  utilized by the Agency for the payment of social
  security legal costs.
• The remaining amount of R269,7 million was
  approved as roll-over funds from the unspent
  social assistance administration conditional
  grant fund by the provincial Departments of
  Social Development at the end of the 2005/06
  financial year.
• will be utilized for the payment of social
  security litigation costs, improvement of
  financial management systems and to defray costs
  associated with the transfer of staff to SASSA
  with effect from 1 April 2006.

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THANK YOU