Expanded Public Works Programme (EPWP) for the Social Sector – Conditional Grant Presentation to the Select Committee on Appropriations | National Treasury | 14 February 2012

Purpose of the grant To incentivise provincial social sector departments identified in the log-frame administered by the national dept of Public Works (DPW) to increase job creation by focusing on the strengthening and expansion of social service programmes that have employment potential. Based on past performance data DPW uses an incentive model to identify eligible departments in provinces. These departments receive an allocation from national government through the DPW. Provincial departments are supposed to use these funds to pay the stipends or wages of community care-givers, and other community workers. The allocation criteria to provincial departmants is based on the payment of stipends for volunteers and wages for other community development workers at a minimum of R60 per day. Provinces may use a portion of the funds to expand the programme to different social service benefit areas (e.g. community sport development, and community safety awareness) Provincial departments are therefore required to sign an incentive agreement with the DPW to ensure that conditions are met and targets are achieved. Provincial departments are required to submit quarterly reports on performance.

Provincial departments Departments who are receiving an allocation in 2011/12: Eastern Cape: Social Development (R5.07m) Free State: Health (R15.59m) Gauteng: Social Development (R15.07m) and Health (R19.78m) KwaZulu-Natal: Social Development (R4.5m) and Health (R25.77m) Limpopo: Social Development (R3.38m) and Health (R24.95m) Mpumalanga: Health (R3.31m), Education (R9.9m) and Safety (R0.2m) Northern Cape: Social Development (R5.66m), Health (R2.07m) and Education (R6.16m) North West: Social Development (R10.96m), Health (R17.37) and Education (R13.89m) Western Cape: Health (R8.66m) and Education (R8.07m)

Social Sector EPWP Incentive Grant for Provinces

ISSUES AFFECTING SPENDING Delays by provinces in approving incentive agreements and business plans Poor communication between provincial treasuries and provincial departments in respect of allocation splits between departments within each province Transfers to all provinces were thus delayed due to non-compliance As a result the grant first quarter spending (at the end of June 2011) was only 2.8 per cent, with only North West spending a significant portion of its allocation. Since then there has been a steady improvement, with some notable exceptions (see slide 4). There are still challenges in reflecting uniform expenditure numbers (submissions through the national department are not the same as those reflected in the official submissions in terms of section 40 of the PFMA)

OTHER CHALLENGES SIGNIFICANT CHALLENGES HAVE BEEN NOTED IN THE FOLLOWING PROVINCES: EASTERN CAPE: Spending currently at R0. There are inconsistencies in the reporting to the National Treasury vs the national Department from this province. It is not clear if NGOs are being compensated by the department iro the stipends for volunteers. FREE STATE: The provincial Health department is paying beneficiaries R55 per day instead of R60 per day. The national DPW is currently engaging with the province on this matter. GAUTENG: A number of NGOs have not been paid by the provincial Health department KZN Slow submission of reports have led to transfers being delayed Mpumalanga Slow submission of reports by the Education department Western Cape Province was paying care-givers in a fluctuating manner. From R52 per day to R65 per day. The national department has been engaging with the province on this matter.

PROPOSALS AND EFFORTS TO RESOLVE CHALLENGES DPW held workshops with all provinces during March and April 2011 to outline requirements and related matters of the grant. National Treasury participated and assisted with these workshops. After identifying challenges in the EC regarding reporting, the National Treasury held special training sessions with the Provincial Treasury and provincial departments in June 2011. Late approvals of plans indicates bureaucratic inefficiencies in certain provinces. There is a need for several provinces to fast-track their internal administration processes so that disbursements and support to care-givers and other community workers are not jeopardised or delayed

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