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

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

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.

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

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.

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.

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.

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.

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.

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.

Expenditure vs. Budget Allocation 2001/02-07/08

Departmental Financial Summary-First Quarter

Prog 1: Administration

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.

Prog 2: Social Assistance

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.

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 DG’s 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.

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.

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.

Prog 3: Developmental Welfare Services

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.

Prog 4: Developmental and Support Services

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.

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.

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.

Prog 5: Demographic Trends

EXPENDITURE TRENDS

EXPENDITURE TRENDS Cont..

EXPENDITURE TRENDS Cont..

EXPENDITURE TRENDS Cont..

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.

Expenditure & Beneficiary Numbers

Expenditure & Beneficiary Numbers

Expenditure Trends: Programme 3

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.

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.

Expenditure Trends: Programme 4

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.

Conditional Grants: Actual & Projected Expenditure-June 2005

Conditional Grants 2005/06 Projected Expenditure: September 2005

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.

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.

QUESTIONS