31 October 20151Select Committee1 DSD Annual Performance Report (01 April 2013 – 31 March 2014) Presentation to Select Committee on Social Services 11 November 2014

31 October 20152Select Committee2 Presentation outline PART A: Purpose Overview Vision, Mission & Strategic Priorities PART B: Contextual Analysis Programme performance Annual Achievements/performance PART C: International Obligations Summary of performance Challenges PART D: Legislative Programme PART E: Finance

31 October 20153Select Committee3 PURPOSE Purpose: To inform the Select Committee of : –The Department’s performance against its pre-determined objectives for the 2013/14 financial year; –The State of Expenditure of the Department for the 2013/14 financial year as at 31 March 2014.

31 October 20154Select Committee4 Part A Overview

31 October 20155Select Committee5 Mission To ensure the provision of comprehensive social services which protect the poor and vulnerable within the framework of the South African Constitution and subsequent legislation; create an enabling environment for sustainable development; and deliver integrated, sustainable, and quality services in partnership with all those committed to building a caring society together. Vision A caring and integrated system of social development services that facilitates human development and improves the quality of life.

31 October 20156Select Committee6 The Department has identified and committed itself to addressing the following key priorities: Expand Child and Youth Care services (Isibindi programme) Promote Early Childhood Development Combat Substance Abuse Provision of food to poor households (Food for all/Zero Hunger) The protection and promotion of the rights of older people and people with disabilities Strategic Priorities

"Building a Caring Society. Together"7 The Department also contributes to some of the following government outcomes – prior to the inclusion of Outcomes 13 & 14: 1.Improved quality of basic education 2.A long and healthy life for all South Africans 3.All people in South Africa are and feel safe 4.Decent employment through inclusive economic growth 5.A skilled and capable workforce to support an inclusive growth path 6.An efficient, competitive and responsive economic infrastructure network 7.Vibrant, equitable and sustainable rural communities and food security for all 8.Sustainable human settlements and improved quality of household life 9.A responsive, accountable, effective and efficient local government system 10.Environmental assets and natural resources that are well protected and continually enhanced 11.Create a better South Africa and contribute to a better and safer Africa and World 12.An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship Government outcomes "Building a Caring Society. Together"

8 PROGRAMMES PURPOSE Programme 1: Administration To provide leadership, management and support services to the Department and the Social Development Sector. Programme 2: Social Assistance To provide income support to vulnerable groups. Programme 3: Social Security Policy and Administration To provide for social policy development and the fair administration of social assistance. Programme 4: Welfare Services Policy Development and Implementation To create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices and the provision of support to the implementation agencies. Programme 5: Social Policy and Integrated Service Delivery To support community development and promote evidence-based policy making in the Department and the Social Development Sector

"Building a Caring Society. Together"9 Part B Programme Performance

10 CONTEXT/SITUATIONAL ANALYSIS The Social Development Sector delivers its services in an environment marked by high levels of poverty, unemployment and inequality. Some recent policy developments The social assistance programme remains government’s single most significant poverty alleviation programme:The social assistance programme remains government’s single most significant poverty alleviation programme: Studies carried out by among others Statistics South Africa; including the Presidency’s Fifteen Year Review, suggest that the Social Assistance Programme is the single most important driver of the decline in poverty has had a significant impact on reducing poverty, redistributing income and reducing inequality.Studies carried out by among others Statistics South Africa; including the Presidency’s Fifteen Year Review, suggest that the Social Assistance Programme is the single most important driver of the decline in poverty has had a significant impact on reducing poverty, redistributing income and reducing inequality. Studies carried out by the Department and other institutions have uncovered various positive developmental impacts of the child support social grant in promoting nutritional, educational and health outcomes, including a significant contribution to the attainment of Millennium Development Goal (MDG) Goal 1, the eradication of extreme poverty and hunger.Studies carried out by the Department and other institutions have uncovered various positive developmental impacts of the child support social grant in promoting nutritional, educational and health outcomes, including a significant contribution to the attainment of Millennium Development Goal (MDG) Goal 1, the eradication of extreme poverty and hunger. 10 "Building a Caring Society. Together"

11 CONTEXT/SITUATIONAL ANALYSIS Project Mikondzo: The project is a service delivery improvement intervention focusing on 1300 wards poorest wards in 23 priority district municipalities in the country. The project was implemented successfully in all provinces and immediate interventions were provided in some of the areas visited. A comprehensive service delivery improvement plan is being developed.Project Mikondzo: The project is a service delivery improvement intervention focusing on 1300 wards poorest wards in 23 priority district municipalities in the country. The project was implemented successfully in all provinces and immediate interventions were provided in some of the areas visited. A comprehensive service delivery improvement plan is being developed. Call centre on Gender Based Violence: as part of the fight against Gender Based Violence, we launched a command centre for victims of gender based violence which operates a 24-hour toll free line staffed by 42 social workers and 7 social work veterans.Call centre on Gender Based Violence: as part of the fight against Gender Based Violence, we launched a command centre for victims of gender based violence which operates a 24-hour toll free line staffed by 42 social workers and 7 social work veterans. 11 "Building a Caring Society. Together"

12 CONTEXT/SITUATIONAL ANALYSIS The Social Development Sector delivers its services in an environment marked by high levels of poverty, unemployment and inequality.The Social Development Sector delivers its services in an environment marked by high levels of poverty, unemployment and inequality. Although the Department is largely responsible for policy formulation, it also renders some of its services directly to the public, e.g. Registration of NPOsAlthough the Department is largely responsible for policy formulation, it also renders some of its services directly to the public, e.g. Registration of NPOs The Department works with other institutions within and outside government in the execution of its mandate: Critical partners include amongst others the Departments of Basic Education, Labour, Justice, Health and Rural developmentThe Department works with other institutions within and outside government in the execution of its mandate: Critical partners include amongst others the Departments of Basic Education, Labour, Justice, Health and Rural development. Areas of collaboration include critical projects on issues affecting Children, HIV & AIDS, Older Persons, Victim Empowerment, Youth, Social Security.Areas of collaboration include critical projects on issues affecting Children, HIV & AIDS, Older Persons, Victim Empowerment, Youth, Social Security. Given the collaborative and interdependent nature of some of the department’s work, it can only meet some of its targets if the other institutions deliver on their commitments as well. – This is a government-wide integration challenge.Given the collaborative and interdependent nature of some of the department’s work, it can only meet some of its targets if the other institutions deliver on their commitments as well. – This is a government-wide integration challenge. 12 "Building a Caring Society. Together"

13 Annual Achievements/Performance

14 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeStrengthened collaboration with stakeholders in order to enhance service delivery Annual TargetAchievement Form Partnership with stakeholders in support of DSD initiatives projects The Department hosted DSD-CONTRALESA and Interfaith summits during the reporting period. The Department also facilitated the hand over of 9 vehicles as well as 2 houses sponsored by the Alimdaad Foundation built at Kwa- Mhlanga in Mpumalanga Province " Building a Caring Society. Together" Programme 1 : Stakeholder Management

15 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeImproved Social Development Sector Performance Annual TargetAchievement Produce social profile of vulnerable groups Key statistical and social security trends reports profiling vulnerable groups were produced. Annual TargetAchievements Develop a multi-year evaluation strategy An evaluation strategy and multi-year evaluation plan for the financial years 2014/ /17 were finalised. " Building a Caring Society. Together" Programme 1 : Monitoring and Evaluation

16 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeImproved Social Development Sector Planning Annual TargetAchievement Implement 9 DSD customer service empowerment programmes 9 DSD customer service empowerment programmes were implemented in support of Ministerial programme. Annual TargetAchievements Train 200 women in Business Management 595 women were trained in business management (Eastern Cape, Northern Cape and KZN) " Building a Caring Society. Together" Programme 1 : Strategy Development and Business

17 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeEfficient and effective legal services for the Social Development Sector Annual TargetAchievement Implement the contract management system Contract management system was implemented " Building a Caring Society. Together" Programme 1:Legal Services

18 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeInformed, educated, mobilised stakeholders and public in support of DSD mandates Annual TargetAchievement Reach people via the DSD website and social media A total of people were reached through the DSD website and social media people reached through the website, through Facebook and Twitter, and through electronic newspapers. Annual TargetAchievements Organise 16 public participation events for the Minister and 16 for the Deputy Minister The Minister and Deputy Minister conducted 89 evidence-based public participation programmes. Public participation/ outreach programmes were intensified, reaching people. " Building a Caring Society. Together" Programme 1:Communications

19 PROGRAMME 2: COMPREHENSIVE SOCIAL SECURITY Social Assistance Government outcomeA long and healthy life for all South Africans Outcome DSD specificPoor and vulnerable people are protected against income poverty TargetsAnnual Achievements/performance Increase Old Age Grant beneficiary coverage to The total number of Old Age Grant beneficiaries is Increase War Veterans Grant beneficiary coverage to 393 The total number of War Veterans Grant beneficiaries is 429 Increase Child Support Grant beneficiary coverage to The total number of Child Support Grant beneficiaries is Increase Disability Grant beneficiary coverage to The total number of Disability Grant beneficiaries is " Building a Caring Society. Together"

20 PROGRAMME 2: COMPREHENSIVE SOCIAL SECURITY Social Assistance Government outcome A long and healthy life for all South Africans Outcome DSD specific Poor and vulnerable people are protected against income poverty TargetsAnnual Achievements/performance Increase Care Dependency Grant beneficiary coverage to The total number of Care Dependency Grant beneficiaries is There was a slow uptake for this grant Increase Foster Care Grant beneficiary coverage to The total number of Foster Care Grant beneficiaries is Increase Grant-in-Aid beneficiary coverage to The total number of Grant-in-Aid beneficiaries is " Building a Caring Society. Together"

21 “Building a Caring Society. Together" PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATION Social Security Policy Development TargetsAnnual Achievements/performance Produce 2 oversight reports on adherence to norms and standards for the social assistance programme 2 oversight reports on adherence to norms and standards for the social assistance programme were produced. The two visit were done in Northern Cape and North West provinces. Complete discussion paper on the universalisation of the Old Age Grant Discussion paper on the Universalisation of the Old Age Grant was completed after a series of consultations with internal stakeholders Government Outcome An effective, efficient and development-orientated public service and an empowered, fair and inclusive citizenship Outcome DSD specific An efficient, effective and transparent social security system that promotes active citizenship

22 “Building a Caring Society. Together" PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATION Appeals Adjudication TargetsAnnual Achievements/performance Adjudicate 50% of appeals within 90 days of receipt A total of appeals were adjudicated. Of these, 48.76% (827) were adjudicated within 90 days of receipt) Implement Integrated Appeals Business Information System The development of the Integrated Appeals Business Information System was completed Government Outcome An effective, efficient and development-orientated public service and an empowered, fair and inclusive citizenship Outcome DSD specific Effective, efficient and accessible social assistance appeals service

23 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Service Standards and Service Provider Management Support TargetsAnnual Achievements/performance Review implementation of the White Paper in two provinces Conducted the national and provincial review of the White Paper in Northern Cape and Gauteng where presentations were made by senior managers from DSD, SASSA, NDA and the NGO sector Monitor implementation of generic intervention processes in the provinces The implementation of generic intervention processes was monitored in all provinces Award 800 scholarships (raising total to 5 550) 997 new scholarships were awarded for the 2013 academic year, increasing the total to Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship Outcome DSD specificStandardise Social Welfare Services to improve quality service delivery by 2015

24 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Service Standards and Service Provider Management Support TargetsAnnual Achievements/performance Monitor implementation of the Policy on Financial Awards Workshop were held with provincial co-ordinators in all provinces on progress made in implementing the PFA, and reports were submitted to the DSD Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship Outcome DSD specificStandardise Social Welfare Services to improve quality service delivery by 2015

25 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Older Persons TargetsAnnual Achievements/performance Assess 108 residential care facilities (12 per province) 109 residential care facilities were assessed for compliance to norms and standards in 7 provinces except in Western Cape and Mpumalanga Draft Older Persons Amendment Bill Draft Amendment Bill developed Government OutcomeAll people in South Africa are and feel safe DSD specific OutcomeImproved protection and quality of life for older persons

26 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES People with Disabilities TargetsAnnual Achievements/performance Draft BillDraft Bill on Social Development Services to People with Disabilities developed. Baseline disability policy approved by Heads of Social Development Develop norms and standards for residential facilities Norms and standards for residential facilities were drafted Government Outcome Sustainable human Settlement and improved quality of household life DSD specific Outcome Improved quality of life for people with disabilities

27 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Children TargetsAnnual Achievements/performance Develop ECD policyECD policy developed Develop comprehensive package of ECD services A comprehensive ECD programme was developed Build HR capacity in the ECD sector HR plans were received from 6 provinces, namely MP, LP, GP, FS,NC and NW. Conduct a comprehensive audit of ECD centres in all provinces ECD centres were audited in all provinces in 2013/14. This bring the total of all audited ECD centres to Government Outcome A quality of basic education DSD specific Outcome Improved access to Early Childhood Development ( ECD) programmes

28 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Children TargetsAnnual Achievements/performance Increase the number of children adopted by 10% adoptions registered (an increase of 55%) Increase the number of children adopted by 10% adoptions registered (an increase of 55%) Monitor the implementation of the Foster Care Project Plan in all 9 provinces Implementation of Foster Care Project Plan was monitored in all provinces Secure approval of the guidelinesGuidelines for the registration of drop-in centres were approved Government Outcome All people in South Africa are and feel safe DSD specific Outcome Safe and friendly society for children

29 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Children TargetsAnnual Achievements/performance Monitor implementation in all 9 provinces Monitored implementation of transformation plan for CYCCs in all 9 provinces Screen employees employees working with children were screened against the CPR Part B. Only 227 were found unsuitable to work with Children. Draft Amendment Bill (Phase 1) of the Children’s Act Draft Amendment Bill was finalised Monitor implementation of the Isibindi model in the provinces Implementation of the Isibindi model was monitored in all provinces Government Outcome All people in South Africa are and feel safe DSD specific Outcome Safe and friendly society for children

30 PROGRAMME 4: WELFARE SERVICES Families TargetsAnnual Achievements /performance Build stakeholder capacity on the White Paper on Families All nine provinces were capacitated on the White Paper on Families Build capacity on the Fatherhood Strategy and Active Parenting of Teenagers programme All provinces were capacitated on the Fatherhood Strategy Five provinces were capacitated on Active Parenting for Teenagers programme namely EC, NW, NC, FS and KZN "Building a Caring Society. Together" Government OutcomeSustainable human settlement and improved quality of household life. DSD-specific outcomeRestored family values and responsibilities in order to build cohesive communities.

31 PROGRAMME 4: WELFARE SERVICES Social Crime Prevention TargetsAnnual Achievements /performance Train 63 panel members on the Policy Framework for the Accreditation of Diversion Services A total of 59 Quality Assurance Panel members were trained on the policy framework for the Accreditation of Diversion Services in all provinces. 4 appointed members withdrew before training took place Capacitate 120 stakeholders on social crime prevention programmes 169 stakeholders capacitated on social crime prevention programmes Monitor implementation of the social crime prevention strategy Action Plan The Action Plan was monitored in all provinces, and all provinces had implementation plans "Building a Caring Society. Together" Government outcome All people in South Africa are and feel safe DSD-specific outcome Reduced incidence of social crime

32 PROGRAMME 4: WELFARE SERVICES Victim Empowerment TargetsAnnual Achievements /performance Finalise Draft Bill on Victim Empowerment Support Services The Draft Bill on Victim Empowerment Support Services was finalised Provide immediate and integrated collaborative services intervention in respect of GBV incidents on a 24-hour basis A Command Centre was established to provide immediate and integrated collaborative services to victims of GBV. The Command Centre was launched and a Toll Free line was advertised on national and community radio Finalise the Policy FrameworkThe National Policy Framework for the accreditation of organisations providing antihuman trafficking services was finalised Develop an Intersectoral Strategy for the VEP An Intersectoral Strategy was developed with the cluster departments and national CSOs "Building a Caring Society. Together" Government outcome All people in South Africa are and feel safe DSD-specific outcome Reduced incidence of social crime

33 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Substance Abuse TargetsAnnual Achievements/performance Monitor implementation of POA by 9 national departments Implementation by 9 national departments monitored namely Justice, SAPS, Correctional Services, DSD, Basic Education, Health, Trade and Industry, Higher Education and Training, and Transport Capacitate 120 stakeholders on the implementation of the Prevention and Treatment of Substance Act and Regulations 458 stakeholders in all provinces capacitated to implement the Act and Regulations Review and monitor implementation of the NDMP The NDMP 2013/2017 was approved by Cabinet in June. Subsequently 8 provinces except WC and one national department (the Department of Transport) were capacitated to implement the plan Government Outcome All people in South Africa are and feel safe DSD specific Outcome Reduce incidence of Substance abuse in communities

34 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Youth TargetsAnnual Achievements/performance participants in youth dialogues youths participated in youth dialogues nationally participants in mobilisation programmes young people participated in mobilisation programmes nationally 450 participants in skills development programmes young people participated in skills development programmes nationally. These programmes include Entrepreneurship, computer skills, and vocational training, to mention a few participants attending leadership camps participants attended National youth camps. Government OutcomeVibrant, equitable, sustainable rural communities contributing towards food security for all DSD specific OutcomeYouth participate and influence social change

35 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES HIV/AIDS TargetsAnnual Achievements/performance Reach youths reached through social and behaviour change Programmes youths were reached Train 450 organisations to implement social and behaviour change programmes 501 organisations trained Facilitate 64 community conversations on HIV and AIDS 86 community conversations facilitated Government OutcomeA long healthy life for all South Africans DSD specific OutcomeDecrease in risky sexual behaviour among targeted populations

36 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES HIV/AIDS TargetsAnnual Achievements/performance Reports from CBOs in accordance with the community based M&E system organisations submitted administrative data to the CBIMS Train 90 officials on HIV and AIDS management programme 24 provincial and district officials were trained on TB management as a co-infection with HIV in 8 provinces except WC. 92 officials were trained on HIV and AIDS management in LP, KZN and GP. Strategic review of the National Action Plan for children affected by HIV and AIDS Report produced on children affected by HIV and AIDS Finalise evaluation report on the HCBC programme Evaluation report on HCBC programme produced Government OutcomeA long healthy life for all South Africans DSD specific OutcomeMitigate the psychosocial and economic impact of HIV and AIDS, TB, and other chronic illnesses

37 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Social Policy Research and Development TargetsAnnual Achievements/performance Develop and review one social policy in collaboration with the relevant directorate. A Social Development Sector Community Development Policy was developed and submitted to stakeholders for review Develop and disseminate 4 policy briefs 4 policy briefs were developed, e.g. Discussion note on the Partnership between DSD and Traditional Authorities A DSD reference document on addressing the triple challenge of unemployment, poverty and inequality – partnership with Faith-Based Organisations and Religious Communities Government outcome An efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD OutcomeDeepening of social policy discourse and evidence-based policy making "Building a Caring Society. Together"

38 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Special Projects and Innovation TargetsAnnual Achievements/performance Create job opportunities through social sector sub- programmes job opportunities created by the Department only. Create non-EPWP job opportunities non-EPWP job opportunities created Facilitate the provision of integrated DSD services to 9 Community Works Programme (CWP) sites. DSD services were provided at 15 CWP sites in seven provinces except GP and WC Government outcome Decent employment through inclusive economic growth DSD OutcomeIncreased decent work opportunities, skills and income levels in the community "Building a Caring Society. Together"

39 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Population Policy Promotion TargetsAnnual Achievements/performance Conduct 13 advocacy workshops and seminars 15 advocacy workshops/seminars were held in all provinces except Northern Cape, with exhibitions at each event. Events included the commemoration of World Population Day at the University of North West; the media launch of the State of the World Population Report 2013 at Khayelitsha in the Western Cape; and the BRICS Inaugural Seminar in Hazyview in Mpumalanga. Government outcome An efficient, effective and development oriented public service, and an empowered, fair and inclusive citizenship DSD OutcomeIncreased capacity to mainstream population issues into development plans and activities "Building a Caring Society. Together"

40 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Population Policy Promotion TargetsAnnual Achievements/performance Train 300 people on integrating population factors into development 394 people were trained on integrating population factors into development plans Conduct nine capacity building sessions 12 capacity building session were conducted on integrating population factors into development plans Produce 10 thematic research reports on progress made with implementing Population Policy and on the ICPD Programme of Action in South Africa 13 thematic research reports were produced. The review processes on Policy+15/ICPD+20 were managed into a single multisectoral review process Government outcome An efficient, effective and development oriented public service, and an empowered, fair and inclusive citizenship DSD OutcomeIncreased capacity to mainstream population issues into development plans and activities "Building a Caring Society. Together"

41 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeA conducive environment for civil society organisations and communities Annual TargetAchievement Process 90% of applications of NPOs within two months of receipt applications were received and were processed 96.6% of applications were processed within two months Train NPOs on governance and compliance with the NPO Act NPOs were trained on NPO governance and compliance with the NPO Act Train 300 provincial officials on governance and compliance with the NPO Act 970 provincial officials in all provinces were trained on governance and compliance with the NPO Act " Building a Caring Society. Together" Programme 5 : Registration and Monitoring of Non-Profit Organisations

42 Government OutcomeA skilled and capable workforce to support an inclusive growth path DSD Specific outcomeA skilled workforce able to deliver high-quality community development services Annual TargetAchievement Train 600 Community Development Practitioners (CDPs) 859 CDPs were trained Train 400 Community Based Organisations (CBOs) A total number of 411 CBOs were trained Profile households households were profiled Reach 200 wards148 wards were reached through community mobilisation programmes " Building a Caring Society. Together" Programme 5 : Community Development

43 Government OutcomeA skilled and capable workforce to support an inclusive growth path DSD Specific outcomeA skilled workforce able to deliver high-quality community development services Annual TargetAchievement Develop Service Delivery Improvement Plan for the 23 priority districts A Template for Service Delivery Improvement Plans for the targeted wards was developed and Service Delivery Improvement Plans were developed Promote equitable access to food by households households accessed food through food security programmes people to access food through food banks people accessed food through Food Bank SA " Building a Caring Society. Together" Programme 5 : Community Development

PART C International Obligations for 2013/14 "Building a Caring Society. Together" 44

45 International Obligations for period 2013/14 In support of South Africa’s foreign policy goals, the Department plays an active role in promoting the country’s social development agenda internationally. The Department is an active member of the African Union (AU), Southern African Development Community (SADC) and United Nations structures, which includes among others, the UN Commission on the Status of Women. During the reporting period, the Department participated in the International AIDS Conference, UN Commission on the Status of Women and International Inter- Ministerial Conference on Evidence for action Government Outcome: Create a better South Africa, a better Africa and a better world Outcome: DSD specificTo promote and support participation in key identified bilateral and multilateral initiatives "Building a Caring Society. Together"

46 International Obligations for period 2013/14 The Department also participated in several international events including among other the following: -The 46 th Session of the United Nations Commission on Population and Development (UNCPD) -The African Population Commission (APC) of the African Union (AU); The Department finalised three agreements with Benin, Lesotho and Namibia The Department also facilitated technical exchanges with Zimbabwe, Vietnam, Ghana, Botswana, Namibia and Lesotho. All these initiatives provide a platform for sharing social development experiences and provide us with an opportunity to help create a better South Africa, a better Africa and a better world. Government Outcome: Create a better South Africa, a better Africa and a better world Outcome: DSD specificTo promote and support participation in key identified bilateral and multilateral initiatives "Building a Caring Society. Together"

47 Performance Summary & Challenges

48 Trends in achievement of targets "Building a Caring Society. Together"

49 There has been improvement in the achievement of targets in the period 2011 – 2014 In 2011/12, only 54% of the set targets were fully achieved at the end of the financial year. Performance improved in 2012/13 where 61% of the targets were achieved. Improvement in achievement of targets continued in 2013/14 where 69% of the set targets were achieved. PERFORMANCE TRENDS

50 Executive Support: Target for management meetings not achieved due to meetings postponed or cancelled. International Relations Targets for signing Bilateral Agreements not achieved due to delays in response from counterparts as well as the schedule of principals not allowing meetings. CHALLENGES

51 Office Accommodation: Target to conduct a feasibility study on shared offices for DSD, SASSA and NDA not completed. Options for a suitable accommodation is being consulted with DPW. Policy Development The policy for amending the NPO Act was developed and consulted with NPOs. It was not approved due to extended consultations. The Community Development Occupational framework was not approved due to extended consultations with HWSETA and DHET CHALLENGES

PART D Legislative Programme for 2013/14 "Building a Caring Society. Together" 52

53 Legislative Programme for period 2012/13 No Bills were submitted to Parliament during the year under review "Building a Caring Society. Together"

54 Part E Finance

31 October Part E : Finance 2013/14 Section 1: National Expenditure Section 2: Public Entities Section 3: Provincial Expenditure Section 4: Sector Audit Outcome 2015 MTEF Section 5: MTEF Social Sector Analysis Select Committee

CONTENT for Part E. Audited Actual Expenditure for the 2013/14 financial year for the National and Provincial Social Sector 2010 – 2017 Expenditure Trend Analysis Challenges Audit Outcome for the DSD Sector Commitments Made on Audit Outcomes 31 October Select Committee

31 October Part E Finance Section 1 : 2013/14 National DSD Expenditure Select Committee

31 October SUMMARY – SOCIAL DEVELOPMENT R’000 Select Committee

31 October SUMMARY EXPENDITURE PER PROGRAMME Programme Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 P1: Administration ,44%1 481 P2: Social Assistance ,73% P3: Social Security Policy and Administration ,00%86 P4: Welfare Services Policy Development and Implementation Support ,62%2 083 P5: Social Policy and Integrated Service Delivery ,98% TOTAL ,80% Select Committee

REASONS FOR UNDER SPENDING Programme 1: Administration – R 1,481 million –The under-expenditure is due to the unpaid interdepartmental claims (Public Works). Programme 2: Social Assistance – R 1,410 billion –The under-expenditure is due to the re-registration process which had an impact on the anticipated actual take-up rates of grant beneficiaries. Programme 4: Welfare Services Policy Development and Implementation Support – R2,083 million –The under expenditure is mainly due to non-payment of NGO's due to non- compliance. Programme 5: Social Policy and Integrated Service Delivery – R12,751 million –The under-expenditure is due to change in the strategy of food security programs. 31 October Select Committee

31 October SUMMARY EXPENDITURE PER ECONOMIC CLASSIFICATION Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees ,00%0 Goods and Services ,35%2 178 Transfers and Subsidies ,78% Payments of Capital Assets ,00%0 Payments for Financial assets TOTAL ,80% Select Committee

HIGH SPENDING ITEMS 31 October Select Committee

HIGH SPENDING ITEMS Marketing & Promotional Material – R40,647 million –Advertising, Promotional Material, Recruitment and Tenders amongst other relating to the following: Mikondzo project – community outreach, Golden Games – active ageing programme; National Parliament for the Aged; Presidential Luncheon for the Aged; Child Protection Week; Youth Camps; Anti- Substance Abuse Festive Season Campaign; 31 October Select Committee

Marketing & Promotional Material 31 October Select Committee

HIGH SPENDING ITEMS Venues & Facilities – R38,207 million –Expenditure relating amongst other to the following: 31 October Child Protection Week  Tzaneen Country Lodge  City Lodge in Durban Golden Games  Birchwood Hotel Anti- Substance Abuse Policy Consultation  Burgers Park Hotel  Eldorado Park Youth Camp  SANDF-MILITARY BASE Orphans Vulnerable Children & Youth Conference  ICC Durban National Action Committee for Children Affected by HIV & AIDS Workshop  Manhattan Hotel Select Committee

HIGH SPENDING ITEMS (cont.) Consultants – R45,967 million –Consulting services amongst others relating to the following: 31 October Service Provider Services rendered / output Nkanyezi Development Services The services of the consultants were procured to provide support in preparation for DSD month in the Eastern Cape in two districts these included Chris Hani and Alfred Nzo district for the editing of support group guidelines manual Bimshire InvestmentDevelopment of Treatment model, Advert and Artwork for festive season anti-substance abuse campaign National Institute Community Development and Management Accreditation of caregiver manual Ororiseng TradingPrinting of generic intervention process forms Mintiro Trading EnterpriseEditing and printing of the strategy on services for vulnerable children in drop in centres. Select Committee

HIGH SPENDING ITEMS (cont.) 31 October Service Provider Services rendered / output BM Holtmann Facilitation of Social Transformation Workshops in 10 poor and vulnerable communities to build their capacities to change their status from vulnerability to resilience and sustainability Mmapula Community Development Training of Community Development Practitioners on the asset based community driven development approach. 90 CDPs will be trained in Gauteng and the Eastern Cape Seeletso Health Information (pty) Ltd To conduct an analysis of the questioners for norms and standards on the effectiveness and improvement of Community Development Practice. The analysis is aimed at ensuring that there is standardisation, uniformity and integration of services for community development practitioners by developing Norms and Standards for community development practice. Continuing Education for Africa (CEFA) The key deliverable is the draft community development practice policy which will guide the implementation of community development and also the basis for the regulation of the practice which will clearly outline the roles and responsibility of community development practioners in facilitating the community development programmes Select Committee

HIGH SPENDING ITEMS (cont.) Consultants – R45,967 million –Consulting services amongst others relating to the following: 31 October Service Provider Services rendered / output The Institute for Social law and Policy Development of a policy on inclusion of non-citizens in the South African social security system Alexander Forbes Financial Services Building a Micro-Simulation Model that is able to perform social policy and scenario analysis LIMA Purpose of a service provider to design and implement a pilot aimed at linking able bodied persons of working age residing in grant beneficiary households to economic opportunities Impact Research International The undertaking of the project to conduct a study on understanding the current poor access of the child support grant(SCG) within the 0-4 age cohort Karabo Media and Marketing The undertaking of the project to develop a basic financial book for Social Grant Beneficiaries and their caregivers Disaster Management Solutions(DMS) Consultant to develop a community-Based Disaster Risk Mitigation Toolkit for practitioners; Booklets and posters to strengthen community capacity; advocacy materials and provide training to practitioners Select Committee

HIGH SPENDING ITEMS (cont.) Consultants – R45,967 million –Consulting services amongst others relating to the following: 31 October Service Provider Services rendered / output SAS Programmer (Real Global Business Solutions)Management of M&E data warehouse Ink DesignPrinting of APP Economic Policy and Research Institute (EPRI)Conduct the audit of ECD’s University of StellenboschTo update the profile of Social Security beneficiaries AureconSpatial Optimization Model Select Committee

TRAVELLING & SUBSISTENCE 31 October Select Committee

31 October SUMMARY PROG 1: ADMINISTRATION R’ % Spent Select Committee

72 SUMMARY PROG 1: ADMINISTRATION SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Ministry ,00% - Departmental management ,00% - Corporate management ,00% - Finance ,00% - Internal audit ,00% - Office accommodation ,84% Total ,44% October 2015Select Committee

31 October SUMMARY PROG 1: ADMINISTRATION Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees ,00%0 Goods and Services ,77%1 481 Transfers and Subsidies ,00%0 Payments of Capital Assets ,00%0 TOTAL ,44%1 481 Select Committee

Under spending – R1,481 million –The under-expenditure is due to unpaid interdepartmental claims (DPW). 31 October PROG 1: ADMINISTRATION Select Committee

31 October SUMMARY PROG 2: SOCIAL ASSISTANCE R’ % Spent Select Committee

76 SUMMARY PROG 2: SOCIAL ASSISTANCE SUB PROGRAMMESFinal AppropriationAudit Actual% SpentDeviation R'000 OLD AGE ,40% WAR VETERANS ,76% 510 DISABILITY ,08% FOSTER CARE ,05% CARE DEPENDENCY ,85% CHILD SUPPORT ,29% GRANT-IN-AID ,19% SOCIAL RELIEF ,87% Total ,73% October 2015Select Committee

31 October SUMMARY PROG 2: SOCIAL ASSISTANCE Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees Goods and Services Interest and rent on land ---- Transfers and Subsidies ,72% Payments of Capital Assets Payments for Financial assets TOTAL ,73% Select Committee

Transfers and subsidies – R 1,419 billion –Expenditure is driven by beneficiaries numbers, application process and grant values, which is linked to economic factors, policy changes, payment model efficiency and CPI inflation rates; –The under-expenditure is due to the re-registration process which had an impact on the anticipated actual take-up rates of grant beneficiaries. Payment for financial assets – R 9,664 million –Approval was granted for Social Grant Debtors related to the previous financial years to be written off. 31 October PROG 2: SOCIAL ASSISTANCE GRANTS Select Committee

31 October SUMMARY PROG 3: SOCIAL SECURITY POLICY AND ADMINISTRATION R’ % Spent Select Committee

80 SUMMARY PROG 3: SOCIAL SECURITY POLICY AND ADMINISTRATION SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Social Security Policy Development ,75% 86 Appeals Adjudication ,00% - Social Grants Administration ,00% - Social Grants Fraud Investigations ,00% - Programme Management ,00% - Total ,00% October 2015Select Committee

31 October SUMMARY PROG 3: SOCIAL SECURITY POLICY AND ADMINISTRATION Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees ,00%- Goods and Services ,00%- Transfers and Subsidies ,00%86 Payments of Capital Assets ,00%- TOTAL ,00%86 Select Committee

31 October SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT R’ % Spent Select Committee

83 SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Service Standards ,00% - Substance Abuse ,86% 40 Older Persons ,51% 339 People with Disabilities ,00% - Children ,84% 93 Families ,00% - Social Crime Prevention and Victim Empowerment ,81% Youth ,00% - Hiv and Aids ,55% 353 Social Worker Scholarships ,00% - Programme Management ,00% - Total ,62% October 2015Select Committee

31 October Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees ,00%- Goods and Services ,50%676 Transfers and Subsidies ,56%1 407 Payments of Capital Assets ,00%- TOTAL ,62%2 083 SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT Select Committee

Goods and Services – R –The under spending relate to the following delays on the finalisation of projects. Transfers and Subsidies – R 1,407 million –The under expenditure is mainly due to non-payment of the following NGO's due to non-compliance: NAPWA SA Older Persons Forum Sonke Justice –International memberships (e.g) United Nations International Drug Control Programme and International Federation for the Aged SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT 31 October Select Committee

Substance Abuse – R 40 –The under spending relate to the non receipt of invoice from Dirco for the United Nations International Drug control Older Persons – R 339 –The under expenditure is mainly due to non-payment for SA Older Persons Forum due to non-compliance and lesser than projected payment for International Federation for the Aged Social Crime Prevention & Victim Empowerment – R 1,258 mil –The under expenditure is mainly due to non-payment for Sonke Justice due to non-compliance, payment for the post retirement benefits and lesser than projected payment for Gender Based Command Centre HIV & Aids – R 353 –The under expenditure is mainly due to non-payment for NAPWA due to non- compliance. Children – R 93 –The under spending relate to the provision for the leave gratuities and the payment to International Social Services SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT 31 October Select Committee

31 October SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY R’ % Spent Select Committee

88 SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Social Policy Research and Development ,00% - Special Projects and Innovation ,00% - Population Policy Promotion ,92% 21 Registration and Monitoring of NPO ,00% - Substance Abuse Advisory Service and Oversight ,00% - Community Development ,08% National Development Agency ,00% - Programme Management ,00% - Total ,98% October 2015Select Committee

31 October Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees ,00%- Goods and Services ,96%21 Transfers and Subsidies ,86% Payments of Capital Assets ,00%- TOTAL ,98% SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Select Committee

Transfers and subsidies – R12,730 million –The under-expenditure is due to change in the strategy of food security programme. 31 October SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Select Committee

31 October Part E Finance Section 2 : Public Entities Select Committee

SASSA 31 October 2015Select Committee % Spent R’000

SASSA SASSA has two key focus areas: –administrative functions relating to processing applications for social grants which are currently carried out by SASSA employees, and –the payment of social grants, currently provided by the contractor, CPS. SASSA spent an amount of R6,742 billion up to the end of March 2014, which is exceeds the budget allocation for the 2013/14 financial year. SASSA reported a deficit of R million at the end of March 2014 as opposed to a deficit of R4 503 million reported for February The average expenditure rate against the transferred funds from the Department is 95%. SASSA reported over expenditure during August 2013, February and March October 2015Select Committee93

NATIONAL DEVELOPMENT AGENCY 31 October 2015Select Committee % Spent R’000

31 October 2015Select Committee95 Line Items Annual Budget R Annual Spending 2013/14 R (Over)/ under expenditure R Annual Spent % Mandate Expenditure % Good and services % Employee Costs % Board Expenditure % Capital Expenditure % Grand Total % NATIONAL DEVELOPMENT AGENCY

The NDA’s financial report for the 2013/14 financial year submitted to the Department, reflected revenue amounting to R million, comprising of the government grants amounting to R171,713 million and other revenue of R53,556 million. The total expenditure up to 31 March 2014 amounted to R222,218 million which represents 98,75 % spending on the total allocation for the 2013/14 financial year. NDA was able to fund additional projects worth R44 million, these projects were funded from the resources that were acquired from other government departments and donors outside government. This is the reason for the reported over-expenditure of R1,723 million (1%) in Mandate Expenditure. Included in goods and services is depreciation (1,650 million) which is a non-cash item and as a result, it was not budgeted for at the beginning of the financial year. 31 October 2015Select Committee96

Of the total expenditure reflected, an amount R137,255 million relates to mandate expenses (62%). Administrative costs were underspent at the end of the 2013/14 financial year by an amount of R4,176 million and included the following expenditure categories: –Expenditure of R47,925 million (22%) was incurred on employee costs –An amount of R34,232 million (16%) for goods and services –Board expenses amounted to R (<1%) 31 October 2015Select Committee97 NATIONAL DEVELOPMENT AGENCY

31 October Part E Finance Section 3 : Provincial DSD Expenditure Select Committee

2013/14 SPLIT PER PROVINCE 31 October Select Committee

SUMMARY-PROVINCES 31 October Average Spending of 98,78% across provinces R’000 Select Committee

SUMMARY-PROVINCES 31 October Select Committee Summary2013/14 FinalAudited Under/ over AppropriationExpenditure%Spending 31-Mar-14Spent2013/14 R'000 Eastern Cape ,03% Free State ,75% Gauteng ,43% KwaZulu-Natal ,60% (13 959) Limpopo ,24% Mpumalanga ,90% Northern Cape ,49% North West ,27% Western Cape ,55% Total ,31%

2013/14 SPLIT PER PROGRAMME 31 October Select Committee

SUMMARY- PROGRAMMES 31 October R’000 Select Committee

SUMMARY- PROGRAMMES 31 October Select Committee Summary 2013/14 Final Appropriation Audited Expenditure 31-Mar-14 % Spent Over / under Expenditure 31-Mar-14 R'000 Administration ,65% Office of MEC ,96% Corporate Management ,44% District Management ,28% (12 645) Social Welfare Services ,61% Professional & Administration Support ,82% ( ) Substance Abuse, Prevention and Rehabilitation ,31% Care and Services to Older Persons ,68% Crime Prevention and Support ,51% Services to the Persons with Disabilities ,66% Child Care and Protection Services ,18% Victim Empowerment ,68% HIV and AIDS ,51% Social Relief ,98% (4 619) Care and Support Services to Families ,17% (7 639) Development and Research ,02% Professional & Administration Support ,46% (26 320) Youth Development ,84% Sustainable Livelihood ,65% Institutional Capacity Building and Support ,90% Research and Development ,57% Population Capacity Development and Advocacy ,03% Total ,31%

MAIN REASONS FOR UNDER-/OVER EXPENDITURE Programme 1: Administration - Projected under expenditure of R81,870 million -Delays in the filling of funded vacant posts; -Cost cutting measures implemented Programme 2: Social Welfare Services – Projected under-expenditure of R million -Delays in the appointment of Social Service Professionals. -Delays in the commencement of planned programmes. -Delays with the transfer of funds to Organisations. Programme 3: Development and Research – Projected under-expenditure of R million -Delays in the appointment of Assistant Community Development Practitioners and other personnel. -Cost cutting measures implemented. 31 October Select Committee

SUMMARY- ECONOMIC CLASSIFICATION 31 October R’000 Select Committee

SUMMARY- ECONOMIC CLASSIFICATION 31 October Select Committee Summary2013/14 FinalAudited AppropriationExpenditure% 31-Mar-14Spent31-Mar-14 R'000 Current payments ,04% Compensation of employees ,84% Goods and services ,27% (65 459) Interest and rent on land ,00% (296) Financial transactions in assets and liabilities - (12 885)0,00% Unauthorised expenditure - -0,00% - Transfers and subsidies (Total) ,08% Provinces and municipalities ,07% Departmental agencies and accounts ,97% (32 391) Universities and technikons ,53% 43 Non-profit institutions (T) ,46% Households ,66% 331 Payments for capital assets ,21% Buildings and other fixed structures ,90% Machinery and equipment ,65% Software and other intangible assets ,01% (790) Land and subsoil assets 71 -0,00% 71 TOTAL ,31%

MAIN REASONS FOR UNDER-/OVER EXPENDITURE PER ECONOMIC CLASSIFICATION Compensation of employees – Under-spending of R129.3 million -Delays in the filling of vacant funded posts Goods and Services – Over-expenditure of R million -Invoices accrued from the previous financial year. Transfers and subsidies – Under-expenditure of R million -Delays in the transfer of funds due to administrative and compliance requirements. Payments for capital assets – Under-expenditure of R million -Delays in the commencement of building and infrastructure projects. -Delays in receiving of invoices from appointed service providers -Delays in the delivery of pool vehicles, machinery and equipment. 31 October Select Committee

31 October Part E Finance Section 4 : Social Sector Audit Outcome Select Committee

Movement from audit outcomes from October 2015Select Committee110

ANALYSIS OF AUDIT FINDINGS Only one province namely Limpopo had a qualified opinion. Limpopo was also qualified in the financial year. KwaZulu-Natal and North West province improved from a qualified opinion to an unqualified opinion with findings. Western Cape province and Mpumalanga improved from an unqualified opinion with findings to a unqualified opinion with no findings. Eastern Cape and Free State province remained unqualified with findings. The National Department, Gauteng and Northern Cape remained unqualified with no findings. 31 October 2015Select Committee111

Status of quality of annual performance report 31 October 2015Select Committee112

Findings on quality of annual performance reports 31 October 2015Select Committee113 North West and Western Cape Province addressed the material findings as reported in the previous year. Only the Free State province had material findings on information not being reliable for the audit cycle.

31 October Part E Finance Section 5 : Social Sector Expenditure Analysis Select Committee

2015 Preliminary allocations 31 October 2015Select Committee115

SOCIAL SECTOR ANALYSIS The budget for the social sector grows in line with inflation. NDSD growth is driven by social grant transfers and operations are managed with only 0.5 per cent of the budget, which has placed the department under some budget pressure. The operational budget for NDSD has been driven by goods and services spending in the past. This relates mainly to the department’s travelling for monitoring of policy implementation, consultation on key policies and legislation and community outreach programmes. The department’s budget has been under pressure because of under-budgeted outreach campaigns which have compromised outcomes in social security policy NDA’s growth is driven by compensation of employees while SASSA’s growth is driven by social grant payment contractor fees under goods and services. PDSD’s growth is driven by compensation of employees and this was primarily due to annual wage adjustments in excess of inflation, and provisioning for the absorption of social work graduates from the scholarship scheme by the provincial departments. 31 October 2015Select Committee116

SUMMARY - PROVINCES 31 October Annual Average increase of 10.13% Select Committee

31 October Select Committee ALLOCATION PER PROGRAMME

SPLIT PER ECONOMIC CLASSIFICATION 31 October Select Committee

ALLOCATION PER ECONOMIC CLASSIFICATION 31 October Select Committee

COMPENSATION OF EMPLOYEES 31 October Annual Average increase of 10.28% Select Committee

COMPENSATION OF EMPLOYEES Social development services are dependent on social workers, auxiliary workers, youth development workers, community development workers, and probation officers. Spending on compensation of employees increased by 13.7 per cent per year from R4.6 billion in 2011/12, to a projected R7.0 billion in 2014/15. This growth was driven primarily by annual wage adjustments in excess of inflation, and provisioning for the absorption of social work graduates from the scholarship scheme by the provincial departments. This growth has, however, not been sufficient to sustain the number of social work graduates that need to be absorbed. In the 2013 MTEF process the sector received an additional R938 million to appoint social work graduates. 31 October Select Committee

GOODS AND SERVICES 31 October Annual Average increase of 5.42% Select Committee

GOODS AND SERVICES The goods and services budget of provincial departments comprises just over 13 per cent of the budget, leaving little room to reprioritise from goods and services to fund services. If one takes a closer look at the goods and services budget, the main items funded are for operating leases and property payments as well as for travel and subsistence. Travel and related costs are directly linked to work undertaken by social workers who are required to travel to communities on a daily basis. 31 October Select Committee

TRANFERS AND SUBSIDIES 31 October Annual Average increase of 7.36% Select Committee

TRANSFERS AND SUBSIDIES Transfers and subsidies to NPOs grew by 10.0 per cent, from R4.4 billion to R5.8 billion between 2011/12 and 2014/15, and this spending category is expected to grow at an average annual rate of 5.1 per cent from 2014/15 to 2017/18. The share of total social development spending that goes to non- profit organisations remained relatively stable at around 37 per cent between 2011/12 and 2014/15, but is projected to decline over the MTEF reaching 36.8 per cent in 2017/18. There is, however, notable provincial variation in the share of total budgets for transfer payments to NPOs. 31 October Select Committee

PAYMENT OF CAPITAL ASSETS 31 October Annual Average increase of 5.32% Select Committee

PAYMENT OF CAPITAL ASSETS From a low base, spending on capital increased from R584 million in 2011/12 to R727 million in 2014/15. Currently capital expenditure accounts for 4.7 per cent of overall provincial expenditure. Spending is projected to increase further over the MTEF period to R789 million in 2017/18, albeit at a lower average growth rate. 31 October Select Committee

SUMMARY – P 1 : ADMIN 31 October Annual Average increase of 4.96% Select Committee

SUMMARY – P 1 : ADMIN 31 October Select Committee 2010/ / / / / / /17 R million Outcome Medium-term estimates Office of the MEC Corporate Management Services District Management Total Percentage of total Office of the MEC 2,0%2,4%2,5%7,3%2,5% Corporate Management Services 63,5%60,9%56,8%55,5%54,5%54,6%55,1% District Management 34,5%36,7%40,7%37,2%43,0%42,9%42,4% Total100,0% Percentage growth (average annual) 2010/11 – 2013/ /14 – 2016/17 Office of the MEC 59,5% -26,0% Corporate Management Services -1,0%5,2% District Management 6,2%10,1% Total 3,6% 5,4%

EXPENDITURE ANALYSIS P 1 Admin In 2011/12, provincial departments spent 18.9 per cent of their total social development allocation on Programme 1: Administration. Provinces are projecting a lower proportion in 2014/15 at 16.1 per cent and a further decline to 15.9 per cent by 2017/18. This downward trend is welcomed and is the result of a focus on reducing spending on administrative functions, as well as a move towards correctly allocating core and support functions to the relevant programmes and subprogrammes 31 October Select Committee

P 2 : SOCIAL WELFARE SERVICES 31 October Annual Average increase of 2.32% Select Committee

SUMMARY – P 2 : WELFARE SERVICES 31 October Select Committee 2010/ / / / / / /17 R million Outcome Medium-term estimates Management and Support Services to Older Persons Services to Persons with Disabilities HIV and AIDS Social Relief Total Percentage growth (average annual) 2010/11 – 2013/ /14 – 2016/17 Management and Support3,4% 2,9% Services to Older Persons7,3%6,5% Services to Persons with Disabilities 10,5%3,4% HIV and AIDS8,8%-0,1% Social Relief 36,3%-22,4% Total 6,7% 2,8%

EXPENDITURE ANALYSIS P 2 Welfare Services Programme 2: Social Welfare Services sees its share of the total allocation decrease over the MTEF period, from 24.7 per cent in 2014/15 to 21.6 per cent in 2017/18. This partly reflects the re-allocation of funds over the MTEF period in line with the new budget structure, and is also indicative of the focus on spending on children in Programme 3 31 October Select Committee

P 3 : CHILDREN AND FAMILIES 31 October Annual Average increase of 12.41% Select Committee

P 3 : CHILDREN AND FAMILIES 31 October Select Committee 2010/ / / / / / /17 R million Outcome Medium-term estimates Management and Support Care and Services to Families Child Care and Protection ECD and Partial Care Child and Youth Care Centres Community-Based Care Services for Children Total Percentage growth (average annual) 2010/11 – 2013/ /14 – 2016/17 Management and Support40,2% 15,1% Care and Services to Families20,3%3,2% Child Care and Protection24,1%8,6% ECD and Partial Care11,0%12,5% Child and Youth Care Centres11,5%17,5% Community-Based Care Services for Children 41,2% 26,4% Total 19,6% 12,8%

EXPENDITURE ANALYSIS P 3 Children and Families The share of total funds allocated to Programme 3: Children and Families increases from a projected 36.8 per cent in 2014/15 to 38.6 per cent in 2017/18, continuing the strong growth seen in the historical period. This is explained in part by the focus on early childhood development, which is a subprogramme in Programme 3 that has received significant additional allocations over the years. Secondly, this growth is driven by the re-allocation of funds over the MTEF period from Programme 2 to Programme 3, in line with the new budget structure 31 October Select Committee

P 4 : RESTORATIVE SERVICES 31 October Annual Average increase of 14.53% Select Committee

P 4 : RESTORATIVE SERVICES 31 October Select Committee 2010/ / / / / / /17 R millionOutcome Medium-term estimates Management and Support Crime and Prevention and Support Victim Empowerment Substance Abuse, Prevention and Rehabilitation Total Percentage growth (average annual) 2010/11 – 2013/ /14 – 2016/17 Management and Support53,2% 15,9% Crime and Prevention and Support 13,0%7,4% Victim Empowerment26,6%16,8% Substance Abuse, Prevention and Rehabilitation 14,0%10,8% Total 18,4% 10,7%

EXPENDITURE ANALYSIS P 4 Restorative Services The addition of R124 million for the construction of substance abuse treatment centres in Eastern Cape, Free State, North West, and Northern Cape results in the share of total funds allocated to Programme 4: Restorative Services, escalating from 12.1 per cent in 2014/15 to 13.7 per cent by 2017/ October Select Committee

P 5 : DEVELOPMENT AND RESEARCH 31 October Annual Average increase of 8.31% Select Committee

P 5 : DEVELOPMENT AND RESEARCH 31 October Select Committee 2010/ / / / / / /17 R millionOutcome Medium-term estimates Professional and Administrative Support Community Mobilisation Institutional Capacity Building and Support for NPOs Poverty Alleviation and Sustainable Livelihoods Community Based Research and Planning Youth Development Women Development Population Policy Promotion Total Percentage growth (average annual) 2010/11 – 2013/ /14 – 2016/17 Professional and Administrative Support 15,2% 5,0% Community Mobilisation28,4%44,5% Institutional Capacity Building and Support for NPOs 18,0%16,9% Poverty Alleviation and Sustainable Livelihoods 10,5%6,8% Community Based Research and Planning 26,2%-1,9% Youth Development20,4%4,8% Women Development-14,3%23,3% Population Policy Promotion-8,7%20,4% Total 13,8% 8,2%

EXPENDITURE ANALYSIS P 5 Development and Research The share allocated to Programme 5: Development and Research, remains constant at 10.3 per cent over the MTEF period, after a very slight increase from 10.2 per cent in 2014/ October Select Committee

FUNDING PRESSURES ECD: –There is lack of quality assurance in terms of ECD centres, as all centres are not funded for 264 days a year. There is shortage of funds to increase the coverage to more children. Social Worker Absorption: –There is lack of funding for carry-through costs of the absorbed Social Worker Graduates as well as the absorption of additional graduates. ISIBINDI: –There is a lack of funding for provision of CYCC stipends and employment of these workers. Substance Abuse Centre: –Eastern Cape, Free State, North West and Northern Cape lack funding for the running costs of the Substance Abuse Centres. 31 October Select Committee

THANK YOU! 31 October Select Committee