1. PRESENTATION ON THE CONDITIONAL GRANT TO THE SELECT COMMITTEE
18 November 2018
PRESENTATION ON THE CONDITIONAL GRANT TO THE SELECT COMMITTEE
23 MAY 2017
18 November 2018
ECD Conditional Grant Workshop
MANCO

2. BACKGROUND
In order to enhance the implementation of the ECD policy, Treasury has allocated R812 million as a conditional grant for 2017/18 (R ) and 2018/19 (R ). This is to enable National DSD to better control and ring-fence expansion of ECD in the country in line with the approved national Integrated ECD Policy.
The allocation will be used to increase coverage of children accessing ECD services through the ECD subsidy to poor children as well as assist to improve the conditionally registered ECD centres to meet basic requirements in order to be fully registered.
The grant is divided into two:
Subsidy component to cover 1004 children by 2018/19
ECD maintenance component to upgrade 400 sites by 2018/19
Five national workshops were held with provinces to prepare for the implementation of the Conditional Grant
A comprehensive document was sent to the provinces on the 25 May 2016 which included the following:
Submission to HOD’s on the grant including timelines for implementation;
Criteria for assessment of ECD’s;
The assessment tool; and
The database template

3. SUMMARY ALLOCATION 2016/17 2017/18 2018/19 R' 000
2016/17
2017/18
2018/19
R' 000
Early Childhood Development Grant -
319,828
493,065
ECD subsidy expansion
250,000
413,187
ECD centre maintenance
69,828
79,878
18 November 2018

4. KEY CONDITIONS OF THE ECD CONDITIONAL GRANT
Subsidy Grant
The grant will assist registered centres that are not fully funded from the equitable share, fully registered centres that are not funded or conditionally registered partial care facilities not funded offering Early Childhood Development programmes.
The subsidy is targeted for qualifying children from birth to 5 years or until they enter Grade R.
The value of the subsidy paid is at a rate of R15 per child for a maximum period of 264 days.
18 November 2018

5. KEY CONDITIONS OF THE ECD CONDITIONAL GRANT
Maintenance Grant
Partial care facilities offering ECD programmes that are registered conditionally will be eligible for the maintenance grant.
ECD centres must be conditionally registered
Minor building and maintenance improvements aimed at ensuring ECD centres comply with the health and safety norms and standards, as identified by the National Department of Social Development will be funded from the grant.
The maximum value to be spent per ECD centre for maintenance improvements is R100 000.00
Prior approval for any amount exceeding the R100 000 should be obtained from the HOD and CFO.
The exceeding amount should not be more than 30% of the R100 000.
Provinces must conduct assessments of conditionally registered centres and cost them in order to qualify for maintenance grant funding in 2018/19.
All maintenance projects must be recorded on the National Treasury Infrastructure Reporting Model (IRM).

6. CATEGORIES FOR MAINTENANCE COMPONENT
Health and Safety
Minor Building improvement
Early Learning Material
Equipment
18 November 2018
Audit Committee

7. STEPS AND TIMELINES FOR THE PROCESS
01 August 2016 to 30 September 2016
01 March 2016 to 31 July 2016
National analysis of the lists from provinces
Approval of the final list
Identification of ECD’s.
Assessment of Issues
Costing of the issues
Categorisation of ECD’s
01 October 2016 to 31 October 2016
Finalisation of the CG framework and allocations
Reporting as per conditional grant
Database management
Payment approval
Invoice management
Implementation (Fixing the issues)
01 April 2017 to 31 March 2019

8. RESPONSIBILITIES OF NATIONAL DEPARTMENT
Monitoring of implementation, progress and compliance to conditional grant framework;
Provide the guidelines and criteria for the development and approval of Business Plans;
To approve the Business Plan submitted by provinces;
Monitor implementation through project site visits and provide support on a monthly and/or quarterly basis;
Submitted the allocation criteria for 2017 MTEF provincial allocations and the Conditional Grant Framework to National Treasury by 30th November 2016;
Comply with prescribed terms and conditions of the national transferring officer outlined in the Division of Revenue Act (DoRA);
Submit monthly financial reports to National Treasury 15 days after the end of the month;
Consolidate and submit quarterly performance reports to National Treasury within 45 days after the end of each quarter;
Monitor the utilisation of the grant against the set outcomes and take appropriate action in cases of non-compliance;
Submit an annual evaluation report after the end of the 2017/18 financial year;

9. RESPONSIBILITIES OF PROVINCES
Appointment and management of service providers;
Develop Business Plans and submit after they get signed off by Heads of Department to national DSD;
Provinces to implement the Business Plans as approved by national department (national should be notified in writing about deviations before implementation can take place);
Comply with terms and conditions of the receiving officer outlined in the Division of Revenue Act (DoRA);
Submit monthly financial reports to National Treasury 15 days after the end of the month;
Submit quarterly performance reports to national department within 30 days after the end of each quarter;
18 November 2018

10. TOTAL ALLOCATION TO PROVINCES
Column A
Column B
Allocation
MTEF Estimates
2017/18
2018/19
2019/20
R'000
Eastern Cape
56 365
86 968
91 830
Free State
18 398
25 903
27 346
Gauteng
38 489
61 883
65 344
KwaZulu-Natal
71 879
Limpopo
41 085
62 414
65 901
Mpumalanga
25 799
39 989
42 223
Northern Cape
13 761
18 127
19 139
North West
32 686
51 692
54 581
Western Cape
19 150
31 477
33 235
Total

11. PAYMENT SCHEDULES PROVINCE Actual /proposed payment date Actual amountQ1
Actual/proposed payment date
Actual/proposed amount Q2 Q3 Q4
Total amount for 2017/18 EC
17 May
31 July
31 October
30 January 2018 FS
14 July GP
KZN
30 June
29 September
29 December
31 March 2018

12. PAYMENT SCHEDULES PROVINCE Actual /proposed payment date Actual amountQ1
Actual/proposed payment date
Actual/proposed amount Q2 Q3 Q4
Total amount for 2017/18
LIM
17 May
31 July
31 October
30 January 2018
MPU
03 July
2 October
15 January 2018 NC NW
15 August
15 November WC

13. NATIONAL PROGRESS TO DATE
Consultations with provinces have been done;
Final criteria for qualifying ECD centres has been agreed between National, Provinces and National Treasury;
Standard operating procedures document has been developed;
Business Plan was developed and sent to provinces;
The terms of reference for the appointment of service providers have been developed with provinces;
Invoice payment management and process finalised;
Conditional Framework linked to the Division of Revenue Act (DoRA) has been developed, finalised and submitted to National Treasury;
Levels of registration framework for ECD centres has been developed and being finalised through consultation with provinces and environmental health professionals;
Guidelines for implementation of the ECD Conditional Grant have been developed and finalized (Maintenance Grant Component);
Service Level Agreements for maintenance and subsidy have been developed;

14. NATIONAL PROGRESS TO DATE
All provinces have submitted their Business Plans to national DSD;
Payment schedule has been approved by the Director General and submitted to National Treasury;
Payments of the grant will be done to provinces on a quarterly basis and the first payment to be done by end of May 2017;
Conditional Grant Project Team to provide technical support to provinces on subsidies and infrastructure is being put in place through the Human Resource unit;
The following approved documents were forwarded to provinces:
1.Service Level Agreement (SLA) template for the Subsidy and maintenance
2.Guidelines for the conditional grant;
3.Checklist for submission of claims to National DSD/ Claim Certificate;
4.The approved ECD Conditional Grant Framework.
5. Payment schedules

15. PROVINCIAL PROGRESS TO DATE
EASTERN CAPE
To sign Service Level Agreements (SLA) by 31 May 2017
The claim certificate to be sent by 7 June 2017
Pre-implementation workshop to be held with districts to give guidance on implementation.
They have advertised posts for administration of the grant, the closing date is 26 May 2017
FREE STATE
To submit the SLA and claim form documents to National by 26 May
SLA not signed yet, the delay of approval of sites to benefit from grant was caused by the social work strike.
GAUTENG
SLAs will be signed by the 31 May 2017
The claim certificate will immediately follow thereafter
Posts for the administration of the grant will be advertised by 31 May 2017 whilst existing personnel continue to administer the grant

16. PROVINCIAL PROGRESS TODATE
KWAZULUNATAL
SLA submitted to cluster Chief Directorates to be signed by 25 May 2017
The claim will be compiled once contracts have been signed with service providers.
Appointment of staff will be finalized by 29 May 2017 for assumption of duty by 01 June 2017.
LIMPOPO
Service Level Agreements will be signed by 31 May 2017
Documents for the release of funds will be sent thereafter.
Currently conducting verification for qualifying children, the process to be finalised by 19 May 2017.
18 November 2018
Audit Committee

17. PROVINCIAL PROGRESS TO DATE
MPUMALANGA
They are currently signing SLAs with service providers and anticipating to complete the process by 26 May 2017.
Posts have been advertised closing date was 12 May 201. Human resource unit is finalising the process.
NORTHERN CAPE
They are being assisted by their infrastructure unit of as well as COGHSTA and LOCAL authority building inspectors.
The upgrades of the centres will be done by service providers appointed through supply chain procedures.
Posts advertised to shortlist by 19 May 2017

18. PROVINCIAL PROGRESS TO DATE
NORTH WEST
Pre implementation workshop will be held with district officials to give guidance on the implementation workshop
SLAs will be signed by the 31 May 2017
Claim certificate will be sent to National Office by 07 June 2017
Posts to be advertised by 21 May 2017
Planning to sign SLAs with service providers by end of May 2017
WESTERN CAPE
Not yet submitted any claims as they are still in process of finalising allocations for children qualifying for subsidy with their funding unit
SLA submission for approval of the identified service provider was completed and is in the process of being signed by the senior management and executive
First payment will be made by end June 2017
The province will appoint service organisations/providers currently providing support to the province

19. NUMBER OF CENTRES TO BENEFIT FROM MAINTENANCE GRANT PER PROVINCE
Total
Gauteng 15
Western Cape 53
Northern Cape 66
North West 48
Free State 79
Mpumalanga 62
Limpopo 98
KwaZulu Natal
117
Eastern Cape
180
Grand Total
718
18 November 2018
Audit Committee

20. ADMINISTRATION FOR THE IMPLEMENTATION OF THE GRANT
National DSD have allocated R2.3 million for administrative management of the grant;
Provinces are to utilise R2.1 million from their conditional grant allocation for administrative management of the grant, this includes capacity to manage the grant and funding for maintenance improvement assessments of ECD centres.
Proposed Administration Support for National
1 Project Manager, 3 ECD project coordinators(subsidy), 3 infrastructure coordinators, 3 state accountants and 2 administration officers.
Proposed Administration Support for Provinces
Programme coordinators(subsidy) x 9, Project coordinators(maintenance)x9 Administration officer x9, Chief Quantity Survey x9

21. WAYFORWARD
National DSD will continue to meet with provinces and provide technical support, for instance a meeting is being planned for early July 2017.

22. Thank you!!!
18 November 2018
Audit Committee