1. FREE STATE DEPARTMENT OF HEALTH: EPWP INCENTIVE GRANT
PRESENTER:
DR S KABANE
HEAD - HEALTH

2. 1. BACKGROUND
Free State submitted a business plan to National Public Works Department in March
The funding requested was R15,586,
The target was 948 Home Based Carers to benefit from this fund.
The Memorandum of Agreement was then signed to pay a minimum wage rate of R55 per person day of work.

3. 2. BUDGET The third tranche was due in October 2011, but withheld.
BUDGET ALLOCATED
TRANSFERS RECEIVED
TOTAL EXPENDITURE
BALANCE R
77% R
The third tranche was due in October 2011, but withheld.
The reasons advanced were the alleged non-compliance to ministerial determination.
There was a requirement that we pay R60 per person per day instead of the agreed R55 per person per day

4. 3. REASONS FOR UNDER EXPENDITURE
A meeting was held with Public Works on the 21 November 2011 to discuss the alleged non- compliance.
A resolution was reached that it was an over sight of Public Works in the MOA.
It was also resolved that DoH will increase the wage from R55 to R60.
FSDOH had made provision for the stipend increases
During the suspension, internal funds were utilised to pay the stipend for the continuity of service delivery.
The third tranche was later transferred in January and the last tranche was transferred in February 2012.

5. 3. REASONS FOR UNDER EXPENDITURE - CONTINUED
The third and fourth transfer were eventually received on the fourth quarter of 2011/12.
This was the period for the closure of the financial year.
The funds could not be journalised back to the internal funding.
The total expenditure at the end of the financial year was R [77%]
The total target of beneficiaries was reached at 948 as per approved MOA and Business Plan.

6. 4. RECOMMENDATIONS
MOAs for EPWP and Business Plans should be closely analysed before implementation.
Reports from Provinces should be closely monitored by Public Works.
Treasury to open a separate bank account for donations and grants so that they are not affected by internal processes.
Need to avoid changes to Business Plans that have wider implications for the implementing Departments [R3,9m to equalise stipends]
Consistency in funding: 2012 funding R7.5m an almost 50% decrease. The carers are still paid from our equitable share

7. THANK YOU