1. 1 DEPARTMENT OF SOCIAL DEVELOPMENT PRESENTATION TO THE JOINT BUDGET COMMITTEE ON THE MTBPS 2 NOVEMBER 2006

2. 2 PURPOSE OF PRESENTATION The presentation focuses on the following: –Social Development Priorities –Implementation challenges –Measures to improve delivery of social development services –Pressures on future provincial expenditure –Spending trends in social development budgets –Adjustment estimates

3. 3 SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES 1.Institutional reform of the social security service delivery system: –Establishment of Social Security Agency Head Office fully functional & capacitating regional offices Service delivery improvement & systems integration Implementation of norms & standards Implementation of Fraud Prevention & Eradication Strategy 2.Institutional Reform of NDSD –Business System Re-engineering –Strengthening the Strategy, Oversight and M&E function

4. 4 SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES 3.Expansion and consolidation of welfare and community development programmes & services: –Welfare programmes Services to older persons and people with disabilities Prevention and Treatment of Substance Abuse Expansion of services to fulfill the rights of children Implementation of new policies including Victim Empowerment Policy, Family Policy & Disability Policy –Community development Community –based care and support programmes Development of norms and standards –Capacity building for our implementation partners NGO funding Compliance with non-profit organizations Act 71 of 1997

5. 5 SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES 4.Human Capital Development. –Social workers –Auxillary social workers –Community development practitioners –Child and youth workers 5.Expanded Public Works Programme –Expansion of services Home/Community Based Care Early Childhood Development –Challenges for DSD as co-ordinating department –M&E 6.Review of Social Assistance Act to address –Social Relief of Distress –Disability – new definition

6. 6 Key challenges Disparities in service provision and expenditure per capita among provinces, e.g. –Subsidies paid to childrens and older persons institutions, –Number of childrens homes per province, –Distribution of social service professionals by province Lack of human resources Capacity building of key service delivery stakeholders (e.g. social workers, NGOs, etc.) Information management systems e.g. for services to children Increase in the demand due to high numbers of orphans

7. 7 MEASURES TO IMPROVE SERVICE DELIVERY: EXPANSION AND CONSOLIDATION OF WELFARE AND COMMUNITY DEVELOPMENT SERVICES Implementation of the new integrated service delivery model –Development & Implementation of norms and standards –Increase numbers & strengthen capacity of social service professionals Recruitment & retention strategy Improvement of conditions of service –Capacity building for our implementation partners Implementation of new policy on financial awards

8. 8 MEASURES TO IMPROVE SERVICE DELIVERY: EXPANSION AND CONSOLIDATION OF WELFARE AND COMMUNITY DEVELOPMENT SERVICES Prevention and Treatment of Substance Abuse –Development & implementation of norms & standards for in-patient & out-patient treatment centres. –Review of legislation: Prevention & Treatment of Substance Abuse Act. –Implementation of the national drug master plan.

9. 9 Measures to improve co-ordination in the sector The national and provincial departments are all undergoing restructuring to re-position themselves towards delivering social development services DSD sector reform DSD Macro plan & Sector Strategy Norms and Standards Integrated Information Management system HR Plan Mobilise resources based on the macro plan and sector strategy Effective and Integrated M&E System Plan for establishment, management and maintenance of sector facilities and institutions

10. 10 PRESSURES ON FUTURE PROVINCIAL EXPENDITURE Implementation of new legislation (Childrens Act, Older Persons Act & Child Justice Bill) Expansion of other Social Welfare Services Expansion of HCBC and ECD services as part of the EPWP programme –Improving systems for monitoring and reporting Extension of social benefit to refugees Social Security – pending litigation

11. 11 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS The social assistance function shifted to the national sphere of government with effect from the 2005/06 financial year. –The funding for the social assistance function no longer form part of the equitable share allocations to provinces; and –Funding were allocated as two conditional grants: social assistance administration; and social assistance transfers to provinces. With effect from the 2006/07 financial year the budget for social assistance have been Voted to the national Department of Social Development

12. 12 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS [Cont.] A large portion of social welfare services is dependent on social workers. Spending on compensation of employees increased by 12,5% per year from R949 million in 2002/03 to R1,4 billion in 2005/06. Further growth is estimated at an average annual rate of 21,7% per year over the MTEF to R2,4 billion by 2008/09.

13. 13 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS [Cont.] Spending on other social development services has been growing at an annual average rate of 16,4% (R2,3 billion in 2001/02 to R3,6 billion in 2004/05) Historically social welfare services have not been adequately funded due to: –Pressure exerted by growth in social assistance expenditure –Lack of costed norms and standards for welfare services The social welfare service programme makes up the largest share of the total provincial social development spending at 61,3% in 2006/07. Social Welfare services expenditure will grow by 22,0% p.a. from R2,6 billion in 2005/06 to nearly R4,8 billion in 2008/09.

14. 14 Provincial Expenditure Outcomes:2005/2006 FY Provinces collectively underspent by R416 million or 9% of total budget, excluding social security expenditure. Most underspending was in FS (10,6%); KZN (17,3%); NW (10,8%); LP (10,0%). Underspending is largely on conditional grants, specifically on the integrated social development grant. Main reasons for underspending: –Late introduction of ISD Grant impacted on planning –Capacity constraints in some provinces, especially capacity of implementing agencies and staff shortages within provinces –Delays in filling of posts & procurement of capital assets

15. 15 National Department Adjustments of the original Vote funds of the national Department of Social Development A total amount of R376,965 million has been received as additional allocation for the 2006/07 financial year. –R55.772 million of the above-mentioned amount were approved as rolled-over funds from the under- spending realized on the Voted funds to the national Department of Social Development for the 2005/06 financial year. –The funds will be utilized for the implementation and finalisation of the first phase of the Management Information System for social security. –The full amount has been earmarked for transfer to the South African Social Security Agency (SASSA) during the remainder of the 2006/07 financial year, who will be responsible for the administration and management of this project as part of the improvement of the grant administration and payment system. 2006/07 ADJUSTED ESTIMATES

16. 16 2006/07 ADJUSTED ESTIMATE –An additional amount of R51,5 million was approved by the Treasury Committee and will be utilized by the Agency for the payment of social security legal costs. –The remaining amount of R269,7 million was approved as roll-over funds from the unspent social assistance administration conditional grant fund by the provincial Departments of Social Development at the end of the 2005/06 financial year. will be utilized for the payment of social security litigation costs, improvement of financial management systems and to defray costs associated with the transfer of staff to SASSA with effect from 1 April 2006.

17. 17 THANK YOU