1. PRESENTATION ON THE CONDITIONAL GRANT TO THE SELECT COMMITTEE
25 August 2019
PRESENTATION ON THE CONDITIONAL GRANT TO THE SELECT COMMITTEE
13 FEBRUARY 2019
MANCO

2. Performance during 2018/19; and Support provided by national DSD
PURPOSE
Brief the Select Committee members on the implementation of ECD Conditional Grant in Eastern Cape province with specific focus on:
Performance during 2018/19; and
Support provided by national DSD

3. REMINDER OF BACKGROUND

4. FINANCIAL ALLOCATIONS, PAYMENTS AND EXPENDITURE 2018/19

5. ECD CONDITIONAL GRANT MTEF ALLOCATIONS
2017/18
2018/19
2019/20
R' 000
Early Childhood Development Grant
ECD subsidy expansion
ECD centre maintenance
68 720
78 746
83 127

6. CONDITIONAL GRANT ALLOCATIONS FOR MTEF PERIOD
Provinces
Allocations
Allocation
MTEF Estimates
2017/2018
2018/19
2019/20
2020/21
R’000
R'000
Eastern Cape
56 365
78 788
83 196
88 771
Free State
18 398
21 573
22 776
24 302
Gauteng
38 489
62 810
66 322
70 766
KwaZulu-Natal
71 879  
Limpopo
41 085
68 561
72 389
77 240
Mpumalanga
25 799
41 965
44 309
47 278
Northern Cape
13 761
18 493
19 525
20 833
North West
32 686
52 186
55 103
58 795
Western Cape
19 150
38 790
40 955
43 698
TOTAL
317 612
490 800
518 228
552 949
Audit Committee

7. PROVINCIAL ALLOCATIONS SUBSIDY & MAINTENANCE
Province
Total
Subsidy
Maintenance
Administration EC FS GT
KZN LP MP NC NW WC
TOTAL

8. BUDGET VS EXPENDITURE AS AT 30 SEPTEMBER 2018
Province
2018/19
Allocation
Amount
Transferred R
Spent
PDSD
Unspent Funds
% Spent
Subsidy
23%
Maintenance 0%
Administration
28%

9. BUDGET VS EXPENDITURE AS AT 31 DECEMBER 2018
Province
2018/19
Allocation
Amount
Transferred R
Spent
% Spent
Subsidy
66%
Maintenance
30%
Administration
22%

10. PERFORMANCE AS AT 31 DECEMBER 2018

11. SUMMARY ON PERFORMANCE AS AT 31 DECEMBER 2018
Eastern Cape was allocated R from the total allocation of R million. As at the end of December 2018, 63% of the Provincial allocation was spent.
Subsidy: R allocated; During Q2 23% of subsidy allocation was spent reaching to , 66% in Q3 benefiting the same number of children (20 429)
Maintenance: R – allocated; 0% expenditure, 30% was spent in Q3 where 2 centres were completed.
Administration: R allocated; 28% expenditure on remuneration in Q2; 22% in Q3.
Audit Committee

12. PERFORMANCE ON SUBSIDY
QUARTER 1
QUARTER 2
Annual Target
Number of children benefiting
Number of days
20 472
900
237
Annual Target
Number of children benefiting
Number of days
20 472
20 429
237
Audit Committee

13. PERFORMANCE ON SUBSIDY
Quarter 3
Annual Target
Number of children benefiting
Number of days
20 472
20 429
237
Audit Committee

14. PERFORMANCE ON MAINTENANCE
QUARTER 1
QUARTER 2
Annual Target
ECD centre benefitted 26
Annual target
ECD centres benefitted 26
Audit Committee

15. PERFORMANCE ON MAINTENANCE
Quarter 3
Annual Target
Number of centres benefitted 26 2
Audit Committee

16. PERFORMANCE ON MAINTENANCE GRANT AS AT FEB 2019
Annual Target
Completed
Work has commenced
Advertised 1 Feb, closing 15 Feb
Current % of centres completed (9/26 centres)
% of centres to be complete by 15 February 2019 (18/26) 26 9 8
35%
69%

17. 4TH QUARTER WORK IN PROGRESS
Total Allocation
Expenditure to date
Invoices in hand (to be paid 7 Feb 2019
Total Projected expenditure by 20 Feb 2019
% Total Projected expenditure by 20 Feb 2019 R
R   R R
63%
Audit Committee

18. DETAILED STATUS Project Status Detail information Complete:
Complete:
There are 9 centres completed.
Work Commenced:
There are 9 centres where work has commenced that will be completed by the 15th of February 2019.

19. OUTSTANDING WORK UP TO 31 MARCH 2019
There are 8 centres still outstanding.
The advert went out on the 1st of February 2019.
The advert will be closing on the 15 February 2019.
Evaluation and appointment will be completed by the 22 February 2019.
Handover by 1 March 2019.
Work will be completed by 19th of March 2019.
The invoices will be paid by 26 of March 2019.
All 26 centres and 100 percentage expenditure on the grant will be achieved by the 31st of March 2019.

20. REASONS FOR UNDER PERFORMANCE
CHALLENGES
MITIGATIONS
Reviewing of SLA on an annual basis
Standardisation of the signing of the three year SLA.
Non compliance with the framework on the implementation of 264 days
Province will implement the 264 days as per the framework in 2019/20
Utilisation of incorrect code in the first quarter for 900 children who benefited from the grant.
The province has since created journal to correct the misallocation.
Audit Committee

21. SUPPORT PROVIDED TO THE PROVINCE

22. INTERVENTION BY NATIONAL TO ADDRESS EASTERN CAPE POOR PERFORMANCE
The turn around Strategy was developed to look into the following:
Reduced Allocations
The allocation on the maintenance grant for 2018/19 was reduced from R12 million to R5 million to enable the province to address their challenges and fine tune their processes.
Monitoring and Support
The task team continues to meet to monitor the implementation project plan that was developed.
Meetings have been held to assess progress and provide guidance on the intervention to implement the grant.
The following engagements to place:
National Meeting with ECD grant provincial team on the 15th-17th of October 2018.
Site visits were undertaken to check progress on the 3rd- 4th of December 2018 and 5th- 6th of February 2019.
A task team meeting has been scheduled to take place on the 25th of February 2019.
These interventions from National are working because the grant progress moved from 0% in the second quarter to 30% at the end of the third quarter and to a projected expenditure of 61% by the 20th of February 2019.
National is continuing to work with the Eastern Cape province to ensure that 100% will be spent by the end of the 4th quarter.

23. IMPLEMENTATION OF THE GRANT FOR 2019/20
The 2019/20 Conditional Grant Framework was reviewed and consulted with provinces
It was finalised and signed off by the Acting DG and submitted to National Treasury in December 2018.
Provinces have to submit their signed off Business Plans to National Department by 31 March 2019.
The Plans have to be signed off by the Acting DG and submitted to National Treasury in April 2018.
Meeting with provinces to prepare for quarter 1 implementation is scheduled for 26 February 2019.
Quarterly meetings are held with provinces to monitor implementation of the grant

24. RECOMMENDATIONS
It is recommended that the committee note the implementation of Conditional Grant in Eastern Cape province with specific focus on:
Performance made during 2018/19; and
Support provided by national DSD

25. #ECD IS EVERYBODY ‘S BUSINESS THANK YOU