PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES:

1

• PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL
  SERVICES
• DIVISION OF REVENUE
• Department of Social Development
• 12 MARCH 2003

2
Introduction

• Department has managed conditional grants since
  1998/99
• The following grants will be managed by the
  Department in the 2003/04 and over the MTEF
  years
• Improvement of Social Security System
• HIV/AIDS (National Integrated Plan for Children
  Infected and Affected by HIV/AIDS)
• Extension of the Child Support Grant
• Food Emergency Relief
• The ISSS will phase out in 2002/03 financial year

3
MTEF Summary
Year Operational allocation R000 Special Allocation R000 Total Allocation R000
2003/04 124,102 1,828 400 1,952 502
2004/05 137,693 4,088 112 4,225 805
2005/06 150,184 7,119 159 7,269 343
4
Departmental Budget 2003/04

• Amount voted R1,952 502
• Special Allocations
• Poverty Relief R 71 000
• Improvement of Social
• Security System R 69 000
• Disaster Relief Funds R 10 000
• Emergency Disaster Relief R 5 000
• HIV/AIDS R 65 917
• Child Support Grant Extension R 1 100 000
• Food Relief R 400 000
• National Development Agency R 103 283
• National Councils R 4 200
• Total Special Allocations R 1,828 400

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ISSSImprovement of Social Security System
6

• Purpose
• To improve financial management, administration
  and functioning of social security system
• Outputs
• provision of infrastructure office automation
  tools
• Improved communication network and information
  service for speedier responses to beneficiaries
• effective financial management systems

7
Rationale for conditional grant

• Improvement of social security is a national
  priority
• Conditional grants ensures -
• integration consistency in planning and
• implementation of national programmes policy
  priorities, e.g. norms standards

8
Improving grant delivery

• Comprehensive improvement of grant administration
  programme was launched in July 2001
• Development and implementation of norms and
  standards for-
• Applications
• Customer management and care
• Information technology
• Pay points infrastructure and facilities
• Financial administration
• Upgrading of the current payment system (SOCPEN).
• Establishment of a compliance and Support Unit

9
Allocation - ISSS
10
ISSS -Allocation per province
11
ISSS -Spending by province as at the end of
January 2003
PROVINCE ALLOCATION 2002/03 R000 AMOUNT SPENT R000 TOTAL PROJECTED EXPENDITURE R000 DEVIATION SURPLUS/ (DEFICIT) R000 SPENT
Eastern Cape 1,200 - 1,200 - 0
Free State 1,200 - 1,200 - 0
Gauteng 1,200 1,200 1,200 - 100
KwaZulu-Natal 1,200 - 1,200 - 0
Limpopo 1,200 725 1,200 - 60,4
Mpumalanga 1,200 455 497 703 37,9
Northern Cape 1,200 609 873 327 69,75
North West 1,200 593 1,200 - 49,4
Western Cape 1,200 67 1,200 - 5,6
TOTAL 10,800 3,649 9,770 1,030 37,3
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2002/03 Spending- ISSS
13
Conditions and Monitoring Mechanisms

• Approved business plan
• Monthly expenditure reports
• Quarterly project progress reports
• Provincial visits - twice a year
• Written assurance in terms of PFMA with respect
  to financial management and internal control
  systems

14
Criteria for allocation

• Based on beneficiary population in respective
  provinces
• 2002/2003 is the final year of programme, all
  provinces receiving same allocation (R1 200 000)
• This is earmarked mainly for infrastructure

15
Past Performance

• Some provinces established operational centers
• Financial management improved, although there are
  still shortcomings
• reconciliation of grant payments now being done
• projections and budgeting models developed
• some monthly financial reports are produced
• progress with PFMA implementation
• IT infrastructure and other equipment installed
  in provinces

16
Challenges

• Data integrity still a problem
• Grant information system (SOCPEN) still a problem
  - being replaced
• Capacity problems still exist

17
National - Key Milestones

• Expanded capacity through restructuring
• Directorate Monitoring, Evaluation and Audit
  established
• Norms and Standards developed
• SOCPEN replacement in progress
• Infrastructure audit close to completion

18
HIV\AIDS
19
HIV/AIDS Allocation

• Purpose
• Development of home-based care programmes in the
  community, including replication of existing
  models
• Outputs
• Increase in number of orphans identified,
  monitored and receiving care
• Material assistance to children families
• counseling services to children families
• Establishment of effective local institutions

20
Rationale for the grant

• Part of National Integrated Plan for Children and
  affected by HIV/AIDS and therefore need
  consistency in approach.
• Provides opportunity for monitoring progress with
  national policy implementation on a national
  basis .
• Ensure that adequate funds are provided and spent
  for intended purpose.

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HIV/AIDS Provincial Allocations
Provinces 2002/03 R000 2003/04 R000 2004/05 R000 2005/06 R000
Eastern Cape 4,798 6,658 7,089 7,514
Free State 6,650 9,228 9,825 10,415
Gauteng 6,983 9,690 10,315 10,934
Kwazulu-Natal 8,644 11,996 12,773 13,540
Limpopo 3,135 4,353 4,634 4,912
Mpumalanga 7,077 9,821 10,456 11,084
Northern Cape 2,660 3,691 3,930 4,165
North West 5,463 7,580 8,070 8,554
Western Cape 2,090 2,900 3,088 3,273
TOTAL 47,500 65,917 70,180 74,391

22
HIV/AIDS Spending by province as at the end of
January 2003
PROVINCE ALLOCATION 2002/03 R000 AMOUNT SPENT R000 Total Projected Expenditure R000 DEVIATION SURPLUS/ (DEFICIT) R000 SPENT
Eastern Cape 4,798 2,340 4,798 - 48,8
Free State 6,650 3,579 6,038 612 53,8
Gauteng 6,983 4,961 6,983 - 71,0
KwaZulu-Natal 8,644 1,289 6,949 1,695 14,9
Limpopo 3,135 2,791 3,065 70 89,0
Mpumalanga 7,077 3,194 7,077 - 45,13
Northern Cape 2,660 1,882 2,660 - 70,8
North West 5,463 3,979 5,463 - 72,8
Western Cape 2,090 1,050 2,090 - 50,2
TOTAL 47,500 25,065 45,123 2,377 52,77
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2002/03 Spending - HIV/AIDS
Projection
52,8 Spending
24
Conditions and Monitoring

• Approved business plan
• Legal contracts signed with implementing agencies
• Monthly expenditure reports
• Quarterly progress reports
• Provincial visits
• Site visits at least twice a year by both DoH
  DoSD officials

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Criteria for allocation

• High HIV/AIDS prevalence i.e. EC, KZN, NP NW
• Availability of resources and linkages with other
  strategies and programmes, I.e.-
• ISRDP URP
• Poverty Relief Programme
• Integrated Nutrition Programme

26
Overview on progress

• Third year of implementation of HCBC and Support
• Improved management systems for scaling up of the
  HCBCS
• Improved management of the R48 million allocated
  to this programme this year.
• Most provinces have already spent over 60 of
  their allocated funds from the conditional grant.
  
• Partnership with NGOs, CBOs and FBOs is
  facilitating the rollout

27
Overview on progress

• Appropriate mechanisms such as guidelines are in
  place
• Monitoring systems have been developed and are
  being implemented
• Capacity building resource material and
  programmes for addressing the needs of community
  based organisations exist.
• Contract workers to speed up delivery have been
  employed in some provinces

28
Overview of Progress

• Most officials working in the area of HIV/AIDS
  have received training.
• Some provinces are incorporating youth, women and
  older persons issues in the HCBCSP
• Basic information and awareness programmes exist

29
Achievement on outputs/indicators

• 314 centers/sites for home/community-based care
  and support were supported
• 29 016 additional children orphaned or vulnerable
  due to HIV/AIDS were identified and the following
  services were provided
• Psycho social support, provision of day care and
  after school centers/drop in centers
• Placement of children in foster care and
  addressing the education and health needs of
  children
• 9 766 food parcels raging between R154 and R350
  per parcel were provided
• 855 care givers received stipends, between R225
  and R500

30
Achievement on outputs/indicators

• 20 695 families received support such as food
  parcels, assistance with funerals, linking
  families up with income generating projects
• 1 990 volunteers were recruited and trained
• 41 Child Care Forums have been established in
  some parts of the country
• 85 Support groups for PLWAs are being provided
  with both financial and professional support

31
Challenges

• Scaling up response to meet needs of vulnerable
  children and families
• Capacity constraints in some provincial
  departments
• Need to establish firm partnerships with NGOs and
  CBOs as implementing agencies

32
Fighting poverty impact of HIV/Aids

• The poverty relief programme focuses on
  sustainable development through income generating
  initiatives, and targets vulnerable groups like
• Women, youth, children, the infirm, disabled and
  people infected and affected with HIV/AIDS
• Poverty Relief funding has been allocated to the
  365 projects established at the national and
  provincial levels
• 24 of the projects are at Integrated Sustainable
  Rural Development and Urban Renewal(URP) nodal
  points
• The Home-Based Care programmes for people
  affected and infected by HIV/AIDS has been
  accelerated.

33
POVERTY RELIEF(Grant in Kind)
34
Poverty Relief - Grant-in-Kind

• Purpose
• to increase self-reliance and improve social
  cohesion of specific vulnerable groups
• Outputs focus on
• establishment of food production clusters
• Youth development projects focusing on job
  creation
• Income generation initiatives for rural women
• Dual-purpose projects for children, disabled and
  the elderly

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Conditions

• Submission of project proposals/business plans
  for approval by national department
• Signing of legal contracts

36
Poverty Relief Annual Allocations
Funds are transferred to the Independent
Development Trust for payment to projects. IDT
also assist with programme management.
37
Past Performance

• 365 planned projects - 315 approved
• Simplified application procedures and grant
  agreements
• Assistance to communities with planning of
  projects (social facilitation)
• Compliance audit conducted
• Development and implementation of the Monitoring
  Evaluation and reporting tool

38
Poverty Alleviation 2002/03
59 Spending 100 committed
39
Allocation per province
40
Challenges

• Synchronizing with IDPs
• nodes identified annually and yet programme has a
  life span and 3 year commitment - 30 allocation
  of budget exceeded.
• Local government IDPs may not align with existing
  projects. Effort will be done for new projects.
• Long-term and holistic programmatic support.
• Capacity building.
• Social facilitation
• Impact assessment
• Financial cycle vis a vis development process
• Performance indicators for the DoSD/PRP

41
CHILD SUPPORT EXTENSION GRANTFrom 2003/04
financial year
42
Child support extension grant

• Purpose
• to fund extension of child support grant to
  eligible children up to date when they turn 14
  years old. This grant will be phased in over
  three years, and will also cover associated
  administrative and payment costs
• Outputs focus on
• 7 and 8 years old in 2003/04
• 9 and 10 years old in 2004/05
• 11,12 and 13 years old in 2005/06

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Conditions

• Funds should only be utlised for payment of
  eligible child support grant beneficiaries
• Provincial implementation plans to be submitted
  to the National Department for approval
• A consolidated implementation plan to be
  submitted to the National Treasury
• Provinces must submit to the National Department,
  within 15 days after end of each month detail
  reports on the identified matters relating to
• Beneficiary numbers
• Expenditure

44
CONDITIONS

• A consolidated monthly report on above-mentioned
  matters must be submitted to the National
  Treasury within 20 days after the end of each
  month
• Bi-annual audits (September and March) of grant
  application and approval process to ensure
  compliance with legislative requirements and
  norms and standards for grant payment

45
Criteria for allocation

• Based on number of eligible beneficiaries (as per
  application of the means-test) by province,
  determine through the most reliable demographic
  and social-economic data available and in line
  with the purpose of the Child Support Extension
  Grant

46
Conditional Grant to Provinces
Provinces 2003/04 R000 2004/05 R000 2005/06 R000
Eastern Cape 272,130 866,885 1,669 903
Free State 72,497 233,242 457,870
Gauteng 66,449 193,815 359,609
Kwazulu-Natal 235,143 723,700 1,367 785
Limpopo 172,969 536,542 1,000 815
Mpumalanga 78,360 239,836 442,010
Northern Cape 19,671 63,540 121,421
North West 125,426 367,979 652,257
Western Cape 57,355 174,461 328,330
TOTAL 1,100 000 3,400 000 6,400 000

47
Payment schedule and Monitoring mechanisms

• Payment schedule
• Quarterly transfers in advance to provinces in
  line with cash flow projections agreed to between
  the nation al and provincial DoSD
• Monitoring mechanisms
• Monthly reports as set out under conditions

48
Capacity and preparedness

• A National Implementation Team, chaired by the DG
  of the national Department of Social Development
  will be convened to
• Identify detailed options for phasing in of
  the extension over the three year period
• Assess provincial readiness for further
  implementing the extension
• Advised the HSD on areas and locations where
  capacity has to be strengthened
• Ensure the establishment of teams within the
  national and each provincial DoSD to monitor and
  evaluate progress made with the implementation
  of business plans and advise on actions to be
  taken to achieve set outputs

49
FOOD EMERGENCY RELIEF
50
Food Relief Grant

• Purpose
• to provide food relief to vulnerable individuals
  and households
• Outputs focus on
• Number of beneficiaries (households and
  individuals) receiving food relief

51
Food Relief Grant 2002/03

• Grant in kind funds to be transferred to the
  IDT as Implementation Partner for the National
  Food Emergency Programme in the 2002/03 financial
  year
• The IDT will assist the DoSD with the design,
  social facilitation, implementation of the
  programme during the 2002/03 financial year in
  consultation with all the relevant stakeholders

52
Food Relief Grant 2002/03

• Allocation Criteria
• Distribution of the 244 950 prioritised
  households
• Financial Implication of Programme
• - Food parcels R220,5 million
• - Project facilitation,
• support and administration R 9,5 million
• TOTAL R230,0 million

53
Food Relief Grant 2002/03 Allocations of food
parcels per province
Provinces No of Households Allocation value Rand in Millions
Eastern Cape 35 000 31,5
Free State 30 000 27,0
Gauteng 5 000 4,5
Kwazulu-Natal 30 390 27,4
Limpopo 50 890 45,8
Mpumalanga 12 000 10,8
Northern Cape 4 670 4,2
North West 72 000 64,8
Western Cape 5 000 4,5
TOTAL 244 950 R220,5

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Conditions for conditional grants from 2003/04

• Funds may only be utilised to provide food relief
  to vulnerable individuals and households
• Provincial implementation plans must be submitted
  to the National Department for approval
• Provinces must submit within 15 days of the end
  of each quarter, a report detailing
• Services
• Expenditure

55
Conditions for conditional grants from 2003/04

• A consolidated report on the above-mentioned must
  be submitted to the National Treasury within 20
  days after the end of each quarter
• Annual evaluation reports should be compiled for
  the National and Provincial DoSDs

56
Criteria for allocation

• Based on the proportional shares of poverty and
  income adjustment distribution per province

57
Conditional Grant to Provinces
Provinces 2003/04 R000 2004/05 R000 2005/06 R000
Eastern Cape 94,133 94,133 94,133
Free State 37,334 37,334 37,334
Gauteng 27,904 27,904 27,904
Kwazulu-Natal 68,185 68,185 68,185
Limpopo 61,146 61,146 61,146
Mpumalanga 27,651 27,651 27,651
Northern Cape 9,998 9,998 9,998
North West 41,615 41,615 41,615
Western Cape 20,034 20,034 20,034
TOTAL 388,000 388,000 388,000

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Payment schedule and Monitoring mechanisms

• Payment schedule
• Quarterly transfers to provinces in line with
  cash flow projections and based on
  monthly/quarterly reports capturing expenditure
  and beneficiaries. Commencing April 2003
• Monitoring mechanisms
• Monthly reports as set out under conditions

59
Capacity and preparedness

• The management and administration of the poverty
  relief programme will be strengthened to ensure
  effective monitoring of the grant, and would
• Identify more detailed options for expanding
  the social relief programme interventions and
  programmes
• Access the possibility of integrating rapid
  emergency food relief with social welfare
  services

60
Challenges

• Finalise Provincial business Plans
• Capacity Building at Provincial level
• Procurement Process vis a vis time constraints
  and economies of scale