Eastern Cape Department of Social Development

Eastern Cape Department of Social Development

Conditional Grants and Capital Expenditure ReviewConditional Grants and Capital Expenditure Review

09-November-200509-November-2005

Presentation OutlinePresentation Outline

Brief Outline of Conditional GrantsData on conditional grants spending

trends from 2001/02 to 2005/06Brief Assessment of the Department’s

monitoring capacityConditional Grants Compliance IssuesDetails of Capital SpendingChallenges

Brief Outline on Conditional Brief Outline on Conditional Grants Grants

Social Grants Arrears (Regulation 11)Stemmed from the amendment of the Social

Assistance Regulation 11, which was amended to consider the application date as the accrual date for payment of social grants, not the date of approval.

As the amendment was applied retrospectively, and thus all grants approved between 1st April 1998 and 1st December 2001, were due for back pay.


Child Support Grant This grant was introduced in April 1998 to replace

the State maintenance grant which was phased out over a three year period ending 31st March 2001.

In its year of inception it targeted children from 0-under 7 years.

It was a grant paid to a parent or care giver for the care of the child in his/her custody until the child turns seven years.


Child Support Grant Cont.. In the subsequent three year period i.e. 2003/04,

2004/05 and 2005/06, it was extended to the ages of under 9, under 11, and under 14 respectively.

In 2003/04, 156 400 children were registered, and in 2004/05 141 665 children were registered.


In 2001/02 funds were allocated for the following Conditional Grants:

HIV and AIDS With a specific focus on awareness and advocacy

strategies, providing preventative, supportive and home community base care programmes that mitigate the social impact of HIV and AIDS and other opportunistic diseases.

The HCBC programme is further utilised to create work opportunities for the unemployed and under-employed people in the Eastern cape in attempt to implement and fulfill the mandate of Expanded Public Works Programme.


Poverty Relief Programme (Grant in Kind)This programme focuses on building

sustainable livelihood, food security, women cooperatives, income generation and asset building programmes.

The Community Development approach is the most appropriate intervention strategy suitable to alleviating poverty in the Eastern Cape, and is seen as a philosophy with specific values and principles that guide development practice.


Food Emergency Relief (NFEP) This is a special programme focusing on vulnerable groups

that are unable to access a minimum daily, safe and nutritious food.

It is a short term intervention which addresses the immediate and pressing need of hunger.

This NFEP was later replaced by Integrated Social Development Services Grant, which seeks to enable the provincial departments to support and provide appropriate social welfare services and development interventions in an integrated manner as well as to provide appropriate short term relief to vulnerable individuals and households whoa ere not eligible and not receiving any form of social assistance in terms of Social Assistance Act of 1992.


The intention of the grant is to develop and implement both social welfare and development programmes in a manner that allows opportunities for job creation, skills development and income generation on a sustainable basis.

The purpose is to strengthen the capacity of vulnerable individuals and households, thereby reducing their dependence on grants, and thus enhance sustainable livelihood.

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Brief Outline on Conditional Brief Outline on Conditional GrantsGrants

Women Flagship Programme focusing on empowering rural

women to engage in economic development initiatives.

Financial Management Provided for CFO Support to enhance

provincial Social Developments through out the country to be able account on Social Grant Budgets and expenditure.

Assessment of the Department’s Assessment of the Department’s Monitoring Capacity (Social Ass. Monitoring Capacity (Social Ass.

Grants)Grants)Contract Management Center (CMC) Establishment of a Contract Management Centre

(CMC) to monitor payments of social grants by third parties, namely, All Pay, and Cash Pay Master Services (CPS).

Twelve monitors have been employed to ensure that the payment contractors comply to the provisions of the service level agreements.

144 Helpdesk officials are deployed on a monthly basis to all pay points to perform helpdesk functions.


Grants)Grants)Management Information System (MIS) MIS to monitor the workflow and turnaround time for

social grants applications MIS has been rolled out to all Social Development

offices in the Eastern Cape. Electronic registry to monitor and control the

movement of all social security files, also to ensure the safe keeping and easy tracking of beneficiaries’ files.

Inspectorate unit is charged with the internal audit function and compliance issues within social security

In Year Monitoring reports (IYM) analysed on a monthly basis.


Grants)Grants) Monthly conditional grant monitoring template

which is supplied to National Department of Social Development (NDoSD).

This template report on all activities performed in each month as required by National Treasury.

Disability Assessment Unit monitors and controls the approval of disability grants.

The review section controls the expiry of all temporary disability grants on a monthly basis.

Assessment of the Department’s Assessment of the Department’s Monitoring Capacity Monitoring Capacity

The department has developed an appropriate monitoring tool aligned to logical framework format and tailored to track progress on time, cost, quality, quantity and value for the money funded.

Structurally, the department has established the project facilitation unit to track projects, monitor progress, and provide technical support to departmental projects.

Monthly reports and quarterly review meetings are held to strengthen the monitoring capacity of the department.

Assessment of the Department’s Assessment of the Department’s Monitoring Capacity Monitoring Capacity

All funded projects are expected to submit community profiles, compile Business Plans and enter into service level agreements with the department.

The reporting by project beneficiaries is aligned to the approved Business Plans.

The department complies the requirements of DORA and submit reports monthly, quarterly as well as annual closeout reports.

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Conditional Grants

Division of Revenue Act

Additional Allocation

Roll Over Total Expenditure Variance % Spent

R’000 R’000 R’000 R’000 %Financial Management 642 - 642 642 - 100.0%HIV / AIDS 1,500 - 1,500 1,500 - 100.0%Women Flagship 150 150 150 Social Grant Arrears - 449,515 449,515 - 449,515 0.0%Total 2,142 449,665 - 451,807 2,292 449,515 0.5%

Statement of Conditional Grants Received- 2001/02

Conditional Grant

Grant Allocation

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Conditional Grants




R’000 R’000 R’000 R’000 %Financial Management 1,200 - 1,200 1,100 100 91.7%HIV / AIDS 4,697 101 - 4,798 3,231 1,567 67.3%Social Grant Arrears - 449,515 449,515 241,624 207,891 53.8%Total 5,897 101 449,515 455,513 245,955 209,558 54.0%


Conditional Grant

Grant Allocation

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Conditional Grants




R’000 R’000 R’000 R’000 %HIV / AIDS 6,658 - - 6,658 6,658 - 100.0%CSG EXT 272,130 - - 272,130 178,837 93,293 65.7%Food Emergency Relief 94,133 - - 94,133 94,133 - 100.0%Social Grant Arrears - - - - 58,944 (58,944) NilTotal 372,921 - - 372,921 338,572 34,349 90.8%


Conditional Grant

Grant Allocation

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Conditional Grants


Additional Funding

Roll Over

Total Expenditure Variance

% of Available

Funds Spent by Departm

entR’000 R’000 R’000 R’000 %

Child Support Extension 902,977 - - 902,977 784,399 118,578 86.9%Food Security 94,133 - - 94,133 9,891 84,242 10.5%HIV / AIDS 7,089 - - 7,089 6,815 274 96.1%Social Grant Arrears - - - - - - nilTotal 1,004,199 - - 1,004,199 801,105 203,094 79.8%

Conditional Grant

Grant AllocationStatement of Conditional Grants Received- 2004/05

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Conditional Grants

Conditional GrantDivision of Revenue

Act

Expenditure as at 30

September 2005

Projected Expenditure

from October '05-

March '06

Ttl Expenditure

as at 31 March 2006

Total Available

Variance

% of Available

Funds Spent by Departm

entR’000 R’000 R’000 %

HIV / AIDS 13,979 6,468 7,511 13,979 13,979 - 100.0%Food Emergency Relief 94,133 13,536 80,597 94,133 94,133 - 100.0%Social Assistance Admin. 649,890 256,244 333,059 589,303 649,890 60,587 90.7%Social Ass Transfers Grants9,946,979 4,736,464 5,029,930 9,766,394 9,946,979 180,585 98.2%Total 10,704,981 5,012,712 5,451,097 10,463,809 10,704,981 241,172 2.3%

Grant AllocationStatement of Conditional Grants Received- 2005/06

Under-spending-Social Ass. Grants Under-spending-Social Ass. Grants

In 2001/02, Social Grants Arrears (Regulation 11) was received at the end of March 2002, as a result there was no expenditure incurred.

The grant was therefore rolled over to 2002/03 financial year

2002/03 reflects under-spending in respect of Social Grants Arrears, and there were no rollovers approved for the following financial year.

Under-spending was due to 40 499 beneficiaries records being inactive; many of these were deceased beneficiaries.


For 2003/04 the extension targets in the province were very high (230 000 targeted), and when taking applications in the communities, it was found out that children’s figures were much lower than projected.

The actual intake was 156 400 for the extension. For 2004/05, 244 608 children were projected for

the extension, however, only 141 665 children were registered on SOCPEN; similarly, this was due to a high target


For the current financial year we are projecting to over-spend with regards to Child Support Extension.

We have projected 360 000 intake and to-date 210 297 children applications have been taken for children between 11 and 14.

However, we do project a slow down as we reach saturation point.

Under / Overspending-HIV and AIDS Under / Overspending-HIV and AIDS

In 2002/03, HIV and AIDS reflected an under-spending of R1,567 million, however, this was due to shortage of staff as the programme was coordinated by only one person at provincial level.

The department has since strengthened the HIV and AIDS unit and is headed by Deputy Director, assisted by two Assistant Directors

Additional nine AD’s posts have been advertised and placement due to be effected before end Nov.

The under-spending of R274 000 in 2004/05 was as result of delays in the appointment of Assistant Directors responsible for monitoring and coordination of HIV and AIDS at a provincial level.

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Under-spending -NFEPUnder-spending -NFEP

The under-spending on the NFEP were as a result of delays in the tender processes centralized at National Department of Social Development.

The department however, has strengthened internal control systems through establishment of an electronic database which interfaces with SOCPEN

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Project name

Project

Project duration

2005/06

Expenditure up to end October 2005

2005/06

Total Estimated Expense

2005/06

Budget

Progress

Current Status

Date: Start

Date: Finish

1 Humansdorp Multi Purpose Centre New Feb-

04Mar-08 426 1,410 1,200 Contractor approved by TRC Meeting on Thursday, 13 October

2005. Awaiting issue of works order from Social Development Order to be issued

2 Aliwal North C/Development Centre New Apr-

04Mar-07 177 950 900

Contractor approved by DPW Procurement Meeting on Tuesday, 11 October 2005. Awaiting issue of works order from Social Development

Order to be issued

3 Peddie Community Development Centre New Apr-

02Mar-07 460 3,350 3,200 Site handed over to Alexander Construction on 24 September

2005. Contractor on site

4 Umtata Place of Safety New Apr-

97Mar-05 0 60 60 Final account to be approved and project retention period

completedFinal Account Stage

5 Graaff Reinet Multi Purpose Centre New Oct-

04Mar-07 10 10 400 The project is currently delayed due to no sites available, a

suitable site must be located by November 2005 Planning Stage

6 Middledrift Service Office

Upgrade

Apr-01

Mar-06 0 490 490

Contractor on project not performing - no work done for 4 weeks. Contractor to be determined and project re-tendered Nov. 2005

Determination of Project

7 Alice Service Office Upgrade

Apr-01

Mar-06 66 370 370

Contractor on project not performing - no work done for 4 weeks. Contractor to be determined and project re-tendered Nov. 2005

Determination of Project

8 John-X Meriman Place of Safety

Upgrade

Oct-03

Mar-05 43 115 80 Final account to be approved and project retention period

completedFinal Account Stage

DEPARTMENT OF SOCIAL DEVELOPMENT: INFRASTRUCTURE REPORT 05/06: OCT-05

PROGRESS REPORT SUBMITTED 31 OCTOBER 2005

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Project name

Project description

Project duration

2005/06

Expenditure up to end October 2005

2005/06

Total Estimated Expense

2005/06

Budget

Progress

Status

Date: Start

Date: Finish

9 Seymour District Office Upgrade Oct-03 Mar-

05 0 30 30 Final account to be approved and project retention period completed Final Account Stage

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Air-conditioning - Parkhomes & Service Upgrade Oct-03 Mar-

06 289 1,200 1,200 Site handed over to contractor in September 2005. Contractor on site

11

Siyalinga/Thembelihle Centre - Fencing Upgrade Oct-03 Mar-


12

Siyalinga/Thembelihle Centre - Phase 2 Upgrade Apr-04 Mar-

07 0 1,350 3,351 Contractor approved by DPW Bid Award Committee - awaiting letter of award. Tender report to be approved.

13

Khalethemba Social Development Office Upgrade Jan-05 Mar-

07 328 1,900 1,900 Site handed over to Hawkes Construction on 19 October 2005. Contractor on site

14 Dimbaza Service Office Upgrade Apr-04 Mar-


15

Prefabricated Park Homes - North Maint. Oct-03 Mar-

05 58 65 35 Final account approved - final payments issued. Completed

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Prefabricated Park Homes - South Maint. Oct-03 Mar-

05 21 35 35 Final account approved - final payments issued. Completed



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Project name

Project description

Project duration

2005/06Expenditure up to end O

ctober 2005

2005/06Total Estim

ated Expense

2005/06Budget

Progress Status

Date sart

Date: Finish

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Qunu Day Care Centre Maint. Apr-04 Mar-05 0 65 65 Final account approved - final payments to be

submitted for payment. Completed

18 Erika POS Maint. Apr-04 Mar-05 0 15 15 Final account to be approved and project retention

period completed Final Account Stage

19 Enkuselweni POS Maint. Apr-04 Mar-05 0 15 15 Final account to be approved and project retention

period completed Final Account Stage

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Connect Toilets Park Homes Maint. Apr-05 Mar-06 28 601 600

Project stopped - funds to be used for moving Social Development Head office to Bhisho Post Office Building

Project stopped

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Maintenance andFencing to

ContainersMaint. Apr-05 Mar-06 0 300 300 Quotations submitted - awaiting issue of works

orders. Order to be issued

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Upgrading of Butterworth TT

CollegeMaint. Apr-05 Mar-06 0 800 500

Project tendered on 29 September 2005. Tenders close in week 17 - 21 October 2005. Project retendered, no favourable tenders received

Tender stage

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Maintenance of Buildings Maint. Apr-05 Mar-06 0 300 300 Ongoing Ongoing

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Project Management N/A Apr-05 Mar-06 205 350 350 Ongoing Ongoing

TOTAL 2,358 14,251 15,71

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R2,358million is an amount spent todate and is 15%R9,660million is an amount already committed and is representing 61%R3,3million is an amount to be committed for relocation to the Phalo House about 18%The two commitments above represent about 82% of the total amount

Challenges

With regards to beneficiary numbers, no accurate management information (Statistics) are available as to people living in poverty; this makes projections very difficult

With regards to foster care the department depends mainly on the Department of Justice for the issuance of court orders.

The high turnover rate of social workers is further creating a limitation in the rolling out of our foster care programmes.

Challenges Cont..

Obtaining the necessary documentation from Home Affairs is still a challenge (ID and Birth Certificates).

To rectify the problem, Home Affairs and other role players have been brought on board as partners in the process.

These role players now go out with the Social Development teams taking applications

The partnership with these role players has also resulted in higher intake in the current financial year.

Challenges Cont..

In respect of Grant in kind and HIV and Aids initially they were allocated to the province without administration budget.

That presented cost pressures in provincial budgets, and limitations on our capacity to deliver on the grants

In most cases, the conditional grants are received by the provinces at the end of the first quarter, which is a challenge in terms of performance.

Challenges Cont..

Linked to the above, actual transfer of funds was limited to 10% in the first quarter, and yet the amount of work would be warranting 50% of the funds.

This delayed delivery and accountability in terms of the Division of Revenue Act (DORA).

Conditional Grants are allocated without clear guidelines, which results in audit exceptions by the office of the Auditor General.

Challenges Cont..

As a corrective measure, the department has developed its provincial specific guidelines namely: Business Plan formats Service Level Agreements Formats of quarterly and monthly reports and Pre-numbered forms for beneficiaries

THANK YOU! THANK YOU!

Documents

Eastern Cape Department of Social Development