PRESENTATION TO THE SELECT COMMITTEE ON FINANCE BY THE DEPARTMENT OF SOCIAL DEVELOPMENT ON THE DIVISION OF REVENUE

INTRODUCTION
Department has managed conditional grants since 1998/99
Two remaining grants are:
- Improvement in social security
- HIV/AIDS (National Integrated Plan for Children Infected and Affected)
Final year of grants is 2002/2003

SOCIAL SECURITY
Purpose:
- Increase effectiveness of end-to-end processing of grant applications
Outputs
- Technology and office automation tools for effective service delivery
- Improved communication network and information service for speedier responses to beneficiaries

Conditions
Approved business plan
Monthly reports on progress and expenditure
Quarterly reports
Written assurance in terms of PFMA with respect to financial management and internal control systems

Criteria for allocation
Initially based on beneficiary population in respective provinces
2001/2002 allocation is continuation of programme, all provinces receiving same allocation (R642 000)
Exception is Northern Province with infrastructure backlog (additional R5m)

Monitoring and Auditing
Review of reports submitted
Structured visits to provinces
Financial auditing by provincial offices of Auditor-General
Administrative costs are borne by national and provincial departments

Rationale for conditional grant
Improvement of social security is a national priority, flowing from CRSS recommendations
Conditional grant can ensure consistency in planning and implementation, effective monitoring
Ensuring funds are utilised for intended purposes

Past Performance
Funds for re-registration project were utilised
Funds for improving financial management and establishing operations centres were not utilised fully for following reasons:
- Difficulties in locating funds in provincial treasuries
- Difficulties in obtaining approvals within provincial departments to utilise funds
- Capacity constraints within the provincial departments

Payment Schedule 2001/2002

 

1st tranche May

2nd tranche Sept

Total

Eastern Cape

642 000

-

642 000

Free State

642 000

-

642 000

Gauteng

642 000

-

642 000

KwaZulu- Natal

642 000

-

642 000

Mpumalanga

642 000

-

642 000

Northern Cape

642 000

-

642 000

Northern Province

3 060 000

2 040 000

5 100 000

North West

642 000

-

642 000

Western Cape

642 000

-

642 000

Total

8 196 000

2 040 000

10 236 000


Capacity of National
Expanded capacity through restructuring:
- Established social security branch
- Monitoring and evaluation directorate
- Internal audit capacity strengthened
- Financial management capacity enhanced

HIVIAIDS ALLOCATION
Purpose:
- Implementation of National Integrated Plan for Children Infected and Affected (jointly with Health and Education
Outputs:
- Increase in number of orphans identified, monitored and receiving care
- Establishment of effective local institutions

Conditions
Approved business plan
Monthly reports on progress and expenditure
Quarterly reports
Written assurance in terms of PFMA with respect to financial management and internal control systems

Criteria for allocation
First year:
- HIV/AIDS prevalance
- Eastern cape, Free State, Mpumalanga, North West, Northern Province, Northern cape
- KZN excluded because of existing initiatives
Second year:
- all provinces included
- Slightly lesser amounts for Gauteng and western Cape because of their available resources

Monitoring and Auditing
Review of reports submitted
Progress reviewed by Integrated Committee and DGs Committee
Structured visits to provinces by interdepartmental teams
Financial auditing by provincial offices of Auditor-General Steering

Rationale for conditional grant
National pilot programme of 3 departments, need consistency in approach
Provides provinces with opportunity to implement new programmes with assistance from national departments
More effective for monitoring
Ensuring that funds are spent for intended purposes

Past Performance
Implementation has been slow due to:
- Complexity of developing integrated plan of 3 departments at provincial level
- Limited capacity in provinces
- Awaiting final expenditure information from provinces
Note this is a new programme and new grant so slow start can be expected

Payment Schedule 2000/2001

Province

Allocation

Nov 2000

Nov 2000

Jan 2001

Eastern Cape

950 000

380 000

475 000

95 000

Free State

910 000

364 000

455 000

91 000

Mpumalanga

960 000

384 000

480 000

96 000

Northern Cape

1 000 000

400 000

500 000

100 000

Northern Prov

800 000

320 000

400 000

80 000

North West

1 000 000

400 000

500 000

100 000

Total

5 620 000

2 248 000

2 810 000

562 000



Payment Schedule 2001/2002

 

Gazetted

May 2001

Sept 2001

January 2002

Eastern Cape

1 500 000

500 000

500 000

500 000

Free State

1 500 000

500 000

500 000

500 000

Gauteng

1 500 000

500 000

500 000

-

KZN

1 500 000

500 000

500 000

500 000

Mpumalanga

1 500 000

500 000

500 000

500 000

Northern Cap

1 500 000

500 000

500 000

500 000

Northern Pro

1 500 000

500 000

500 000

500 000

North West

1 500 000

500 000

500 000

500 000

Western Cap

1 500 000

500 000

500 000

-

TOTAL

12 500 000

4 500 000

4 500 000

3 500 000


Capacity of National
Expanded capacity through restructuring:
- Established HIVIAIDS Directorate
- National Co-ordinator appointed (Health)
- Internal audit capacity strengthened
- Financial management capacity enhanced
Note: Administrative costs built into provincial business plans. National
carries own administrative costs

Assessing National's Performance

Timeous transfer of funds in accordance with schedule and conditions of DORA
Quality of information, guidance and support to provinces
Effectiveness of monitoring systems for early detection of problems and taking corrective action
Effective evaluation of impact of grants