18 October 2005

Presented on behalf of the Honorable MEC by the Accounting Officer of the Department of Health and Social Development Dr HN Manzini For Vote -12 - Social Development


This Chapter:

[PMG note: Graph (table, map, appendix) not included for the following headings. Email [email protected] for this]

Past Equitable Share Allocation

· It is evident from the Provincial Equitable Share distribution that the department has been over funded for the period under review as measured against the Equitable Share Formula that is the guide to Provinces on splitting the budget

· The Social Security funding requirements were such that additional funding over and above the formula was required for Social Security grants in some years The need for sufficient budget in Social Security Grants resulted in:

- Insufficient growth in the budget for Social Welfare Services

- increased vacancies against the staff establishment

- Inability to replace ageing vehicle fleet

- Inability to expand the capital infrastructure required to deliver services from

- High allocation of the Equitable Share to Social Security against the budgets of Health and other departments who continued to be under 55funded against the formula

- Service delivery in other departments were compromised in the effort to fully fund Social Security Grants

[PMG note: Graph (table, map, appendix) not included.for the following headings. Email
[email protected] for this]

Notes on Equitable Share expenditure

· The department has been able to spend more than the equitable share allocation over the past four years. The under funding against the Equitable Share allocation has resulted in over expenditure that equates to Rl72million un-authorised expenditure for the four years 2000/2001 to 2003/2004.

· The department did not over spend in the 2004/05 financial year.

[PMG note: Graph (table, map, appendix) not included for the following headings Email [email protected] for this]

Notes on Conditional Grants

· The conditional grants has shown a steady increase to grow from R 7,713 million in 2001102 to R 639.732 million in 2004/05.

· HIV & AIDS increased from R6.601m to R4.634m in 2004105.

· The main increases are in respect of new grants that were added as per the schedule above.

- Social Grants Arrears

- Child Support Grant Extension

- Food Security I Integrated Social Services

· The MTEF sees the introduction of Programme 2: Social Security Services being fully funded by a conditional grant to prepare for SASSA.

· A full transfer of the budget was received for the period 2001/03 to 2004/05.

PMG note: Graph (table, map, appendix) not included for the following headings Email
[email protected] for this]

Variance analysis - SOC Dev

· Conditional Grants

· This expenditure at 23.8 % is just below the required 25% level

· Social Grants grow as new beneficiaries are registered during the year and will show increased expenditure to exceed the available budget

· The expenditure is at 16.9 % as opposed to the 25 % norm or some R 23 million under the norm.

· The increase of stipends will boost expenditure in the second quarter

· The process of employment of personnel to vacant posts has begun

· Transfers to new NGO's and new Creches as well as increased subsidies will be started in the second quarter

· Capital Expenditure payments are dependant on the progress of the contractor and the second quarter will see funds beginning to flow to the IDT and others for capital projects

No equipment and vehicles have yet been bought

Projected areas of budget pressure -Soc Dev

The following budget pressures exist that will require additional funding for 2005/ OS and the MTEF

Equitable Share = R 28.4 m

- Carry through costs for Social Workers salaries that was provided in 2004105 as a once off only - R 8.9 m

- Additional funds to increase stipends to volunteers in CHBC iro HIV&AIDS - R 11.2 m

- To Fund additional Creches and NGO's - R 8.3 m

Conditional Grants = R 187.2 m

The Social Security Grants and Administration costs are totally funded from a conditional grant. The total programme 2 of the budget structure is a budget pressure is for National Soc Dev (SA SSA) who are involved with the cost projections.

[PMG note: Graph (table, map, appendix) not included for the following headings Email
[email protected] for this]

MTEF Budget 2005/06 to 2007/08

· The budget did show substantial increase 16.6% in 2005/06 to fund Welfare Services while SASSA received an increase of 7,9%,

· The concern is in the outer year where an increase of only 2.4% above the previous year in provided for.

· This increase represents R8 million that provides no growth for employment of personnel and does not cover the expected inflation on Non PE.

· SASSA once again grew with 7.9 %

· The department does not collect revenue other than the fee for deducting stop orders from officials salaries on behalf of approved third parties

Previous years revenue include stale cheques written back

PMG note: Graph (table, map, appendix) not included for the following headings Email
[email protected] for this]

Provincial Challenges and Strategies



Provincial Challenges and Strategies


· To ensure that the temporary disability beneficiaries are removed from the list when their temporary status changes


· Implementation of the national guidelines on disability grant

Provincial Challenges and Strategies


· The shift of focus from social security to social development


· Implementation of the social service delivery model

· Implementation of financing policy, child justice bill and care for the elderly

· Transformation of NGO's and CBO's

· Ensuring sustainability of poverty alleviation projects

· Support and care of aftected and infected HIVIAIDS through home based care

Support and implement the expanded public work program

The end