PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES: DIVISION OF REVENUE

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

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

5. 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. 1999/2000 R’000 2000/01 R’000 2001/02 R’000 2002/03 R’000 2003/04 R’000 2004/05 R’000 Allocation 137 068 71 300 26 000 25 000 - - Allocation - ISSS

10. Improvement of Social Security System 2001/2002 R’000 2002/2003 R’000 Eastern Cape 642 1 200 Free State 642 1 200 Gauteng 642 1 200 Kwazulu-Natal 642 1 200 Mpumalanga 642 1 200 Northern Cape 642 1 200 Northern Province 5 100 1 200 North West 642 1 200 Western Cape 642 1 200 TOTAL 10 236 10 800 ISSS -Allocation per province

11. ISSS -Spending by province as at the end of January 2003

12. 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.

21. HIV/AIDS Provincial Allocations

22. HIV/AIDSSpending by province as at the end of January 2003

23. 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

25. 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 HCBC&S • 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 HCBC&SP • 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

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

36. 1998/ 1999/2000 R’000 2000/01 R’000 2001/02 R’000 2002/03 R’000 2003/04 R’000 Allocation - 50 000 100 000 71 000 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. POVERTY RELIEF 2001/2002 R’000 2002/2003 R’000 2003/2004 R’000 Eastern Cape 7 617 16 179 10 449 Free State 4 983 8 690 5 774 Gauteng 2 478 4 386 3 190 Kwazulu-Natal 8 117 17 429 11 274 Mpumalanga 5 058 10 446 6 874 Northern Cape 2 657 4 315 2 887 Northern Province 7 241 15 633 10 229 North West 4 483 8 646 5 827 Western Cape 2 238 3 811 2 942 TOTAL 44 872 89 535 59 446 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 GRANT[From 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

43. 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

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