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| National Treasury | 22 May 2012 PowerPoint Presentation
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| National Treasury | 22 May 2012

| National Treasury | 22 May 2012

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| National Treasury | 22 May 2012

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  1. Expanded Public Works Programme (EPWP) for the Social Sector – Conditional GrantPresentation to the Select Committee on Appropriations | National Treasury | 22 May 2012

  2. Purpose of the grant • To incentivise provincial social sector departments identified in the log-frame administered by the national dept of Public Works (DPW) to increase job creation by focusing on the strengthening and expansion of social service programmes that have employment potential. • Based on past performance data DPW uses an incentive model to identify eligible departments in provinces. These departments receive an allocation from national government through the DPW. • Provincial departments are supposed to use these funds to pay the stipends or wages of community care-givers, and other community workers. • The allocation criteria to provincial departmants is based on the payment of stipends for volunteers and wages for other community development workers at a minimum of R60 per day. • Provinces may use a portion of the funds to expand the programme to different social service benefit areas (e.g. community sport development, and community safety awareness) • Provincial departments are therefore required to sign an incentive agreement with the DPW to ensure that conditions are met and targets are achieved. • Provincial departments are required to submit quarterly reports on performance. 2

  3. Provincial departments • Departments who received an allocation in 2011/12 in terms of 2011 DORA: • Eastern Cape: Social Development (R5.07m) • Free State: Health (R15.59m) • Gauteng: Social Development (R15.07m) and Health (R19.78m) • KwaZulu-Natal: Social Development (R4.5m) and Health (R25.77m) • Limpopo: Social Development (R3.38m) and Health (R24.95m) • Mpumalanga: Health (R3.31m), Education (R9.9m) and Safety (R0.2m) • Northern Cape: Social Development (R5.66m), Health (R2.07m) and Education (R6.16m) • North West: Social Development (R10.96m), Health (R17.37) and Education (R13.89m) • Western Cape: Health (R8.66m) and Education (R8.07m) 3

  4. Social Sector EPWP Incentive Grant for Provinces 4

  5. KEY CHALLENGES SIGNIFICANT CHALLENGES HAVE BEEN NOTED IN THE FOLLOWING PROVINCES: • EASTERN CAPE: • Spending for 2011/12 at 0%. In addition, it is still unclear if the department requires a rollover. It should be noted that the EC dept of Social Development has under-spent its overall budget by R18m, particularly by under-spending on transfers. • FREE STATE: • The provincial Health department is paying beneficiaries R55 per day instead of R60 per day. Feedback on engagements between the national department and the province on this matter is still awaited. • GAUTENG: • The department is in the process of addressing the payment backlogs to service providers and NGOs. As recommended by the National Treasury, the department of Health and Social Development will be re-configured into separate departments in line with the national norm. • Mpumalanga • Slow submission of reports by the Education department to the national department. • Western Cape • Province was paying care-givers in a fluctuating manner. From R52 per day to R65 per day. The national department has been engaging with the province on this matter and feedback is still awaited. 5

  6. CONCLUSION • Average quarterly expenditure as at 31 December 2011 was R34.6 million. In the 4th quarter an amount of R51.3m was spent. There is thus an acceleration of expenditure during the 4th quarter, indicating a persistent lack of readiness by provinces and the national department at the start of the financial year. • In order to avoid the delays experienced in 2011/12, it is critical that national DPW adopt a strict approach in respect of finalising agreements and business plans. • The first scheduled payment for this grant is Friday, 25 May 2012. In terms of the Division of Revenue Act, these transfers can only be made if the plans and agreements have been signed. Failure to conclude this process will lead to further delays in provincial transfers and expenditure 6

  7. THANK YOU