Division of Revenue Bill 2004/05 Department of Social Development Division of Revenue Bill 2004/05 Presentation to the Select Committee on Finance 25 February 2004 15-Feb-19

CONTENT Vertical Split: Social Welfare Component Conditional Grants Audit information on the performance of grants: Summary: MTEF allocations Conditional Grants in 2004/05 * HIV and AIDS * Extension of the Child Support Grant * Food Emergency Relief 15-Feb-19

Equitable Share of Revenue S 214(1) provides for: a) equitable division of revenue among 3 spheres of Govt. b) determination of each province’s share c) any other allocations to provinces and any conditions attached to those allocations Equitable share formula is used for the vertical split of the budget among the 3 spheres 15-Feb-19

Implications for Social Development Main components of the formula (% share): Education 41% Health 19% Welfare 18% Challenges: Actual social development expenditure exceeds budget allocation Provinces have to top up the estimated deficit 15-Feb-19

Implications for Social Development Challenges: Grants expenditure crowds out other services Actual allocations per province not in line with projected expenditure as determined by Demographic and Financial Models Treasury has had to effect mid-year adjustments over the last number of years Prov budget deficits & potential delays in processing of grant applications 15-Feb-19

CONDITIONAL GRANTS 15-Feb-19

Audit Information Up to the 2002/03 financial year no specific emphasis was placed on Conditional Grants- audited as part of normal transfer payments. The 2002/03 Financial Statements of all Departments has already included detail on the spending trends of each Conditional Grant as part of the discloser notes The Auditor-General will give specific focus on compliance matters for all Conditional Grants as from the 2003/04 financial year. The intention is also to measure the performance of each Conditional Grant against the set objectives 15-Feb-19

MTEF Summary Year Normal allocation R’000 Special Allocation Total Allocation 2003/2004 198 072 (10.2%) 1 771 126 (89.8%) 1 952 502 2004/2005 311 297 (6.8%) 4 238 173 (93.2%) 4 548 410 2005/2006 349 043 (4.4%) 7 499 283 (95.6%) 7 848 326 2006/2007 372 389 (3.6%) 9 918 339 (96.4%) 10 290 728 15-Feb-19

2004/05 – Special Allocation Amount voted R4 548 410 000 Special Allocations Disaster Relief Funds R 10 000 000 Extension of Child Support Grant R 3 650 000 000 Social Relief R 5 000 000 Emergency Food Relief R 388 000 000 HIV and AIDS R 70 180 000 National Development Agency R 109 481 000 National Councils R 5 512 000 Total Special Allocations R4 238 173 000 15-Feb-19

2004 Conditional Grants The following Conditional Grants will be managed by the Department of Social Development in the 2004/05 and subsequent MTEF years: HIV and AIDS Programme (National Integrated Plan for Children Infected and Affected by HIV/AIDS) Extension of the Child Support Grant Food Emergency Relief Programme 15-Feb-19

HIV and AIDS 15-Feb-19

HIV and AIDS Allocation Achievements to date: - 412 centers/sites for home/community-based care and support were supported - 61 582 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 - 62 895 food parcels raging between R154 and R350 per parcel were provided - Over 5 988 care givers received stipends, between R225 and R500 15-Feb-19

HIV and AIDS Allocation Achievements: - 144 703 families received support such as food parcels, assistance with funerals, linking families up with income generating projects - 3 869 volunteers were recruited and trained - 117 Child Care Forums have been established in some parts of the country - 144 Support groups for PLWAs are being provided with both financial and professional support 15-Feb-19

HIV and AIDS spending by province as at 31January 2004 15-Feb-19

HIV and AIDS 2003/04 Spending Projection 65,6% Spending 15-Feb-19

HIV and AIDS GRANT 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 - Improvement of planning and implementation scheduling of activities - Capacity building of implementation support staff 15-Feb-19

HIV and AIDS Allocation Provinces 2003/04 R’000 2004/05 2005/06 2006/07 Eastern Cape 6,658 7,089 7,514 7,965 Free State 9,228 9,825 10,415 11,040 Gauteng 9,690 10,315 10,934 11,590 Kwazulu-Natal 11,996 12,773 13,540 14,352 Limpopo 4,353 4,634 4,912 5,207 Mpumalanga 9,821 10,456 11,084 11,749 Northern Cape 3,691 3,930 4,165 4,415 North West 7,580 8,070 8,554 9,067 Western Cape 2,900 3,088 3,273 3,469 TOTAL 65,917 70,180 74,391 78,854 15-Feb-19

CHILD SUPPORT EXTENSION GRANT [From 2003/04 financial year] 15-Feb-19

Child Support Extension Grant Policy mandate The extension of the child support grant to children 7 to 14 years was introduced in March 2003. This programme was to be phase in over a 3 year period In year one, 7 and 8 year old children should be registered. The estimated target was set at 929 000 children (this is based on the income and expenditure survey). Achievements to date: To date 830 242 children (ages 7 and 8) were registered. That represents 89% of the target and the remainder of 100 thousand children should be registered before the end March 15-Feb-19

Child Support Extension Grant spending by province as at 31January 2004 15-Feb-19

Child Support Extension Grant 2003/04 Spending Projection 56,98% Spending 15-Feb-19

Child Support Extension Grant Challenges: - Integration and finalisation of Provincial Business Plans - The recognition and use of alternative means of identity - Limited human resource capacity at provincial and district level for implementation - System linkages and network development - limited monitoring and evaluation capacity 15-Feb-19

Child Support Extension Grant Provinces 2004/05 R’000 2005/06 2006/07 Eastern Cape 902,977 1,706,997 2,296,777 Free State 240,558 454,754 611,875 Gauteng 220,490 416,816 560,830 Kwazulu-Natal 780,247 1,474,988 1,984,607 Limpopo 573,943 1,084,987 1,459,858 Mpumalanga 260,013 491,531 661,359 Northern Cape 65,272 123,392 166,023 North West 416,186 786,763 1,058,595 Western Cape 190,314 359,772 484,076 TOTAL 3,650,000 6,900,000 9,284,000 15-Feb-19

FOOD EMERGENCY RELIEF [From 2003/04 financial year] 15-Feb-19

Food Emergency Relief Achievements: - Distribution of food parcels since inception of programme has been fairly successful - Increase government services to the poorest of the poor - Programme responds to immediate household needs - Communication and stakeholder mobilisation - Strengthen volunteer movement - Capturing of beneficiaries that require access to social grants - Attempt to co-ordinate and integrate fragmented social cluster poverty relief programme - Mobilise and empower communities about sustainability programmes/projects 15-Feb-19

Food Emergency Relief Grant spending by province as at 31January 2004 15-Feb-19

Food Emergency Relief 2003/04 Spending Projection 33,09% Spending 15-Feb-19

Food Emergency Relief Challenges: - Human resources: The four officials who are seconded to the provinces from the National office are not enough for the execution of the programme. The need for more human capacity is evident despite the assistance, which the province gives by allocating predominantly social workers to strengthen the programme - The sustainability element of the programme remains a challenge albeit the linking of some beneficiaries with social security - Transport was also a major challenge 15-Feb-19

Food Emergency Relief Challenges: - Stakeholder involvement is crucial in the beneficiary identification stage as well as the monitoring of the actual distribution. - Proper data capturing is also a challenge, as well as the accurate method of profiling (information management system) - Management of service providers. implementation of the contractual agreement both from provincial offices and the service providers 15-Feb-19

Food Emergency Relief Provinces 2004/05 R’000 2005/06 2006/07 Eastern Cape 94,133 99,781 Free State 37,334 39,574 Gauteng 27,904 29,578 Kwazulu-Natal 68,185 72,276 Limpopo 61,146 64,815 Mpumalanga 27,651 29,310 Northern Cape 9,998 10,598 North West 41,615 44,112 Western Cape 20,034 21,236 TOTAL 388,000 411,280 15-Feb-19

CONCLUSION It is recommended that the Committee notes: The deviation between budgets and actual expenditure is still a concern, Lack of explicit providing for welfare services in the formula perpetuate under expenditure for welfare services Conditional grants still fraught with challenges, Allocation for CSG, HIV and AIDS and Food emergency clearly supported delivery, but adherence to conditional grant framework presents a challenge in terms of compliance 15-Feb-19