1 KZN SOCIAL WELFARE AND POPULATION DEVELOPMENT PUBLIC HEARINGS ON CONDITIONAL GRANTS 18 TH JAN 2006

2 1.CONDITIONAL GRANTS Table 1 below reflects the projected social grant payments per grant type against the revised budget as at the end of 31 March As can be seen the department is projecting a shortfall of 3% or R368.2 million which emanates from the carry- over of over-expenditure of R676,7m from 2004/05 to 2005/06 financial years.

3 CONDITIONAL GRANTS

4 Table 2 reflects the Social assistance Grants Administration and Social Grants expenditure as at the end of December The grant payments are presented against the revised budget per grant type. The department has spent 76% or R9.160 billion of the revised budget amounting to R billion.

5 CONDITIONAL GRANTS With regard to Social Assistance Grants Administration the table reflects 67% or R527.8 million spent against a budget of R785.4 million.

6 CONDITIONAL GRANTS

7 Table 3 below reflects the expenditure for the first quarter on Grants and Social Assistance Grants Administration.

8 CONDITIONAL GRANTS

9 Table 4 below reflects the expenditure for the Second quarter on Grants and Social Assistance Grants administration.

10 CONDITIONAL GRANTS

11 CONDITIONAL GRANTS Table 5 reflects the expenditure for the third quarter on Social Grants and Social Assistance Grants Administration against the Cash flow for the quarter. The grant numbers have increased by when compared to the previous quarter, the grant types with high take up rate include Disability Grant, Child Support Grant, and Foster Care. The expenditure exceeded the allocation by 4% or R121.5 million.

12 CONDITIONAL GRANTS

13 CONDITIONAL GRANTS Table 6 reflects the expenditure on HIV and Aids conditional grants per quarter. As can be seen the department has been under-spending during the first and the second quarters but has over- spent its cash flow for the third quarter by 88%. The funds under this grant are transferred to drop-in sites that take care of orphaned children due deaths related to aids. Therefore the under expenditure during the previous quarter is attributable to delays as a result of checks to ensure compliance with the Public Finance Management Act. Before the department disburses funds it has to ensure that the project is registered, business plans are in order and that the project members are capacitated in terms of financial management.

14 CONDITIONAL GRANTS The overall expenditure as at the 31st December 2005 is 56% or R14.5 million of the adjusted allocation of R25.9 (the main allocation has been R before the roll over of R743 thousand was approved by P/T)

15 CONDITIONAL GRANTS

16 CONDITIONAL GRANTS Table 7 reflects the expenditure incurred under food relief grant on a quarterly basis. The department did not have an allocation for the food relief grant in the beginning of financial year as the allocation initially earmarked for this project was converted to Integrated Social Development Services Grant. However the department had applied for the roll over of unutilised food relief grant funds for 2004/2005 financial year. The expenditure reflected on the table pertains to administrative costs. The roll over was finally been approved in October 2005.

17 CONDITIONAL GRANTS

18 CONDITIONAL GRANTS Table 8 reflects the expenditure incurred on Integrated Social Development Services Grant. There is under-expenditure in respect of the grant and the reasons for this may be attributed to the following: Although the first transfer of the grant to the Province was executed in June 2005, approval for implementation by the National Department was done on 26th September 2005 and forwarded to the Province simultaneously

19 CONDITIONAL GRANTS The Province has consulted with various stakeholders in the NGO Sector to facilitate compliance with the condition that the grant must be utilised in partnership with the NGO Sector. In this regard, Service Level Agreements to the value of R30, 7m, have been concluded and payments are currently in progress.

20 CONDITIONAL GRANTS

21 2.CAPITAL EXPENDITURE The department currently operates through 71 District Offices and 4 Regional Offices as well as 16 state run Welfare Institutions through which services to the elderly, youth, disabled, drug dependent, etc. are run. Capital Expenditure relating to these structures is incurred by the Department annually. The Infrastructure Plan below provides details of projects undertaken during the year under review:-

22 CAPITAL EXPENDITURE The Adjusted budget for infrastructure is R38,09m against the expenditure of R16,2m. The remainder will be spent within the next two months.

23 CAPITAL EXPENDITURE

24 THANK YOU