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. Operational allocation
MTEF Summary
Year
Operational allocation
R’000
Special Allocation
Total Allocation
2003/04
124,102 1, 1,
2004/05
137,693 4, 4,
2005/06
150,184 7, 7,

4. Departmental Budget 2003/04 Amount voted R1,952 502
Special Allocations
Poverty Relief R
Improvement of Social
Security System R
Disaster Relief Funds R
Emergency Disaster Relief R
HIV/AIDS R
Child Support Grant Extension R
Food Relief R
National Development Agency R
National Councils R
Total Special Allocations R 1,

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

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

11. ISSS -Spending by province as at the end of January 2003
ALLOCATION
2002/03
R’000
AMOUNT SPENT
TOTAL PROJECTED
EXPENDITURE
DEVIATION
SURPLUS/
(DEFICIT) %
SPENT
Eastern Cape
1,200 -
Free State
Gauteng
100
KwaZulu-Natal
Limpopo
725
60,4
Mpumalanga
455
497
703
37,9
Northern Cape
609
873
327
69,75
North West
593
49,4
Western Cape 67
5,6
TOTAL
10,800
3,649
9,770
1,030
37,3

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 (R )
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
Provinces
2002/03
R’000
2003/04
2004/05
2005/06
Eastern Cape
4,798
6,658
7,089
7,514
Free State
6,650
9,228
9,825
10,415
Gauteng
6,983
9,690
10,315
10,934
Kwazulu-Natal
8,644
11,996
12,773
13,540
Limpopo
3,135
4,353
4,634
4,912
Mpumalanga
7,077
9,821
10,456
11,084
Northern Cape
2,660
3,691
3,930
4,165
North West
5,463
7,580
8,070
8,554
Western Cape
2,090
2,900
3,088
3,273
TOTAL
47,500
65,917
70,180
74,391

22. HIV/AIDS Spending by province as at the end of January 2003
ALLOCATION
2002/03
R’000
AMOUNT SPENT
Total Projected
Expenditure
DEVIATION
SURPLUS/
(DEFICIT) %
SPENT
Eastern Cape
4,798
2,340 -
48,8
Free State
6,650
3,579
6,038
612
53,8
Gauteng
6,983
4,961
71,0
KwaZulu-Natal
8,644
1,289
6,949
1,695
14,9
Limpopo
3,135
2,791
3,065 70
89,0
Mpumalanga
7,077
3,194
45,13
Northern Cape
2,660
1,882
70,8
North West
5,463
3,979
72,8
Western Cape
2,090
1,050
50,2
TOTAL
47,500
25,065
45,123
2,377
52,77

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

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
2003/04
R’000
2004/05
2005/06
Eastern Cape
272,130
866,885 1,
Free State
72,497
233,242
457,870
Gauteng
66,449
193,815
359,609
Kwazulu-Natal
235,143
723,700 1,
Limpopo
172,969
536,542 1,
Mpumalanga
78,360
239,836
442,010
Northern Cape
19,671
63,540
121,421
North West
125,426
367,979
652,257
Western Cape
57,355
174,461
328,330
TOTAL 1, 3, 6,

47. Payment schedule and Monitoring mechanisms
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

51. Food Relief Grant 2002/03
Grant in kind – funds to be transferred to the IDT as Implementation Partner for the National Food Emergency Programme in the 2002/03 financial year
The IDT will assist the DoSD with the design, social facilitation, implementation of the programme during the 2002/03 financial year in consultation with all the relevant stakeholders

52. Food Relief Grant 2002/03 Allocation Criteria:
Distribution of the prioritised households
Financial Implication of Programme:
- Food parcels: R220,5 million
- Project facilitation,
support and administration R 9,5 million
TOTAL R230,0 million

53. Food Relief Grant 2002/03 Allocations of food parcels per province
Provinces
No of Households
Allocation value
Rand in Millions
Eastern Cape
35 000
31,5
Free State
30 000
27,0
Gauteng
5 000
4,5
Kwazulu-Natal
30 390
27,4
Limpopo
50 890
45,8
Mpumalanga
12 000
10,8
Northern Cape
4 670
4,2
North West
72 000
64,8
Western Cape
TOTAL
R220,5

54. Conditions for conditional grants from 2003/04
Funds may only be utilised to provide food relief to vulnerable individuals and households
Provincial implementation plans must be submitted to the National Department for approval
Provinces must submit within 15 days of the end of each quarter, a report detailing:
* Services
* Expenditure

55. Conditions for conditional grants from 2003/04
A consolidated report on the above-mentioned must be submitted to the National Treasury within 20 days after the end of each quarter
Annual evaluation reports should be compiled for the National and Provincial DoSD’s

56. Criteria for allocation
Based on the proportional shares of poverty and income adjustment distribution per province

57. Conditional Grant to Provinces
2003/04
R’000
2004/05
2005/06
Eastern Cape
94,133
Free State
37,334
Gauteng
27,904
Kwazulu-Natal
68,185
Limpopo
61,146
Mpumalanga
27,651
Northern Cape
9,998
North West
41,615
Western Cape
20,034
TOTAL
388,000

58. Payment schedule and Monitoring mechanisms
Quarterly transfers to provinces in line with cash flow projections and based on monthly/quarterly reports capturing expenditure and beneficiaries. Commencing April 2003
Monitoring mechanisms:
Monthly reports as set out under conditions

59. Capacity and preparedness
The management and administration of the poverty relief programme will be strengthened to ensure effective monitoring of the grant, and would
* Identify more detailed options for expanding the social relief programme interventions and programmes
* Access the possibility of integrating rapid emergency food relief with social welfare services

60. Challenges Finalise Provincial business Plans
Capacity Building at Provincial level
Procurement Process vis a vis time constraints and economies of scale