1. 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

2. 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
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3. 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
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4. 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
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5. 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
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6. CONDITIONAL GRANTS
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7. 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
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8. MTEF Summary Year Normal allocation R’000 Special Allocation
Total Allocation
2003/2004
(10.2%)
(89.8%)
2004/2005
(6.8%)
(93.2%)
2005/2006
(4.4%)
(95.6%)
2006/2007
(3.6%)
(96.4%)
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9. 2004/05 – Special Allocation Amount voted R4 548 410 000
Special Allocations
Disaster Relief Funds R
Extension of Child Support Grant R
Social Relief R
Emergency Food Relief R
HIV and AIDS R
National Development Agency R
National Councils R
Total Special Allocations R
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10. 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
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11. HIV and AIDS
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12. HIV and AIDS Allocation
Achievements to date:
- 412 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
food parcels raging between R154 and R350 per parcel were provided
- Over care givers received stipends, between R225 and R500
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13. HIV and AIDS Allocation
Achievements:
families received support such as food parcels, assistance with funerals, linking families up with income generating projects
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
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14. HIV and AIDS spending by province as at 31January 2004
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15. HIV and AIDS 2003/04 Spending
Projection
65,6%
Spending
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16. 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
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17. 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
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18. CHILD SUPPORT EXTENSION GRANT [From 2003/04 financial year]
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19. Child Support Extension Grant
Policy mandate
The extension of the child support grant to children 7 to 14 years was introduced in March 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 children (this is based on the income and expenditure survey).
Achievements to date:
To date 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
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20. Child Support Extension Grant spending by province as at 31January 2004
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21. Child Support Extension Grant 2003/04 Spending
Projection
56,98%
Spending
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22. 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
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23. 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
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24. FOOD EMERGENCY RELIEF [From 2003/04 financial year]
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25. 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
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26. Food Emergency Relief Grant spending by province as at 31January 2004
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27. Food Emergency Relief 2003/04 Spending
Projection
33,09%
Spending
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28. 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
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29. 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
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30. 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
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31. 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
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