1. NORTH WEST PROVINCE PRESENTATION ON EARLY CHILDHOOD DEVELOPMENT CONDITIONAL GRANT 16 MAY 2018

2. BASELINE: EQUITABLE SHARE ALLOCATION IN 2017/18
R52,6m was allocated for subsidies to Non-Profit Organizations running Early Childhood Development(ECD) programmes
Expenditure at year-end was R46m (88%)
291 ECD centres were funded
Children were subsidized
Expenditure was low compared to previous years because the strike action which started in January 2018 had a negative impact on payment of subsidies during the 4th Quarter.

3. ECD CONDITIONAL GRANT OBJECTIVES
To increase access of children from low income households to early childhood development services. The target for 2017/18 was children.
To improve the infrastructure of 45 conditionally registered ECD centres providing an early childhood development programmes in order to assist them to attain full registration

4. GRANT ALLOCATION FOR 2017/18 GRANT STRUCTURE AMOUNT
ECD CENTRE MAINTENANCE R
ECD SUBSIDY EXPANSION R
ADMINISTRATION R
TOTAL R

5. ECD CENTRE MAINTENANCE - APPROACH
1st Quarter
48 ECD centres were assessed for infrastructure maintenance in deep rural villages and townships in March 2017.
Priority was given to provision of water and sanitation.
The unit cost in the quotations received far exceeded the R threshold per centre.
The list was abandoned as the projects were not affordable.
2nd Quarter
A new list of 45 ECDs which required minor maintenance was assessed and confirmed.
SCM processes were completed in respect of 11 centres and maintenance work commenced.

6. ECD CENTRE MAINTENANCE - APPROACH
3rd Quarter
9 ECD Centres were completed.
SCM processes (briefing sessions) were not properly coordinated which led to non-compliant quotations. The process had to be redone and there was loss of time.
4th Quarter
2 ECD Centres were completed and service providers were paid.
SCM processes were completed in respect of 11 additional centres. 3 Centres out of the 11 were completed and pre-payment inspections will be finalized Friday 18 May 2018.
Service providers for the remaining 8 centres are in receipt of
purchase orders. An application has been submitted for a roll
over in respect of the 11 projects.

7. ECD CENTRE MAINTENANCE – 2017/18 PERFORMANCE
Allocation received in 2017 R
Number of centres Targeted 45
Expenditure as at 31st March 2018 R
Number of centres completed as at 31st March 2018 and paid 11
Commitments:
Purchase Orders issued to service providers
Application for a Roll over R
Number of ECDs not reached 23
Underspent R

8. SUBSIDY GRANT: 2017/18 PERFORMANCE
Allocation: R
Expenditure as at 31st March 2018: R (68.7%)
Underspent: R
An application has been made for a roll-over in order to pay the March subsidy claims amounting to R8,2m as payments are made retrospectively.
178 centres were reached against a target of 155
4 490 children were subsidized against a target of 6 632

9. SUBSIDY GRANT - APPROACH
1st Quarter
155 ECDs assessed
Provincial Business Plan approved by National DSD
2nd Quarter
Expenditure amounting to R incurred.
Claims were calculated for 248 days per annum instead of 264 days per annum in order to avoid complaints of unequal treatment from the ECD sector.
Service Level Agreements were amended to reflect monthly instead of quarterly payments and also to avoid payment before service is rendered.

10. SUBSIDY GRANT - APPROACH
3rd Quarter
Expenditure amounting to R incurred.
Incorrect classification of expenditure was corrected through journals.
A saving of R was realized because claims were calculated for 248 days per annum instead of 264 days.
4th Quarter
Expenditure amounting to R incurred.
The saving increased number of centres benefiting from 147 to 178

11. ADMINISTRATION
Allocation: R
Expenditure as at 31st March 2018: R
The under expenditure of R was due to the Project Team which was appointed in the third quarter -
1 x Project Manager : Infrastructure maintenance
1 x Project Manager : Programme subsidy management
1 x Admin support

12. GRANT EXPENDITURE AS AT 31ST MARCH 2018
Grant Structure
Budget
R’000
Expenditure As At 31st March 2018
Balance
% Expenditure performance
ECD Centre Maintenance
4 465
1 055
3 410
24%
ECD Subsidy Expansion
26 258
18 047
8 210
69%
Administration
1 961
1 196
764
61%
TOTAL
32 686
20 300
12 385
62%

13. Lessons learned Improvement Plan ECD MAINTENANCE GRANT
ECDs in deep rural areas where there is no water reticulation and sanitation require more funds
Select minor maintenance projects (Category A) during 2018/19 in order to comply with the conditions of the grant
Include category B in the business plan for 2019/20 financial year.
Some service providers charge government exorbitant amounts
Assess the market price in order to estimate the cost for prioritized centres.
Negotiate reasonable prices with service providers
Delayed SCM processes lead to under-spending and poor performance
Finalize SCM processes by end of June 2018
Develop database of eligible service providers for 2019/20 during 2018/19.
Provision of budget for ECD Maintenance from Goods and Services to Transfer Payments during 2019/20
Transfer funds to conditionally registered ECDs during 2019/2020.
Intensify monitoring and support for funded Organizations

14. Uniformity / equal treatment is important for the sector
ECD SUBSIDY GRANT
Lessons learned
Improvement Plan
Uniformity / equal treatment is important for the sector
Align the equitable share subsidies framework to the conditional grant framework (264 days for all ECD centres)
ADMINISTRATION
Lessons learned
Improvement Plan
Adequate human resources are required for successful project management
Appointment of 2 Works Inspectors by end of July 2018

15. THANK YOU