1. 1 EXPANDED PUBLIC WORKS PROGRAMME SOCIAL SECTOR EPWP GRANT TO PROVINCES “ A PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS “ Presented: 14 February 2012 Parliament Cape Town

2. 2 Table of contents 1.Introduction to the EPWP Social Sector 2.Institutional Arrangements 3.Goals and Objectives 4.Sector EPWP Phase 2 targets 5.Sector Involvement in the EPWP Incentive Grant and Progress 6.Description of Social Sector EPWP Grants & Performance 7.Inclusion of Municipalities in the sector incentive 8.Social Sector EPWP Incentive Grant Challenges

3. 3 Introduction to the EPWP Social Sector The Social Sector: A sector whose role players’ main focus is directed towards the delivery of human development outcomes and improving quality of life in the areas of Education, Health, Welfare and Protection. The services provided through the key social sector programmes ECD and HCBC are critically important from a long term human development perspective but are not provided to the scale actually required with many of those in need not yet receiving these services The sector is one in which the targeting of women is relatively easy. This is important because the unemployment rate among women is markedly higher and the other sectors of the EPWP have difficulties in targeting women. It is a sector that is highly labour intensive and investments in this sector results in the highest number of people employed per unit of expenditure of all the EPWP sectors

4. 4 Introduction to the EPWP Social Sector Initially participating departments were Social Development, Basic Education and Health which are respectively responsible for delivery of Early Childhood Development (ECD) and Home Community Based Care (HCBC) programmes. To realise the commitment to expand services and massify the creation of additional work opportunities in the social sector delivery sphere,: A study was conducted in 2007 which revealed 18 additional programmes with a potential to create work opportunities in the sector These programmes include: School Nutrition, Adult Literacy and Sport Coaches The sector participates in the EPWP Incentive Grant to: augment the slow growth in the Social Development budgets which stands to jeorpadise creation of additional work opportunities among national and provincial sector public bodies to meet the EPWP Phase 2 target. Assist the Social Development departments to meet their policy imperatives on service delivery.

5. Institutional Arrangements The Social Sector delivers EPWP at three spheres of government Provincial & National Level Public Works (Overall Coordinating Department) Social Development (Lead Department) Health Basic Education Community Safety Sports and Recreation Local Level Metros District Municipalities Local Municipalities Strategic Partners DoL DHET NYDA SETAs Professional Bodies

6. EPWP 2 Social Sector Goals To create 750,000 work opportunities with 513,043 Full-Time Equivalents as a contribution to achieve 4.5 million work opportunities and 2 million Full-Time Equivalent jobs target of EPWP Phase 2, by 2013/14. Deliver health, early childhood, community crime prevention, school nutrition and other social development oriented services Involve municipalities to deliver EPWP outputs

7. Social Sector Objectives in EPWP Phase 2 As part of EPWP within the Job-Creation Agenda to achieve the New Growth Path, the sector aims: To draw significant numbers of the unemployed into productive work to enable them to earn a wage/stipend/income. To provide unemployed people with education and skills. To utilize public sector budgets to halve unemployment by 2014 and alleviate poverty. To ensure that beneficiaries in the EPWP acquire experience and access career paths to participate in the mainstream economy by starting their own economic ventures or becoming employable. Social Sector Objectives in EPWP Phase 2

8. Break down of Targets for EPWP Social Sector Phase 2 per govt spheres ( work opportunities)

9. Log Frame sector Programmes

10. Involvement in the EPWP Incentive Grant The Social Sector started participating in the EPWP Incentive Grant in its 2 nd year of implementation, that is, 2010/11 financial year. An amount of R56,637million was allocated as a subsidy for Home Community Based Care Programmes(HCBC) in the provincial departments of Health and Social Development for creation of an additional 4926 FTEs. In 2011/12 financial year, the sector developed a comprehensive incentive grant model for the “Social Sector EPWP Grant to Provinces” and Conditions for creation of work opportunities in one (1) National Department’s programme. An amount of R200,358 was allocated by National Treasury to create an additional 11 615 FTEs in provinces and R43 million to create 4 345 FTEs in Kha Ri Gude programme of the National Department of Basic Education (NDBE). The same model has been utilised to facilitate access, implementation and management of the grant in provinces and (NDBE) Kha Ri Gude in 2012/13 financial year. An allocation of R217,401 has been made for provinces to generate an additional 11 968.62 FTEs. Another 1 557 FTEs based on R51,511 allocation for Kha Ri Gude will be achieved.

11. DESCRIPTION & PERFOMANCE OF SOCIAL SECTOR EPWP INCENTIVE GRANT 2010/11 (R56,637m) This was a wage subsidy, schedule 5 Conditional Grant allocated to Provincial Departments of Social Development and Health, accessed via Provincial Treasuries for payment of Home Community Based Care caregivers working in NGOs Grant purpose was to pay stipends to existing non- stipended caregivers in NGOs to achieve the notion of decent work creation An additional number of 4291 individuals benefitted and 4926 FTEs were created, 98,9% of the allocation was spent with the 1.1% under-expenditure accounted for in Free State, Western Cape and Northern Cape.

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13. DESCRIPTION OF THE SOCIAL SECTOR EPWP INCENTIVE GRANT 2011/12 (R200,358m) WHO IS INCENTIVISED? Programmes within Public Bodies BEHAVIOURS INCENTIVISED Expansion of job creation efforts without disruption of Programmes Achievement of EPWP targets` Fulfil EPWP requirements Promote the sustainability of EPWP interventions Promote service delivery outputs ELIGIBILITY FOR GRANT Reporting the prior year and adhering to EPWP M&E Requirements Score for FTE Performance (Year 1: Minimum of 35%; Year 2: Minimum of 45%; Year 3: Minimum of 55%)

14. DESCRIPTION OF THE SOCIAL SECTOR EPWP INCENTIVE GRANT 2011/12 DETERMINING AN INCENTIVE ALLOCATION Calculation is based on the average of 3 scores: Score for FTE Performance in 2009/10 Score for Compliance to EPWP and Sector (Service) Standards (Average of 6 Scores) > % EPWP beneficiaries with disabilities (Standard: 2%) > % EPWP female beneficiaries (Standard: 55%) > % EPWP Youth beneficiaries (Standard: 40%) > Training Days as % of Total Person Days (Standard: 10%) > Average Duration of Employment as % of Standard (100 Person Days) > Average Minimum Daily Wage as % of Standard (R60) Score for adherence to Programme Quality Standards (Average of 2 Scores) > Adherence to Minimum Cost Per Beneficiary > Adherence to specified band for ratio of beneficiaries to practitioners

15. DESCRIPTION OF THE SOCIAL SECTOR EPWP INCENTIVE GRANTS 2011/12 Only the first two scores were used for the calculation of the allocation for 2011/12. Going forward, the scores for adherence to Programme Quality Standards, will be determined through a mid-year sample survey. DETERMINING AN INCENTIVE ALLOCATION The Performance score qualifies the public body for an Incentive Reward, expressed as a % of their FTE Cost Incentive Amount Earned = % Performance score x FTE Cost [=R70ppd x 230 days]. This methodology guarantees that if year-on-year performance is maintained the same incentive grant will be earned This deals with the issue of the sustainability of funding; while guaranteeing continued annual EPWP performance.

16. DESCRIPTION OF THE SOCIAL SECTOR EPWP INCENTIVE GRANTS 2011/12 STIPULATION OF USE Incentive funding must be used to expand job creation programmes. Goals listed in order of priority: (1)Increasing the subsidies to NGOs for creating more sustainable work opportunities by increasing the number of work days available to existing workers. (2)Increasing the subsidies to NGOs for providing stipends to un-stipended volunteers (3)Expanding the existing well performing social sector programmes – targeting higher numbers of workers and increased service delivery outcomes by increasing the amount of funding available (4)Creating new EPWP programmes from the identified opportunities in the Social Sector (5)Supplement management capacity for EPWP management and reporting (Maximum of 10% of the incentive amount)

17. DESCRIPTION OF THE SOCIAL SECTOR EPWP INCENTIVE GRANT 2011/12 R200m EDUCATION: R 38m SOCIAL DEVELOPMENT: R 44.5m HEALTH: R 117.3m SAFETY & LIASON: R 0.2m Allocation by Department: Incentive Grant 2011/12

18. 18 DESCRIPTION OF THE SOCIAL SECTOR EPWP INCENTIVE GRANT 2012/11 Incentive Grant Allocations per Department per Province

19. 19 PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT (2011/12) DPW has managed to transfer a total amount of R199,684 about (100%) to provinces by the 30 th January 2012, in compliance with the payment schedule for the grant according to DoRA 2011. This includes 4 th payments for 17 provincial departments out of 18. A total number of 10 240 Work Opportunities (Wos) and 8 014 Full Time Equivalents (FTEs) had been achieved in provinces by the end of the third quarter of 2011/12 financial year. The grant had reached an expenditure level of R126,764 (63%) of the amounts received at provincial level by the end of the 3 rd qtr 2011/12. To-date withholding of the grant due to non-compliance with the grant requirements has been effected in provinces, that is, Free State, Kwa-Zulu Natal and Western Cape. All the above-stated provinces managed to resolve non- compliance and withheld tranches were released.

20. 20 PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT (2011/12)

21. 21 PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT (2011/12)

22. Social Sector Grant to Provinces (2012/13 Reward) based on 45% FTE Level Performance Department NameRevised Incentive Reward GT Department of Social DevelopmentR12,872,806.60 NC Department of Social DevelopmentR1,505,717.87 KZ Department of Community Safety & LiaisonR1,672,924.93 FS Department of HealthR7,469,853.87 FS Department of Sports, Arts, Culture & RecreationR398,950.80 MP Department of Culture, Sports & RecreationR524,349.42 NW Department of Sports, Arts & CultureR903,135.05 GT Department of HealthR29,072,052.61 NC Department of Sport, Arts & CultureR567,686.23 FS Department of EducationR5,941,405.46 NW Department of HealthR17,003,631.66 FS Department of Social DevelopmentR10,097,565.77 EC Department of Social DevelopmentR6,707,971.66 EC Department of Sport, Recreation, Arts & CultureR1,632,794.61 EC Department of HealthR13,779,884.24 LP Department of EducationR18,556,961.62 LP Department of Health & Social DevelopmentR39,177,421.40 MP Department of EducationR12,613,004.47 MP Department of Safety and SecurityR521,973.12 NW Department of Social DevelopmentR11,657,368.33 WC Department of Community SafetyR799,963.86 WC Department of EducationR23,923,576.43 R217,401,000.00

23. Incentive Grant 2012/13 Allocation by Province

24. Progress – Preparation for Incnetive Grant 2012/13 Up-take The following progress has been made to ensure buy-in and successful implementation and management of the grant: Communication of grant allocations to EPWP coordinators in provinces completed in December 2011. Communication to programme implementation managers completed in January 2012. Draft provincial business plans for the grant completed on the 26 th January 2012. Draft Incentive Grant Agreements forwarded to provinces for scrutiny by department’s public bodies and acceptance. Awaiting endorsement by HoDs’ and provincial Treasuries. First tranche payment scheduled for the 1 st April 2012.

25. 25 Inclusion of the Social Sector in the Integrated Incentive Grant Allocations (Municipal level only) Social Services is a concurrent mandate at the Local Government sphere and should be implemented through IGR frameworks (Chapter 3 of Constitution) Municipalities receive allocations for Health, ECD and other social- related services though marginal. Currently a total number of 26 municipalities are participating in the EPWP Social Sector Research study on involvement of municipalities in the Social Sector reveal that municipalities have a potential of creating 64 702 w/os by 2013/14 through different existing programme streams In the study, SALGA recommends ear-marked funding for social-related programmes and disapproves of “silo” approaches Social Sector should be structured to permeate local government horizontally and vertically. The Sector endevours to develop a model to enable rewarding of involved municipalities

26. 26 Social Sector Grant Challenges Accountability for the sphere targets in provinces Capacity challenges where public bodies still do not have dedicated personnel for the management of EPWP Employment conditions are still a problem. − Some provinces still attempt to pay stipends below the EPWP minimum requirements. − Programmes do not cater for UIF and COIDA Reporting challenges: Required systems, programme information and data for reliable reporting, monitoring and evaluation according to DoRA and PFMA to ensure accountability is still an issue. Expansion & absorption of incentive funded work opportunities: - Un-funded mandates and reduction in budget allocations persists Meeting service delivery norms and standards: - Budget limitations.

27. THANK YOU!!