1. 31 October 20151Select Committee1 DSD Annual Performance Report (01 April 2013 – 31 March 2014) Presentation to Select Committee on Social Services 11 November 2014

2. 31 October 20152Select Committee2 Presentation outline PART A: Purpose Overview Vision, Mission & Strategic Priorities PART B: Contextual Analysis Programme performance Annual Achievements/performance PART C: International Obligations Summary of performance Challenges PART D: Legislative Programme PART E: Finance

3. 31 October 20153Select Committee3 PURPOSE Purpose: To inform the Select Committee of : –The Department’s performance against its pre-determined objectives for the 2013/14 financial year; –The State of Expenditure of the Department for the 2013/14 financial year as at 31 March 2014.

4. 31 October 20154Select Committee4 Part A Overview

5. 31 October 20155Select Committee5 Mission To ensure the provision of comprehensive social services which protect the poor and vulnerable within the framework of the South African Constitution and subsequent legislation; create an enabling environment for sustainable development; and deliver integrated, sustainable, and quality services in partnership with all those committed to building a caring society together. Vision A caring and integrated system of social development services that facilitates human development and improves the quality of life.

6. 31 October 20156Select Committee6 The Department has identified and committed itself to addressing the following key priorities: Expand Child and Youth Care services (Isibindi programme) Promote Early Childhood Development Combat Substance Abuse Provision of food to poor households (Food for all/Zero Hunger) The protection and promotion of the rights of older people and people with disabilities Strategic Priorities

7. "Building a Caring Society. Together"7 The Department also contributes to some of the following government outcomes – prior to the inclusion of Outcomes 13 & 14: 1.Improved quality of basic education 2.A long and healthy life for all South Africans 3.All people in South Africa are and feel safe 4.Decent employment through inclusive economic growth 5.A skilled and capable workforce to support an inclusive growth path 6.An efficient, competitive and responsive economic infrastructure network 7.Vibrant, equitable and sustainable rural communities and food security for all 8.Sustainable human settlements and improved quality of household life 9.A responsive, accountable, effective and efficient local government system 10.Environmental assets and natural resources that are well protected and continually enhanced 11.Create a better South Africa and contribute to a better and safer Africa and World 12.An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship Government outcomes "Building a Caring Society. Together"

8. 8 PROGRAMMES PURPOSE Programme 1: Administration To provide leadership, management and support services to the Department and the Social Development Sector. Programme 2: Social Assistance To provide income support to vulnerable groups. Programme 3: Social Security Policy and Administration To provide for social policy development and the fair administration of social assistance. Programme 4: Welfare Services Policy Development and Implementation To create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices and the provision of support to the implementation agencies. Programme 5: Social Policy and Integrated Service Delivery To support community development and promote evidence-based policy making in the Department and the Social Development Sector

9. "Building a Caring Society. Together"9 Part B Programme Performance

10. 10 CONTEXT/SITUATIONAL ANALYSIS The Social Development Sector delivers its services in an environment marked by high levels of poverty, unemployment and inequality. Some recent policy developments The social assistance programme remains government’s single most significant poverty alleviation programme:The social assistance programme remains government’s single most significant poverty alleviation programme: Studies carried out by among others Statistics South Africa; including the Presidency’s Fifteen Year Review, suggest that the Social Assistance Programme is the single most important driver of the decline in poverty has had a significant impact on reducing poverty, redistributing income and reducing inequality.Studies carried out by among others Statistics South Africa; including the Presidency’s Fifteen Year Review, suggest that the Social Assistance Programme is the single most important driver of the decline in poverty has had a significant impact on reducing poverty, redistributing income and reducing inequality. Studies carried out by the Department and other institutions have uncovered various positive developmental impacts of the child support social grant in promoting nutritional, educational and health outcomes, including a significant contribution to the attainment of Millennium Development Goal (MDG) Goal 1, the eradication of extreme poverty and hunger.Studies carried out by the Department and other institutions have uncovered various positive developmental impacts of the child support social grant in promoting nutritional, educational and health outcomes, including a significant contribution to the attainment of Millennium Development Goal (MDG) Goal 1, the eradication of extreme poverty and hunger. 10 "Building a Caring Society. Together"

11. 11 CONTEXT/SITUATIONAL ANALYSIS Project Mikondzo: The project is a service delivery improvement intervention focusing on 1300 wards poorest wards in 23 priority district municipalities in the country. The project was implemented successfully in all provinces and immediate interventions were provided in some of the areas visited. A comprehensive service delivery improvement plan is being developed.Project Mikondzo: The project is a service delivery improvement intervention focusing on 1300 wards poorest wards in 23 priority district municipalities in the country. The project was implemented successfully in all provinces and immediate interventions were provided in some of the areas visited. A comprehensive service delivery improvement plan is being developed. Call centre on Gender Based Violence: as part of the fight against Gender Based Violence, we launched a command centre for victims of gender based violence which operates a 24-hour toll free line staffed by 42 social workers and 7 social work veterans.Call centre on Gender Based Violence: as part of the fight against Gender Based Violence, we launched a command centre for victims of gender based violence which operates a 24-hour toll free line staffed by 42 social workers and 7 social work veterans. 11 "Building a Caring Society. Together"

12. 12 CONTEXT/SITUATIONAL ANALYSIS The Social Development Sector delivers its services in an environment marked by high levels of poverty, unemployment and inequality.The Social Development Sector delivers its services in an environment marked by high levels of poverty, unemployment and inequality. Although the Department is largely responsible for policy formulation, it also renders some of its services directly to the public, e.g. Registration of NPOsAlthough the Department is largely responsible for policy formulation, it also renders some of its services directly to the public, e.g. Registration of NPOs The Department works with other institutions within and outside government in the execution of its mandate: Critical partners include amongst others the Departments of Basic Education, Labour, Justice, Health and Rural developmentThe Department works with other institutions within and outside government in the execution of its mandate: Critical partners include amongst others the Departments of Basic Education, Labour, Justice, Health and Rural development. Areas of collaboration include critical projects on issues affecting Children, HIV & AIDS, Older Persons, Victim Empowerment, Youth, Social Security.Areas of collaboration include critical projects on issues affecting Children, HIV & AIDS, Older Persons, Victim Empowerment, Youth, Social Security. Given the collaborative and interdependent nature of some of the department’s work, it can only meet some of its targets if the other institutions deliver on their commitments as well. – This is a government-wide integration challenge.Given the collaborative and interdependent nature of some of the department’s work, it can only meet some of its targets if the other institutions deliver on their commitments as well. – This is a government-wide integration challenge. 12 "Building a Caring Society. Together"

13. 13 Annual Achievements/Performance

14. 14 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeStrengthened collaboration with stakeholders in order to enhance service delivery Annual TargetAchievement Form Partnership with stakeholders in support of DSD initiatives projects The Department hosted DSD-CONTRALESA and Interfaith summits during the reporting period. The Department also facilitated the hand over of 9 vehicles as well as 2 houses sponsored by the Alimdaad Foundation built at Kwa- Mhlanga in Mpumalanga Province " Building a Caring Society. Together" Programme 1 : Stakeholder Management

15. 15 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeImproved Social Development Sector Performance Annual TargetAchievement Produce social profile of vulnerable groups Key statistical and social security trends reports profiling vulnerable groups were produced. Annual TargetAchievements Develop a multi-year evaluation strategy An evaluation strategy and multi-year evaluation plan for the financial years 2014/2015-2016/17 were finalised. " Building a Caring Society. Together" Programme 1 : Monitoring and Evaluation

16. 16 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeImproved Social Development Sector Planning Annual TargetAchievement Implement 9 DSD customer service empowerment programmes 9 DSD customer service empowerment programmes were implemented in support of Ministerial programme. Annual TargetAchievements Train 200 women in Business Management 595 women were trained in business management (Eastern Cape, Northern Cape and KZN) " Building a Caring Society. Together" Programme 1 : Strategy Development and Business

17. 17 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeEfficient and effective legal services for the Social Development Sector Annual TargetAchievement Implement the contract management system Contract management system was implemented " Building a Caring Society. Together" Programme 1:Legal Services

18. 18 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeInformed, educated, mobilised stakeholders and public in support of DSD mandates Annual TargetAchievement Reach 55 000 people via the DSD website and social media A total of 36 476 620 people were reached through the DSD website and social media. 73 500 people reached through the website, 14 169 through Facebook and Twitter, and 36 388 951 through electronic newspapers. Annual TargetAchievements Organise 16 public participation events for the Minister and 16 for the Deputy Minister The Minister and Deputy Minister conducted 89 evidence-based public participation programmes. Public participation/ outreach programmes were intensified, reaching 126 900 people. " Building a Caring Society. Together" Programme 1:Communications

19. 19 PROGRAMME 2: COMPREHENSIVE SOCIAL SECURITY Social Assistance Government outcomeA long and healthy life for all South Africans Outcome DSD specificPoor and vulnerable people are protected against income poverty TargetsAnnual Achievements/performance Increase Old Age Grant beneficiary coverage to 2 956 641 The total number of Old Age Grant beneficiaries is 2 969 933 Increase War Veterans Grant beneficiary coverage to 393 The total number of War Veterans Grant beneficiaries is 429 Increase Child Support Grant beneficiary coverage to 11 488 501 The total number of Child Support Grant beneficiaries is 11 125 946 Increase Disability Grant beneficiary coverage to 1 135 218 The total number of Disability Grant beneficiaries is 1 120 419. " Building a Caring Society. Together"

20. 20 PROGRAMME 2: COMPREHENSIVE SOCIAL SECURITY Social Assistance Government outcome A long and healthy life for all South Africans Outcome DSD specific Poor and vulnerable people are protected against income poverty TargetsAnnual Achievements/performance Increase Care Dependency Grant beneficiary coverage to 135 347 The total number of Care Dependency Grant beneficiaries is 120 632. There was a slow uptake for this grant Increase Foster Care Grant beneficiary coverage to 515 939 The total number of Foster Care Grant beneficiaries is 512 055. Increase Grant-in-Aid beneficiary coverage to 71 879 The total number of Grant-in-Aid beneficiaries is 83 059 " Building a Caring Society. Together"

21. 21 “Building a Caring Society. Together" PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATION Social Security Policy Development TargetsAnnual Achievements/performance Produce 2 oversight reports on adherence to norms and standards for the social assistance programme 2 oversight reports on adherence to norms and standards for the social assistance programme were produced. The two visit were done in Northern Cape and North West provinces. Complete discussion paper on the universalisation of the Old Age Grant Discussion paper on the Universalisation of the Old Age Grant was completed after a series of consultations with internal stakeholders Government Outcome An effective, efficient and development-orientated public service and an empowered, fair and inclusive citizenship Outcome DSD specific An efficient, effective and transparent social security system that promotes active citizenship

22. 22 “Building a Caring Society. Together" PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATION Appeals Adjudication TargetsAnnual Achievements/performance Adjudicate 50% of appeals within 90 days of receipt A total of 1 696 appeals were adjudicated. Of these, 48.76% (827) were adjudicated within 90 days of receipt) Implement Integrated Appeals Business Information System The development of the Integrated Appeals Business Information System was completed Government Outcome An effective, efficient and development-orientated public service and an empowered, fair and inclusive citizenship Outcome DSD specific Effective, efficient and accessible social assistance appeals service

23. 23 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Service Standards and Service Provider Management Support TargetsAnnual Achievements/performance Review implementation of the White Paper in two provinces Conducted the national and provincial review of the White Paper in Northern Cape and Gauteng where presentations were made by senior managers from DSD, SASSA, NDA and the NGO sector Monitor implementation of generic intervention processes in the provinces The implementation of generic intervention processes was monitored in all provinces Award 800 scholarships (raising total to 5 550) 997 new scholarships were awarded for the 2013 academic year, increasing the total to 5 747. Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship Outcome DSD specificStandardise Social Welfare Services to improve quality service delivery by 2015

24. 24 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Service Standards and Service Provider Management Support TargetsAnnual Achievements/performance Monitor implementation of the Policy on Financial Awards Workshop were held with provincial co-ordinators in all provinces on progress made in implementing the PFA, and reports were submitted to the DSD Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship Outcome DSD specificStandardise Social Welfare Services to improve quality service delivery by 2015

25. 25 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Older Persons TargetsAnnual Achievements/performance Assess 108 residential care facilities (12 per province) 109 residential care facilities were assessed for compliance to norms and standards in 7 provinces except in Western Cape and Mpumalanga Draft Older Persons Amendment Bill Draft Amendment Bill developed Government OutcomeAll people in South Africa are and feel safe DSD specific OutcomeImproved protection and quality of life for older persons

26. 26 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES People with Disabilities TargetsAnnual Achievements/performance Draft BillDraft Bill on Social Development Services to People with Disabilities developed. Baseline disability policy approved by Heads of Social Development Develop norms and standards for residential facilities Norms and standards for residential facilities were drafted Government Outcome Sustainable human Settlement and improved quality of household life DSD specific Outcome Improved quality of life for people with disabilities

27. 27 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Children TargetsAnnual Achievements/performance Develop ECD policyECD policy developed Develop comprehensive package of ECD services A comprehensive ECD programme was developed Build HR capacity in the ECD sector HR plans were received from 6 provinces, namely MP, LP, GP, FS,NC and NW. Conduct a comprehensive audit of 12 526 ECD centres in all provinces 12 987 ECD centres were audited in all provinces in 2013/14. This bring the total of all audited ECD centres to 19 023 Government Outcome A quality of basic education DSD specific Outcome Improved access to Early Childhood Development ( ECD) programmes

28. 28 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Children TargetsAnnual Achievements/performance Increase the number of children adopted by 10% 1 452 adoptions registered (an increase of 55%) Increase the number of children adopted by 10% 1 452 adoptions registered (an increase of 55%) Monitor the implementation of the Foster Care Project Plan in all 9 provinces Implementation of Foster Care Project Plan was monitored in all provinces Secure approval of the guidelinesGuidelines for the registration of drop-in centres were approved Government Outcome All people in South Africa are and feel safe DSD specific Outcome Safe and friendly society for children

29. 29 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Children TargetsAnnual Achievements/performance Monitor implementation in all 9 provinces Monitored implementation of transformation plan for CYCCs in all 9 provinces Screen 30 000 employees41 441 employees working with children were screened against the CPR Part B. Only 227 were found unsuitable to work with Children. Draft Amendment Bill (Phase 1) of the Children’s Act Draft Amendment Bill was finalised Monitor implementation of the Isibindi model in the provinces Implementation of the Isibindi model was monitored in all provinces Government Outcome All people in South Africa are and feel safe DSD specific Outcome Safe and friendly society for children

30. 30 PROGRAMME 4: WELFARE SERVICES Families TargetsAnnual Achievements /performance Build stakeholder capacity on the White Paper on Families All nine provinces were capacitated on the White Paper on Families Build capacity on the Fatherhood Strategy and Active Parenting of Teenagers programme All provinces were capacitated on the Fatherhood Strategy Five provinces were capacitated on Active Parenting for Teenagers programme namely EC, NW, NC, FS and KZN "Building a Caring Society. Together" Government OutcomeSustainable human settlement and improved quality of household life. DSD-specific outcomeRestored family values and responsibilities in order to build cohesive communities.

31. 31 PROGRAMME 4: WELFARE SERVICES Social Crime Prevention TargetsAnnual Achievements /performance Train 63 panel members on the Policy Framework for the Accreditation of Diversion Services A total of 59 Quality Assurance Panel members were trained on the policy framework for the Accreditation of Diversion Services in all provinces. 4 appointed members withdrew before training took place Capacitate 120 stakeholders on social crime prevention programmes 169 stakeholders capacitated on social crime prevention programmes Monitor implementation of the social crime prevention strategy Action Plan The Action Plan was monitored in all provinces, and all provinces had implementation plans "Building a Caring Society. Together" Government outcome All people in South Africa are and feel safe DSD-specific outcome Reduced incidence of social crime

32. 32 PROGRAMME 4: WELFARE SERVICES Victim Empowerment TargetsAnnual Achievements /performance Finalise Draft Bill on Victim Empowerment Support Services The Draft Bill on Victim Empowerment Support Services was finalised Provide immediate and integrated collaborative services intervention in respect of GBV incidents on a 24-hour basis A Command Centre was established to provide immediate and integrated collaborative services to victims of GBV. The Command Centre was launched and a Toll Free line was advertised on national and community radio Finalise the Policy FrameworkThe National Policy Framework for the accreditation of organisations providing antihuman trafficking services was finalised Develop an Intersectoral Strategy for the VEP An Intersectoral Strategy was developed with the cluster departments and national CSOs "Building a Caring Society. Together" Government outcome All people in South Africa are and feel safe DSD-specific outcome Reduced incidence of social crime

33. 33 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Substance Abuse TargetsAnnual Achievements/performance Monitor implementation of POA by 9 national departments Implementation by 9 national departments monitored namely Justice, SAPS, Correctional Services, DSD, Basic Education, Health, Trade and Industry, Higher Education and Training, and Transport Capacitate 120 stakeholders on the implementation of the Prevention and Treatment of Substance Act and Regulations 458 stakeholders in all provinces capacitated to implement the Act and Regulations Review and monitor implementation of the NDMP 2013-2017 The NDMP 2013/2017 was approved by Cabinet in June. Subsequently 8 provinces except WC and one national department (the Department of Transport) were capacitated to implement the plan Government Outcome All people in South Africa are and feel safe DSD specific Outcome Reduce incidence of Substance abuse in communities

34. 34 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES Youth TargetsAnnual Achievements/performance 3 000 participants in youth dialogues 9 786 youths participated in youth dialogues nationally 1 800 participants in mobilisation programmes 16 070 young people participated in mobilisation programmes nationally 450 participants in skills development programmes 8 080 young people participated in skills development programmes nationally. These programmes include Entrepreneurship, computer skills, and vocational training, to mention a few 1 000 participants attending leadership camps 1 128 participants attended National youth camps. Government OutcomeVibrant, equitable, sustainable rural communities contributing towards food security for all DSD specific OutcomeYouth participate and influence social change

35. 35 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES HIV/AIDS TargetsAnnual Achievements/performance Reach 500 000 youths reached through social and behaviour change Programmes 549 355 youths were reached Train 450 organisations to implement social and behaviour change programmes 501 organisations trained Facilitate 64 community conversations on HIV and AIDS 86 community conversations facilitated Government OutcomeA long healthy life for all South Africans DSD specific OutcomeDecrease in risky sexual behaviour among targeted populations

36. 36 “Building a Caring Society. Together" PROGRAMME 4 : WELFARE SERVICES HIV/AIDS TargetsAnnual Achievements/performance Reports from 1 200 CBOs in accordance with the community based M&E system 1 355 organisations submitted administrative data to the CBIMS Train 90 officials on HIV and AIDS management programme 24 provincial and district officials were trained on TB management as a co-infection with HIV in 8 provinces except WC. 92 officials were trained on HIV and AIDS management in LP, KZN and GP. Strategic review of the National Action Plan for children affected by HIV and AIDS Report produced on children affected by HIV and AIDS Finalise evaluation report on the HCBC programme Evaluation report on HCBC programme produced Government OutcomeA long healthy life for all South Africans DSD specific OutcomeMitigate the psychosocial and economic impact of HIV and AIDS, TB, and other chronic illnesses

37. 37 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Social Policy Research and Development TargetsAnnual Achievements/performance Develop and review one social policy in collaboration with the relevant directorate. A Social Development Sector Community Development Policy was developed and submitted to stakeholders for review Develop and disseminate 4 policy briefs 4 policy briefs were developed, e.g. Discussion note on the Partnership between DSD and Traditional Authorities A DSD reference document on addressing the triple challenge of unemployment, poverty and inequality – partnership with Faith-Based Organisations and Religious Communities Government outcome An efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD OutcomeDeepening of social policy discourse and evidence-based policy making "Building a Caring Society. Together"

38. 38 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Special Projects and Innovation TargetsAnnual Achievements/performance Create 33 307 job opportunities through social sector sub- programmes. 33 504 job opportunities created by the Department only. Create 27 814 non-EPWP job opportunities 32 590 non-EPWP job opportunities created Facilitate the provision of integrated DSD services to 9 Community Works Programme (CWP) sites. DSD services were provided at 15 CWP sites in seven provinces except GP and WC Government outcome Decent employment through inclusive economic growth DSD OutcomeIncreased decent work opportunities, skills and income levels in the community "Building a Caring Society. Together"

39. 39 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Population Policy Promotion TargetsAnnual Achievements/performance Conduct 13 advocacy workshops and seminars 15 advocacy workshops/seminars were held in all provinces except Northern Cape, with exhibitions at each event. Events included the commemoration of World Population Day at the University of North West; the media launch of the State of the World Population Report 2013 at Khayelitsha in the Western Cape; and the BRICS Inaugural Seminar in Hazyview in Mpumalanga. Government outcome An efficient, effective and development oriented public service, and an empowered, fair and inclusive citizenship DSD OutcomeIncreased capacity to mainstream population issues into development plans and activities "Building a Caring Society. Together"

40. 40 PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Population Policy Promotion TargetsAnnual Achievements/performance Train 300 people on integrating population factors into development 394 people were trained on integrating population factors into development plans Conduct nine capacity building sessions 12 capacity building session were conducted on integrating population factors into development plans Produce 10 thematic research reports on progress made with implementing Population Policy and on the ICPD Programme of Action in South Africa 13 thematic research reports were produced. The review processes on Policy+15/ICPD+20 were managed into a single multisectoral review process Government outcome An efficient, effective and development oriented public service, and an empowered, fair and inclusive citizenship DSD OutcomeIncreased capacity to mainstream population issues into development plans and activities "Building a Caring Society. Together"

41. 41 Government OutcomeAn efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship DSD Specific outcomeA conducive environment for civil society organisations and communities Annual TargetAchievement Process 90% of applications of NPOs within two months of receipt 29 812 applications were received and 28 798 were processed 96.6% of applications were processed within two months Train 2 500 NPOs on governance and compliance with the NPO Act 2 667 NPOs were trained on NPO governance and compliance with the NPO Act Train 300 provincial officials on governance and compliance with the NPO Act 970 provincial officials in all provinces were trained on governance and compliance with the NPO Act " Building a Caring Society. Together" Programme 5 : Registration and Monitoring of Non-Profit Organisations

42. 42 Government OutcomeA skilled and capable workforce to support an inclusive growth path DSD Specific outcomeA skilled workforce able to deliver high-quality community development services Annual TargetAchievement Train 600 Community Development Practitioners (CDPs) 859 CDPs were trained Train 400 Community Based Organisations (CBOs) A total number of 411 CBOs were trained Profile 300 000 households784 137 households were profiled Reach 200 wards148 wards were reached through community mobilisation programmes " Building a Caring Society. Together" Programme 5 : Community Development

43. 43 Government OutcomeA skilled and capable workforce to support an inclusive growth path DSD Specific outcomeA skilled workforce able to deliver high-quality community development services Annual TargetAchievement Develop Service Delivery Improvement Plan for the 23 priority districts A Template for Service Delivery Improvement Plans for the targeted wards was developed and Service Delivery Improvement Plans were developed Promote equitable access to food by 300 000 households 122 612 households accessed food through food security programmes 700 000 people to access food through food banks 346 632 people accessed food through Food Bank SA " Building a Caring Society. Together" Programme 5 : Community Development

44. PART C International Obligations for 2013/14 "Building a Caring Society. Together" 44

45. 45 International Obligations for period 2013/14 In support of South Africa’s foreign policy goals, the Department plays an active role in promoting the country’s social development agenda internationally. The Department is an active member of the African Union (AU), Southern African Development Community (SADC) and United Nations structures, which includes among others, the UN Commission on the Status of Women. During the reporting period, the Department participated in the International AIDS Conference, UN Commission on the Status of Women and International Inter- Ministerial Conference on Evidence for action Government Outcome: Create a better South Africa, a better Africa and a better world Outcome: DSD specificTo promote and support participation in key identified bilateral and multilateral initiatives "Building a Caring Society. Together"

46. 46 International Obligations for period 2013/14 The Department also participated in several international events including among other the following: -The 46 th Session of the United Nations Commission on Population and Development (UNCPD) -The African Population Commission (APC) of the African Union (AU); The Department finalised three agreements with Benin, Lesotho and Namibia The Department also facilitated technical exchanges with Zimbabwe, Vietnam, Ghana, Botswana, Namibia and Lesotho. All these initiatives provide a platform for sharing social development experiences and provide us with an opportunity to help create a better South Africa, a better Africa and a better world. Government Outcome: Create a better South Africa, a better Africa and a better world Outcome: DSD specificTo promote and support participation in key identified bilateral and multilateral initiatives "Building a Caring Society. Together"

47. 47 Performance Summary & Challenges

48. 48 Trends in achievement of targets "Building a Caring Society. Together"

49. 49 There has been improvement in the achievement of targets in the period 2011 – 2014 In 2011/12, only 54% of the set targets were fully achieved at the end of the financial year. Performance improved in 2012/13 where 61% of the targets were achieved. Improvement in achievement of targets continued in 2013/14 where 69% of the set targets were achieved. PERFORMANCE TRENDS

50. 50 Executive Support: Target for management meetings not achieved due to meetings postponed or cancelled. International Relations Targets for signing Bilateral Agreements not achieved due to delays in response from counterparts as well as the schedule of principals not allowing meetings. CHALLENGES

51. 51 Office Accommodation: Target to conduct a feasibility study on shared offices for DSD, SASSA and NDA not completed. Options for a suitable accommodation is being consulted with DPW. Policy Development The policy for amending the NPO Act was developed and consulted with NPOs. It was not approved due to extended consultations. The Community Development Occupational framework was not approved due to extended consultations with HWSETA and DHET CHALLENGES

52. PART D Legislative Programme for 2013/14 "Building a Caring Society. Together" 52

53. 53 Legislative Programme for period 2012/13 No Bills were submitted to Parliament during the year under review "Building a Caring Society. Together"

54. 54 Part E Finance

55. 31 October 201555 Part E : Finance 2013/14 Section 1: National Expenditure Section 2: Public Entities Section 3: Provincial Expenditure Section 4: Sector Audit Outcome 2015 MTEF Section 5: MTEF Social Sector Analysis Select Committee

56. CONTENT for Part E. Audited Actual Expenditure for the 2013/14 financial year for the National and Provincial Social Sector 2010 – 2017 Expenditure Trend Analysis Challenges Audit Outcome for the DSD Sector Commitments Made on Audit Outcomes 31 October 201556Select Committee

57. 31 October 201557 Part E Finance Section 1 : 2013/14 National DSD Expenditure Select Committee

58. 31 October 201558 SUMMARY – SOCIAL DEVELOPMENT R’000 Select Committee

59. 31 October 201559 SUMMARY EXPENDITURE PER PROGRAMME Programme Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 P1: Administration 262 782261 30199,44%1 481 P2: Social Assistance 111 006 841109 596 59198,73%1 410 250 P3: Social Security Policy and Administration 6 376 6466 376 560100,00%86 P4: Welfare Services Policy Development and Implementation Support 548 098546 01599,62%2 083 P5: Social Policy and Integrated Service Delivery 317 233304 48295,98%12 751 TOTAL 118 511 600117 084 94998,80%1 426 651 Select Committee

60. REASONS FOR UNDER SPENDING Programme 1: Administration – R 1,481 million –The under-expenditure is due to the unpaid interdepartmental claims (Public Works). Programme 2: Social Assistance – R 1,410 billion –The under-expenditure is due to the re-registration process which had an impact on the anticipated actual take-up rates of grant beneficiaries. Programme 4: Welfare Services Policy Development and Implementation Support – R2,083 million –The under expenditure is mainly due to non-payment of NGO's due to non- compliance. Programme 5: Social Policy and Integrated Service Delivery – R12,751 million –The under-expenditure is due to change in the strategy of food security programs. 31 October 201560Select Committee

61. 31 October 201561 SUMMARY EXPENDITURE PER ECONOMIC CLASSIFICATION Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees 323 699 100,00%0 Goods and Services 333 991331 81399,35%2 178 Transfers and Subsidies 117 847 485116 413 34898,78%1 434 137 Payments of Capital Assets 6 425 100,00%0 Payments for Financial assets -9 664- -9 664 TOTAL 118 511 600117 084 94998,80%1 426 651 Select Committee

62. HIGH SPENDING ITEMS 31 October 201562Select Committee

63. HIGH SPENDING ITEMS Marketing & Promotional Material – R40,647 million –Advertising, Promotional Material, Recruitment and Tenders amongst other relating to the following: Mikondzo project – community outreach, Golden Games – active ageing programme; National Parliament for the Aged; Presidential Luncheon for the Aged; Child Protection Week; Youth Camps; Anti- Substance Abuse Festive Season Campaign; 31 October 201563Select Committee

64. Marketing & Promotional Material 31 October 201564Select Committee

65. HIGH SPENDING ITEMS Venues & Facilities – R38,207 million –Expenditure relating amongst other to the following: 31 October 201565 Child Protection Week  Tzaneen Country Lodge  City Lodge in Durban Golden Games  Birchwood Hotel Anti- Substance Abuse Policy Consultation  Burgers Park Hotel  Eldorado Park Youth Camp  SANDF-MILITARY BASE Orphans Vulnerable Children & Youth Conference  ICC Durban National Action Committee for Children Affected by HIV & AIDS Workshop  Manhattan Hotel Select Committee

66. HIGH SPENDING ITEMS (cont.) Consultants – R45,967 million –Consulting services amongst others relating to the following: 31 October 201566 Service Provider Services rendered / output Nkanyezi Development Services The services of the consultants were procured to provide support in preparation for DSD month in the Eastern Cape in two districts these included Chris Hani and Alfred Nzo district for the editing of support group guidelines manual Bimshire InvestmentDevelopment of Treatment model, Advert and Artwork for festive season anti-substance abuse campaign National Institute Community Development and Management Accreditation of caregiver manual Ororiseng TradingPrinting of generic intervention process forms Mintiro Trading EnterpriseEditing and printing of the strategy on services for vulnerable children in drop in centres. Select Committee

67. HIGH SPENDING ITEMS (cont.) 31 October 201567 Service Provider Services rendered / output BM Holtmann Facilitation of Social Transformation Workshops in 10 poor and vulnerable communities to build their capacities to change their status from vulnerability to resilience and sustainability Mmapula Community Development Training of Community Development Practitioners on the asset based community driven development approach. 90 CDPs will be trained in Gauteng and the Eastern Cape Seeletso Health Information (pty) Ltd To conduct an analysis of the questioners for norms and standards on the effectiveness and improvement of Community Development Practice. The analysis is aimed at ensuring that there is standardisation, uniformity and integration of services for community development practitioners by developing Norms and Standards for community development practice. Continuing Education for Africa (CEFA) The key deliverable is the draft community development practice policy which will guide the implementation of community development and also the basis for the regulation of the practice which will clearly outline the roles and responsibility of community development practioners in facilitating the community development programmes Select Committee

68. HIGH SPENDING ITEMS (cont.) Consultants – R45,967 million –Consulting services amongst others relating to the following: 31 October 201568 Service Provider Services rendered / output The Institute for Social law and Policy Development of a policy on inclusion of non-citizens in the South African social security system Alexander Forbes Financial Services Building a Micro-Simulation Model that is able to perform social policy and scenario analysis LIMA Purpose of a service provider to design and implement a pilot aimed at linking able bodied persons of working age residing in grant beneficiary households to economic opportunities Impact Research International The undertaking of the project to conduct a study on understanding the current poor access of the child support grant(SCG) within the 0-4 age cohort Karabo Media and Marketing The undertaking of the project to develop a basic financial book for Social Grant Beneficiaries and their caregivers Disaster Management Solutions(DMS) Consultant to develop a community-Based Disaster Risk Mitigation Toolkit for practitioners; Booklets and posters to strengthen community capacity; advocacy materials and provide training to practitioners Select Committee

69. HIGH SPENDING ITEMS (cont.) Consultants – R45,967 million –Consulting services amongst others relating to the following: 31 October 201569 Service Provider Services rendered / output SAS Programmer (Real Global Business Solutions)Management of M&E data warehouse Ink DesignPrinting of APP Economic Policy and Research Institute (EPRI)Conduct the audit of 18000 ECD’s University of StellenboschTo update the profile of Social Security beneficiaries AureconSpatial Optimization Model Select Committee

70. TRAVELLING & SUBSISTENCE 31 October 201570Select Committee

71. 31 October 201571 SUMMARY PROG 1: ADMINISTRATION R’000 99.4% Spent Select Committee

72. 72 SUMMARY PROG 1: ADMINISTRATION SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Ministry 33 235 100,00% - Departmental management 47 800 100,00% - Corporate management 102 706 100,00% - Finance 49 331 100,00% - Internal audit 5 671 100,00% - Office accommodation 24 039 22 55893,84% 1 481 Total 262 782 261 30199,44% 1 481 31 October 2015Select Committee

73. 31 October 201573 SUMMARY PROG 1: ADMINISTRATION Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees 139 514 100,00%0 Goods and Services 119 975 118 49498,77%1 481 Transfers and Subsidies 246 100,00%0 Payments of Capital Assets 3 047 100,00%0 TOTAL 262 782 261 30199,44%1 481 Select Committee

74. Under spending – R1,481 million –The under-expenditure is due to unpaid interdepartmental claims (DPW). 31 October 201574 PROG 1: ADMINISTRATION Select Committee

75. 31 October 201575 SUMMARY PROG 2: SOCIAL ASSISTANCE R’000 98.73% Spent Select Committee

76. 76 SUMMARY PROG 2: SOCIAL ASSISTANCE SUB PROGRAMMESFinal AppropriationAudit Actual% SpentDeviation R'000 OLD AGE 44 328 024 44 064 23999,40% 263 785 WAR VETERANS 8 167 7 65793,76% 510 DISABILITY 18 116 970 17 768 63198,08% 348 339 FOSTER CARE 5 551 084 5 332 09396,05% 218 991 CARE DEPENDENCY 2 268 799 1 993 08487,85% 275 715 CHILD SUPPORT 39 907 203 39 623 74899,29% 283 455 GRANT-IN-AID 276 337 274 09299,19% 2 245 SOCIAL RELIEF 550 257 533 04796,87% 17 210 Total 111 006 841 109 596 59198,73% 1 410 250 31 October 2015Select Committee

77. 31 October 201577 SUMMARY PROG 2: SOCIAL ASSISTANCE Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees - --- Goods and Services - --- Interest and rent on land ---- Transfers and Subsidies 111 006 841 109 586 92798,72%1 419 914 Payments of Capital Assets - - -- Payments for Financial assets - 9 664- -9 664 TOTAL 111 006 841109 596 59198,73%1 410 250 Select Committee

78. Transfers and subsidies – R 1,419 billion –Expenditure is driven by beneficiaries numbers, application process and grant values, which is linked to economic factors, policy changes, payment model efficiency and CPI inflation rates; –The under-expenditure is due to the re-registration process which had an impact on the anticipated actual take-up rates of grant beneficiaries. Payment for financial assets – R 9,664 million –Approval was granted for Social Grant Debtors related to the previous financial years to be written off. 31 October 201578 PROG 2: SOCIAL ASSISTANCE GRANTS Select Committee

79. 31 October 201579 SUMMARY PROG 3: SOCIAL SECURITY POLICY AND ADMINISTRATION R’000 100% Spent Select Committee

80. 80 SUMMARY PROG 3: SOCIAL SECURITY POLICY AND ADMINISTRATION SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Social Security Policy Development 33 846 33 76099,75% 86 Appeals Adjudication 27 078 100,00% - Social Grants Administration 6 240 467 100,00% - Social Grants Fraud Investigations 70 581 100,00% - Programme Management 4 674 100,00% - Total 6 376 646 6 376 560100,00% 86 31 October 2015Select Committee

81. 31 October 201581 SUMMARY PROG 3: SOCIAL SECURITY POLICY AND ADMINISTRATION Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees 35 785 100,00%- Goods and Services 28 360 100,00%- Transfers and Subsidies 6 312 339 6 312 253100,00%86 Payments of Capital Assets 162 100,00%- TOTAL 6 376 646 6 376 560100,00%86 Select Committee

82. 31 October 201582 SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT R’000 99.62% Spent Select Committee

83. 83 SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Service Standards 21 358 100,00% - Substance Abuse 29 525 29 48599,86% 40 Older Persons 22 710 22 37198,51% 339 People with Disabilities 9 309 100,00% - Children 56 402 56 30999,84% 93 Families 6 338 100,00% - Social Crime Prevention and Victim Empowerment 39 495 38 23796,81% 1 258 Youth 22 169 100,00% - Hiv and Aids 77 857 77 50499,55% 353 Social Worker Scholarships 250 000 100,00% - Programme Management 12 935 100,00% - Total 548 098 546 01599,62% 2 083 31 October 2015Select Committee

84. 31 October 201584 Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees 91 545 100,00%- Goods and Services 134 236 133 56099,50%676 Transfers and Subsidies 320 594 319 18799,56%1 407 Payments of Capital Assets 1 712 100,00%- TOTAL 548 087 546 00499,62%2 083 SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT Select Committee

85. Goods and Services – R 676 000 –The under spending relate to the following delays on the finalisation of projects. Transfers and Subsidies – R 1,407 million –The under expenditure is mainly due to non-payment of the following NGO's due to non-compliance: NAPWA SA Older Persons Forum Sonke Justice –International memberships (e.g) United Nations International Drug Control Programme and International Federation for the Aged SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT 31 October 201585Select Committee

86. Substance Abuse – R 40 –The under spending relate to the non receipt of invoice from Dirco for the United Nations International Drug control Older Persons – R 339 –The under expenditure is mainly due to non-payment for SA Older Persons Forum due to non-compliance and lesser than projected payment for International Federation for the Aged Social Crime Prevention & Victim Empowerment – R 1,258 mil –The under expenditure is mainly due to non-payment for Sonke Justice due to non-compliance, payment for the post retirement benefits and lesser than projected payment for Gender Based Command Centre HIV & Aids – R 353 –The under expenditure is mainly due to non-payment for NAPWA due to non- compliance. Children – R 93 –The under spending relate to the provision for the leave gratuities and the payment to International Social Services SUMMARY PROG 4: WELFARE SERVICES POLICY DEVELOPMENT AND IMPLEMENTATION SUPPORT 31 October 201586Select Committee

87. 31 October 201587 SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY R’000 95.98% Spent Select Committee

88. 88 SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY SUB PROGRAMMES Final Appropriation Audit Actual% SpentDeviation R'000 Social Policy Research and Development 4 603 100,00% - Special Projects and Innovation 9 326 100,00% - Population Policy Promotion 27 267 27 24699,92% 21 Registration and Monitoring of NPO 24 707 100,00% - Substance Abuse Advisory Service and Oversight 4 325 100,00% - Community Development 71 043 58 31382,08% 12 730 National Development Agency 171 713 100,00% - Programme Management 4 249 100,00% - Total 317 233 304 48295,98% 12 751 31 October 2015Select Committee

89. 31 October 201589 Economic Classification Final Appropriation Audited Actual Expenditure % SpentVariance R’ 000 Compensation of Employees 56 855 100,00%- Goods and Services 51 420 51 39999,96%21 Transfers and Subsidies 207 465 194 73593,86%12 730 Payments of Capital Assets 1 493 100,00%- TOTAL 317 233 304 48295,98%12 751 SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Select Committee

90. Transfers and subsidies – R12,730 million –The under-expenditure is due to change in the strategy of food security programme. 31 October 201590 SUMMARY PROG 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY Select Committee

91. 31 October 201591 Part E Finance Section 2 : Public Entities Select Committee

92. SASSA 31 October 2015Select Committee92 106.98% Spent R’000

93. SASSA SASSA has two key focus areas: –administrative functions relating to processing applications for social grants which are currently carried out by SASSA employees, and –the payment of social grants, currently provided by the contractor, CPS. SASSA spent an amount of R6,742 billion up to the end of March 2014, which is exceeds the budget allocation for the 2013/14 financial year. SASSA reported a deficit of R430 899 million at the end of March 2014 as opposed to a deficit of R4 503 million reported for February 2014. The average expenditure rate against the transferred funds from the Department is 95%. SASSA reported over expenditure during August 2013, February and March 2014. 31 October 2015Select Committee93

94. NATIONAL DEVELOPMENT AGENCY 31 October 2015Select Committee94 98.75% Spent R’000

95. 31 October 2015Select Committee95 Line Items Annual Budget R Annual Spending 2013/14 R (Over)/ under expenditure R Annual Spent % Mandate Expenditure 135 531 708.00 137 254 513.00-1 722 805.00101% Good and services36 825 875.00 34 232 221.002 593 654.0093% Employee Costs 49 415 541.00 47 925 363.001 490 178.0097% Board Expenditure 1 025 000.00 933 000.00 92 000.0091% Capital Expenditure 2 471 404.00 1 872 741.00 598 663.0076% Grand Total225 269 528.00 222 217 838.00 3 051 690.0099% NATIONAL DEVELOPMENT AGENCY

96. The NDA’s financial report for the 2013/14 financial year submitted to the Department, reflected revenue amounting to R225 269 million, comprising of the government grants amounting to R171,713 million and other revenue of R53,556 million. The total expenditure up to 31 March 2014 amounted to R222,218 million which represents 98,75 % spending on the total allocation for the 2013/14 financial year. NDA was able to fund additional projects worth R44 million, these projects were funded from the resources that were acquired from other government departments and donors outside government. This is the reason for the reported over-expenditure of R1,723 million (1%) in Mandate Expenditure. Included in goods and services is depreciation (1,650 million) which is a non-cash item and as a result, it was not budgeted for at the beginning of the financial year. 31 October 2015Select Committee96

97. Of the total expenditure reflected, an amount R137,255 million relates to mandate expenses (62%). Administrative costs were underspent at the end of the 2013/14 financial year by an amount of R4,176 million and included the following expenditure categories: –Expenditure of R47,925 million (22%) was incurred on employee costs –An amount of R34,232 million (16%) for goods and services –Board expenses amounted to R933 000 (<1%) 31 October 2015Select Committee97 NATIONAL DEVELOPMENT AGENCY

98. 31 October 201598 Part E Finance Section 3 : Provincial DSD Expenditure Select Committee

99. 2013/14 SPLIT PER PROVINCE 31 October 201599Select Committee

100. SUMMARY-PROVINCES 31 October 2015100 Average Spending of 98,78% across provinces R’000 Select Committee

101. SUMMARY-PROVINCES 31 October 2015101Select Committee Summary2013/14 FinalAudited Under/ over AppropriationExpenditure%Spending 31-Mar-14Spent2013/14 R'000 Eastern Cape 2 043 841 1 942 28195,03% 101 560 Free State 965 096 962 71199,75% 2 385 Gauteng 2 916 248 2 899 68399,43% 16 565 KwaZulu-Natal 2 315 947 2 329 906100,60% (13 959) Limpopo 1 380 779 1 315 00195,24% 65 778 Mpumalanga 1 169 257 1 133 04996,90% 36 208 Northern Cape 607 507 604 41599,49% 3 092 North West 1 057 461 1 039 13398,27% 18 328 Western Cape 1 587 244 1 580 14399,55% 7 101 Total 14 043 380 13 806 32298,31% 237 058

102. 2013/14 SPLIT PER PROGRAMME 31 October 2015102Select Committee

103. SUMMARY- PROGRAMMES 31 October 2015103 R’000 Select Committee

104. SUMMARY- PROGRAMMES 31 October 2015104Select Committee Summary 2013/14 Final Appropriation Audited Expenditure 31-Mar-14 % Spent Over / under Expenditure 31-Mar-14 R'000 Administration 2 441 363 2 359 49396,65% 81 870 Office of MEC 61 868 58 75094,96% 3 118 Corporate Management 1 393 587 1 302 19093,44% 91 397 District Management 985 908 998 553101,28% (12 645) Social Welfare Services 10 158 102 10 017 02098,61% 141 082 Professional & Administration Support 2 136 054 2 324 428108,82% (188 374) Substance Abuse, Prevention and Rehabilitation 346 980 341 10198,31% 5 879 Care and Services to Older Persons 889 978 878 25198,68% 11 727 Crime Prevention and Support 848 637 793 57593,51% 55 062 Services to the Persons with Disabilities 477 439 471 04198,66% 6 398 Child Care and Protection Services 4 168 160 3 925 56694,18% 242 594 Victim Empowerment 224 712 208 25892,68% 16 454 HIV and AIDS 732 494 728 89499,51% 3 600 Social Relief 92 776 97 395104,98% (4 619) Care and Support Services to Families 240 872 248 511103,17% (7 639) Development and Research 1 443 915 1 429 80999,02% 14 106 Professional & Administration Support 589 600 615 920104,46% (26 320) Youth Development 209 277 204 76297,84% 4 515 Sustainable Livelihood 351 639 346 90998,65% 4 730 Institutional Capacity Building and Support 240 633 218 74190,90% 21 892 Research and Development 33 858 26 26577,57% 7 593 Population Capacity Development and Advocacy 18 908 17 21291,03% 1 696 Total 14 043 380 13 806 32298,31% 237 058

105. MAIN REASONS FOR UNDER-/OVER EXPENDITURE Programme 1: Administration - Projected under expenditure of R81,870 million -Delays in the filling of funded vacant posts; -Cost cutting measures implemented Programme 2: Social Welfare Services – Projected under-expenditure of R141.082 million -Delays in the appointment of Social Service Professionals. -Delays in the commencement of planned programmes. -Delays with the transfer of funds to Organisations. Programme 3: Development and Research – Projected under-expenditure of R14.106 million -Delays in the appointment of Assistant Community Development Practitioners and other personnel. -Cost cutting measures implemented. 31 October 2015105Select Committee

106. SUMMARY- ECONOMIC CLASSIFICATION 31 October 2015106 R’000 Select Committee

107. SUMMARY- ECONOMIC CLASSIFICATION 31 October 2015107Select Committee Summary2013/14 FinalAudited AppropriationExpenditure% 31-Mar-14Spent31-Mar-14 R'000 Current payments 7 993 481 7 916 96899,04% 76 513 Compensation of employees 5 991 224 5 861 84197,84% 129 383 Goods and services 2 002 217 2 067 676103,27% (65 459) Interest and rent on land 40 336840,00% (296) Financial transactions in assets and liabilities - (12 885)0,00% 12 885 Unauthorised expenditure - -0,00% - Transfers and subsidies (Total) 5 345 008 5 295 73699,08% 49 272 Provinces and municipalities 1 663 50030,07% 1 163 Departmental agencies and accounts 25 311 57 702227,97% (32 391) Universities and technikons 2 917 2 87498,53% 43 Non-profit institutions (T) 5 216 714 5 136 58898,46% 80 126 Households 98 272 97 94199,66% 331 Payments for capital assets 704 891 593 61884,21% 111 273 Buildings and other fixed structures 452 922 380 00383,90% 72 919 Machinery and equipment 238 966 199 89383,65% 39 073 Software and other intangible assets 12 932 13 722185,01% (790) Land and subsoil assets 71 -0,00% 71 TOTAL 14 043 380 13 806 32298,31% 237 058

108. MAIN REASONS FOR UNDER-/OVER EXPENDITURE PER ECONOMIC CLASSIFICATION Compensation of employees – Under-spending of R129.3 million -Delays in the filling of vacant funded posts Goods and Services – Over-expenditure of R65.459 million -Invoices accrued from the previous financial year. Transfers and subsidies – Under-expenditure of R49.272 million -Delays in the transfer of funds due to administrative and compliance requirements. Payments for capital assets – Under-expenditure of R111.273 million -Delays in the commencement of building and infrastructure projects. -Delays in receiving of invoices from appointed service providers -Delays in the delivery of pool vehicles, machinery and equipment. 31 October 2015108Select Committee

109. 31 October 2015109 Part E Finance Section 4 : Social Sector Audit Outcome Select Committee

110. Movement from audit outcomes from 2012-13 31 October 2015Select Committee110

111. ANALYSIS OF AUDIT FINDINGS Only one province namely Limpopo had a qualified opinion. Limpopo was also qualified in the 2012-13 financial year. KwaZulu-Natal and North West province improved from a qualified opinion to an unqualified opinion with findings. Western Cape province and Mpumalanga improved from an unqualified opinion with findings to a unqualified opinion with no findings. Eastern Cape and Free State province remained unqualified with findings. The National Department, Gauteng and Northern Cape remained unqualified with no findings. 31 October 2015Select Committee111

112. Status of quality of annual performance report 31 October 2015Select Committee112

113. Findings on quality of annual performance reports 31 October 2015Select Committee113 North West and Western Cape Province addressed the material findings as reported in the previous year. Only the Free State province had material findings on information not being reliable for the 2013-14 audit cycle.

114. 31 October 2015114 Part E Finance Section 5 : Social Sector Expenditure Analysis Select Committee

115. 2015 Preliminary allocations 31 October 2015Select Committee115

116. SOCIAL SECTOR ANALYSIS The budget for the social sector grows in line with inflation. NDSD growth is driven by social grant transfers and operations are managed with only 0.5 per cent of the budget, which has placed the department under some budget pressure. The operational budget for NDSD has been driven by goods and services spending in the past. This relates mainly to the department’s travelling for monitoring of policy implementation, consultation on key policies and legislation and community outreach programmes. The department’s budget has been under pressure because of under-budgeted outreach campaigns which have compromised outcomes in social security policy NDA’s growth is driven by compensation of employees while SASSA’s growth is driven by social grant payment contractor fees under goods and services. PDSD’s growth is driven by compensation of employees and this was primarily due to annual wage adjustments in excess of inflation, and provisioning for the absorption of social work graduates from the scholarship scheme by the provincial departments. 31 October 2015Select Committee116

117. SUMMARY - PROVINCES 31 October 2015117 Annual Average increase of 10.13% Select Committee

118. 31 October 2015118Select Committee ALLOCATION PER PROGRAMME

119. SPLIT PER ECONOMIC CLASSIFICATION 31 October 2015119Select Committee

120. ALLOCATION PER ECONOMIC CLASSIFICATION 31 October 2015120Select Committee

121. COMPENSATION OF EMPLOYEES 31 October 2015121 Annual Average increase of 10.28% Select Committee

122. COMPENSATION OF EMPLOYEES Social development services are dependent on social workers, auxiliary workers, youth development workers, community development workers, and probation officers. Spending on compensation of employees increased by 13.7 per cent per year from R4.6 billion in 2011/12, to a projected R7.0 billion in 2014/15. This growth was driven primarily by annual wage adjustments in excess of inflation, and provisioning for the absorption of social work graduates from the scholarship scheme by the provincial departments. This growth has, however, not been sufficient to sustain the number of social work graduates that need to be absorbed. In the 2013 MTEF process the sector received an additional R938 million to appoint social work graduates. 31 October 2015122Select Committee

123. GOODS AND SERVICES 31 October 2015123 Annual Average increase of 5.42% Select Committee

124. GOODS AND SERVICES The goods and services budget of provincial departments comprises just over 13 per cent of the budget, leaving little room to reprioritise from goods and services to fund services. If one takes a closer look at the goods and services budget, the main items funded are for operating leases and property payments as well as for travel and subsistence. Travel and related costs are directly linked to work undertaken by social workers who are required to travel to communities on a daily basis. 31 October 2015124Select Committee

125. TRANFERS AND SUBSIDIES 31 October 2015125 Annual Average increase of 7.36% Select Committee

126. TRANSFERS AND SUBSIDIES Transfers and subsidies to NPOs grew by 10.0 per cent, from R4.4 billion to R5.8 billion between 2011/12 and 2014/15, and this spending category is expected to grow at an average annual rate of 5.1 per cent from 2014/15 to 2017/18. The share of total social development spending that goes to non- profit organisations remained relatively stable at around 37 per cent between 2011/12 and 2014/15, but is projected to decline over the MTEF reaching 36.8 per cent in 2017/18. There is, however, notable provincial variation in the share of total budgets for transfer payments to NPOs. 31 October 2015126Select Committee

127. PAYMENT OF CAPITAL ASSETS 31 October 2015127 Annual Average increase of 5.32% Select Committee

128. PAYMENT OF CAPITAL ASSETS From a low base, spending on capital increased from R584 million in 2011/12 to R727 million in 2014/15. Currently capital expenditure accounts for 4.7 per cent of overall provincial expenditure. Spending is projected to increase further over the MTEF period to R789 million in 2017/18, albeit at a lower average growth rate. 31 October 2015128Select Committee

129. SUMMARY – P 1 : ADMIN 31 October 2015129 Annual Average increase of 4.96% Select Committee

130. SUMMARY – P 1 : ADMIN 31 October 2015130Select Committee 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 R million Outcome Medium-term estimates Office of the MEC 42 52 55 171 62 66 70 Corporate Management Services 1 346 1 331 1 266 1 307 1 361 1 437 1 521 District Management 732 802 907 877 1 074 1 130 1 171 Total 2 121 2 185 2 228 2 356 2 497 2 633 2 762 Percentage of total Office of the MEC 2,0%2,4%2,5%7,3%2,5% Corporate Management Services 63,5%60,9%56,8%55,5%54,5%54,6%55,1% District Management 34,5%36,7%40,7%37,2%43,0%42,9%42,4% Total100,0% Percentage growth (average annual) 2010/11 – 2013/14 2013/14 – 2016/17 Office of the MEC 59,5% -26,0% Corporate Management Services -1,0%5,2% District Management 6,2%10,1% Total 3,6% 5,4%

131. EXPENDITURE ANALYSIS P 1 Admin In 2011/12, provincial departments spent 18.9 per cent of their total social development allocation on Programme 1: Administration. Provinces are projecting a lower proportion in 2014/15 at 16.1 per cent and a further decline to 15.9 per cent by 2017/18. This downward trend is welcomed and is the result of a focus on reducing spending on administrative functions, as well as a move towards correctly allocating core and support functions to the relevant programmes and subprogrammes 31 October 2015131Select Committee

132. P 2 : SOCIAL WELFARE SERVICES 31 October 2015132 Annual Average increase of 2.32% Select Committee

133. SUMMARY – P 2 : WELFARE SERVICES 31 October 2015133Select Committee 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 R million Outcome Medium-term estimates Management and Support 1 433 1 752 1 991 1 584 1 475 1 658 1 727 Services to Older Persons 715 868 822 884 958 1 036 1 067 Services to Persons with Disabilities 354 404 432 477 473 503 528 HIV and AIDS 564 678 663 727 701 692 724 Social Relief 38 41 98 82 46 Total 3 105 3 742 3 949 3 770 3 689 3 936 4 092 Percentage growth (average annual) 2010/11 – 2013/14 2013/14 – 2016/17 Management and Support3,4% 2,9% Services to Older Persons7,3%6,5% Services to Persons with Disabilities 10,5%3,4% HIV and AIDS8,8%-0,1% Social Relief 36,3%-22,4% Total 6,7% 2,8%

134. EXPENDITURE ANALYSIS P 2 Welfare Services Programme 2: Social Welfare Services sees its share of the total allocation decrease over the MTEF period, from 24.7 per cent in 2014/15 to 21.6 per cent in 2017/18. This partly reflects the re-allocation of funds over the MTEF period in line with the new budget structure, and is also indicative of the focus on spending on children in Programme 3 31 October 2015134Select Committee

135. P 3 : CHILDREN AND FAMILIES 31 October 2015135 Annual Average increase of 12.41% Select Committee

136. P 3 : CHILDREN AND FAMILIES 31 October 2015136Select Committee 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 R million Outcome Medium-term estimates Management and Support 187 346 337 516 722 776 788 Care and Services to Families 138 190 205 240 249 264 Child Care and Protection 859 1 023 1 165 1 643 1 653 1 903 2 106 ECD and Partial Care 994 1 216 1 197 1 359 1 835 1 858 1 936 Child and Youth Care Centres 446 506 594 618 890 932 1 001 Community-Based Care Services for Children 108 135 73 304 483 574 615 Total 2 732 3 416 3 571 4 680 5 824 6 292 6 709 Percentage growth (average annual) 2010/11 – 2013/14 2013/14 – 2016/17 Management and Support40,2% 15,1% Care and Services to Families20,3%3,2% Child Care and Protection24,1%8,6% ECD and Partial Care11,0%12,5% Child and Youth Care Centres11,5%17,5% Community-Based Care Services for Children 41,2% 26,4% Total 19,6% 12,8%

137. EXPENDITURE ANALYSIS P 3 Children and Families The share of total funds allocated to Programme 3: Children and Families increases from a projected 36.8 per cent in 2014/15 to 38.6 per cent in 2017/18, continuing the strong growth seen in the historical period. This is explained in part by the focus on early childhood development, which is a subprogramme in Programme 3 that has received significant additional allocations over the years. Secondly, this growth is driven by the re-allocation of funds over the MTEF period from Programme 2 to Programme 3, in line with the new budget structure 31 October 2015137Select Committee

138. P 4 : RESTORATIVE SERVICES 31 October 2015138 Annual Average increase of 14.53% Select Committee

139. P 4 : RESTORATIVE SERVICES 31 October 2015139Select Committee 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 R millionOutcome Medium-term estimates Management and Support 65 86 98 235 314 351 365 Crime and Prevention and Support 563 594 641 812 925 958 1 006 Victim Empowerment 102 122 134 207 276 311 329 Substance Abuse, Prevention and Rehabilitation 233 254 281 344 379 441 469 Total 962 1 054 1 154 1 598 1 895 2 060 2 169 Percentage growth (average annual) 2010/11 – 2013/14 2013/14 – 2016/17 Management and Support53,2% 15,9% Crime and Prevention and Support 13,0%7,4% Victim Empowerment26,6%16,8% Substance Abuse, Prevention and Rehabilitation 14,0%10,8% Total 18,4% 10,7%

140. EXPENDITURE ANALYSIS P 4 Restorative Services The addition of R124 million for the construction of substance abuse treatment centres in Eastern Cape, Free State, North West, and Northern Cape results in the share of total funds allocated to Programme 4: Restorative Services, escalating from 12.1 per cent in 2014/15 to 13.7 per cent by 2017/18. 31 October 2015140Select Committee

141. P 5 : DEVELOPMENT AND RESEARCH 31 October 2015141 Annual Average increase of 8.31% Select Committee

142. P 5 : DEVELOPMENT AND RESEARCH 31 October 2015142Select Committee 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 R millionOutcome Medium-term estimates Professional and Administrative Support 393 514 555 601 626 667 695 Community Mobilisation 4 5 4 8 18 21 23 Institutional Capacity Building and Support for NPOs 134 164 149 220 284 332 351 Poverty Alleviation and Sustainable Livelihoods 244 265 246 330 351 373 402 Community Based Research and Planning 9 12 9 19 15 16 18 Youth Development 119 164 174 208 225 223 239 Women Development 31 32 16 20 38 37 Population Policy Promotion 37 34 31 28 43 45 49 Total 971 1 189 1 184 1 432 1 600 1 714 1 813 Percentage growth (average annual) 2010/11 – 2013/14 2013/14 – 2016/17 Professional and Administrative Support 15,2% 5,0% Community Mobilisation28,4%44,5% Institutional Capacity Building and Support for NPOs 18,0%16,9% Poverty Alleviation and Sustainable Livelihoods 10,5%6,8% Community Based Research and Planning 26,2%-1,9% Youth Development20,4%4,8% Women Development-14,3%23,3% Population Policy Promotion-8,7%20,4% Total 13,8% 8,2%

143. EXPENDITURE ANALYSIS P 5 Development and Research The share allocated to Programme 5: Development and Research, remains constant at 10.3 per cent over the MTEF period, after a very slight increase from 10.2 per cent in 2014/15. 31 October 2015143Select Committee

144. FUNDING PRESSURES ECD: –There is lack of quality assurance in terms of ECD centres, as all centres are not funded for 264 days a year. There is shortage of funds to increase the coverage to more children. Social Worker Absorption: –There is lack of funding for carry-through costs of the absorbed Social Worker Graduates as well as the absorption of additional graduates. ISIBINDI: –There is a lack of funding for provision of CYCC stipends and employment of these workers. Substance Abuse Centre: –Eastern Cape, Free State, North West and Northern Cape lack funding for the running costs of the Substance Abuse Centres. 31 October 2015144Select Committee

145. THANK YOU! 31 October 2015145Select Committee