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KZN

SOCIAL WELFARE AND POPULATION DEVELOPMENT

PUBLIC HEARINGS ON CONDITIONAL GRANTS

18TH JAN 2006

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1. CONDITIONAL GRANTS

• Table 1 below reflects the projected social grant payments per grant type against the revised budget as at the end of 31 March 2006. As can be seen the department is projecting a shortfall of 3% or R368.2 million which emanates from the carry-over of over-expenditure of R676,7m from 2004/05 to 2005/06 financial years.

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CONDITIONAL GRANTS

TOTAL PROJECTED EXPENDITURE AS AT 31 MARCH '06 TABLE 1

Sub - programme

Number of beneficiaries

Original Budget

Adj Budget PROJ EXP VARIANCE % Spent

Administration 784,235 785,405 662,413 122,992 84

Old Age 431,602 4,123,026 4,050,614 4,173,509 -122,895 103

War Veterans 444 4,460 4,460 4,455 5 100

Disability 341,844 3,862,642 3,517,503 3,608,620 -91,117 103

Grant in Aid 7,487 0 16,311 3,910 12,401 24

Foster Care 66,600 441,480 405,936 468,022 -62,086 115

Care Dependency 22,446 244,560 234,409 220,847 13,562 94

Child Support Grant 914,856 2,033,048 1,819,551 2,667,520 -847,969 147

Child Support Grant Extension(7-13) 645,413 1,254,859 1,271,647 664,752 606,895 52

Total 2,430,692 12,748,310 12,105,836 12,474,048 -368,212 103

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CONDITIONAL GRANTS

• Table 2 reflects the Social assistance Grants Administration and Social Grants expenditure as at the end of December 2005. The grant payments are presented against the revised budget per grant type. The department has spent 76% or R9.160 billion of the revised budget amounting to R12.105 billion.

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CONDITIONAL GRANTS

• With regard to Social Assistance Grants Administration the table reflects 67% or R527.8 million spent against a budget of R785.4 million.

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CONDITIONAL GRANTS

TOTAL EXPENDITURE AS AT 31 DECEMBER '05 TABLE 2

Sub - programme

Number of beneficiaries

Adj Budget Proj Exp % Spent

Administration 785,405 527,809 67

Old Age 429,955 4,050,614 3,081,803 76

War Veterans 456 4,460 3,301 74

Disability 334,187 3,517,503 2,677,278 76

Grant in Aid 6,924 16,311 0 0

Foster Care 66,600 405,936 352,446 87

Care Dependency 21,893 234,409 164,475 70

Child Support Grant 853,417 1,819,551 2,141,256 118

Child Support Grant Extension(7-13) 661,734 1,271,647 307,400 24

Total 12,105,836 9,255,768 76

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CONDITIONAL GRANTS

• Table 3 below reflects the expenditure for the first quarter on Grants and Social Assistance Grants Administration.

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CONDITIONAL GRANTS

First Quarter TABLE 3

Sub - programme

Number of beneficiaries

Original Budget Exp % Spent

Administration 193,980 187,348 97

Old Age 427,444 976,134 911,309 93

War Veterans 492 1,113 578 52

Disability 353,864 882,113 808,773 92

Grant in Aid 6,113 0 0 0

Foster Care 56,313 100,370 93,490 93

Care Dependency 21,088 61,140 46,001 75

Child Support Grant 832,240 517,260 523,238 101

Child Support Grant Extension(7-13) 469,231 339,713 152,837 45

Total 2,166,785 3,071,823 2,723,574 89

Quarter 1: Apr - Jun

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CONDITIONAL GRANTS

• Table 4 below reflects the expenditure for the Second quarter on Grants and Social Assistance Grants administration.

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CONDITIONAL GRANTS

Second Quarter TABLE 4

Sub - programme

Number of beneficiaries

Original Budget Exp % Spent

Administration 195,930 218,797 112

Old Age 427,916 1,013,984 1,061,756 105

War Veterans 468 1,113 1,406 126

Disability 316,605 971,304 946,880 97

Grant in Aid 6,571 0 0 0

Foster Care 59,917 98,570 121,722 123

Care Dependency 21,377 56,140 58,293 104

Child Support Grant 831,130 476,264 600,521 126

Child Support Grant Extension(7-13) 570,199 296,720 157,525 53

Total 2,234,183 3,110,025 3,166,900 102

Quarter 2: July - Sept

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CONDITIONAL GRANTS

• Table 5 reflects the expenditure for the third quarter on Social Grants and Social Assistance Grants Administration against the Cash flow for the quarter. The grant numbers have increased by 140 983 when compared to the previous quarter, the grant types with high take up rate include Disability Grant, Child Support Grant, and Foster Care. The expenditure exceeded the allocation by 4% or R121.5 million.

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CONDITIONAL GRANTS

Third Quarter TABLE 5

Sub - programme

Number of beneficiaries

Original Budget Exp % Spent

Administration 196,721 121,664 62

Old Age 429,955 1,048,102 1,108,738 106

War Veterans 456 1,113 1,317 118

Disability 334,187 987,658 921,625 93

Grant in Aid 6,924 0 0 0

Foster Care 66,600 113,370 137,234 121

Care Dependency 21,893 60,140 60,181 100

Child Support Grant 853,417 500,260 1,017,497 203

Child Support Grant Extension(7-13) 661,734 304,713 -2,962 -1

Total 2,375,166 3,212,077 3,365,294 105

Quarter 3: Oct - Dec

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CONDITIONAL GRANTS

• Table 6 reflects the expenditure on HIV and Aids conditional grants per quarter. As can be seen the department has been under-spending during the first and the second quarters but has over- spent its cash flow for the third quarter by 88%. The funds under this grant are transferred to drop-in sites that take care of orphaned children due deaths related to aids. Therefore the under expenditure during the previous quarter is attributable to delays as a result of checks to ensure compliance with the Public Finance Management Act. Before the department disburses funds it has to ensure that the project is registered, business plans are in order and that the project members are capacitated in terms of financial management.

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CONDITIONAL GRANTS

• The overall expenditure as at the 31st December 2005 is 56% or R14.5 million of the adjusted allocation of R25.9 (the main allocation has been R25 187 before the roll over of R743 thousand was approved by P/T)

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CONDITIONAL GRANTSProgramme 4: Development and Support Services

Table 6: HIV and Aids

Period

Budget Expend % Spent

Quarter 1: April - Jun 6,294 1,557 25

Quarter 2: Jul - Sept 6,294 1,148 18

Quarter 3: Oct - Dec 6,294 11,862 188

Quarter 4: Jan - Mar 6,305 0ROLL OVER 743

Total 25,930 14,567 56

HIV and Aids

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CONDITIONAL GRANTS

• Table 7 reflects the expenditure incurred under food relief grant on a quarterly basis. The department did not have an allocation for the food relief grant in the beginning of financial year as the allocation initially earmarked for this project was converted to Integrated Social Development Services Grant. However the department had applied for the roll over of unutilised food relief grant funds for 2004/2005 financial year. The expenditure reflected on the table pertains to administrative costs. The roll over was finally been approved in October 2005.

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CONDITIONAL GRANTSTable 7: Food Relief Grant

Period

Budget Expend % Spent

Quarter 1: April - Jun 0 202 0

Quarter 2: Jul - Sept 0 99 0

Quarter 3: Oct - Dec 0 100 0

Quarter 4: Jan - Mar 0 0ROLL OVER 67,543

Total 67,543 401 1

Food Relief Grant

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CONDITIONAL GRANTS

• Table 8 reflects the expenditure incurred on Integrated Social Development Services Grant.

• There is under-expenditure in respect of the grant and the reasons for this may be attributed to the following:

• Although the first transfer of the grant to the Province was executed in June 2005, approval for implementation by the National Department was done on 26th September 2005 and forwarded to the Province simultaneously

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CONDITIONAL GRANTS

• The Province has consulted with various stakeholders in the NGO Sector to facilitate compliance with the condition that the grant must be utilised in partnership with the NGO Sector. In this regard, Service Level Agreements to the value of R30, 7m, have been concluded and payments are currently in progress.

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CONDITIONAL GRANTSTable 8: Integrated Social Development Services Grant

Period

Budget Expend % Spent

Quarter 1: April - Jun 17,046 0 0

Quarter 2: Jul - Sept 17,046 0 0

Quarter 3: Oct - Dec 17,046 2,597 15

Quarter 4: Jan - Mar 17,047 0 0

Total 68,185 2,597 4

Integrated soc. Dev. Serv.Grant

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2. CAPITAL EXPENDITURE

• The department currently operates through 71 District Offices and 4 Regional Offices as well as 16 state run Welfare Institutions through which services to the elderly, youth, disabled, drug dependent, etc. are run. Capital Expenditure relating to these structures is incurred by the Department annually. The Infrastructure Plan below provides details of projects undertaken during the year under review:-

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CAPITAL EXPENDITURE

• The Adjusted budget for infrastructure is R38,09m against the expenditure of R16,2m.

• The remainder will be spent within the next two months.

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CAPITAL EXPENDITUREKZN DEPT OF WELFARE AND POPULATION DEVELOPMENT

ABRIDGED INFRASTRUCTURE PLAN

Project name Total available

015160 VALLEY VIEW PLACE OF SAFETY ALTERATIONS AND ADDITIONS: CONVERT EXISTING BLOCK TO SECURE R 484021103 WELFARE OFFICE : KWA MASHU SITEWORKS FOR NEW PARKHOME OFFICE R 75021562 WELFARE OFFICE: NDWEDWE CONCRETE SURFACE BED FOR PARKHOME OFFICES R 175021615 DEPT OF SOCIAL WELFARE - INANDA CONCRETE SURFACE BED FOR PARKHOME OFFICES R 250021643 WELFARE OFFICE : KWA MASHU SUPPLY NEW PARKHOME OFFICE R 450021958 WELFARE OFFICE: NDWEDWE SUPPLY NEW PARKHOME OFFICE R 500022214 DEPT OF SOCIAL WELFARE - INANDA SUPPLY NEW PARKHOME OFFICE R 450025958 PINETOWN WELFARE OFFICE : 43 UNION LANE SUPPLY & FIT BLINDS TO ALL WINDOWS INCLUSIVE OF AWNING AT MA R 5001435 NEWCASTLE SCHOOL OF INDUSTRIES CONVERSION OF HOSTELS TO_SECURE CENTRE R 1,400017276 MSINGA NEW WELFARE OFFICES NEW OFFICE ACCOMMODATION R 4,900021402 WELFARE (VARIOUS OFFICES)FEASIBILITY STUDY L/S REG SURVEY OF FACILITIES FOR PHSICALLY CHALLENGED PERSONS R 154023332 WELFARE OFFICE: ESTCOURT NEW OFFICES FOR DEPAARTMENT OF WELFARE AND PENSIONS ESTCOURT R 4,669026793 PIETERS WELFARE OFFICES PROVISION OF PARKHOMES AND RELATED SITEWORKS R 790029567 DUKUZA WELFARE OFFICE & HOUSE PROVISION OF PARKHOMES R 945021351 DEPT. OF WELFARE - NKANDLA NEW OFFICES R 12,673024497 MAHLABATHINI WELFARE OFFICE EMERGENCY CONSTRUCTION OF THE ROAD R 680018260 VULAMEHLO WELFARE DISTRICT OFFICE NEW DISTRICT OFFICE & STAFF ACCOMMODATION R 1,984024732 MATATIELE WELFARE OFFICE ERECT NEW OFFICES R 0028569 WELFARE OFFICE : IMPENDLE SUPPLY AND ERECT TWO PARKHOME OFFICES R 179028570 WELFARE OFFICE : HARDING SUPPLY AND ERECT TWO PARKHOME OFFICES R 189TOTAL R 27,928

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