6/19/2009 1
PORTFOLIO COMMMITEE PORTFOLIO COMMMITEE ON SOCIAL DEVELOPMENT ON SOCIAL DEVELOPMENT
BUDGET HEARINGS AND BUDGET HEARINGS AND STRATEGIC PLAN STRATEGIC PLAN
20092009--2014 2014
17 JUNE 200917 JUNE 2009
6/19/2009 2
PRESENTATION STRUCTUREPRESENTATION STRUCTURE
•• PART 1 PART 1 –– STRATEGIC STRATEGIC OVERVIEWOVERVIEW–
INTRODUCTION
–
STRATEGIC THRUST
–
LEGISLATIVE FRAMEWORK
–
STRUCTURE
–
K EY ACHIEVEMENTS
–
CHALLENGES
–
PRIORITY AREAS
•• PART 2 PART 2 –– BUDGET BUDGET OVERVIEWOVERVIEW–
2008/9 FINANCIAL YEAR
–
COMMITMENTS (PREVIOUS FINANCIAL YEARS)
–
MTEF SUBMISSIONS AND ALLOCATIONS
–
OPERATIONAL BUDGET ALLOCATIONS
–
2009/10 FINANCIAL YEAR
–
CONCLUSION
6/19/2009 3
PART 1PART 1
Social Development Strategic Social Development Strategic OverviewOverview
6/19/2009 4
INTRODUCTIONINTRODUCTION
•
To present to the Portfolio Committee (PC) the Department’s overview that encompass the vision,
mission, mandate and strategic priorities. •
Highlight key achievements, challenges and priority areas
over MTEF.•
Provide detailed budget that supports the
implementation thereof.
6/19/2009 5
STRATEGIC THRUSTSTRATEGIC THRUST
Vision
•
A caring and integrated system of social development services that facilitates human development and improves
the quality of life. Mission
•
To enable the poor, the vulnerable and the excluded within South African society to secure a better life for themselves, in partnership with them and with all those
who are committed to building a caring society.
6/19/2009 6
STRATEGIC THRUSTSTRATEGIC THRUST
Mandate
Department constitutional mandate is to provide sector‐
wide national leadership in social development by
developing and implementing programmes for the
eradication of poverty and social protection and
development amongst the poorest of the poor and most
vulnerable and marginalized.
6/19/2009 7
LEGISLATIVE FRAMEWORKLEGISLATIVE FRAMEWORK
In order to give effect to our mandate, the following
legislations guide our work:
•
Aged Persons Act, 1967 / Older Persons Act, 2006
•
Fund‐Raising Act, 1978
•
Social Service Professions Act, 1978
•
Child Care Act, 1983 / Children’s Act, 2005
•
Prevention and Treatment of Drug Dependency Act, 1992
6/19/2009 8
LEGISLATIVE FRAMEWORKLEGISLATIVE FRAMEWORK
In order to give effect to our mandate, the following
legislations guide our work:
•
Social Assistance Act, 1992, and Welfare Laws Amendment Act, 1997
•
Social Assistance Act, 2004
•
Non‐Profit Organisations Act, 1997
•
National Development Agency Act, 1998
•
Advisory Board on Social Development Act, 2001
6/19/2009 9
LEGISLATIVE FRAMEWORKLEGISLATIVE FRAMEWORK
In order to give effect to our mandate, the following
legislations guide our work:
•
White Paper for Social Welfare (1997)
•
White Paper Population Policy for South Africa (1998)
•
Domestic Violence Act
•
South African Social Security Agency Act
6/19/2009 10
STRUCTURESTRUCTURE
6/19/2009 11
STRUCTURESTRUCTURE
Lead the strategic management component of the department; foster operational efficiency through improved alignment between mandates, strategies and institutional capacity; oversee all entities, agencies
and boards reporting to the department.; and co‐ ordinate M&E across the sector.
6/19/2009 12
STRUCTURESTRUCTURE
Provides policy and strategic direction by the Ministry and top management, as well as overall
management and support services to the department.
6/19/2009 13
STRUCTURESTRUCTURE
Provide strategic guidance on social policy development, co‐ordination and evaluation.
6/19/2009 14
STRUCTURESTRUCTURE
Develops policies and programmes to provide income support to the children, elderly, disabled and
households in distress through social assistance and policies that mandate employed persons to contribute
to social insurance.
6/19/2009 15
STRUCTURESTRUCTURE
The aim of the programme is to develop and provide support for the implementation of
appropriate policies, programmes, strategies and tools to improve service delivery and strengthen the capacity of communities and vulnerable
groups to sustain and improve their livelihoods.
6/19/2009 16
STRUCTURESTRUCTURE
The Policy Development, Review and Implementation Support for Welfare Services
programme creates an enabling environment for the delivery and accessibility of integrated social welfare services in partnership with all relevant stakeholders.
6/19/2009 17
STRUCTURESTRUCTURE
The Appeals Tribunal serves to adjudicate social assistance appeals emanating from the grant
application process administered by the South African Social Security Agency.
6/19/2009 18
SocialDevelopment
National SASSA NDA
SASSARegions
NDARegions
Districts
StatutoryBodies
NDA Board
ServicePoints
9 Provinces
Districts
ServicePoints
SOCIAL DEVELOPMENT SOCIAL DEVELOPMENT SECTORSECTOR
6/19/2009 19
INTER‐GOVERNMENTAL RELATIONS
1.
Social Protection and Community Cluster
2.
Human Development Cluster
3.
Justice, Crime Prevention and Security Cluster
4.
Infrastructure Development Cluster
5.
Economic Cluster
6.
Governance and Administration Cluster
7.
International Relations, Peace and Security Cluster
6/19/2009 20
STRATEGIC LINKAGESSTRATEGIC LINKAGES
South African Social Security Agency (SASSA)
•
SASSA is a schedule 3A public entity and responsible for the administration and payment of social grants.
6/19/2009 21
NATIONAL DEVELOPMENTNATIONAL DEVELOPMENT AGENCYAGENCY
The primary mandate
of the NDA is to contribute towards the eradication of poverty and its causes by
granting funds
to civil society organisations
for the purpose of :
–
Carrying out projects or programmes aimed at meeting development needs of poor communities; and
–
strengthening the institutional capacity of other civil society organizations involved in direct service provision to poor
communities.
6/19/2009 22
DSD THEMATIC AREASDSD THEMATIC AREAS
•
Tackling child poverty.
•
Tackling adult and older persons poverty.
•
Social Cohesion.
•
Youth Development.
•
Sector Capacity building.
•
Governance and institutional development.
•
Regional and international solidarity and engagement.
6/19/2009 23
KEY PRIORITIESKEY PRIORITIES
Speed up growth and transform the economy•
By paying greater attention to broad human development
as part of the ASGI‐SA and general youth development.
•
Placing a greater emphasis on the Sector Youth Development Strategy, which includes alternatives to
cadre development and education through the Masupatsela
Youth Pioneers.
•
Extending the reach of key social service delivery programmes including Early Childhood Development and
Poverty Eradication, while offering opportunities for youth to pursue post‐matric
and work opportunities.
6/19/2009 24
KEY PRIORITIESKEY PRIORITIES
Fight poverty•
By implementing the comprehensive anti‐poverty strategy
ensuring universal access to basic services, while also paying particular attention to rural poverty.
•
Linking of capable social grant beneficiaries to economic and work opportunities through innovations and
acceleration of key developmental programmes such as the Expanded Public Works Programme.
6/19/2009 25
KEY PRIORITIESKEY PRIORITIES
Build social cohesion and state legitimacy•
By strengthening co‐operative governance, with an
emphasis on the capabilities and capacities of the indigenous civil society sector through increased support
to the National Development Agency (NDA), and the registration and capacity enhancement of non‐profit organisations.
•
To undertake this, community‐based organisations, traditional authorities and faith‐based organisations will
receive greater material support, which should also include some emphasis on delivery infrastructure.
6/19/2009 26
KEY PRIORITIESKEY PRIORITIES
Build the developmental state•
By fostering multi‐sectoral
partnerships in support of the
social development agenda.
•
Enhancement of the skills levels and numbers of key social service professionals who should have in their possession
all the necessary infrastructure support to undertake quality service delivery.
6/19/2009 27
KEY PRIORITIESKEY PRIORITIES
Promote the values of international co‐operation•
By, among other things, playing a leading and
developmental role at regional and global multilateral level, while contributing to a better Africa by, among
other things, participating in Post Conflict Reconstruction as well as regional governance and integration.
•
Strengthening relations between and among progressive African Civil Society Organisations as its contribution to
regional governance.
6/19/2009 28
ANNUAL PERFORMANCE TARGETS
Comprehensive Social Security•
Reduce poverty, vulnerability and risk exposure through
social assistance and social insurance measures aimed at protecting ordinary people against life cycle hazards and shocks that threaten their livelihood.
•
Improve tribunal effectiveness and efficiency by employing business and information management
systems. •
A comprehensive appeals stakeholder liaison framework.
•
Review and propose reform of social security legislation pertaining to appeals services.
6/19/2009 29
ANNUAL PERFORMANCE TARGETS
Welfare Services•
Improve welfare service delivery by developing, piloting
and implementing norms and standards for delivering social welfare services by 2009/10.
•
Reduced substance abuse by developing regulations for substance abuse by 2010/11.
•
Transform services to older people by developing service delivery guidelines by 2010/11.
•
Protect and promote the rights of people with disabilities by facilitating and developing policies and strategies on
disability by 2011/12.
6/19/2009 30
ANNUAL PERFORMANCE TARGETS
Welfare Services•
Improve the protection and care of children by
facilitating the implementation of the Children’s Act as amended through developing policies and strategies aimed at promoting children’s rights.
•
Empower families by developing an integrated plan for implementing the family policy by
2009/10.•
Protect people affected by violence and crime by
developing a shelter strategy and victim empowerment
policy in 2009/10.
6/19/2009 31
ANNUAL PERFORMANCE TARGETS
Community Development
•
Protect and empower vulnerable youth by auditing youth services by March 2010.
•
Strengthening the capacity of Practioneers and communities to achieve sustainable livehood by completing and launching the sustainable livehood toolkit
for community development Practioneers by March 2010.
6/19/2009 32
ANNUAL PERFORMANCE TARGETS
Community Development•
Improving community food security by developing a
concept document on community food banks by March 2010, including facilitating the establishment of 2
community food banks by March 2011 and 3 by March 2012.
•
Improving community development practice by developing a national community development framework focusing in professionalization and skills
development plan for community development practioneers by 2010/11.
6/19/2009 33
Annual Performance Targets
Community Development
•
Ensuring efficiency in the non‐profit organization registration facility by registering all non‐profit
organizations within 2 months of receiving applications and drafting and costing amendments to the non‐profit
organizations by March 2010.
•
Reduce vulnerability to HIV infection and mitigate the impact by developing guidelines to promote behavior change and norms and standards by 2009/12.
6/19/2009 34
Annual Performance Targets
Strategy and Governance
•
Improve planning and service delivery in the social development sector through best practice
on planning, business processes improvements and customer centered service delivery model.
•
Improve accountability and promote service delivery across the sector by implementing a comprehensive M&E systems
6/19/2009 35
ANNUAL PERFORMANCE TARGETS
Strategy and Governance
•
Improve corporate governance of public entities, bodies and boards by developing and rolling out performance
management framework, quarterly performance assessment of entities by March 2010.
•
Integrate population trends and dynamics into departmental planning by developing the 5 year
population and development strategy by March 2010.
6/19/2009 36
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Financial Management:
•
The Department and its agencies continue to put in place sound financial and governance systems and a major
outcome of these efforts was that the Department yet again received an unqualified audit opinion from the
Auditor General.
•
The two public entities, the South African Social Security Agency and the National Development Agency, also
received unqualified audit opinions.
6/19/2009 37
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Human Resources:
•
In order to address the shortage of social workers in the country, the Department awarded scholarships to 4800 students to register for courses in social work at various tertiary institutions in the country during the 2008/09
academic year.
•
Approximately 528 learners benefited from the Department’s learnership
programme during the
reporting period
6/19/2009 38
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Human Resources:
•
The retention of staff remains a priority and, the employer’s proposal on the Occupational Dispensation for
Social Service professions and related Occupations (OSD) was finalised.
•
Negotiations commenced in May 2008 and the employer was able to make a final offer in February 2009 after
considering labour’s
demands and making concessions with a view to having a collective agreement signed which
would have then paved the way for implementation.
6/19/2009 39
KEY ACHIEVEMENTSKEY ACHIEVEMENTSPolicy and Legislation:•
The Social Assistance Act, (Act No 13 of 2004) was amended
to expand the social safety net to include men to receive social grants at the age of 60 by 2010.
•
The age equalisation is being implemented in a phased approach, starting with men aged 63 and 64 years.
•
As a result of the amendment, over 70 000 of this age cohort applied for and received social assistance grants during the reporting period. This will enable the
Department to effectively reduce adult and older person’s poverty.
6/19/2009 40
KEY ACHIEVEMENTSKEY ACHIEVEMENTSPolicy and Legislation:
•
Substance Abuse: The Prevention of and Treatment for Substance Abuse Bill was passed by parliament in
November 2008. Once enacted into law, this legislation will serve as an instrument to fight the spread and abuse of
drugs and other substances.•
Older Persons: Regulations of Older Person Act were tabled
in parliament. These will guide the implementation of the Older Person’s Act and give impetus to the Department’s determination to provide care, support and protection to our elders.
6/19/2009 41
KEY ACHIEVEMENTSKEY ACHIEVEMENTSPolicy and Legislation:•
Children: Regulations for the Children’s Act were finalised
and will guide the implementation of the Act. The Act seeks to, among others, protect children from all forms of abuse
and neglect and also provides minimum standards for child care.
6/19/2009 42
KEY ACHIEVEMENTSKEY ACHIEVEMENTSSocial Safety Net:•
The past financial year saw the largest expansion of the
social safety net in the country, with over 13 million people benefiting from social grants.
•
The
department is actively engaged in the government’s initiative to drive the development of comprehensive policy
dealing with the reform of our pension system, the integration of other mandatory provisions such as
unemployment insurance, compensations for Occupational Injuries and Diseases (COIDA), and road accident protection.
6/19/2009 43
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Appeals Tribunal
•
During the 2008/9 financial year the Minister appointed 128 individuals to serve on the Independent Tribunal for Social Assistance Appeals.
•
The panel comprises 58 medical practitioners, 47 legal practitioners and 23 members of civil society.
•
A pilot office was established in KwaZulu
Natal to consider appeals lodged in the province.
•
By the end of the financial year 60 970 appeals had been lodged with the minister, and 13 269 of these were
considered and finalised.
6/19/2009 44
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Families:
•
The Department adopted a number of policies and strategies that seek to preserve families and inculcate a
culture of respect for the institution of marriage.
•
In order to accomplish this goal, the Department strengthened its relations with civil society and instituted
measures to increase the number of Non‐Profit Organisations offering community development services.
6/19/2009 45
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Children:
•
12 293 Early Childhood Development sites registered, with 667 231 children benefiting and 500 000 subsidized.
•
Department succeeded in implementing National Integrated Plan for Early Childhood Development with
other stakeholders and partners.
•
Children’s Act table passed by Parliament.
6/19/2009 46
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Drug and Substance Abuse:
•
The Department’s flagship campaign against drug and substance abuse, the ‘Ke
Moja’
campaign, reached
approximately 750 000 people and over 100 service providers, including social workers who received training
on the management of substance abuse.
6/19/2009 47
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
War‐on‐Poverty Campaign:
•
The Department participated in the War on Poverty Campaign which is being spearheaded by the Presidency
and is also represented in the National Task Team (NTT) of the War Room.
•
As a key partner in the fight against poverty, the Department was represented in provincial launches of
the war on poverty Campaigns and has also made commitment to support the Campaign.
6/19/2009 48
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
War‐on‐Poverty Campaign:
•
Also as part of the Department’s support to the War Room on Poverty Campaign, it facilitated the construction
of 20 vegi‐tunnels in Ga‐Kgatla
village in Limpopo. This project was initiated in partnership with the Department
of Agriculture and the office of the premier in the province.
•
Similarly, the Department developed a draft community profiling framework which was tested in Kagiso
township
in the municipality of Mogale
City.
6/19/2009 49
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
NPOs
•
12 393 applications for Non‐Profit Organisation were received and processed within two months, with 6 819
met registration requirements.
•
14
569 reports of Non‐Profit Organizations were captured in the database.
6/19/2009 50
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
Youth development
•
2 114 youth pioneers were recruited into Masupatsela Youth Pioneer programme, while 1 754 youth
participated in the war‐on poverty initiatives.
•
Currently Masupatsela is piloted in the 7 provinces for the next years, with exception of N. Cape and N.West.
•
In addition to the other initiatives, the Department audited five pieces of legislation affecting the youth.
Audit had to be completed internally due to financial constraints. This requires further stakeholder
consultation.
6/19/2009 51
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
HIV and AIDS:
•
Progress has been made in the prevention of HIV and AIDS by providing Home‐Based Community‐Based Care and
Support to children infected with and those affected by HIV and AIDS.
•
The Department initiated a number of prevention programmes in collaboration with Love Life and provided
funding to Love Life’s lifestyle programmes which saw thousands of young people participate in HIV prevention
initiatives. Initiated a strategy to engage men and boys in the prevention of gender‐based violence.
6/19/2009 52
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
International Obligations:
•
The Department continued to play a leading role in institutions such as UNESCO and the International Social
Security Association (ISSA).
•
A major outcome of the International Comprehensive Social Security Conference hosted by the Department in
March 2008 was the establishment in South Africa of a Liaison Office for the International Social Security
Association in Southern Africa.
6/19/2009 53
KEY ACHIEVEMENTSKEY ACHIEVEMENTS
International Obligations:
•
As a result of the Department’s active participation in international fora, South Africa has been endorsed as the
preferred host country for the Second World Social Security Forum in 2010.
6/19/2009 54
CHALLENGESCHALLENGES
•
Poverty and unemployment continue to ravage our society and thus many poor households are vulnerable
to numerous social ills like extreme hunger, social crime, woman and child abuse, and this impacts
negatively on the moral fibre
of our society.
6/19/2009 55
CHALLENGESCHALLENGES
•
The national discourse on the reform of retirement provision continue in earnest. These reforms aim
to overhaul the current fragmented and inefficient system of retirement in the country in order to ensure
adequate income security for all South African citizens when they
retire.
6/19/2009 56
CHALLENGESCHALLENGES
•
The sector has also been challenged to engage in other key strategic areas such as
making some of the EPWP jobs permanent as well as linking EPWP with other second
economy strategic initiatives.
6/19/2009 57
CHALLENGESCHALLENGES
•
In view of the large scope of functions in the Branch: Integrated Development, it was
necessary to splitthe branch into two, namely one for Community
Development
and the other for Welfare Services.•
Furthermore, in terms of the Social Assistance
Act, the Minister is required to consider all appeals for social grants. A function in the form of
an Appeals Tribunal
was established to adjudicate social assistance appeals on behalf of
the Minister.
6/19/2009 5819 June 2009 58
SECTION 2SECTION 2DSDDSD
Financial outlookFinancial outlook
6/19/2009 59
2008/092008/09FINANCIAL YEARFINANCIAL YEAR
19 June 2009 59
6/19/2009 606/19/2009 60
DEPARTMENTAL SPENDINGDEPARTMENTAL SPENDING
99,40%Spending
6/19/2009 6119 June 2009 61
EXPENDITURE PER PROGRAMMEEXPENDITURE PER PROGRAMME
Programme Final
Appropriation
R’
000
Un‐Audited
Expenditure
R’
000
%
Spent
Over /
Under
Spending
R’000
P1: Administration 164,528 163,804 99.56% 724
P2: Comprehensive Social Security 75,844,228 75,392,318 99.40% 451,910P3: Policy Development, Review &
Implement Support for Welfare
Services 267,402 265,257 99.20% 2,145P4: Community Development 174,094 171,966 98.78% 2,128
P5: Strategy and Governance 103,899 103,333 99.46% 566TOTAL 76,554,151 76,096,678 99.40% 457,473
6/19/2009 6219 June 2009 62
EXPENDITURE PER ECONOMIC EXPENDITURE PER ECONOMIC CLASSIFICATIONCLASSIFICATION
Economic Classification Final
Appropriation
R’
000
Un‐Audited
Expenditure
R’
000
%
Spent
Over /
Under
Spending
R’000
Compensation of Employees 185,869 184,304 99.16% 1,565
Goods and Services243,867 240,828 98.75% 3,039
Financial Transactions and Liabilities2,051 ‐2,051
Transfers and Subsidies76,113,872 75,659,724 99.40% 454,148
Payments of Capital Assets 10,543 9,771 92.68% 772TOTAL 76,554,151 76,096,678 99.40% 457,473
6/19/2009 6319 June 2009 63
2008/09 SOCIAL ASSISTANCE TRANSFERS2008/09 SOCIAL ASSISTANCE TRANSFERS
99.37%
6/19/2009 6419 June 2009 64
2008/09 SOCIAL ASSISTANCE TRANSFERS 2008/09 SOCIAL ASSISTANCE TRANSFERS [Cont.][Cont.]
Region Budget 2008/09R’000
Expenditure31 March 2009
R’000
Variance
R’000
% Spent
Eastern Cape 12 637 275 12 556 707 80 568 99%
Free State 4 598 539 4 573 278 25 261 99%
Gauteng 8 308 451 8 288 960 19 491 100%
KwaZulu-Natal 17 714 295 17 590 149 124 146 99%
Limpopo 9 725 912 9 656 247 69 665 99%
Mpumalanga 4 978 084 4 943 492 34 592 99%
North West 5 761 665 5 710 882 50 783 99%
Northern Cape 1 966 832 1 962 249 4 583 100%
Western Cape 5 469 756 5 433 921 35 835 99%
Total 71 160 809 70 715 885 444 924 99%
6/19/2009 6519 June 2009 65
2008/09 SOCIAL ASSISTANCE TRANSFERS 2008/09 SOCIAL ASSISTANCE TRANSFERS [Cont.][Cont.]
Grant Budget2008/09R’000
Expenditure 31 March 2009
R’000
Variance
R’000
% Spent
Old Age 26 206 660 26 024 021 182 639 99%
War Veterans 19 809 19 726 83 100%
Disability 16 573 279 16 473 915 99 364 99%
Foster Care - Children 3 956 588 3 934 490 22 098 99%
Care Dependency 1 301 080 1 292 465 8 615 99%
Child Support Grant 22 479 393 22 348 256 131 137 99%
Poverty Relief 624 000 623 012 988 100%
Total 71 160 809 70 715 885 444 924 99%
6/19/2009 66
REASONS FOR UNDER/(OVER) EXPENDITURE AS REASONS FOR UNDER/(OVER) EXPENDITURE AS AT THE END OF MARCH 2009AT THE END OF MARCH 2009
19 June 2009 66
The department spent 99.4% of the allocated funds for the 2008/09 financial year.
• Programme 2: Comprehensive Social Security reflects and under- expenditure of R 451,910 million of which the bulk relates to the social assistance transfer funds. A further amount of R 6,559 million on Transfers and Subsidies relates to the transfer payment allocation for Emergency Social Relief which were not paid out.
• Programme 3: Policy Development, Review and Implementation Support for Welfare Services reflects an under- expenditure to the amount of R 2,145 million. The under- expenditure relate mainly to projects that will be finalised in the 2009/10 financial year.
• Programme 4: Community Development reflects an under-expenditure to the amount of R 2,128 million. R 1,593 million of the under expenditure is reflected under Transfers and Subsidies for the 2008/09 financial year. This relates to the membership fees that were due to be paid to the National Association of Burial Societies of South Africa (NABSSA) and National Association of People Living with HIV and Aids (NAPWA) which were not transferred due to non-compliance with prescripts.
6/19/2009 67
ACTIONS TAKEN TO AVOID REACTIONS TAKEN TO AVOID RE--OCCURRENCE OF OCCURRENCE OF UNDER/(OVER) EXPENDITUREUNDER/(OVER) EXPENDITURE
19 June 2009 67
• The Department continues to implement stringent measures to reduce the staff vacancy rate.
• This rate was reduced from above 20% at the beginning of 2007/08 financial year to about 11% by the end of the financial year.
• Critical posts for service delivery have now been filled.
• This resulted in increased budget pressure on the operational allocation for the Department. Since 2006/07 the personnel costs ratio increased from 0,78:1 to 0,96:1 which implies that for every rand spent on goods and services, the same amount is spent on personnel.
• The Department also continues to monitor its spending trends on a monthly basis.
6/19/2009 6819 June 2009 68
COMMITMENTS FROM PREVIOUS COMMITMENTS FROM PREVIOUS FINANCIAL YEARSFINANCIAL YEARS
6/19/2009 6919 June 2009 69
COMMITMENTS FROM THE PREVIOUS FINANCIAL COMMITMENTS FROM THE PREVIOUS FINANCIAL YEARSYEARS
6/19/2009 7019 June 2009 70
20092009MTEF SUBMISSION AND MTEF SUBMISSION AND
ALLOCATIONSALLOCATIONS
6/19/2009 71
2009 SOCIAL DEVELOPMENT BIDS2009 SOCIAL DEVELOPMENT BIDS2009 NATIONAL MTEF BIDS
* Additional funding also received for other grant types
Spending priority
2009/10 2010/11 2011/12
R'000 R'000 R'000 R'000 R'000 R'000
Additional
Request
Additional
Allocation
Additional
Request
Additional
Allocation
Additional
Request
Additional
Allocation
Children's Act 21,445 ‐ 52,784 ‐ 58,434 ‐
ECD 72,715 ‐ 499,658 ‐ 1,828,761 ‐
Child Justice Bill 70,002 ‐ 94,535 ‐ 103,252 ‐
Human Capital Strategy 11,600 ‐ 5,600 ‐ 5,600 ‐
Litigation 3,000 ‐ 3,165 ‐ 3,323 ‐
Masupatsela 248,063 ‐ 238,255 ‐ 136,967 ‐
Monitor & Evaluation 53,183 ‐ 53,182 ‐ 43,058 ‐
Infrastructure 670,013 ‐ 557,688 ‐ 615,002 ‐
Appeals Tribunal 136,470 10,000 181,490 10,000 191,211 10,000
OSD 314,259 ‐ 349,459 ‐ 372,148 ‐
MIS 135,000 ‐ 142,000 ‐ 125,000 ‐
NISIS 89,000 ‐ 75,000 ‐ 64,000 ‐
DRC 5,864 ‐ 5,266 ‐ 5,098 ‐
Social Assistance Debtors 5,739 ‐ 5,503 ‐ 5,820 ‐
Child support Grant * 1,947,879 2,259,873 1,750,986 3,830,683 1,684,452 5,883,071
SASSA 3,228,578 255,326 4,022,887 388,047 5,429,057 535,888 NDA 29,786 3,665 33,175
TOTAL 7,042,595 2 269 873 8,041,123 3 840 683 10,704,358 5 893 071
6/19/2009 72
INITIAL CHANGES TO BASELINEINITIAL CHANGES TO BASELINE
19 June 2009 72
2009/10 2010/11 2011/12
R' 000 R' 000 R' 000 2008 MTEF ALLOCATIONS
83,892,526 90,450,231 95,868,256 •Departmental baseline 83,892,526 90,450,231 95,868,256
ADDITIONAL FUNDS ALLOCATED TO BASELINE 2,375,124 4,003,211 6,115,401
•SA Social Security Agency 50,000 100,000 150,000 •Appeals Tribunal 10,000 10,000 10,000 •Inflation‐related adjustment: Compensation of employees 6,836 7,117 7,422 •Inflation‐related adjustment: Payments for capital assets 404 721 924 •Inflation‐related adjustment: Compensation of employees
(Public Entity ‐
SA Social Security Agency)42,611 45,304 47,075
•Inflation‐related adjustment: National Student Financial
Aid Scheme
5,400 9,386 16,909
•Inflation‐related adjustment: Social Assistance Transfers 2,259,873 3,830,683 5,883,071 ADJUSTMENTS TO BASELINE (8,500) (8,500) ‐
Savings (8,500) (8,500) ‐
2009 MTEF ALLOCATIONS (to be included in 2009 ENE) 86,259,150 94,444,942 101,983,657
6/19/2009 73
EARMARKED ALLOCATIONSEARMARKED ALLOCATIONS
19 June 2009 73
2009/10 2010/11 2011/12
R’000 R’000 R’000
Devolution of funds from Public Works 11,182 12,317 13,076
National Development Agency 144,782 153,469 163,724
Social Work Bursaries 215,400 231,986 252,987
LoveLife 41,000 43,460 45,600
Social Assistance Transfers 80,380,306 88,126,151 95,237,167
Emergency Social Relief 15,000 15,000 15,000
South African Social Security Agency 5,114,404 5,568,972 6,027,700SASSA (Management Information
System)20,000 20,000 20,000
Appeals Tribunal 10,000 10,000 10,000
TOTAL 85,952,074 94,181,355 101,785,254
6/19/2009 74
REDUCTION TO BASELINEREDUCTION TO BASELINE
19 June 2009 74
SOCIAL DEVELOPMENT
R thousand
2009 MTEF
2009/10 2010/11 2011/12
INITIAL ALLOCATION 86,259,150 94,444,942 101,983,657
Compensation of employees 1,449 2,196 2,338
Goods and services 12,078 13,388 14,204
Transfers to entities 37,285 57,257 61,186
Total 50,812 72,841 77,728
REVISED ALLOCATION 86,208,338 94,372,101 101,905,929
% Reduction 0.06% 0.08% 0.08%
6/19/2009 75
REDUCTION TO BASELINEREDUCTION TO BASELINE
19 June 2009 75
GOODS AND SERVICES
R thousand
2009 MTEF
2009/10 2010/11 2011/12
INITIAL ALLOCATION 241 233 267 208 283 511
Efficiency savings 12,078 13,388 14,204
REVISED ALLOCATION 229 155 253 820 269 307
% Reduction 5.01% 5.01% 5.01%
6/19/2009 76
ADDITIONAL FUNDING TO SASSAADDITIONAL FUNDING TO SASSA
19 June 2009 76
R thousand
2009 MTEF
2009/10 2010/11 2011/12
Social Security Grants
transaction costs200 000 300 000 400 000
6/19/2009 7719 June 2009 77
BUDGETBUDGET ALLOCATIONSALLOCATIONSR’000
14%
10%
8%
6/19/2009 78
OPERATIONAL BUDGET OPERATIONAL BUDGET ALLOCATIONSALLOCATIONS
2006/07 TO 2011/122006/07 TO 2011/12
19 June 2009 78
6/19/2009 7919 June 2009 79
MTEF GROWTH TRENDS MTEF GROWTH TRENDS -- BUDGET BUDGET COMPARISON [ 2009 ENE]COMPARISON [ 2009 ENE]
R’000
10%
7%8%
42%
6%
6/19/2009 8019 June 2009 80
MTEF GROWTH TRENDS MTEF GROWTH TRENDS –– COMPENSATION OF EMPLOYEES [2009 ENE]COMPENSATION OF EMPLOYEES [2009 ENE]R’000
16%
12%5%
39%
6%
6/19/2009 8119 June 2009 81
MTEF GROWTH TRENDS MTEF GROWTH TRENDS –– GOODS AND SERVICES [2009 ENE]GOODS AND SERVICES [2009 ENE]
R’000
11% -4%11%
52%
6%
6/19/2009 8219 June 2009 82
MTEF GROWTH TRENDS MTEF GROWTH TRENDS –– CAPITAL ASSETS [2009 ENE]CAPITAL ASSETS [2009 ENE]
R’000
67%
-8%
12%
1% 7%
6/19/2009 83
OPERATIONAL BUDGET ALLOCATION PER OPERATIONAL BUDGET ALLOCATION PER PROGRAMME PROGRAMME -- 2009/102009/10
19 June 2009 83
6/19/2009 84
OPERATIONAL BUDGET ECONOMIC OPERATIONAL BUDGET ECONOMIC CLASSIFICATION CLASSIFICATION -- 2009/102009/10
19 June 2009 84
6/19/2009 85
ROLLROLL--OVER REQUEST FROM THE 2008/09 OVER REQUEST FROM THE 2008/09 FINANCIALFINANCIAL YEARYEAR
19 June 2009 85
•
A total amount of R 53,467 million is requested as roll‐over funds from the preliminary saving on the transfer allocation of the Department at the end of
the 2008/09 financial year for roll‐over to the 2009/10 financial year to fund commitments in respect of transfers and subsidies not paid in the 2008/09
financial year.
•
The following amounts were requested:•
An amount of R 52,412 million was requested for Social Relief of
Distress;
•
R 545 000 is requested as transfer payment to National Association of People Living with HIV and Aids (NAPWA); and
•
R 510 000 is requested as transfer payment to National Association of Burial Societies of South Africa (NABSSA).
6/19/2009 86
2009/102009/10FINANCIAL YEARFINANCIAL YEAR
19 June 2009 86
State of Expenditure State of Expenditure as at 31 May 2009as at 31 May 2009
6/19/2009 8719 June 2009 87
DEPARTMENTAL SPENDINGDEPARTMENTAL SPENDING
17,97%
6/19/2009 8819 June 2009 88
EXPENDITURE PER PROGRAMMEEXPENDITURE PER PROGRAMME
Programme Voted
R’
000
Expenditure
31 May 2009
R’
000
%
Spent
Over /
Under
Spending
R’000
P1: Administration 156,374 34,183 21.86% 122,191
P2: Comprehensive Social Security 85,573,159 15,336,951 17.92% 70,236,208
P3: Policy Development, Review &
Implement Support for Welfare
Services329,324 122,782 37.28% 206,542
P4: Community Development 248,361 8,696 3.50% 239,665
P5: Strategy and Governance 101,120 24,364 24.09% 76,756
TOTAL 86,408,338 15,526,975 17.97% 70,881,363
6/19/2009 8919 June 2009 89
EXPENDITURE PER ECONOMIC EXPENDITURE PER ECONOMIC CLASSIFICATIONCLASSIFICATION
Economic Classification Voted
R’
000
Expenditure
31 May 2009
R’
000
%
Spent
Over /
Under
Spending
R’000
Compensation of Employees 220,000 35,215 16.01% 184,785
Goods and Services 229,155 58,036 25.33% 171,119
Transfers and Subsidies 85,949,425 15,432,583 17.96% 70,516,842
Payments of Capital Assets 9,758 1,140 11.69% 8,618
TOTAL 86,408,338 15,526,975 17.97% 70,881,363
6/19/2009 9019 June 2009 90
BUDGET BREAKDOWN OF GOODS AND SERVICESBUDGET BREAKDOWN OF GOODS AND SERVICES
6/19/2009 91
BUDGET PRESSURESBUDGET PRESSURES
19 June 2009 91
• Expanded international commitments and engagements.• Litigation costs on social assistance.• Increased need for additional office space required and related water
and electricity charges.• Establishment of the Social Security Inspectorate since the previous
funding received were mainly directed to the establishment of the Appeals Tribunal in view of the high priority of the appeals adjudication function and the existing backlogs in appeals cases.
• Operationalisation of the Appeals Tribunal and the appeals adjudication function, with specific reference to the large number of appeal backlog cases to be addressed.
• Implementation of the Occupational Specific Dispensation for Social Work Professionals back dated from 1 April 2008.
• Operational commitments flowing from the previous financial year (s) as a result of projects started, but not yet finalised and or paid at the end of 31 March 2009.
6/19/2009 92
ACTIONS TAKEN TO STAY WITHIN BUDGET ACTIONS TAKEN TO STAY WITHIN BUDGET ALLOCATIONS FOR THE 2009/10 FINANCIAL ALLOCATIONS FOR THE 2009/10 FINANCIAL
YEARYEAR
19 June 2009 92
• The Department has developed and implemented cost saving measures in order to decrease expenditure.
• A comprehensive letter on the 2009/10 budget pressures of the Department was sent to the National Treasury.
• The Department will submit a separate revised business case to the National Treasury on the Appeals Service for social assistance, for consideration and possible additional funding to address the large number of appeals backlogs.
• A Treasury Committee Memorandum will also be compiled on the increased Office Accommodation, Water and Electricity costs as well as the litigation claims received from the Department of Justice as part of the 2010 Adjusted Estimate process.
6/19/2009 9319 June 2009 93
THANK YOUTHANK YOU
