SELECT COMMITTEE ON FINANCE – 18 OCTOBER 2005

DEPARTMENT OF SOCIAL SERVICES AND POVERTY ALLEVIATION

WESTERN CAPE PROVINCE

PRESENTATION BY THE MEC & CFO

INTRODUCTION: MEC

•National priorities•Provincial priorities•Organisational re-alignment•Social Capital Formation

Strategy

OVERVIEW

Departmental growth between 2001/02 and 2004/05

• Total : 81,42%• Social Assistance : 89,94%• Social Welfare : 10,06%

Table 4.4• Unspent funds for 2004/05 = R64m

(R20m cost centre, R16m Food relief, handling fees)

BRANCH: SOCIAL ASSISTANCE

Factors which influenced growth between 2001/02 to 2005/06

• Introduction of CSG extension• Change in policies e.g disability grants• Mashishi court case• Population growth of 14%

(1996 – 2001)

BRANCH: SOCIAL ASSISTANCEBudget for 2004/05 amounted to R3 691358 000.

Budget for 2005/06 is a conditional grant due to the establishment of SASSA and amounts to R4 238 905 000.

Monthly amount of ± R336m (Oct 2005) is paid to beneficiaries in the Western Cape.

Transfer payments: R4 002 671 000

Administration: R236 234 000

586 594 beneficiaries (not including children) received their monthly payments for October 2005 through the following

pay methods:

• Banks (79 836)

• Post Office (Walvis Bay) (213)

• ALLPAY (515 094)

All expenditures are monitored on a monthly basis

BRANCH: SOCIAL ASSISTANCE

Grant Type Budget 2005/06Old Age Grants R1 526 845 000

War Veterans Grants R 7 104 000

Disability Grants R1 391 382 000

Foster Care Grants R175 840 000

Care Dependency Grants R70 955 000

Child Support Grant (0-6 yrs) R539 553 000

Child Support Grant (7-14 yrs)

R283 372 000

Social Relief of Distress R7 620 000

Ave 2001/02 Ave 2002/03 Ave 2003/04 Ave 2004/05

Old Age Grants 148 092 153 607 157 056 160 946 War Veteran Grants 1 462 1 260 1 089 923 Disability Grants 95 095 117 323 122 776 124 648 Foster Care Grants (children)

20 377 21 495 22 475 24 465

Care Dependency Grants 4 674 5 491 5 980 6 490 Combinations 819 369 338 341 Child Support Grants (children)

92 957 178 334 211 940 233 903

Child Support Extension (children)

27 594 79 846

AVERAGE GROWTH IN BENEFICIARY NUMBERS

PER FINANCIAL YEAR ( To be paid per month)

Number Present Amount

(R)/month

Total (R)/month

% Growth 2004/05 to

2005/06

Budget for 2005/06

(R) 165 345 780 126 890 382 2.48% 1 526 845 000

Old Age Grants

Growth from April 2004 to April 2005 O

lder P

erson

s157000

158000

159000

160000

161000

162000

163000

164000

Number Present Amount

(R)/month

Total (R)/month

% Growth 2004/05 to

2005/06

Budget for 2005/06

(R)

756 798 570 741 -13% 7 104 000

War Veteran Grants

Growth from April 2004 to April 2005 War V

eteran g

rants

0

200

400

600

800

1000

1200

Number Present Amount

(R)/month

Total (R)/month

% Growth 2004/05 to

2005/06

Budget for 2005/06

(R) 131 293 780 110 605 981 1.52% 1 391 382 000

Grants for the disabled

Growth from April 2004 to April 2005

Gran

ts for th

e disab

led

110000

115000

120000

125000

130000

135000

Apr-0

4

May

-04

Jun-

04

Jul-0

4

Aug-0

4

Sep-0

4

Oct-

04

Nov-0

4

Dec-0

4

Jan-

05

Feb-0

5

Mar

-05

Apr-0

5

Number Present Amount

(R)/month

Total (R)/month

% Growth 2004/05 to

2005/06

Budget for 2005/06

(R) 6 925 780 5 913 950 8.5% 70 955 000

Care Dependency GrantsC

are Dep

end

ency G

rants

Growth from April 2004 to April 2005

5800

5900

6000

6100

6200

6300

6400

6500

6600

6700

6800

Apr-0

4

May

-04

Jun-

04

Jul-0

4

Aug-0

4

Sep-0

4

Oct-

04

Nov-0

4

Dec-0

4

Jan-

05

Feb-0

5

Mar

-05

Apr-0

5

Number Present Amount

(R)/month

Total (R)/month

% Growth 2004/05 to

2005/06

Budget for 2005/06

(R) 26 932 560 16 186 132 8.85% 175 840 000

Foster Child Grants (children)

Growth from April 2004 to April 2005

Fo

ster Ch

ild G

rants

21500

22000

22500

23000

23500

24000

24500

25000

25500

26000

26500

Apr-0

4

May

-04

Jun-

04

Jul-0

4

Aug-0

4

Sep-0

4

Oct-

04

Nov-0

4

Dec-0

4

Jan-

05

Feb-0

5

Mar

-05

Apr-0

5

Child Support Grant (0-6)

Number Present Amount

(R)/month

Total (R)/month

% Growth 2004/05 to

2005/06

Budget for 2005/06

(R) 235 222 180 42 810 404 5.64% 539 553 000

Ch

ild S

up

po

rt Gran

t

Growth from April 2004 to April 2005

205000

210000

215000

220000

225000

230000

235000

Apr-0

4

May

-04

Jun-

04

Jul-0

4

Aug-0

4

Sep-0

4

Oct-

04

Nov-0

4

Dec-0

4

Jan-

05

Feb-0

5

Mar

-05

Apr-0

5

Child Support Grant (7-14)

Number Present Amount

(R)/month

Total (R)/month

(7-14)

% Growth 2004/05 to

2005/06

Budget for 2005/06

(R) 153 432 180 31 300 128 4.2% 238 372 000

Ch

ild S

up

po

rt Gran

t

Growth from April 2004 to April 2005

0

20000

40000

60000

80000

100000

120000

BRANCH: SOCIAL ASSISTANCE

Progress Report on the implementation of the Agency

•Development of a comprehensive business plan for the establishment of SASSA in the Western Cape

• Ring fencing of Social Security Personnel, Assets, Financial Management.

• Establish SASSA Western Cape Provincial Head Office.

• SASSA staff establishment structure submitted to the National Department for approval.

• Efforts underway to obtain office space for SASSA District Offices.

• Developing agreement for support services to be rendered by the Department of Social Services and Poverty Alleviation.

•Advertisement of posts for appointment.

BRANCH: SOCIAL DEVELOPMENT

Social service deliveryFactors limiting growth:

- Outcrowding due to social assistance- Inflationary increases

Results:- Limited increase in funding levels- Not meeting all critical priorities

Challenges:- child abuse – reported incidents increased to 62% since 2002.- substance abuse – 50% increase in TIK since 2003 in

youth under 20.- HIV / Aids prevalence rate current @ 13,1% (up from 12,5%)- youth – arrest rate averages 2300 per month.- Implementation of financial awards.- Management information- Greater demand for funding

BRANCH: SOCIAL DEVELOPMENT

Cost Pressures:• Affordability of costing model

(R180m p.a)• Redistribution of resources• Day care services for older persons• Youth programmes

BRANCH: SOCIAL DEVELOPMENT

Cost pressures (continue)• The bills:

- Children's, Older Persons, Child Justice.

- ECD infrastructure and capacity building (integrated approach)

BRANCH: SOCIAL DEVELOPMENT

Social Workers

- Number of Social Workers as at 30 September 2005: 337 (NGO sector = 600 all levels)

- National norm 1 : 5000

- Provincial gap approx. 56 (excl. management)

- Social Workers salary upgrade: 1 April ’04

- Increased funding to NGO sector for salary increases of social workers

DEVELOPMENT AND SUPPORT SERVICES

HIV / AIDS (04/05 = R5,8m / 05/06 = R10m)

Programmes:

• Home / Community based programmes

• Child headed households & orphans

DEVELOPMENT AND SUPPORT SERVICES

Poverty reduction:

• IPRS proposes deepened safety nets, participation, democracy and extensive investment in poverty programmes.

• Unemployment and unemployability

• School drop-outs and mismatched education

• Low and unskilled work force

• Social pathologies

DEVELOPMENT AND SUPPORT SERVICES

Poverty reduction:• Programmes

- Food security -sustainability

- SMME development

- ECD-long term investment

DEVELOPMENT AND SUPPORT SERVICES

Food ReliefTender not approved during

2004/05• Roll-over of funds to 2005/06 –

R16.2m.• Approval of 4 service providers –

September• Plans and systems in place for

distribution and support

PERSONNEL SPENDING AND NUMBERS

Establishment as @ 30 September 2005

• Approved establishment: 1 684

• Contract workers : 586

• Interns & learnerships : 116

THANK YOUDANKIEENKOSI