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DEPARTMENT OF SOCIAL DEVELOPMENT

INTERGOVERNMENTAL FISCAL REVIEW

17 OCTOBER 2007

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Introduction• The primary focus of Social Development Sector in the Provincial sphere is now Social

Welfare Services and Community Development.

• These include services aimed at supporting the aged, needy children, youth, people with disabilities and victims of crime, families and communities.

• While provinces have been performing these services in the past , their focus tended to be more on the rising demands of social security.

• The sharp focus on social welfare and community development services is evident on a number of fronts.

– There is increased attention given to formulating policies and writing up legislation that supports developmental welfare.

– Increased amounts of resources are being allocated to the sector in line with developmental welfare imperatives

– There is greater recognition of the role of non-governmental organisations (NGOs) as partners in meeting the challenge of delivering improved welfare services to those who need them.

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Sector Priorities• Expansion and consolidation of services to children, youth, older

persons, women, people with disabilities

• Capacity building for Civil Society Organisation

• Expanded Public Works Programme

• Human Capital Development. – Social workers– Auxiliary social workers– Community development practitioners– Child and youth workers– Probation officers

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Social Development Sector

Performance Review2006/07

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Services to ChildrenNew Child Care Legislation• The Section 75 Children’s Bill was signed by the President in June 2006 and it is

now referred to as the Children’s Act No.38 of 2005. • The Children’s Amendment Bill previously known as the Section 76 part of the

Children’s Bill was introduced to Parliament in July 2006 and passed by the NCOP. The Bill is currently being dealt with by the National Assembly.

Early childhood development (ECD) • Social development departments are responsible for

– children between 0 and 4 years.– the registration of ECD sites, in accordance with the Child Care Act (1983).– Subsidies to children from poor families

• The Sector registered approximately 1 500 sites in 2006/07 bringing the number of registered sites to over 11 000.

• There is on average an ECD site for every 455 children in the country.• Paid per diem subsidy for approximately 314 912 children.• The total amount paid towards these subsidised sites for 2006/07 is R350 million.

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Services to Children and YouthAlternative Care• Developed a comprehensive residential care data base of registered child and youth care centers.• Installed the Child Protection Register (CPR) in all provinces and the process of updating the

database in all provinces is ongoing.

Adoptions and International Social Services• Registered 252 inter country adoptions and 2,166 domestic adoptions.

Services to children in conflict with law• Approximately 1986 children benefited from the Home Based Supervision programme, and

12,770 were diverted from the criminal justice system. • 3 Secure care facilities we completed, one in the Free State and two in the North West.

Social Crime Prevention: Training and Placement of Probation Officers• 187 young people have completed block one of training on Volunteer Assistant Probation

officers (VAPO’s) programme • 93 Probation Officers from all provinces were also trained as assessors / mentors of voluntary

assistant probation officer’s.

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Services to Older PersonsLegislation• Older Persons Act (2006) passed, and regulations are currently being drafted.• Developed model for community based care and support services for older persons.

Old Age homes• Distribution of homes for the elderly is still skewed.• There are 456 old age homes throughout the country.

– About 49 % are in Gauteng and Western Cape– A large proportion of the elderly approximately (38 %) resides in Kwazulu-Natal– However old age homes in this province account for only 19% of the total homes compared to Northern

Cape, with 25 homes and an elderly population proportion of 2 per cent.

Counseling services:• Kwazulu-Natal records the most counseling services for elderly people, recording

42,3 % (30 985) of the number of cases, followed by Eastern cape at 22,8 per cent (16 690).

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COMMUNITY DEVELOPMENTCare and support programme for people with HIV and AIDS• Funded 1 700 Home-community based Centres nation-wide providing a

wide and varying number of services.

Expanded Public Works Programme: Sector Coordination• Established institutional mechanism and structures for coordination and

implementation of EPWP in the social sector.• Developed strategy to facilitate expansion of ECD and HCBC services.• Overall EPWP within the Social Sector created approximately 37106

job opportunities at a total cost of R402 million.

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Support to Civil Society Organisations: Capacity building for NGOs & NPOs

Registration of NPOs• There are 44 062 registered organizations that operate in different fields.

Funding of Civil Society organisations• The National and Provincial departments provide funding to national organisations rendering

services with the department in accordance with the provisions of the Policy on Financial Awards to Service Providers

– The National department awarded funds to eighteen (18).

• NDA approved – Funding of R110.9 million to 95 projects in different provinces– Disbursed R49.5 million to intermediary institutions involved in pro-poor projects

Capacity Building of NGOs• NDA launched a capacity building programme• Committed 25.7 million to strengthen capacity of the CSOs

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SOCIAL DEVELOPMENT

Provincial Expenditure Report 2006/07

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EXPENDITURE PATTERNS

Summary of the provincial departments of social development

2006/07 adjustment budget

             

Province Main appropriation

Adjustment Adjusted Appropriation

Preliminary outcome

Deviation % Spend

  R'000 R'000 R'000 R'000  R’000  

Eastern Cape 762,772 -21,970 740,802 750,473 -9,671 101.31%

Free State 417,850 27,884 445,734 442,985 2,749 99.38%

Gauteng 981,782 23,861 1,005,643 1,011,634 -5,991 100.60%

KwaZulu-Natal 894,810 105,675 1,000,485 941,578 58,907 94.11%

Limpopo 431,750 -36,301 395,449 401,391 -5,942 101.50%

Mpumalanga 430,279 -95,998 334,281 319,218 15,063 95.49%

Northern Cape 215,025 7,696 222,721 217,643 5,078 97.72%

North West 427,562 -7,969 419,593 368,436 51,157 87.81%

Western Cape 727,143 828 727,971 719,516 8,455 98.8%

TOTAL 5,288,973 3,706 5,292,679 5,172,874 119,805 97.74%

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DSD Spending by Economic Classification

• Compensation of employees grew by 12,6 per cent annually over the three-year period to 2006/07 and is budgeted to grow by 11,3 pert cent annually from R2,2billion in 2007/08 to R2,7 billion by 2009/10.

• However, due to supply side constraints, social development departments under spent their personnel budgets in 2006/07.

• Transfers to non-profit organisations grew by 20,7 per cent annually, from R1,2 billion in 2003/04 to R2,2 billions in 2006/07.

• The growth in the budget is sustained in the years ahead with transfers to NGOs growing to R3,7 billion by 2009/10.

• Infrastructure for delivering effective social welfare services has been identified for the sector in 2003/04-2009/10 period.

• Although starting from a low base, capital spending doubled from R116 million in 2003/04 to R248 million in 2006/07 and is set to reach R457 million by 2009/10.

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Provincial Expenditure Outcomes: 2006/2007 FY

• Provinces collectively spent by R5.172 billion or 97 % of total budget, excluding social security expenditure.

• Most under-spending was in – MP (6%)

• Restructuring of delivery of social services to developmental services• Challenges with regard to structural set-up and the shortage of professionals

– KZN (6%) • Non-filling of vacancies as a result of the scarcity of social workers• Under-spending of integrated social development services grant resulted from the

court case which was pending for the significant part of 2006/07

– NW (12%)• Delay in the completion of secure centre in Rustenburg• Increase in the number of ECDs that could not be registered• Delays in transfers to community based projects caused by departmental processes

to strengthen internal controls

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SOCIAL DEVELOPMENT Provincial Expenditure Report 2007/08

Up to 31 August 2007

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SUMMARY – PROVINCES (2007/08)

  Allocated Actual   %

Summary Budget Expenditure Variance Spent

Current payments 3,391,418 1,163,367 2,228,051 34%

Compensation of employees 2,168,919 757,069 1,411,850 35%

Goods and services 1,219,039 404,839 814,200 33%

Interest and rent on land 3,460 1,000 2,460 29%

Financial transactions in assets and liabilities

-

459

(459)

Transfers and subsidies (Total) 2,731,779 959,203 1,772,576 35%

Non-profit institutions (T) 2,401,184 920,524 1,480,660 38%

Payments for capital assets 426,410 68,022 - 16%

Buildings and other fixed structures 320,257 49,894 270,363 16%

Machinery and equipment 103,153 17,824 85,329 17%

Software and other intangible assets 3,000 304 2,696 10%

Total 6,549,607 2,190,592 4,359,015 33%

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SUMMARY – PROVINCES 2007/08

Summary Allocated Actual   %

  BudgetExpenditureAugust 2007 Variance Spent

Eastern Cape 951,735 288,582 663,153 30%

Free State 453,092 154,675 298,417 34%

Gauteng 1,404,413 461,158 943,255 33%

Kwazulu Natal 1,000,360 367,362 632,998 37%

Limpopo 439,040 158,828 280,212 36%

Mpumalanga 497,517 178,631 318,886 36%

Northern Cape 304,319 108,536 195,783 36%

North West 607,628 137,950 469,678 23%

Western Cape 891,503 334,868 556,635 38%

Total 6,549,607 2,190,590 4,359,017 33%

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SUMMARY – PROVINCES 2007/08

• Provinces collectively spent 33% of total budget instead of 42% (9% under expenditure) as at end of August 2007.

• Most under-spending is in NW (19%), EC (12%) GP (9%) and FS (8%)

• Under-spending largely due to delays in filling of vacant posts, delays in processing of transfers to NGO’S as well as delays in capital projects

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SOCIAL DEVELOPMENT

Challenges

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CHALLENGES• Under-expenditure on compensation of employees and Goods & Services

largely due to:– Scarcity of Social Workers, Probation Officers and Assistant

Probation Officers– Long process of recruitment of staff (07/08 FY).– Limited office accommodation for new staff.

• Delays in Transfers to NGOs/Municipalities due to compliance requirements in terms Section 38 (1)(j) and TR 8.4 (committed).

• Delays in implementation of capital projects due to dependency on Third Parties acting as implementing agents

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Corrective measures• Recruitment and retention strategy for Social Service

Professions (including bursaries, scholarships, supportive infrastructure).

• Reduction in the turn-around time for the recruitment and employment.

• Appointment of contract workers to sustain service delivery.• Development of a medium to long term infrastructure plan

with supportive capacity at a national and provincial level.• Prioritize the capacity building of NPOs.• Intensify monitoring of transfers to NPOs.

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Measures to address shortage of Social Services Professionals

• The Social Development Sector has undertaken a major recruitment drive to attract new entrants into the field of study.

• This has been supplemented by making available bursaries/scholarships every year, with the aim of increasing the number of Social Workers graduates over the medium term.

• The total number of bursaries/scholarships awarded in 2007/08 is at about 2000.

• Additional funding has been allocated to provinces for the immediate implementation of the social auxiliary worker strategy.

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FUTUREMTEF PRIORITIES

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KEY PRIORITIES: 2008/09

Integrated Services to Children:• Early Childhood Development (ECD)

– The focus will be on • increasing of the current subsidy in order to improve the quality of ECD

services;• Increasing access to ECD services and the number job opportunity as part of

the EPWP social sector plan.

• Children In Conflict with the Law– The focus will be on service delivery improvement with regard to children in

conflict with law in the form of • secure care facilities;• home based supervision; • diversion programmes; and • Increasing the number of assistant probation officers

• Tackling child poverty through appropriate household interventions.

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KEY PRIORITIES

Service Delivery Improvement & Equity:• Sustainability of the Home-Community Based Care Capacity Building Programme

– The focus will be on aligning training of community caregivers to the National Qualification Framework (NQF).

• Parity of Services (Children Homes and disability services)– Objective is to achieve parity in the funding of NGO based children’s homes throughout the

country; and– to ensure equitable access of services that promote the rights and protect people with disabilities.

• Occupation Specific Dispensation for Social Workers and Related Occupations– Primarily to attract and retain social services professionals and specialists. – It proposes a unique remuneration structure and allowances.

• Medium to long term Service delivery infrastructure requirements for social development (except for children in conflict with the law)

• Monitoring and Evaluation –build M&E capacity in the sector in order to improve accountability, sector planning and performance management including broader reporting.

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Conclusions• The restructuring of the social development sector, which was partly triggered by the shifting

the social functions to the national sphere, has resulted in some positive developments.

• Funding for the sector has grown and is set to continue to grow over the MTEF period.

• The sector has repositioned itself to deliver comprehensive package of social services.

• Measures to step up the recruitment and retention of social services professionals are also evident.

• Unanticipated impact of shifting of social security function to national government and the impact on human resource for other social development services.

• Agreed that HSD and MINMEC become accounting fora for service delivery, especially in relation to agreed sector priorities.

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THANK YOU