Question NW679 to the Minister of Social Development
02 April 2022 - NW679
Abrahams, Ms ALA to ask the Minister of Social Development
(1)With reference to her reply to question 1902 on 22 October 2021, wherein it is indicated that in terms of the Early Childhood Development Stimulus Relief Funds of the budget of R496 million, provinces underspent by around R392 million, of which National Treasury approved R351 million to be rolled over in June 2021, what became of the R41 million which was not approved for roll over, but originally allocated to the ECDs; (2) whether her department intends to approach the National Treasury for a second roll over noting that the current financial year ends on 31 March 2022 and the early childhood development migration to come into effect on 1 April 2022?
Reply:
The Member is informed that question 1902 on 22 October 2021 was asked to and responded by the Minister of Finance and not the Minister of Social Development. However, the response follows.
1. The allocation of the R496 million, when announced and allocated as part of the 2020 Conditional Grants, was based on the “Equitable share formula” to the provincial Departments of Social Development and not based on the applications of ECD staff.
As a result, six (6) of the nine (9) provincial Departments of Social Development received more funding that was required in terms of the number of ECD staff applied. The remaining three (3) provinces had a shortfall based on the number of applications received.
This has resulted that the six (6) provincial Departments of Social Development could only request roll over funds that was committed in terms of ECD staff at financial year-end and three (3) provinces could only commit what was allocated. As a result of this, the R41 million difference was lost and was returned back to National Treasury.
Therefore, the National Treasury only approved the requests by provincial Departments of Social Development for “Roll over funds” to the 2021/22 financial year based on the actual commitments registered for outstanding ECD Staff that was eligible for payment and thus approved that R351 million be rolled over to the 2021/22 financial year to the provincial Departments of Social Development.
2. In terms of the guidelines of the National Treasury for the “Roll over of Funds”, it is not permitted to apply for rollovers twice for the same purpose. However, given the nature of the ECD stimulus, the Department intends to engage the National Treasury to request for a roll over to finalise the payment of the ECD Stimulus Package in the 2022/23 financial year.
The Department of Social Development and Basic Education will engage the National Treasury on how best this project can be concluded in the 2022/23 financial year.