PRESENTATION TO NCOP BY ACTING DDG: NORTH WEST SOCIAL DEVELOPMENT
CAPE TOWN
14 FEBRUARY 2008

SOCIAL WELFARE INFRASTRUCTURE

· The Department was allocated a total of R53,633million during the 2007/08 fiscal year for building a Victim Empowerment centre, a Children's home and completion of 3 secure care centres with the following breakdown:-

PROGRAMME	ALLOCATION	EXP@ END JAN2008	BUDGET BALANCE
3 Secure care centres	18,633	18,377	256
1 Childrens' Home	10,000	0	1 0, 000
1 Place of safety	15,000	0	15,000
1 VEP centre	10, 000	0	10,000
TOTAL	53,000	18,377	35,256

SOCIAL WELFARE INFRASTRUCTURE.......

Construction of Secure Centres

Area	Budget allocation	Expenditure to date	Variance
Rustenburg	R12,000,000	R14,937,239	-R2,937,239
Mafikeng	R 3,317,000	R 2,022,043	R1,294,957
Matlosane	R 3,316,000	R 1,418,148	R 1 ,897,852
Total	R18,633,000	R18,377,430	R 255,570

SECURE CARE CENTRES

· An allocation of R 18,633 million is exhausted and the cumulative total expenditure for the 3 centres is R63 million as at end of January 2008.

· The projected total cost to complete these centres is R89 million which means that R26 million is needed.

· An amount of R 15 million previously allocated for construction of a children's home has been allocated to secure care centres to address the shortfall.

· This will bring the total budget allocation in 2008/09 to compete construction in these centres to R27 million.

· A children's home planned for Bophirima district will have to be developed

Children's homes / Places of safety & VEP Centres

· A total budget allocation of R35 million has been allocated for the above and the following progress registered :-

- Sites allocated and are being serviced by the respective municipalities.

- Tender adjudications and awards to be completed by the 20^th March and sites handover I construction to commence on 05 April 2008.

- Completion date is 04 April 2009

CHALLENGES IN WELFARE INFRASTRUCTURE

· Cumbersome processes and delays arising from expertise support from the Dept of Public Works.

· Delays by municipalities in allocating sites for construction.

· Provincial budget pressures resulting in a reduction of R10 million in the 2008/09 and 20 million per year in the two outer years of the MTEF by the Provincial Treasury in order to assist the Doe to address their budget deficit.

· The historical infrastructure backlog which needs a process outside the equitable share process to be addressed.

· The province has only 5 crisis centres and no VEP centres.

· The department has only 1 state run children's home, 2 places of safety and 2 subsidised centres in the NGO sector to serve a population of 1,336,678 children& youth based on census 2001.

· The department has only 1 state run old age home and 26 subsidised centres in the NGO sector to serve a population of 238,842 older persons based on census 2001.

· The absence of a network of active and well resourced NGO’s to partner government puts the whole responsibility of welfare infrastructure provision on limited resources of government

· The scoping infrastructure exercise envisaged by National Social Development should look at different funding models especially for those adversely affected provinces.

ANALYSIS OF EXPENDITURE AS AT 31 JANUARY 2008

1.Management and administration

· Expenditure for programme 1 is at 80% instead of 83.3% and the under expenditure is due to:-

- Rentals are paid one month in arrear

2. Social Welfare Services

Total expenditure to date is at 59% instead of 83.3% mainly due to challenges in effecting transfer payments.

· EXPENDITURE ON TRANSFER PAYMENTS PER SUB- PROGRAMMES ARE AS FOLLOWS:-

· Substance abuse centres: spent 109%of its allocation. The province currently experiencing a high rise in the abuse of substance. Programme grossly under budgeted.

· Service centres: spent 65% -need for revised subsidy rates and parity in the sector to be addressed.

· Service centres : spent 76% of its budget –need for revised subsidy rates and parity in the sector to be addressed.

-95% of beneficiaries in this programme are non Africans

· Old age homes: Spent 71%- Diverse services to be subsidized

- 85% of the beneficiaries in this programme are non-Africans. Fast-track transformation

· Disability: spent 65% of its allocation - partial care centres especially for children and protective workshops to be provided. 86% of beneficiaries are non-africans.

· Childrens' homes: subsidy rates were increased and expenditure is at 74%.

· Creches: Massification of intake in the ECD centres has seen an increase in 181 to 272. Expenditure is at 75% of the allocation

- Newly registered creches equals 91

- Increase in the number of children equals 7,927

· Due to lack of capacity in CBOs, creches etc it takes a long time to register them in the system for subsidy.

EXPENDITURE TRENDS & % GROWTH OF SERVICES TO ECD

· The number of children receiving subsidies in ECD facilities indicates growth since 2006/2007 financial year with the following trend:

· Only 2% of the total population of children received a subsidy i.e. 5,058 out of the provincial total of 318,221 benefited from the subsidy.

· In 2007/2008 a growth of 2% is recognized on the ECD expenditure Year to date leading to 4% of the population benefiting. In numerical terms the number of children increased by 7,927 to a total of 12,985.

· The expected result would be an additional 13,087 children pushing the total subsidized children to 26,072 for the 2008/09 financial year.

· The department is further involved in analyzing the inequalities of services in municipalities as per population in each municipalities to secure equity in service delivery & optimize the anticipated socio-economic benefit.

EXPENDITURE TRENDS & % GROWTH OF SERVICES TO PEOPLE WITH DISABILITIES

· Service delivery to people with disabilities has not shown substantial growth & following are the trends as reviewed:

- In 2006/2007 financial year this service only reached only 316 people with disabilities with the southern District leading the pack at 263 followed by Bojanala, Central then Bophirima district with no facility at all for this service. This minimal number made up a humble 0.2% of the total provincial population of about 192,142 people with disabilities.

- 2007/2008 brought some changes after the inequality was noticed with the expenditure YTD showing some improvements in districts that were showing minimal levels of service delivery and also increasing the provincial number of subsidized persons by 276 from 316 to 592.

· This improvement is made up of Dr Kenneth Kaunda at 433, Bojanala at 102, Bophirima - 42 & Ngaka Modiri Molema at only 15.

- 2008/2009 it is anticipated that the inequalities will be addressed by the proposed per capita share of the allocation & subsequently bring the % of suasidized disabled persons to 1,013 in numerical terms.

· Provincial baseline study as well as reintroduction appeal boards to assist in accurate targeting.

EXPENDITURE TRENDS & GROWTH OF SERVICES TO ELDER PEOPLE

· Growth in delivering this service has the following trends:

- 63 older persons from 1 ,687 in 2006/07 11 ,850 based on the actual expenditure YTD for 2007/08

- 189 from 1,850 in 2007/08 to 2,039 in 2008/09 financial year

- Retirement age actualization expected to have implication.

3. Development and Research

· This programme's expenditure is at 52%

· Viability and feasibility assessments of business plans delay funding process.

- Capacity building for community base result in an increase in expenditure. The Department is engaging NDA for organisational and project management training.

ECONOMIC CLASSIFICATION OF EXPENDITURE

ADMINISTRATIVE EXPENDITURE

- 3% above target due to increase in inflation related costs and an awaited refund from SASSA to offset the overspending

PROFESSIONAL AND SPECIAL SERVICES

- 52% below target

- Payments for management of secure care centres to be effected. An amount of R4 million being the first claim was only paid in February

- Consultants to be paid for compiling infrastructure plans

OTHER GOODS AND SERVICES

- Major cost drivers are rental of buildings followed by security services and expenditure-to date is 64% of the allocation

BUDGET GROWTH ON MANAGEMENT & ADMINISTRATION

· An overall increase of 8% on the 2007/08 and 10% for 2009/10 on the 2008/09 with 5% in the last year of the MTEF.

· An increase of R18% on compensation of employees is attributed to the increase on salaries as well as appointment of key personnel.

· A further increase of 22% goods and services and equipment is to provide for administrative expenditure related to the appointed personnel as well as inflation.

· A reduction of 26% is due to the transfer of social welfare related expenditure to the relevant programme in line with the sector decisions. These expenditures include, rental of machinery and offices.

BUDGET GROWTH ON SOCIAL WELFARE SERVICES

The overall growth in this programme is R90,474million made up of the following

· The growth in crime prevention and support is R20,666 million which mainly makes provision for expansion of services to children in conflict with the law. This amount also includes an allocation for management of secure care centres.

· Professional and administration support grows by R19,800million to cater for employment of Social workers and auxiliary social workers. It also includes earmarked funds for the establishment of a new unit i.e monitoring and evaluation.

· HIV / AIDS is the third highest in terms of growth with an additional R12,185million and is mainly for expansion of services for Home Community Based Care.

· The budget for child care and protection services has grown by R9,649 million which is provision for the massification of intakes

· A growth of R6,892 million on services to the persons with disabilities is for expansion of services. Whereas substance abuse, prevention and rehabilitation increases by R6, 127 million as provision for an increase in the number of substance abuse centers.

· Care and support services to families budget grows by R5, 363 million for implementation of programmes and services to promote functionality and to prevent vulnerability in families.

·
A R2,200 million increase in Victim empowerment makes provision for implementation of integrated programmes and services to support, care and empower victims of violence and social crime particular women and children.

· The budget for Compensation of employees increases from R86 980 million in 2007/08 to R108 611 million in 2008/09 to allow for appointment of auxiliary social workers, Assistant probation officers and Social Work professionals.

· A growth of R63 856 on transfers to NGO'S, CSO'S etc is attributable to expansion of services to vulnerable women and children, older persons, people with disabilities etc who are in need of care and developmental programmes with the aim to unleash sustainable development potential in communities and families.

· The budget for goods and services increases from R67 827 in 2007/08 to R91 771 in 2008/09 in relation to the appointment of staff as well as considerations to the cost reduction policy. A further provision of R13 million to address backlogs on maintenance of buildings.

BUDGET GROWTH ON DEVELOMENT & RESEARCH

· An overall increase of 24% on the 2007/08 and 19% for 2009/1 0 on the 2008/09 with 9% in the last year of the MTEF.

· An increase of R67% on compensation of employees is attributed to the increase on salaries, appointment of Community Liaison officers including re-grading thereof.

· A further increase of 70% goods and services is to provide for administrative expenditure related to the appointed personnel as well as inflation.

A reduction of 55% on the Institutional Capacity building programme is as a result of internal reprioritisation in line with the 24 Apex priorities where more funds are allocated to youth, women and Poverty projects

REMEDIAL STEPS

· INFRASTRUCTURE

- Conditional grants from the national department ring-fence the funds

- Establishment of a directorate to manage infrastructure projects

· TRANSFERS AND SUBSIDIES

- Implement systems of transformation and equity based subsidy

- Redirect subsidy to rural and underserved areas

- Ensure parity in subsidy payments