ATC150507: Report of the Portfolio Committee on Social Development on the Budget Votes 17, the Strategic Plans and the Annual Performance Plans of the Department of Social Development and its Entities for 2015/16 dated 06 May 2015
Social Development
REPORT OF THE PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT ON THE BUDGET VOTES 17, THE STRATEGIC PLANS AND THE ANNUAL PERFORMANCE PLANS OF THE DEPARTMENT OF SOCIAL DEVELOPMENT AND ITS ENTITIES FOR 2015/16 DATED 06 May 2015
The Portfolio Committee on Social Development having considered and deliberated on the Budget Vote, the Annual Performance Plans and the Strategic Plans of the Department of Social Development and the South African Social Security Agency (SASSA) on 15 April 2015 and the National Development Agency (NDA) on 22 April 2015, wishes to report as follows:
- Introduction
The Committee’s mandate as prescribed by the Constitution of South Africa and the Rules of Parliament is to build an oversight process that ensures a quality process of scrutinising and overseeing government’s action that is driven by the ideal of realising a better quality of life for all people of South Africa.
The following institutions briefed the Committee: the Department of Social Development (DSD); the South African Social Security Agency (SASSA) and the National Development Agency (NDA).
- The Department of Social Development Strategic Plan and Annual Performance Plan
The Committee was briefed on the Strategic Plan and the Annual Performance Plan (APP) of the department and the following was presented:
The strategic plan 2015-2020 and the APP 2015/16 are a product of extensive consultations and review of the department’s work in the last government cycle. Furthermore, consultations were made with provincial departments, South African Social Security Agency (SASSA) National Development Agency (NDA) and other departments towards the development of the Medium Term Strategic Framework (MTEF) chapter on social protection. The APP was aligned with the National Development Plan (NDP) and the MTEF. The NDP call for the department to coordinate efforts towards an inclusive and responsive social protection system. The department will be driving the integration of the delivery of the social protection services under the Social Protection programme.
- The vision and mandate of the department
The vision of the department is that of a caring and integrated system of social development services that facilitates human development and improves the quality of life.
The department derives its mandate from several pieces of legislation and policies, including the White Paper for Social Welfare (1997) and the Population Policy (1998), which sets out the principles, guidelines, policies and programmes for developmental social welfare in South Africa. The White Paper for Social Welfare has provided the foundation for social welfare in the post-1994 era.
The constitutional mandate of the department 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.
The department’s mission is “to ensure the provision of comprehensive, integrated, sustainable and quality social development services and create an enabling environment for sustainable development in partnership with all those committed to building a caring society”.
- Key Strategic goals
The department will focus on the following sector priorities over the 2015/16 -2017/18 Medium Term Expenditure Framework (MTEF):
- Reforming the social welfare sector and services to deliver better results.
- Improve the provision of Early Childhood Development. All children should enjoy services and benefits aimed at facilitating access to nutrition, health care, education, social care and safety.
- Deepening social assistance and extending the scope for social security.
- Strengthening integrated community development interventions and improving household food and nutrition.
- Establish social protection systems to strengthen coordination, integration, planning, monitoring and evaluation of services.
4.1 Reforming the social welfare and services to deliver better results
4.1.1 Welfare Services: Transformation
Under this strategic priority, the department has set strategic objectives “to strengthen social welfare service delivery through legislative and policy reforms by 2019”.
Amongst the list of high level outputs on the above strategic objective the department plans to establish institutionalised oversight capacity for monitoring of quality standards by 2018/19. It will also review Social Welfare White Paper and develop the Social Development Act within the set target period. The department will also develop a legislation on the professionalization and regulation of social service practitioners. It will also strengthen older person’s services and propose amendments to the Older Persons Act 2006. It will also review dispensation for state-civil society partnership in the delivery of social welfare and community services.
4.1.2 Rights of persons with disability
Under this strategic priority the department has set a strategic objectives “to promote the empowerment and rights of persons with disabilities through the development and implementation of legislation, policies and programmes”.
In terms of the high level outputs the department intends to develop a legislative framework to protect and promote the rights of persons with disabilities and to develop and support implementation of the National Disability Rights Policy. The Policy on Social Welfare Services to persons with disabilities will be developed and implementation will be supported. Disability Inequality Index will be developed and tracked under the set timeframe.
4.2 Improve the provision of Early Childhood Development. All children should enjoy services and benefits aimed at facilitating access to nutrition, health care, education, social care and safety
4.2.1 Welfare Services: Children
The strategic objective of this key sector priority is “to strengthen child protection services and improve the quality of Early Childhood Development (ECD) services by 2019”.
Some of the high level outputs of this strategic objective include the development of ECD policy, develop regulatory framework aligned to the ECD policy, increase access to child care protection through adoption services, implementation of the Foster Care Project Plan, and implementation of the Transformation Plan for Child and Youth Care Centres (CYCCs). The department will implement the guidelines for the registration of Drop-in Centres in terms of the Children’s Act and review the Children’s Act.
4.3 Deepening social assistance and extending the scope for social security
4.3.1 Social Assistance
The strategic objective of this priority is to “extend the provision of social assistance to eligible individuals by 2019”
In respect of the high level outputs, the department provides through SASSA the social grants to eligible individuals. It plans to increase by 50% the Child Support Grant (CSG) value and reach 11, 4 million children who qualify for the grant by 2016/17.
Another strategic objective under this key sector priority is to have “an effective and efficient social security system that protects poor and vulnerable people against income poverty by 2019”.
The department has set the high level outputs to develop a policy proposals on the universalisation of the Older Persons and Child Support Grants and also to increase the value of CSG to orphans and vulnerable children. A policy on guaranteed employment and policy on mandatory cover for retirement, disability and survivor benefits would be developed.
4.4 Strengthening community development interventions
4.4.1 Community Development
The strategic objective of this priority is “to facilitate and coordinate community development efforts to build vibrant and sustainable communities by 2019”.
Amongst the high level outputs set by the department, it set to develop an Integrated Community Development Framework and Model and to enhance skills and competencies of Community Development Practitioners and Community Based organisations to facilitate effective community development. The department will further facilitate community mobilisation and development of community based plans for social transformation.
Another strategic objective of this key sector priority is to “contribute to poverty eradication and elimination of hunger through support to community driven programmes and the provision of food and nutrition security services by 2019”.
The high level outputs of this strategic objectives include the department’s goal to facilitate the establishment and support to community income generation initiative, link households to socio-economic activities and increase the number of vulnerable household and individuals accessing food through food security programmes.
4.5 Establish social protection systems to strengthen coordination, integration, planning monitoring and evaluation of services
The strategic objective of this objective is to “improve social development sector performance through monitoring and evaluation by 2019”.
To achieve this strategic objective the department will improve the Social Development Sector performance through monitoring and evaluation by 2019. It will implement monitoring and evaluation tools for the sector. These will include developing the National Integrated Social Protection System (NISPIS), common set of outcomes and systemic indicators and result based framework for social development.
- Programme performance
5.1 Programme 1: Administration
The purpose of this Programme is to provide strategic leadership, management and support services to the department and the sector. The total allocation for this programme for 2015/16 is R297 million, which increased from R291.4 million in the previous year. This indicates a nominal increase of 1.92 per cent (a real change of -.2.75 per cent).
In terms of the economic classification, the bulk of Programme 1’s budget goes toward current payments which include compensation of employees (R169.411 million) and goods and services (R124.715 million).
This programmes has the following sub-programmes
5.1.1 Departmental Management
This sub-programmes promotes effective planning, improves operational efficiency, and oversees the implementation of policies through monitoring and evaluation as well as entity oversight. For 2015/16 an amount of R69.9 million is allocated to this sub-programme.
- Intergovernmental Relations and Executive Support
The strategic objective of this sub-programme is to ensure effective and efficient decision-making and stakeholder relations by 2019. In terms of the high level output, it aims to have an effective functioning of the Forum of South African Director-Generals (FOSAD) and the Social Sector Cluster. It will also establish partnerships with stakeholders supporting the department’s initiatives and projects. It will also facilitate the promotion of four bilateral agreements and facilitate the department’s participation in six international bodies. For 2015/16, it has targeted to monitor and report on 100% of FOSAD Social Sector Cluster.
- Strategy Development and Business
The strategic objectives of this sub-programme is to improve Social Development Sector planning and programme implementation by 2019. In terms of the high level outputs, the department aims to review the Integrated Service Delivery Model (ISDM) for the Social Development Sector and pilot in for 2015/16 and 2016/17. It will then roll it out in 2017.18.
Another high-level output under this sub-programme is to develop a social infrastructure portfolio. In 2015/16 it will implement the new designs, spatial norms and standards for the construction of new facilities. It also plans to construct four public in-patient substance abuse treatment centres in North West, Northern Cape, Free State and Eastern Cape. It will capacitate 150 officials on gender mainstreaming during this financial year (2015/16). The department also plans to develop and pilot Complaints Management System (CMS) in 2015/16.
- Monitoring and Evaluation
The strategic objective of this sub-programme is to improve Social Development Sector through monitoring and evaluation by 2019. The department set a high level output to have an effective monitoring and evaluation system for the Social Development Sector. For 2015/16 the department has planned to update the social development sector monitoring and evaluation system and align it to the outcomes based model. As indicated earlier in the report, the department will design a National Integrated Social Protection System (NISPIS) and monitoring tools linked to sector priorities. It will also evaluate the implementation of the National Drug Master Plan, the Isibindi Model and the Foster Care Programme.
- Entity oversight
The strategic objectives of this sub-programme is to have an effective oversight of public entities reporting to the Department of Social Development by 2019. The high level outputs set under this sub-programme is to an improved integrated oversight and coordination through the development of Performance Information Management System (PIMS) for public entities.
5.1.2 Corporate Management
This sub-programmes provides administrative support to line functions within department. For 2015/16 an amount of R101.3 million was allocated to this sub-programme.
5.1.2.1 Human Capital Management
The strategic objective of this sub-programme is to ensure adequate capacity, capability and sound employee relations for the department to deliver on its mandate. The high level output set for this sub-programme is to fill posts within four months. In 2015/16 it will reduce the vacancy rate by 8%.
The department has plans to develop and approve the Human Resource Plan by 2015/16. The department will also implement the Annual Work Place Skills Plan. For 2015/16 it aims to achieve 100% attendance of employees attending identified skills development programmes. The department also plans to conclude 100% of grievances, complaints, disputes and disciplinary cases within the prescribed time frames.
5.1.2.2 Legal Services
The strategic objective of this sub-programme is to have an efficient and effective legal services for the Department of Social Development. For 2015/16, the department plans to respond to 90% of applications for appeals, letters of demand and practise directives within three days of receipt. It will communicate 90% of outcome letters within three days to the attorneys.
5.1.2.3 Communications
The strategic objectives of this sub-programme is to improve public access to DSD information and services and also to sustain employee engagements by 2017.
For 2015/16, the department has targeted to reach 27 million people through marketing and advertising initiatives and also reach 120 000 people via department’s website and social media. For this same financial year, it has also planned to organise 20 public participation events for the Minister and 20 for the Deputy Minister.
5.1.2.4 Information Management and Technology
The strategic objective of this sub-programme is to have an efficient ICT system and processes that enable planning and implementation of the department’s mandate by 2019. The department has planned to develop an ICT sector-wide strategy in line with Department of Public Service and Administration’s mandate. It also targeted to deploy information exchange platform for Integrated Justice System.
5.2 Programme 2: Social Assistance
The purpose of this programme is to provide social assistance to eligible beneficiaries in terms of the Social Assistance Act (no. 13 of 2004) and its regulations.
Programme 2 constitutes the bulk of the departmental budget (94.2 per cent), with a projection to pay social assistance to 17.5 million recipients by the end of 2017/18. Programme 2’s expenditure for 2015/16 totals R130 billion, which is an increase of 7.78 per cent from the previous year (real growth is 2.84 per cent).
|
Type of Grant |
Medium-term targets |
||
|
2015/16 |
2016/17 |
2017/18 |
|
|
Old age grant |
3 181 959 |
3 287 557 |
3 387 811 |
|
Child support grant |
12 042 973 |
12 339 567 |
12 528 065 |
|
War veterans grant |
223 |
160 |
103 |
|
Disability grant |
1 112 767 |
1 112 816 |
1 112 991 |
|
Care dependency grant |
142 180 |
146 583 |
151 382 |
|
Foster care grant |
490 538 |
504 191 |
515 601 |
|
Grant-in-aid |
104 232 |
110 486 |
117 115 |
|
Social relief reaching affected individuals timeously |
Process 160 000 applications |
Process 180 000 applications |
Process 190 000 applications |
Performance and expenditure trends
Expenditure on grants is expected to increase at an average annual rate of 7.3 per cent per year over the medium term, reaching R149 billion in 2017/18. This growth is mostly due to adjustments to the value of the grants and growth in the number of beneficiaries. Over the medium term, an amount to the value of R123.9 million has been shifted to the department from the former Department of Women, Children and People with Disabilities. The only social grant that is likely to decline in the number of beneficiaries is the War Veterans Grant due to natural attrition.
5.3 Programme 3: Social Security and Administration
The purpose of this programme is to provide for social security policy development administrative justice and the administration of social grant reduction of incorrect benefits payments.
Programme 3 is tasked with developing social security policy, facilitating administrative justice, administering social grants and reducing incorrect payment benefits. The bulk of this programme’s budget (97.4%) is therefore transferred to the South African Social Security Agency (SASSA) to fund its operations, while about 1.2% is intended for the Special Investigation Unit to fund its work.
Income poverty
For 2015/16, the following outputs are planned in order to protect poor and vulnerable people against income poverty:
- Commence work towards a Policy for a guaranteed employment scheme – in 2015/16 the focus will be on developing policy options for the scheme. During the following year, the department will conduct a feasibility study, and the public consultation process is planned for 2017/18.
- Develop a Policy on mandatory cover for retirement, disability and survivor benefits. Consultation on the proposed policy is planned for 2015/16, followed by drafting relevant legislation the following year.
- Developed a Policy on the inclusion of informal sector workers in 2015/16.
- Expand the Child Support Grant (CSG) to orphans and vulnerable children – consultations and costing process to be completed in 2015/16.
- Complete a discussion paper on the universalization of the Older Persons Grant.
Performance and expenditure trends
For 2015/16, Programme 3’s budget increases with 2.1 per cent nominally (declining with 2.58 per cent in real terms). Programme 3’s total allocation for 2015/16 is R6.7 billion, of which R6.5 billion is transferred to the South African Social Security Agency (SASSA) for its own operational costs, as well as for administrating social grant. In 2014/15, Programme 3’s allocation was R6.6 billion.
Transfers to SASSA make up 98.6 per cent of the Programme 3’s budget. The transfers fund both the administration and distribution of social grants. Administration costs constituted 5.5 per cent of the budget for social assistance grants in 2013/14 but are expected to decline to 5 per cent in 2017/18, partly due to efficiencies from the new payment contract implemented in 2012/13.
5.4 Programme 4: Welfare Services Policy Development and Implementation support
The purpose of this programme is to create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards, and best practices. It also provides support to the implementation agencies.
5.4.1 Service Standards
The strategic objective of this sub-programme is to strengthen social welfare service delivery through the legislative and policy reforms by 2019. An amount of R27.6 million is allocated for this sub-programme. The high-level output for this goal is the review of the implementation of the White Paper for Social Welfare. For the 2015/16 financial year the department will award 1 300 new scholarship to social work students.
The department through this sub-programme will develop a social work supervision programme and facilitate its implementation in 2015/16. For 2015/16, the department will develop a Draft Recruitment and Retention Strategy for social service practitioners.
For the year under review the department set a target to develop a policy and guidelines for social work veterans’ programme which will be implemented and monitored in 2016/17 financial year. It also aims to develop a policy for the social work veterans. The department will also finalise amendments to the Older Persons Act by 2015/16.
5.4.2 Children
A number of performance targets have been directed at strengthening child protection and improving Early Childhood Development (ECD) services. For 2015/16, the budget allocated for this sub-programme amounts to R80.3 million. The target of the department is to increase the number of children accessing ECDs by 10% from its 129 955 baseline. In 2014/15, the ECD Policy was finalised, and the intention is to approve the Policy and the comprehensive ECD programme during the current year (2015/16). In addition, a human resource plan for ECDs will be developed during 2015/16.
The Children’s Act is set for a review, and the Amendment Bill will be submitted for Cabinet approval in 2015/16. The Bill is likely to be tabled in Parliament during 2016/17. The department will also screen a total of 30 000 people who are working with children against Part B of the Child Protection Register, as provided for in the Children’s Act. With respect to the Child Justice Act, the department will continue to monitor accredited service providers providing diversion programmes in all provinces.
5.4.3 Social Crime Prevention and Victim Empowerment
The strategic objective of this sub-programme is to reduce the incidences of social crime, substance abuse and facilitate the provision of support services to target groups by 2019. An amount of R59.9 million is allocated for this sub-programme. Through this sub-programme the department will monitor accredited service providers providing diversion programmes in 9 provinces.
The department intends to submit a Bill on Victim Support Services to Cabinet in 2015/16 financial year. It will also monitor the implementation of gender based violence prevention programs. It will develop an Inter-sectoral Strategy for VEP programme and develop a Monitoring and Evaluation system for this programme. The department will provide training to 9 provinces on policy framework for the accreditation of services and programmes for the victims of human trafficking.
5.4.4 Youth
The goal of this sub-programme is to empower youths for sustainable development and social change. It develops and facilitates the implementation of policies, legislation and programmes to protect vulnerable youth. An amount of R12.2 million is allocated for this sub-rogramme.
The department has set a target to ensure that by the end of the 2015/16 financial year, 8 000 youth will be participating in mobilisation programmes. It also intends to establish 52 youth clubs and review Youth Development Strategy from the period of 2014-2019. A total number of 1 400 youths are targeted to attend a leadership camps.
5.4.5 HIV and AIDS
The strategic objective of the sub-programme is to contribute to the reduction in HIV risky behaviours and promote psychosocial wellbeing amongst targeted key populations by 2019. An amount of R81.2 million is allocated for this sub-programme.
The department will provide training to 500 implementers on social behaviour change and train 300 facilitators on Community Capacity Enhancement (CCE).
5.4.6 Rights of persons with disabilities
The strategic goal of this sub-programme is to promote, protect and empower persons with disabilities through the development and implementation of legislation, policies and programmes. An amount of R28.5 million is allocated for this sub-programme.
The department has set a high level output to develop a National Disability Rights Policy and ensure that the implementation tool is supported. For 2015/16, the department will finalise the Disability Inequality Index. The department goal is to ensure access to disability welfare services and that promote dignity, empowerment and self-reliance is improved. It will cost the norms and standards for residential facilities. The department will also develop a transformation plan for protective workshops.
Performance and expenditure trends
Programme 4’s overall budget for 2015/16 increases nominally with 3.52 per cent, some of its sub-programmes experiences above average increases, i.e. the Children (16.0 per cent) and Social Crime Prevention & VEP (13.5 per cent). These increase reflects the commitments made in the 2015 SONA to increase the fight against crime, especially against women and children. The growth in the Children sub-programme is also reflective of serious inroads the department intends to make with respect to Early Childhood Development (ECD) and protecting the rights of children during 2015/16.
- Programme 5: Social Policy and Integrated Service Delivery
- Registration and Monitoring of Non-Profit Organisations
The strategic objective of this sub-programme is to create an enabling environment for NPOs to deliver effective services by 2019. The department intends to process 98% of applications for registration of NPOs within two months. It will conduct NPO roadshows in 70 local municipalities. The department will also draft a NPO Amendment Bill which is set to be promulgated in 2016/17. For 2015/16, a total of 600 000 vulnerable individuals and 40 000 households will be targeted for food security programmes.
With regard to capacity building and support framework implementation, the department envisages to provide training to 3 000 NPOs. This programme has been allocated a budget allocation of R39.8 million for 2015/16 financial year.
- Population Policy Promotion
The strategic objective of this sub-programme is to facilitate, monitor and build capacity for the implementation of the Population Policy and the Internal Conference on Population and Development (ICPD) PoA. The budget allocation for this sub-programme is R27.2 million for 2015/16 financial year.
The department will coordinate and monitor the National Adolescent Sexual Reproductive Health and Rights (ASRHR) Framework Strategy and Inter-Ministerial Committee (IMC).
- Special Projects and Innovation
The strategic goal of this sub-programme is to facilitate management and coordination of cross-cutting functions for DSD and Social Cluster. The department will create 46 768 work opportunities and 2 271 Full Time Equivalents created through the Incentive Grant.
Also, the department will facilitate the provision of seven psychosocial and social assistance programmes to Military Veterans. In 2015/16 financial year the department has set a target to facilitate the provision of integrated Department of Social Development services to 42 Community Work Programme (CWPs) sites. An amount of R184.3 million was allocated for this sub-programme for 2015/16 financial year.
- Community Development
This sub-programme develops and implements policies, strategies, guidelines and programmes to contribute towards the building of sustainable communities free from poverty and hunger.
The budget allocation for this sub-programme amounts to R94.7 million for 2015/16 financial year. The department through this sub-programme will develop and implement the Community Development Policy Framework. It also plans to profile 100 000 households each financial year of the medium term period through Project Mikondzo. The department will also support and link 400 households to socio-economic opportunities in 2015/16, 540 and 500 households in 2016/17 and 2017/18 respectively.
Performance and expenditure trends
The budget for Programme 5 increases from R346.9 million in 2014/15 to R359.9 million in 2015/16, denoting a nominal increase of 3.75 per cent and a real change of -1.0 per cent. The National Development Agency (NDA) is, located within this programme and its budget for 2015/16 is R184.4 million. The NDA allocation is slightly below the average increase for the programme (i.e. 3.4 per cent nominally and -1.32 per cent real terms).
The Community Development sub-programme experiences the strongest growth under Programme 5 (11.01 per cent nominal and 5.92 real terms).
- Financial implications
This budget analysis aims to describe the department’s linkages between policy priorities, performance outcomes, budget allocations and expenditure trends.
The table below shows the budget allocation per programme. The department’s budget for the 2015/16 – 2017/18 MTEF has increased in order to meet the needs of vulnerable and previously disadvantaged groups and persons, thereby responding to the priorities mentioned in the 2015 State of the Nation Address (SONA). These include: increasing social grants and welfare support to all vulnerable groups (children, older persons, and people with disabilities, women and poor people from especially rural areas. The following table shows the department’s operational programme budget for the 2015/16 – 2017/18 MTEF.
Table 1: Social Development Operational Programme Budget: 2015/16
Nominal change: Unadjusted for inflation
Real change: Adjusted for inflation
|
Programme |
Budget |
Nominal Rand change |
Real Rand change |
Nominal % change |
Real % change |
|||
|
R million |
2014/15 |
2015/16 |
2016/17 |
2017/18 |
2014/15-2015/16 |
2014/15-2015/16 |
||
|
P 1: Administration |
291.4 |
297.0 |
311.4 |
328.6 |
5.6 |
- 8.0 |
1.92 |
-2.75 |
|
P2: Social Assistance |
120 702.1 |
130 093.3 |
139 556.4 |
148 934.2 |
9 391.2 |
3 432.7 |
7.78 |
2.84 |
|
P 3: Social Security Policy and Administration |
6 617.3 |
6 756.2 |
7 169.9 |
7 582.7 |
138.9 |
-170.5 |
2.10 |
-2.58 |
|
P4: Welfare Services Policy Development Implement Support |
639.9 |
662.4 |
691.6 |
676.1 |
22.5 |
- 7.8 |
3.52 |
-1.23 |
|
P5: Social Policy And Integrated Service Delivery |
346.9 |
359.9 |
377.0 |
395.8 |
13.0 |
- 3.5 |
3.75 |
-1.00 |
|
TOTAL |
128 597.6 |
138 168.8 |
148 106.3 |
157 917.4 |
9 571.2 |
3 242.9 |
7.44 |
2.52 |
- Committee’s concluding remarks
The social development sector operates and delivers services that address social issues are dynamic and therefore constantly changing by nature. This means that the department’s policy provisions and services need to be reviewed and adjusted as challenges arise. Proper monitoring and evaluation becomes critical tool to ensure that the department responds to the challenges. The Committee had on a number of occasions pointed out the need for impact assessment of the department’s programmes. In addition, the Committee had raised a concern over the lack of adequate monitoring of residential facilities, which had resulted in programmes not applied uniformly across provinces. It is therefore pleased that the department over the MTEF period is planning to develop monitoring and evaluation tools as well integrated system to improve implementation of sector priorities.
The department is implementing important legislation – the Children’s Act, Older Person’s Act, the Prevention of and Treatment of Substance Abuse Act as well as the Child Justice Act of the Department of Justice and Constitutional Development. Implementation of these pieces of legislation requires the department to have expanded human resources. Furthermore, the personnel has to be properly trained and capacitated. The Committee therefore commends the department for setting a target to develop a Five Year Human Resource Plan.
The Committee further welcomes the department’s target to review the White Paper on Social Welfare Services, the National Strategic Framework for Foster Care, implement the Integrated Social Crime Prevention Strategy Action Plan, National Disability Rights Policy and Human Resource Plan for Early Childhood Development Plan (ECD). This shows the department’s commitment to address service delivery challenges that arose due to fragmented delivery of welfare services, delays in the reviews of Foster Care system, increasing abuse and violence against women, children, capacity building and training of ECD practitioners and exclusion and marginalisation of people with disabilities.
- The South African Social Security Agency (SASSA) 2015/2016 Annual Performance Plan
The Committee was briefed on the APP of SASSA and the following was presented:
The work of the South African Social Security Agency, which administers social assistance grants, is integral to the NDP’s aims of advancing social protection. The Agency set a strategic objective to increase the coverage of the Child Support Grant (CSG) and the Old Age Pension (OAP). It will also implement systems that will improve the overall administration of the social assistance programme. The 2015/16 social assistance budget allocation of R120 billion will largely be spent on assisting vulnerable groups.
8.1 Key priorities for 2015/16 – 2018/19
The key priorities of the Agency for the Medium Term Expenditure Framework (MTEF) 2015/16 – 2018/19 are as follows:
- Reduce income poverty by providing social assistance to eligible individuals
- improving the service delivery by making people’s dealings with government easier through better delivery and coordination of services;
- Improving the organisational efficiency by modernising the agency’s business processes;
- Automation of business systems;
- Institutionalising social grants payment system within SASSA
SASSA identified seven (7) key priority areas, which were reported as follows:
8.1.1 Implementation of the Social Assistance Programme
The objective of this priority project is to provide social assistance to qualify/eligible beneficiaries. The Agency aims to increase the number of grants in payment from 16 052 000 to 17 007 169 by end of 2015/16. For 2015/16, SASSA targeted to reach at least 1.3 million new beneficiaries and increase the number of grants in payment from 16 052 000 to 17 007 169. It also targeted to increase the number of children aged between 0 – 1 in receipt of Child Support Grant by 10% (50 000 benefits). The objective is to remove errors that led to the exclusion of over 2 million children. About 400 000 Social Relief of Distress benefits will be processed and provided to families under distress.
The second objective under this priority project is to manage backlog reviews of Foster Care Grants by conducting reviews for the Foster Care Grants in collaboration with the Department of Social Development. In order to reduce the backlog in the review of the Foster Care Grant (FCG) the Agency has planned to conduct 125 214 FCG reviews. It will also conduct 170 869 of new FCG.
8.1.2 Improved internal efficiency – payment data
The objective of this sub-programme is to reduce inclusion errors by eliminating beneficiaries who entered the system wrongly. For 2015/16, the Agency will conduct beneficiary biometric data clean-up focusing on the following:
- Elimination of duplicate fingerprints for both adults and children. A total of 81 981 finger prints sets will be targeted;
- Investigation of finger prints exceptions identified through the Department of Home Affairs. The target is to investigate 723 415 finger prints for the current financial year (2015/16);
- Insourcing the biometric enrolment system for beneficiaries. A new system will be developed and implemented at identified sites;
- Intensifying fraud prevention and investigation measures.
The second objective of this sub-programme is to improve management of Regulation 26 A by eliminating illegal deductions or multiple deductions from the social grants. For 2015/16 the Agency has planned to obtain mandates from beneficiaries to ensure that only regulated 10% funeral deduction are affected. This will be achieved by developing guidelines for management of deductions, visiting 585 981 beneficiaries with existing funeral policies to confirm and obtain mandates, addressing all new requests by beneficiaries in line with the revised guidelines and manage complaints received.
8.1.3 Improved service delivery
The objective of the sub-programme is to take services and information to communities in order to improve public participation. For 2015/16, SASSA has planned to intensify community outreach programmes through the following:
- 420 integrated community registration programmes and increased access to SASSA services mobile registration services;
- Conducting door to door campaigns;
- Conducting 200 public and beneficiary education awareness programmes; and
- Establishing of 36 Mikondzo service delivery campaigns.
The other objectives of this sub-programme are to improve the conditions of SASSA offices and obtain acquisition and maintenance of suitable infrastructure in areas that are strategically located to serve the beneficiaries.
The activities planned by the Agency to achieve the aforementioned objectives include conducting audit of all improved local offices to confirm improvements and establish whether there are outstanding offices that require further improvements. It will also eliminate open space pay-points by converting at least 300 out of 4 000 identified open pay points into fixed structures. This will be done through building structures and in some cases migrating the pay-points to alternative community structures and/or payment channels.
8.1.4 Improved organisational efficiency
The objective of this sub-programme is to improve human resource management. To achieve this objective, SASSA will revise its Human Resource Plan to align it and its structure to the new organisational needs. It will ensure that 95% of all funded post are filled. It will also establish an in-house vetting unit in order to fast track the vetting of all SASSA staff. It also plans to strengthen communication and engagements with staff particularly in the local offices and service points.
8.1.5 Automation
SASSA has set an objective to have automated systems and processes. This will be achieved by undertaking the following planned activities:
- implementing a biometric access system for staff, targeting 5 000 users;
- migrating from Novell system to Microsoft – 3 500 users will be migrated;
- automating registries by implementing scanning solution;
- implementing the Enterprise Business Intelligence by developing a data warehouse;
- developing the following social grants business solutions:
- application management system for Social Relief of Distress;
- application management system for disability grants; and
- electronic queue management system.
- Financial implications
For 2015/16 SASSA received a budget allocation of R6.6 billion administration cost as a percentage of social assistance transfers budget. The Compensation of Employees economic (CoE) classification accounted for the bulk (42%) allocation of the budget. This exceeded the budget allocation (32%) of Cash Handling Fees economic classification. This was due to a decrease in contractors cost and increased personnel capacity. This trend will be maintained over the medium term period.
The budget transfer to SASSA will also see deductions of R55 million over the three financial years to provide additional funding towards capacitation of the Department of Social Development. Furthermore, the budget baseline of the Agency will experience reductions of R117 million in 2015/16, R71 million in 2016/17 and R23 million in 2017/18. This is due to the R2 billion savings that SASSA gained from the re-registration process.
- Risks and challenges
The Agency reported that it faced following challenges and risks:
- payment tender delays due to ongoing court challenges;
- decreasing financial resources;
- fraud theft and corruption;
- disasters resulting in pressures on the Social Relief of Distress; and
- unintended consequences of the payment process.
- Committee’s concluding remarks
Research studies have found that social assistance programme has had significant contribution towards the eradication of poverty in the country. The Committee was however seriously concerned that this programme has experienced fraudulent activities, including unauthorised deductions, among others. It therefore welcomes SASSA’s objective to address this problem by improving management of Regulation 26 A and developing guidelines to manage the regulated deductions. The Committee however, continues to be concerned about the persistent problem of money lenders. Even though the APP is silent on targets to address this problem, the Committee advises that SASSA should also look at addressing it as it manages the regulated deductions.
The Committee further commends SASSA for setting a target to upgrade open space pay points, converting them into building structures. It is also pleased with SASSA’s target to implement an electronic queue management system. The Committee had been continuously concerned over the long queues at pay points as well lack of infrastructure at some pay points.
- The National Development Agency (NDA) 2015/2016 Annual Performance Plan
The Committee was briefed on the APP of SASSA and the following was presented:
12.1 Legislative mandate of the NDA
The NDA’s two-fold legislative mandate, consisting of a primary and a secondary mandate, is in the main to contribute towards the eradication of poverty and its causes. This is achieved through the granting of funds to Civil Society Organisations (CSOs) to enable them to implement development projects in poor communities. The NDA is also charged with strengthening the institutional capacity of other civil society organisations which provide services to poor communities.
Primary mandate
The NDA’s primary mandate 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 civil society organisation involved in direct service provision to poor communities.
Secondary mandate
The NDA secondary mandate of the NDA is to promote consultation, dialogue and sharing of development experience between civil society organisations and relevant organs of state; debate on development policy; and undertake research and publications aimed at providing the basis for development.
To implement the NDP’s priorities, the NDA redefined its strategic objectives and put more focus on capacitating the Civil Society Organisations (CSOs). The redefined objectives were reported as follows:
- Building the capacities of civil society, through structured formal training of CSOs staff, mentoring of CSOs staff and establishing incubation programmes for CSOs;
- Grant funding to civil society organisations targeted to specific areas that can assist organisations to sustain and expand its service delivery objectives;
- Expansion of partnerships with the public sector, private sector and the civil society sector for purposes of leveraging resources that can be channelled to development of the civil society sector; and
- Promotion of NDA's work to attract support, funding and increase the demand of NDA programmes by its target audience and stakeholders.
12.2 Programme and sub-programmes performance
12.2.1 Programme 1: Resource Mobilisation for CSOs
The strategic objectives set by the NDA over the Medium Term Expenditure Framework are to mobilise R420m to enable CSO to implement development programmes by 2017/18 and establish community development foundations for effective CSOs community operations in 52 districts.
It will achieve the above mentioned objectives by creating an enabling environment for CSOs through grant funding, mobilise donor funding of R120 million for the current financial year, provide grant funding to 150 CSOs, develop a community development foundation (CDF) model and pilot it in nine (9) sites. This programme is allocated a budget of R1.2 million for the 2015/16 financial year.
12.2.2 Programme 2: Capacity Building for CSOs
The strategic objective of the NDA over the MTEF, is to build the capacity of CSOs across the country to improve the quality of service delivered and their sustainability. Over the medium term period, the Agency has a target to train, mentor and incubate 13 000 CSOs and their umbrella bodies.
For 2015/16 financial year it will train, mentor and incubate 2 980 CSOs and capacitate 5 480 CSOs umbrella bodies and nine (9) Community Development Forums. This programme is allocated a budget of R83.9 million for the 2015/16 financial year.
12.2.3 Programme 3: Civil Society Mobilisation and Advocacy
The strategic objective of this programme is to re-build the CSOs sector through mobilizing and facilitating the re-organisation of the social sector. It will promote citizenry through consultation, dialogues and sharing of development experience between CSOs and relevant organs of state in all 52 district municipalities by 2017/18.
For 2015/16 financial year, it set a target to organise 9 consultations with social partners on CSOs participating in the national development programmes. A budget of R 1.8 million was allocated for this programme for the 2015/16 financial year.
12.2.4 Programme 4: Research and Knowledge Management
The strategic objective of this programme is to undertake 10 action research and publications that informs policy development and good practice by 2017/18.
The Agency through this programme will focus on conducting action research and impact evaluative studies that can be used to inform national policy debates and enhancement of CSOs programmes and projects. For 2015/16, the NDA plans to hold 3 policy engagements with government and CSOs sector and also conduct two action research. This programme has been allocated a budget of R6.9 million for 2015/16 financial year.
12.2.5 Programme 5: Governance and Administration
The strategic objective of this programme is to strengthen the internal capacity, systems and processes to improve operation efficiency and effectiveness by 2017/18.
The focus of this programme is on promoting and maintaining organisational excellence and sustainability. It will finalise a new NDA business plan and model in 2015/16 financial year. In addition, the NDA has a target to achieve 70 per cent positive rating on NDA brand recognition. This sub-programme was allocated a budget of R91.1 million for the 2015/16 financial year.
- Committee’s concluding remarks
The Committee notes that the Agency set a target to address the concern it had raised on the lack of the Agency’s visibility and branding. This is important for the Agency as it plays very important role of being a conduit between government and communities in the fight against poverty. It also commends the NDA for redefining its programmes to focus more on its core mandate of poverty alleviation, income generation and grant funding.
- Committee’s overview and assessment of the Department of Social Development, SASSA and NDA’s Annual Performance Plans and Budget to the National Development Plan, 2015/16 – 2017/18
The Department of Social Development and its entities have an obligation to implement the National Development Plan (NDP) priorities that have relevance to their mandate. These include provision of comprehensive social security; social protection; promotion of youth employment; universal access to Early Childhood Development; expansion of public employment; expansion of social welfare services; creation of a national register that will integrate all databases of people who receive different forms of social security services and use of social audit to enhance accountability in the welfare system. These priorities were thereafter translated into government policy objectives in the Medium Term Strategic Framework (MTEF).
The MTEF) priorities and targets that have relevance to the social development sector include provision of a comprehensive, responsive and sustainable social protection system; achieving decent employment through inclusive growth; ensuring that all people in South Africa are and feel safe; creating vibrant, equitable, sustainable rural communities that contribute towards food security for all; achieving an efficient, effective and development-oriented public service; and formulating a diverse, socially cohesive society with a common national identity.
The department operationalised the priorities of the NDP and MTEF by formulating the following sector priorities that were outlined earlier in the report.
14.1 Mandate of the Committee
It is mandate of the Committee to scrutinise how the budget allocation, strategic objectives and Annual Performance Plans (APP) of the department and its entities align to each other and ultimately to the NDP and MTEF. Budget allocations to various programmes and sub-programmes provide an indication of the alignment budget and the strategic objectives.
14.2 Assessment of the alignment of the department’s and its entities’ APPs, budget to the NDP
Pertaining to the NDP priority of using social audit to enhance accountability in the social welfare system, the department set a strategic priority to establish social protection systems to strengthen coordination, integration, planning and monitoring and evaluation. The Committee observes that the department, under Programme 1 plans to develop systems and tools that will improve performance in the service delivery, integration and monitoring and evaluation. The implementation of the National Integrated Social Protection System (NISPIS) will go a long way in improving the integration of sector priorities. The Committee hopes that the implementation of these systems will addresses the concern it had raised with the department of the need to improve integration of service delivery. The budget allocation to Departmental Management sub-programme, which is responsible for promoting effective planning, operational efficiency and implementation of policies will increase from R69.9 million in 2015/16 to R76.9 million in 2017/18.
The implementation of the aforementioned NDP priority is further reflected in SASSA’s strategic objective of implementing special automation projects – development of data warehouse and Enterprise Intelligence Solution that will integrate SASSA payment system with the Department of Home Affairs, Department of Basic Education, the South African Reserve Bank, Department of Social Development, South African Revenue Service and municipalities. The budget allocation for these special projects is reflected in computer service allocation whose budget has increased from R496 million in 2013/14 to R531 million in 2014/15.
To implement the NDP’s provision of expanding social protection, the Committee notes that the department set performance targets to achieve its strategic objective to develop a social security system that would protect the poor and vulnerable people against income poverty. The Committee welcomes the department’s objective to universalise the Old Age Pension (OAP), Child Support Grant (CSG) and expanding the CSG to orphans and vulnerable children. It is however concerned that funding requests to National Treasury for universalisation was not approved for the entire medium term period.
The Committee also notes that the budget allocation for the Social Security Policy sub-programme (under Programme 3), which is responsible for the reforms in the social security policy, increases from R48.4 million in 2015/16 to R52. 6 million in 2017/18. However, compared to the 2014/15 budget allocation of R51.9 million, it can be seen that there will be a decrease in the budget allocation of 2015/16 and 2016/17 (R50 million). This is contrary to the other sub-programme budget allocations, which will see an increase. The Committee notes with concern that the delay in the finalisation of the discussion paper on the universalisation of the OAP resulted in the completion of the discussion paper on the universalisation of the CSG being put on hold until the discussion paper on the universalisation of OAP is finalised.
In addition to the NDP priority of expansion of the social protection, the Committee welcomes the increased budget allocation to sub-programme Community Development (under Programme 5) which is due to the bulk amount allocated to Project Mikondzo. It acknowledges that this project is critical in enabling households to have acceptable or decent standard of living by being able to access all essential services. This project has been essential in linking different spheres of government thereby contributing towards the achievement of the NDP’s priority of integration of services of different government departments. Furthermore, the Committee applauses the department’s objective of developing and implementing the Community Development Policy Framework as a way of contributing towards the implementation of the NDP’s priority of government creating vibrant and sustainable communities. It further welcomes the department’s plan to link a total of 1 350 households to socio-economic opportunities over the medium term period. The budget allocation of Community Development sub-programme increased from R58.3 million in 2013/14 to R103.1 million in 2017/18.
The Committee notes the department’s strategic objectives to implement NDP’s priority of expansion of social welfare services. Over the past years, the Committee has been concerned over the alarming increase of social crime committed, particularly against women and children. The Committee welcomes an increased budget allocation to sub-programmes Children, Social Crime Prevention and Victim Empowerment, Families and Social Work Scholarship (under Programme 4). Despite this budget increase the Committee is concerned that the provincial funding requests for ECD expansion and registration as well as Isibindi Child and Youth Care Workers over medium term period were not approved by National Treasury.
One way the department responds to the NDP priority of expansion of public employment is through the awarding of social work scholarships to social work students and facilitating their absorption into the workplace. Similarly, the Committee notes with concern that provincial funding request for the absorption of these graduates was also not approved by National Treasury and yet this is critical is addressing the continuing shortage of social workers.
As part of expanding the social welfare services the NDP recognised that not-for-profit organisations (NPOs) have an important role to play in ensuring that social welfare services are implemented. It makes it a requirement that capacity building and funding of these organisations are improved. The Committee is pleased that the budget allocation of sub-programme Registration and Monitoring of Non-Profit Organisations (under Programme 5) has exponentially increased from R24.7 million in 2013/14 to R34.1 million in 2017/18.
In line with this, the Committee is welcomes the strategic shift of the NDA’s to focus on expanding its financial and non-financial support to the NPOs by formulating three programmes that will be specifically dedicated to assist the NPOs.
- Technical assessment
The Committee notes with concern that the department’s reporting format of Programme 1 and 5 were not aligned to the format of the Strategic Plan and the APP. The presentation on these programmes did not locate the high level outputs under the sub-programmes they fall under as reported in the Strategic Plan and the APP.
The Committee further notes a non-alignment of the sub-programmes reported in the APP and those reported in the Estimates of National Expenditure (ENE) under sub-programme expenditure trends. The APP only reported on five (5) sub-programmes whereas the ENE reported budget allocation to eight (8) sub-programmes. The ENE shows budget allocation of R6.1 million to Substance Abuse Advisory Services and Oversight, R184 million to the National Development Agency and R3.1 million to Programme Management in 2015/16 financial year. Annual performance plans of these sub-programmes are however not reflected in the Strategic Plan and the APP.
The Committee is seriously concerned about these discrepancies as they have implications on it exercising proper oversight on the quarterly and annual performance of these programmes.
- Observations
- The Committee is seriously concerned that it was not informed and involved in the decision to deduct R50 million from the transfer allocated to SASSA to fund DSD programmes for 2014/15 and R55 million over the medium term period. It felt that the decision had political implications because the Committee has a constitutional mandate to approve the budget of the department.
- The Committee is concerned that under sub-programme Strategy Development and Business of Programme 1, the department included a performance indicator of establishing four in-patient treatment centres. It is of the view that this indicator should have been placed under Programme 4, sub-programme Substance Abuse.
- Recommendations
The Committee recommends that:
- The Minister of Social Development should ensure that Child and Youth Care Worker services are professionalised and there is proper supervision of these workers.
- The Minister should ensure that services and training provided at the Youth Clubs are designed to address issues that affect the youth, separating them from the general community issues. These services should focus on psychosocial support to help youth deal with social issues affecting them. This should be over and above the skills development and employment programmes that are currently provided and planned for.
- The Minister should ensure that the Committee is always informed of important decisions that have significant budget implications. The Committee should also be informed of the findings and outcomes of advisory committees or task teams, on certain policy issues that needed to be investigated.
- The Minister should ensure in future that the presentation format of Programme 1 and 5 is aligned to the reporting format in the APP and Strategic Plan. The Minister should also ensure that the department makes sure that the sub-programmes of Programme 5 listed in the Estimates of National Expenditure are the same as those reported on in the Strategic Plan and the APP.
- The Minister should advise the department to place the performance indicator of establishing four in-patient substance abuse treatment centres under Programme 4, under sub-programme Substance Abuse. Programme 4 is responsible for creating an enabling environment for the delivery of social welfare services.
- The Minister of Social Development together with National Treasury should consider increasing the budget of the NDA.
- The Minister should ensure that SASSA reports on the human resource capacity and vacancy rate based on existing organisational structure to provide a clear reflection of the status quo. The new human resource plan should therefore be reported on when the new organisational system has been implemented.
Report to be considered.
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