ATC201019: Report of the Portfolio Committee on Social Development on the First Quarter Performance and Expenditure Report for 2019/2020 of the Department of Social Development, dated 14 October 2020

Social Development

Report of the Portfolio Committee on Social Development on the First Quarter Performance and Expenditure Report for 2019/2020 of the Department of Social Development, dated 14 October 2020  

 

The Portfolio Committee on Social Development (hereinafter referred to as the Committee) having examined the First Quarter Performance and Expenditure Report for 2019/2020 of the Department of Social Development (hereinafter referred to as the Department or DSD) on 6 November 2019, reports as follows:

 

1.      Introduction

 

The Quarterly Performance and Expenditure Reports of the Departments are compiled in accordance with the requirements of Section 92 of the Constitution of the Republic of South Africa 1996, Department of Performance, Monitoring and Evaluation (DPME) Guidelines on the Preparation of Quarterly Performance Reports. It is also compiled according to other government legislative prescripts such as the Public Finance Management Act (PFMA) (Act No.1 of 1999), relevant National Treasury Regulations and Frameworks. These guide performance managements in the public sector to display and promote transparency and accountability to stakeholders and the general public.

 

To monitor performance and expenditure of the Departments, Committees of Parliament are obliged to consider quarterly reports of the Departments.

 

2. Mandate of the Committee

 

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 scrutinizing and overseeing the department’s action. It is to conduct oversight that is driven by the ideal of realizing a better quality of life for all people of South Africa.  The Committee is also required to facilitate public participation, monitoring and oversight over the legislative processes relating to social development. In doing this, it also confers with relevant governmental and civil society organs on social development matters.

 

The Committee also enhances and develops the capacity of its members to exercise effective oversight over the Executive Authority in social development.  It monitors whether the Department of Social Development fulfils its mandate according to priorities. 

 

It also has a mandate to perform the following:

• Considers legislation referred to it;
• Conducts oversight of any organ (s) of the state and constitutional institution(s) falling within its portfolio;
• Facilitates appointment of candidates to entities;
• Considers international agreements; and
• Considers budget of department and entities falling within its portfolio.

 

For the current medium term (2014 – 2019), the Committee’s oversight focuses on the department and its entities performance with regard to the implementation of the priorities set in the National Development Plan and in the Medium Term Strategic Framework.

 

3.     The Department of Social Development (the Department)

 

3. 1 The Mandate of the Department

 

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.

 

3.2 Strategic Goals and Objectives of the Department

 

The key strategic goals (SGs) of the Department are derived from the Medium Term Strategic Framework (MTEF) for 2014 – 19 with the following key priorities as follows:

 

• Expand Child and Youth Care Services (Isibindi programme)
• Social Welfare Sector Reform and services to deliver better results
• Deepening Social Assistance and Extending the scope of Social Security
• Increase access to Early Childhood Development (ECD)
• Strengthening Community Development interventions
• Combat Substance Abuse and Gender-Based Violence
• Increase household food & nutrition security (Food for All)
• The protection and promotion of the rights of older persons and people with disabilities
• Establish Social Protection Systems to strengthen coordination, integration, planning, monitoring and evaluation (M&E) of services

 

National Development Plan (NDP)

 

These priorities are in line with the (NDP) vision 2030, which inter alia promotes social protection:

 

• Protective measures to save lives and reduce levels of deprivation;
• Preventative measures which help people avoid falling deeper into poverty and reduce their vulnerability;
• Promotive measures which enhance the capabilities of individual communities and institutions;
• Transformative measures which tackle inequities through changes in policies, laws and budgets; and
• Developmental and generative measures, which increase the poor’s consumption, promoting local economic development.

 

4.   Overview and assessment of performance information on the predetermined objectives for the first quarter (April - June) of 2019

 

The overall, departmental expenditure for the 1st quarter (April – June 2019) amounted to 24.2%, which was consistent with the outcome of the previous year’s 1st quarter (24.4%).

 

The department spent R44.740 billion (24.21%) during this quarter. One of the reasons cited for the non-achievement of targets was lower than expected expenditure mainly due to delays in the implementation of the IT Turn Key Solution project. SITA was in the process of reconciling work done thus far before issuing invoices to the Department.  A total of 39 targets (adding all targets for the 5 Programmes) were set for quarter 1 for the 2019/20 financial year. 

 

5.1 Programme Performance

 

5.1.1     Programme 1: Administration

 

The purpose of the programme is to provide leadership, management and support services to the department and the Social Development Sector.

 

The department had set to achieve four (4) targets under this programme and it achieved three (3). Most importantly the department had planned to align its 5 systems into the Case Management System. These systems are Older Persons Abuse Register, Child and Youth Care Application, Children Services Directory, Accreditation of Diversion Services and Alternative Care Management. During the period under review, the department completed the process of mapping and analyzing some legislation to fully align and identify common areas on processes and impacts on any other legislation. It also enhanced processes to incorporate business rules which articulates controls within the processes.

 

The department had set a target to obtain approval of the study design and scope of the evaluation on the sector infrastructure with reference to ECD and Substance Abuse Treatment Centres. The approval was obtained from the Bid Specification committee and the Bid Adjudication Committee.

 

The table below shows that this programme spent R83.4 million (20.4%) of its allocation of R408.4 million, which was lower that the projected expenditure R95.7 million lower. Lower than expected expenditure was mainly due to delays in the IT Turn Key Solution project. There were delays in receipt of invoices for the departmental computer services. This had been a persistent problem since the inception of the project. In the first quarter of the previous financial year, this problem was also attributed to the lower than anticipated expenditure.

 

Table 1: Programme 1 - Comparison between expenditure 2018/19 and 2019/20

2019/20	2018/20
1st Quarter Expenditure	1st Quarter Expenditure	Expenditure by end of financial year
20.4%	19.8%	92.2%

 

 

 

 

 

5.1.2     Programme 2: Social Assistance

 

The purpose of this programme is to provide social assistance to eligible beneficiaries in terms of Social Assistance Act, 2004 (Act No.13 of 2004) and its regulations.

 

Under this programme, the department had planned to achieve one (1) target for the 1st quarter. That target was to transfer 100% monthly funds to SASSA and it achieved it. 

 

This programme was allocated a budget of R175.2 billion, compared to R162.9 billion for 2018/19 financial year. By June 2019, the programme had spent 43.071 billion (24.6%) of its allocation for the year, compared to R39.9 billion (24.5%) in 2018/19. The reasons cited for the lower expenditure was due to lower than expected beneficiaries in the child support grant and the disability grant.

 

Table 2: Programme 2 - Comparison between expenditure 2018/19 and 2019/20

2019/20	2018/20
1st Quarter Expenditure	1st Quarter Expenditure	Expenditure by end of financial year
24.6%	24.5%	99.9%

 

5.1.3     Programme 3: Social Security Policy and Administration

 

The purpose of this programme is to provide for social security policy development, administrative justice of social grants, and the reduction of incorrect benefits payments.

 

The department had set to achieve one (1) target for the 1st quarter in 2019/20 financial year. It had planned to review possible policy options for linking child support grants to government services. The department reviewed the discussion paper on linking the beneficiaries of the children’s grants with other government services.

 

The discussion paper presents an argument that social that social grants combined with care (cash plus care), in the form of linking children’s grants to a basket of appropriate services, offers a promising means of ensuring sustainable and resilient well-being development for children across the life cycle.

 

This programme was allocated a budget of R7.7 billion as compared to R7.880 billion in (2018/19), of which it spent R1.2 billion (or 15.7%) by the end of the 1st quarter. This means it spent R621.7 lower than the projected expenditure R1.8 billion. The difference between what the department projected it would spend by June 2019, and actual expenditure was 33.3%. This was due to delays in the transfer to the South African Social Security Agency for June 2019, which was only authorised on the system in July 2019. July expenditure would thus reflect both the June and July transfers to the Agency.

 

5.1.4     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 and the provision of support to the implementation agencies.

 

A total of 16 targets was set for the 1st quarter (2019/20) in this programme. Among the targets set was to introduce the Children's Amendment Bill to Parliament and monitor the implementation of the Policy Framework on Accreditation of Diversion Services in 1 province. The target to submit the Bill was not achieved.  Another target was to submit a policy on services to Persons with Disabilities and their families for approval was to be gazetted for public comments. This target was also not achieved because EXCO raised issues that need to be addressed before the policy is submitted to MINMEC, Social Cluster and Cabinet. The department also did not achieve its target of submitting the Draft National Drug Master Plan for approval due to delays in Cabinet processes.

 

The department managed to achieve its target of conducting training on the Anti-Gangsterism Strategy in one province. It trained 65 practitioners in Northern Cape and Mpumalanga. 

 

This programme was allocated a budget of R1.1 billion in 2019/20 as compared to R1.284 billion for 2018/19 financial year. During the 1st quarter, the department spent R180.1 million (16.9%) as opposed to R224.3 million (17.5%) in 2018/19. This means it spent R22.3 million lower than the projected expenditure of R202.4 million at the end of June 2019. The underspending was mainly due to delays in transfers to non-profit organisations. The department was still awaiting submission of progress reports and other compliance documents, which would have to be assessed before releasing the funds.

 

Table 4: Programme 4 - Comparison between expenditure 2018/19 and 2019/20

1st Quarter Expenditure  (2019/20)	1st Quarter Expenditure  (2018/19)	Expenditure by end of financial year (2018/19)
16.9%	17.5%	98.2%

 

5.1.5     Programme 5: Social Policy and Integrated Service Delivery

 

The purpose of this programme is to support community development and promote evidence-based policy making in the Department and the Social Development Sector.

 

This programme planned to achieve 17 targets for the 1st quarter of 2019/20. The following were among the targets set for this 1st quarter:

 

• Present the NPO Amendment Bill to Technical Working Committee. This target was not achieved due to the transition of administration which delayed the process.  
• All submitted reports of registered NPOs to be processed within 2 months. This target was achieved.
• Produce and present country monitoring report on the implementation of the White Paper on Population Policy and the ICPD PoA. This target was also achieved.

 

For the 1st quarter, Programme 5 spent R189.1 million (45.8%) of its total budget. Its total allocation for the year is R413.3 million.  The variance between actual and projected expenditure for the 1st quarter was 0.1%.

 

Table 5: Programme 5 - Comparison between expenditure 2018/19 and 2019/20

1st Quarter Expenditure  (2019/20)	1st Quarter Expenditure  (2018/19)	Expenditure by end of financial year (2018/19)
45.8%	45.2%	99.5%

 

6.

The Committee was impressed with the content of the audit action plan of the National Development Agency.

The Committee noted that its main interest is that the findings of the AGSA must come to an end. With the audit action plans presented, the key focus of the committee’s oversight would be to oversee that there is alignment between the commitments made, monitoring over their execution and their implementation.

The Committee was of the view that the main challenges that affected SASSA’s performance were due to lack of attention by officials to details of legislative frameworks (non-compliance). It was also due to lack of leadership. It enquired whether SASSA has an expert or manager that deals with consequence management who can brief the committee on details of disciplinary hearings.

The Committee encouraged the Agency to explore possibilities of having lease agreement without involving the Department of Public Works and have their own buildings.  It discouraged it from always depending on the Department of Public Works agreements.

With regard to public outreach on services provided by SASSA, the Committee enquired whether SASSA has conducted awareness campaigns to encourage beneficiaries to use payment channels charging less transaction fees.

The Committee concurred with AG’s audit findings on the lack of leadership and management at SASSA, particularly at Human Resource and Supply Chain Management departments. 

The Committee observed the inconsistent reporting format of the presentation. Other slides reported on root causes of the AG’s findings, AG’s findings, audit action plan and the expected date for completion. Other slides did not follow the same format and that made it challenging for the Members to follow along. The Committee proposed that the report should follow the same format of reporting - AGSA findings, root causes, action plan, expected date of completion and progress report.

The Committee was interested to know the outcomes of the report of the committee that was commissioned to investigate the establishment and work of the work streams at SASSA. Its main interest is to ensure that no blame is shifted to officials when the Court found that the former Minister appointed the work streams.

The Committee was interested to know whether a threat assessment was conducted by SAPS prior to the allocation of VIP services for the Minister Bathabile Dlamini and the Chief Director of Communication of the department.

The Committee also wanted to know if there was any recourse for SASSA to recover debt when National Treasury has written it off.

With regard to an amount of R3.4 million allocated for Mikondzo programme which was later cancelled by the former Minister due to other commitment, the Committee wanted to know whether the department had any intention to recover the money from the former Minister.

In addition, it wanted to know if there was any strategy to recover monies from officials involved in the irregular expenditure and fruitless and wasteful expenditure cases.

7. Resolutions

• SASSA to present the implementation of the audit action plan on quarterly basis to the Committee.
• SASSA to provide the Committee with details of cases of irregular expenditure and fruitless and wasteful expenditure and a total amount of legal fees paid on cases taken to Court.
• SASSA to conclude its investigation on the above-mentioned cases rather than wait for outcomes of National Treasury investigations.
• Vetting process on candidates should be conducted prior to their appointments to avoid cases of appointing candidates with criminal records.
• The NDA to fast-track the process of appointing an independent investigator to investigate reported cases of irregular expenditure and fruitless and wasteful expenditure.

• SASSA to ensure that investigations on irregular expenditure and fruitless and wasteful expenditure are concluded quicker than 12 months as AG had found that they take longer than 12 months.

• SASSA to ensure that all key positions on SCM are filled by end of March 2020.

Report to be considered.