presentation – final report: costing of older persons bill
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Presentation – Final Report: COSTING OF OLDER PERSONS BILL. Tuesday, 24 February 2005. A. - PowerPoint PPT PresentationTRANSCRIPT
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Presentation – Final Report: COSTING OF OLDER PERSONS BILL
Tuesday, 24 February 2005
‘Growing old should be a period when one’s contribution to society is
acknowledged and valued. In poor communities, old people make a valuable
contribution to households as carers for children, People With Disabilities, and those affected and infected by HIV and AIDS. This [Older Persons] Bill therefore
strives to maintain and increase the capacity of older persons to support
themselves and contribute to the well-being of those around them.’
MEMORANDUM ON THE OBJECTS OF THE OLDER PERSONS BILL,
SOUTH AFRICA
PRESENTATION OVERVIEW
Introduction
Section A: PROJECT
Section B: LEGAL ASSESSMENT
Section C: FISCAL ASSESSMENT
Conclusion
Recommendations
Section A: PROJECT
1 Background
2 Objectives
3 Scope
4 Approach and Methodology
5 Process
6 Challenges
Section A: PROJECT: BACKGROUND
Objectives of the OPB
• Maintain and promote the status, safety and security of Older Persons.
• Maintain and protect the Rights of Older Persons as recipients of services.
• Regulate the registration of facilities for Older Person; and
• Combat the abuse of Older persons.
The project had to consider;
Fiscal risks
Administrative costs and cost drivers; and
Institutional Arrangements.
Section A: PROJECT: OBJECTIVES
Understand the contents of the bill in terms of an implementation plan;
• Analyze each component of the Bill in order to cost the OPB scope;
• Assess the fiscal and budgetary implications.
• Determine the cost implication at a National, provincial and local levels across the various sector.
• Determine the cost implications of priorities as determined by the DSD for the three-year MTEF cycle period.
• Analyze the various components of the bill, and thereafter cost the components.
• Facilitate consultative processes jointly with national dept and Treasury.
Section A: PROJECT APPROACH
Comprehensive Analysis of the OPB and proposed Amendments.
Comparative Analysis between the OPB, its proposed Amendments and the Aged Persons Act; and
Cost Driver Analysis to effect implementation and maintenance of OPB.
Section A: PROJECT:METHODOLOGY
Legal Matrix – compulsory and discretionary obligations.
Costing model
Social Services Delivery Model.
Section A: PROJECT: APPROACH + METHODOLOGY
Process included:
• Consultations
• Desk Top Audits and Comparative Analyses
• Legal and Social Assessment
• A National Reference group established to validate the costing approach, and initial costing.
Section A: PROJECT: PROCESS
The costing is to be done for the following programmes:
• Residential Care
• Community Services and
• Home Based Care
• Poverty Relief
• Capital Costs
• National and Provincial Administration
Section A: PROJECT: CHALLENGES
a. Short timelines and project falling into holiday period.
b. Actual drafting of the Bill.
c. Lack of adequate, reliable and valid information.
d. Incomplete data from provinces.
e. Non standardization of services - disparity in current costing.
Section B: LEGAL ASSESSMENT
1 Purpose
2 Approach and Methodology
3 Findings and Analysis
4 Implications for Litigation
Section B: LEGAL ASSESSMENT: PURPOSE
• Gain understanding of and insight into objectives and goals that the legislature proposes to attain i.t.o Bill, and determine practical and financial implications )
• This assessment was done in order to identify and determine the cost drivers that may impact on the implementation of the relevant provisions of the Bill
• To identify the rights and obligations (both compulsory and discretionary obligations)
• To identify the risks of litigation related to the implementation of the provisions of the Bill)
Section B: LEGAL ASSESSMENT: APPROACH + METHODOLOGY
• Unpack provisions of the Bill,
• Assess meaning and impact of the provisions of the Bill,
• Assignment of responsibilities (nationally and provincially) and cost implications thereof,
• Identify the provisions of the Bill that would, in probability, lead to litigation
Section B: LEGAL ASSESSMENT: IMPLICATIONS FOR LITIGATION
a. General Provisions throughout the bill which increases the administrative role of the state, both at National and Provincial Level.
b. Chapter 13 s(12) Protection of Older Persons ( Rights based approach to service delivery)
c. Chapter 13 s(17) Keeping of a register of abuse of Older Persons.
d. Chapter 2 – New conditions for the care of Older Persons in Residential Facilities.
Section C: FISCAL ASSESSMENT
Limitations:
• Norms and standards for service delivery within developmental paradigm
• Pre-determined costing models
• Regulations of the Bill
• Accurate data on existing services and targets
• Lack of uniformity in funding services of both government and NGO’s
However the draft service delivery model and draft costing models were used as a base for costing
Section C: FISCAL ASSESSMENT: NATURE + SCOPE OF SERVICES DELIVERY
• The norms upon which the costing was done is based upon policies and service delivery models of the Department of Social Development
• The baseline data of older persons used is based on the number of older persons who are currently in receipt of the Old Age Grant, as these have been means tested ito vulnerability
• The norm of 2% of older persons who are frail is derived from the Department Policy Framework(1995)
• There are currently 2081528 beneficiaries of old age grant(stats from Grant section on 26/01/05
Section C: FISCAL ASSESSMENT
The assessment also considered the following: The total number of older person (2000
census) Estimate number of vulnerable older
persons requiring services• Residential Care -2%• Community based care -20%• Home Based Care and Frail -1.5%• Economic Empowerment and Dev 1000 /
province• Promotion and Protection - as per service delivery
norms of the department
Section C: FISCAL ASSESSMENT
Scope and Extent of Current Services Analysis per province of
• Old Age Homes• Services Centres• Overall subsidies to NGO’s for other
programmes
In all cases analysis was done i.t.o• Number of facilities• Subsidy per province• Total number of residents/beneficiaries• Unit cost
Section C: FISCAL ASSESSMENT
Approach and MethodologyThrough consultation with provinces, the core programmes
were identified as follows: Promotion and Protection of Older Persons Community Based Programmes
• Day care services• Service Centres• Assisted living• Home Based Programmes• Intergenerational programmes• Economic Empowerment and Development
Residential Care National and Provincial Departmental Administration
Section C: FISCAL ASSESSMENT
Costing Model Variables:
Demand variable: Volume of particular service required
Process and Input variables: Cost drivers in the delivery of services
Cost Variables: Cost of the different inputs required to deliver the service
Total cost of the service = D x P/I x C
Section C: FISCAL ASSESSMENT: NATURE + SCOPE OF SERVICES DELIVERY
• According to statistics from Provinces the Government is currently spending R 299,142,320 on subsidies for old age homes reaching 31,845 beneficiaries who are currently in residential care
• According to Statistics South Africa there are 3.28 million older persons in the country
Section D: Conclusion
• The draft costing models were then presented to the department and the treasury
• These costs were found inappropriate in terms of affordability
• The consultants were advised to review the costing based on specific guidelines provided by the department
• The figures will be computed and the final report in this regard should be available in March 2005
Recommendations It is recommended that
the Select Committee takes note of the progress made
the work on the costing of the Bill be finalised within the next two weeks