1

Presentation to the Select Committee on DIVISION OF REVENUE BILL

24 February 2010

2

Overview

• DPW deals with 4 Grants in terms of DOR Bill:

• Devolution of Property Rate Funds Grant– Progress to Date– Challenges & possible interventions

• EPWP Incentive Grant to Provinces (Infrastr)• EPWP Incentive Grant to Municipalities (Infrastr)

– Performance of Existing Grants

• EPWP Grant for the Social Sector

• Way Forward

3

Devolution of Property Rates Funds Grant

4

Background• The devolution of property rate funds was introduced in

the current financial year, 2008/09 with the main purpose of:

Facilitating the transfer of property rates expenditure responsibility to provinces; and enable provincial accounting officers to be fully accountable for their expenditure and payment of provincial property rates.

5

Progress to Date - Devolution of Property Rates

Province Amount Transferre

d

R’000

Amount transferred

including roll over

R’000

Amount Paid to

Municipalities

31 Dec

R’000

Amount spent by Prov. %

Projections

R’000

Projected

(over)/under

R’000

Eastern Cape 150 706 210 334 92 149 43.8% 210,334 -

Free State 140 144 185 104 134 746 72.8% 204,854 (19,227)

Gauteng 383 872 401 099 138 088 34.4% 383,872 17,227

KwaZulu Natal 236 264 237 382 216 795 91.3% 237,382 259 000

Limpopo 13 776 19 217 1 846 10% 17 371 -

Mpumalanga 52 785 60 337 39 358 65.2% 51,761 8,576

Northern Cape 37 253 37 298 30 732 82.4% 37,298 -

North West 66 107 66 776 43 276 64.8% 66,776 -

Western Cape 268 831 268 864 145 953 54.3% 349,305 (80,441)

Total 1 349 738 1 486 411 841 097 56.6% 1,541.582 (223 589)

6

Roll over made by Treasury to Provinces

Province Roll over amount received

R’000

Eastern Cape 59 628

Free State 44 960

Gauteng 17 227

KwaZulu Natal 1 118

Limpopo 5 441

Mpumalanga 7 552

Northern Cape 45

North West 669

Western Cape 33

Total 136 673

7

Conditional Grants - MTEFProvince

2010/11

R’000

2011/12

R’000

2012/13

R’000

TOTAL

R’000

Eastern Cape 147 467 156 467 164 131 468 065

Free State 154 158 163 408 171 578 489 144

Gauteng 191 381 202 864 213 007 607 252

KwaZulu Natal 259 891 275 485 289 259 824 635

Limpopo 15 154 16 063 16 866 48 083

Mpumalanga 44 374 47 374 49 388 141 136

Northern Cape 29 698 31 480 33 054 94 232

North West 72 718 77 081 80 935 230 734

Western Cape 181 351 192 232 201 844 575 427

Total 1 096 192 1 161 964 1 220 062 3 478 218

8

EPWP Infrastructure Incentive for the 2010/11

financial year

99

To create 2 million Full Time Equivalent (FTE) work opportunities for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services.

(Announced: Scale up from 210 000 FTEs in Y1 to 610 000 FTEs in Y5;

Equivalent 4,5 million work 100-day work opportunities in 5 years;

(EPWP Aim: 684 800 FTEs in Y5 and 4,9 million WOs in 5 years)

(EPWP Phase I Performance: in the context of 1.67 million WOs created in Phase I over 5 years; of which Infrastructure created 60% or 1,011 million WOs)

Goal of EPWP Phase II

1010

Year Infrastructure

Environment & Culture

Social Non-state Total

09/10 300,000 150,000 80,000 20,000 550,000

10/11 342,000 156,000 96,000 48,000 642,000

11/12 440,000 200,000 132,000 96,000 868,000

12/13 572,000 275,000 187,000 176,000 1,210,000

13/14 720,000 375,000 255,000 300,000 1,650,000

Total 2,374,000 1,156,000 750,000 640,000 4,920,000

Phase II Targets per sector & per year

Year Infrastructure

Environment & Culture

Social Non-state Total

09/10 108,696 32,609 60,870 8,696 210,870

10/11 130,435 41,739 67,826 20,870 268,870

11/12 170,435 59,130 90,435 41,739 361,739

12/13 220,000 81,304 124,348 76,522 502,174

13/14 273,913 110,870 169,565 130,435 684,783

Total 903,478 325,652 513,043 278,261 2,020,435

FULL TIME EQUIVALENT TARGETS

WORK OPPORTUNITY TARGETS

1111

Phase II Targets per sphere & per year

 Year Local Provincial National Non-State Total

09/10 61,922 117,554 22,698 8,696 210,870

10/11 74,371 136,630 28,999 20,870 260,670

11/12 97,342 181,667 40,991 41,739 361,739

12/13 125,853 243,527 56,272 76,522 502,174

13/14 157,086 320,692 76,570 130,435 684,783

Total 516,573 1,000,070 225,531 278,261 2,020,435

WORK OPPORTUNITY TARGETS

FULL TIME EQUIVALENT TARGETS

 Year Local Provincial National Non-State Total

09/10 182,607 247 ,25 100,068 20,000 550,000

10/11 208,032 281,720 104,248 48,000 642,000

11/12 267,920 370,420 133,660 96,000 868,000

12/13 349,129 501,283 183,588 176,000 1,210,000

13/14 440,721 659,286 249,994 300,000 1,650,000

Total 1,448,409 2,060,034 771,557 640,000 4,920,000

1212

1.0 Introduction to the EPWP Incentive Grant

• EPWP Phase I had a specific stipulation attached to MIG and IGP to implement infrastructure projects using “labour intensive methods”; but it was found that the follow through on EPWP guidelines was uneven

• EPWP Incentive Grant was introduced in EPWP Phase II to:

1.Reinforce and reward public bodies that actually implement labour intensive methods and utilise their existing infrastructure allocations effectively to increase the labour content of infrastructure delivery

2. ‘Encourage’ public bodies meet their targets or hold them accountable

3.Rapidly expand job creation

1313

2.0 EPWP Incentive Grant: how it works

• Eligibility: In order for public bodies to be eligible for the incentive grant, must meet 2 sets of criteria:

• 1. To be eligible for the grant, public bodies must have reported on EPWP performance to DPW in a prior financial year:

• When proposing grant allocations in July every year, for the next financial year, reported data for the previous financial year should be available

• 2. Meet minimum job creation targets – called a threshold

• How do we determine the threshold?

• Incentive grant is pegged onto the core funding streams for the infrastructure sector – MIG & IGP to be used in line with job creation objectives. Decision to peg the incentive grant to IGP and MIG was convenient because:

• MIG & IGP already had agreed principles, transparent funding norms, known reporting mechanisms (incorporated EPWP outputs), and admin funding from that grant

• MIG & IGP have important formula characteristics that we intended to enhance– Built in backlogs in infrastructure – exposes need & potential to employ more people (more work)

– Poverty – potential to reach the poorest of the poor

– Aligned to the share of the unemployed

1414

2.0 EPWP Incentive Grant: how it works cont’d

• Eligibility: – How do we determine the threshold?

• We determine the number of FTEs per Rand million of the (MIG/IGP) budget that should usually be created in the delivery of infrastructure projects – known as the FTE factor.

• The FTE factor (shown in the table below) is the minimum number of FTEs to be created per Rand million of the infrastructure conditional grant budget.

• FTE factor x Infrastructure Grant Allocation = Minimum Performance Threshold

If EPWP performance in the prior determined year is:

= or > Minimum Threshold; public body is eligible

< Minimum Threshold; public body is not eligible

• All reporting rural municipalities are eligible because they have a zero threshold. Where urban municipalities or provinces are not eligible, a nominal incentive amount is allocated.

1515

EPWP Incentive Grant: how it works• Eligibility:

– How do we determine the threshold (setting the bottom bar)?• We determine the number of FTEs per Rand million of the (MIG/IGP) budget that

should usually be created in the delivery of infrastructure projects – known as an FTE factor.

• This FTE factor (shown in the table below) is the minimum number of FTEs to be created per Rand million of the infrastructure conditional grant budget.

• We then apply the FTE factor to a public body’s Infrastructure Grant Allocation to determine the Minimum Performance Threshold

If EPWP performance in the prior determined year is:

= or > Minimum Threshold; public body is eligible

< Minimum Threshold; public body is not eligible

• Setting performance targets (setting the upper bar) is a two step process:

– Set a base target which is determined by applying a targeted FTE factor to the infrastructure grant budget – to determine what job target a public body could ideally reach

– We then adjust this based on past performance

1616

EPWP Incentive Grant: how it works• The Full Incentive Amount (for a full year) is calculated as follows:

– The EPWP incentive is based on paying R50 per person day of work created above their set minimum threshold. This amounts to an incentive of R11 500 per FTE.

– Incentive Allocation = (Performance Targets public body - minimum performance threshold public body) x Rx per person day of work x 230 days

• For provinces– For 2009/10, the EPWP Incentive Grant DORA amount = 75% X Full incentive

amount, because only 3 payouts fall into the current financial year. Q4’s payment will always fall into the next financial year.

– For 2010/11, the EPWP Incentive Grant DORA amount = 75% X Full incentive amount for 2010/11 plus the Q4 allocation for 2009/10 which is only payable on 15 May 2010. Q4 allocation for 2010/11 is only payable 15 May 2011.

• Where a public body’s allocation works out to be less than the nominal amount, it is adjusted upwards to the nominal amount; and the target is the equivalent no. of FTEs.

• Every public body’s performance target, threshold and incentive allocation will be published in the DORA

1717

EPWP Incentive Grant: how it works• To secure participation in the incentive grant, eligible public bodies

must enter into an agreement with DPW to agree to comply with the rules, conditions and obligations related to the incentive grant.

• Incentive Agreements: The agreement specifies:– Performance Targets to be met by the public body

– The minimum threshold; and

– The incentive allocation that can be claimed for (net) EPWP work created

– Reporting, verification and audit requirements

– Reporting and disbursement process

• To actually receive the incentive grant, eligible public bodies must report on EPWP performance quarterly.

• Reporting– Each public body must submit ‘signed off’ progress reports and provide the TA with

the data– For 2009/10, reports were due on the MIS by 7 days after the end of every

quarter– For 2010/11, reports will be due on the MIS by 20 days after the end of every

quarter

1818

EPWP Incentive Grant: how it works• Basis for measuring EPWP performance & payment

– While performance targets and indicative incentive amounts are set for each eligible public body, they will only be able to claim the incentive upon reporting that work has been created

– The EPWP incentive is based on paying all public bodies that create work for the EPWP target group above a minimum threshold

– An incentive of R50 per person day of work created is paid– The performance target and threshold is divided into quarters; and net performance is

measured and paid for quarterly– Public Works goes through a process of data validation; and confirms performance

and the incentive amount qualified.

• Disbursement– DPW Sends out a disbursement letter to provincial treasuries and departments

indicating the specific amount to be disbursed to the public body based on verified performance.

• In 2009/10, this would go out 30 days after the end of the quarter

• For 2010/11, this letter and disbursement will go out 45 days after the end of the quarter

19

20

Disbursement Flow: Provincial Departments

2121

2010 Changes to the Incentive Grant (Provinces)

1. Inclusion of low cost housing projects funded through the Department of Human Settlements in the incentive: – All reporting Human Settlement departments were evaluated for eligibility (meeting the

threshold) – none met the threshold and were therefore all given a nominal incentive allocation

– This at least gives these reporting departments access to the incentive should they meet the threshold during the year

– There will be discussions with provincial Human Settlement departments regarding – Date required to confirm a reliable FTE factor and threshold for Human Settlement to

be able to calculate incentive allocations and FTE targets– Which projects will be eligible to be reported and which not

2. Updated FTE factors per portfolio, especially because of the restructuring in provinces and the new combinations of portfolios

3. Changed the performance growth % adjusted in line with MIG/IGP growth rates

If Past performance> Base Target then: Performance Target = Past Performance + 25%If Past performance< Base Target then: Performance Target = Past Performance + 50%This allows for a much higher ceiling (higher allocations) and the ability to access more

funds

2222

Incentive Grant for Provinces - Comparison

• Key Characteristics of the Grant & the changes between 2009/10 and 2010/11

2323

2010 MTEF Allocations - Infrastructure

Provinces• Overall performance improved, btw 2007/08 and 2008/09; but 3 provinces had

noticeable declines in performance• Provincial roads depts are the largest contributors in all the provinces and all receive

the largest share of the IGP, although this varies between 80.7% in EC to 42.5% in KZN. Based on 2008/09 performance, FS; LP & NW Transport are all well below average performance levels, but NC Transport just misses being eligible.

Province 2007/08 performance

(FTEs)

2008/09 performance

(FTEs)

% change in performance y-

o-y

2009/10 Allocation (3 installments)

2010/11 Allocation (3 installments)

Total year's 2010/11

Allocation

% increase y-o-y (3 installments)

% increase y-o-y

EC 7 660 10 359 35.20% 29 992 50 356 60 354 67.90% 101.23%FS 3 967 1 786 -55.98% 23 008 6 098 13 767 -73.50% -40.16%GP 348 4 374 1156.90% 500 38 988 39 154 7697.51% 7730.86%KZN 11 716 21 000 79.20% 84 180 141 410 169 470 67.98% 101.32%LP 1 335 759 -43.10% 500 2 736 2 903 447.16% 480.51%MP 1 407 2 189 55.60% 5 047 16 392 18 074 224.79% 258.12%NC 336 1 228 265.50% 500 1 000 1 167 100.00% 133.35%NW 1 388 699 -49.60% 7 192 500 2 897 -93.05% -59.72%WC 2 686 3 210 19.50% 500 23 052 23 218 4510.34% 4543.69%Total 29 076 45 604 56.80% 151 419 280 531 331 004 85.3% 118.6%*It should be noted that this is not the full allocation for 2010/11; this is merely a comparison of the estimate of 3 installments based on 2008/09 performance versus the same based on 2007/08 performance.

2424

Calculating the Incentive Allocation for 2010/11

• The Full Incentive Amount (for a full year) is calculated as follows:• For provinces

– The EPWP incentive is based on paying R50 per person day of work created above their set minimum threshold. This amounts to an incentive of R11 500 per FTE.

– Incentive Allocation = (Performance Targets public body - minimum performance threshold public body) x R50 per day x 230 days (or R11500 per FTE)

– For 2010/11, the EPWP Incentive Grant DORA amount = 25% X Full incentive amount for 2009/10 + 75% X Full Incentive amount for 2010/11.

– Q4’s payment will always fall into the next financial year.

• Example – KZN. Refer to DORA Gazette Sheet

EPWP Phase II

Minimum Threshold for

the year

FTE Performance Target for the

year

DORA Allocation for the year

(Q1-Q3 payments)

DORA Allocation (Q4 payment

CARRIED OVER)

Minimum Threshold for

the year

FTE Performance Target for the

year

DORA Allocation (Q1-Q3

payments)

Total DORA Allocation

(ALL 4 instalments)2010/11

KwaZulu-Natal 6 791 16 583 84 180 28 060 24 289 40 743 141 410 169 470Human Settlement 0 32 279 93 11 502 11 560 500 593Public Works 0 32 0 0 0 457 3 439 3 439Education 2 694 2 694 n/a 0 5 373 5 431 500 500Health 1 501 1 501 n/a 0 2 628 3 939 11 307 11 307Transport and Community Safety & Liaison 2 596 12 323 83 900 27 967 4 787 19 298 125 163 153 130Arts, Culture, Sport and Recreation n/a n/a n/a n/a 0 58 500 500

2009/10

EPWP FISCAL INCENTIVE GRANT FOR PROVINCES

2010/11

25

Disbursement Flow: Municipalities• Disbursement

– DPW Sends out a disbursement letter to municipalities indicating the specific amount to be disbursed to the public body based on verified performance.

– In 2009/10, this would go out 30 days after the end of the quarter– For 2010/11, this letter and disbursement will go out 45 days after the end of

the quarter

2626

EPWP Incentive Grant Allocation EG.

• 2010_infrastructure_model171109(version_8).xls

EPWP Phase 2

2007/08 EPWP PERFORMANCE

MINIMUM THRESHOLD

WAGE COST TO THRESHOLD

FTE PERFORMANCE

TARGETS

TOTAL FULL YEAR AMOUNTS

DORA ALLOCATION (national financial

year)

DORA ALLOCATION (municipal financial

year)

FTEsR million -25% for Q4 for prov@R50 X 230

days For All parties -50% for Q3&4 -75% for Q3&4 for munisFISCAL INCENTIVE TO PROVINCES 29 076 31 434 361 493 48 990 201 892 151 419KwaZulu-Natal 11 716 6 791 78 094 16 551 112 240 84 180Works 27 0 0 32 373 279Education 325 2 694 30 976 2 694 0 0Health 161 1 501 17 266 1 501 0 0Transport 11 203 2 595.743 29 851 12 323.300 111 866.906 83 900.180Eastern Cape 8 766 1 927 22 158 11 242 107 120 53 559 80 339Nelson Mandela 508 936 10 765 994 667 334 500Buffalo City 273 990.702 11 393 1 048.702 667.000 333.000 500Amatole District Municipality 1 203 0 0 1 444 16 601 8 301 12 451Tsolwana 235 0.000 0 258.500 2 973 1 486.375 2 230

2009/10

Payment for FTE perf targets

2727

Calculating the Quarterly Incentive amount earned on Incentive Grant

Quarter 2

Quarter 1 – Municipal financial yearEPWP Phase 2 ELIGIBILITY

THRESHOLDFTE

PERFORMANCE

TARGETS

DORA ALLOCATION

(national financial

year)

DORA ALLOCATION

(municipal financial

year)

Q1 THRESHO

LD

Q1 FTE PERFORM

ANCE TARGET

April- June 2009

PERFORMANCE

Q1 ACTUAL FTE

PERFORMANCE

FTE PERFORMANCE TO

DATE

Q1 INCENTIVE

ALLOCATION (payment schedule)

Q1 PAYMENT

TO BE DISBURSED

FISCAL INCENTIVE TO MUNICIPALITIES 14 112 50 143 201 748 302 383 3 937 13 803 10 305 5 043.9 15 349 80 698 35 526

Eastern Cape 657 9 972 53 559 80 339 482 2 810 753 497.1 1 250 21 424 3 913Nelson Mandela 936 994 334 500 234 249 101 95 196 134 0Buffalo City 991 1 049 333 500 248 262 105 62 167 133 0Amatole District Municipality 0 1 444 8 301 12 451 0 361 164 90 254 3 320 1 038Tsolwana 0 259 1 486 2 230 0 65 0 595 0

EPWP Phase 2 ELIGIBILITY THRESHOLD

FTE PERFORM

ANCE TARGETS

DORA ALLOCATION

(national financial

year)

DORA ALLOCATION

(municipal financial

year)

CUMULATIVE

THRESHOLD (Q1-2)

CUMULATIVE FTE

PERFORMANCE

TARGET

Q2 ACTUAL FTE

PERFORMANCE

FTE PERFORMA

NCE TO DATE

Q2 INCENTIVE

ALLOCATION (ito payment

schedule)

Q2 PAYMENT

FISCAL INCENTIVE TO MUNICIPALITIES 14 112 50 143 201 748 302 383 7 873 27 607 10 917 15 960.6 166 224 78 644

Eastern Cape 657 9 972 53 559 80 339 963 5 621 621.39 1 118.5 49 646 3 905Nelson Mandela 936 994 334 500 468 497 213.68 308.6 334 0Buffalo City 991 1 049 333 500 495 524 68.19 130.1 333 0Amatole District Municipality 0 1 444 8 301 12 451 0 722 49.26 139.6 7 262 567Tsolwana 0 259 1 486 2 230 0 129 3.19 3.2 1 486 37

2828

2010 Changes to the Incentive Grant (Municipalities)

1. Shorten the period between reporting and eligibility to access the incentive– Maintain a full previous financial year for calculating a full incentive allocation i.e. full

2008/09 performance will determine the 2010 incentive allocation– To capture newly reporting municipalities, implement an “extended Late eligibility period”

(15 April to 15 October) for munis reporting in the current year to be eligible for the next year; and allocate these munis a nominal allocation.

– This allows access to incentive; while performance will still dictate the size of the disbursement.

2. Increasing the incentive amount for rural municipalities from R50 to R60 per person day of work– In Feb, due to a small further allocation by Treasury, we were also able to increase the

nominal (and minimum) amount allocated – For rural munis, those newly eligible and those who did not meet the threshold will be

allocated a nominal allocation of R1.16 million for the year– For urban munis, those newly eligible and those who did not meet the threshold will be

allocated a nominal allocation of R2.2 million for the year

3. Changed the performance growth % adjusted in line with MIG/IGP growth rates

If Past performance> Base Target then: Performance Target = Past Performance + 25%If Past performance< Base Target then: Performance Target = Past Performance + 50%This allows for a much higher ceiling (higher allocations) and the ability to access more

funds

2929

Incentive Grant for Municipalities - Comparison

• Key Characteristics of the Grant & the changes between 2009/10 and 2010/11

30

30

2010 MTEF Allocations - InfrastructureMunicipalities• 2009/10 Allocation of R202m is only 2 disbursements in the national financial year VS• 2010/11 Allocation of R421m for the same period in the national financial year• 120 municipalities will be eligible to receive the incentive grant in 2010/11 and another 6 will

be receiving just the Q3&4 payment carried over from 2009/10 VS the 68 municipalities eligible in 2009/10, great improvement in the no. of munis reporting

• Of the 120 municipalities eligible in 2010/11, 66 municipalities receive a nominal allocation for 2010/11 (just over half).

Munis aggregate

d by province

EPWP Performance (in FTEs) 2007/08

Number of munis reportin

g2007/08

Incentive Allocation in

2009/10 Allocation (30 Oct, 30

Jan)

EPWP Performance (in FTEs) 2008/09

% change in performanc

e y-o-y

Number of munis reporting

by Q2 2009/10

Incentive Allocation in

2010/11 Allocation (30 Oct, 30

Jan)

% increase y-o-y

(2 installment

s)

Total 2010/11 Incentive Allocation

% increase

y-o-y

EC 8 766 12 53 559 5350 -38.97% 25 44 247 -17.39% 97 806 82.61%FS 2 002 4 9 073 3010 50.35% 10 22 327 146.08% 31 400 246.08%GP 12 980 5 34 881 34388 164.93% 10 130 167 273.17% 165 048 373.17%KZN 9 199 9 39 974 13323 44.83% 13 83 639 109.23% 123 613 209.23%LP 2 496 10 18 328 3344 33.97% 18 37 026 102.02% 55 355 202.02%MP 1 943 9 13 454 2107 8.44% 17 23 835 77.16% 37 288 177.15%NC 2 450 5 15 496 3845 56.94% 8 34 903 125.24% 50 399 225.24%NW 1 307 7 9 694 1982 51.64% 18 26 356 171.88% 36 049 271.87%WC 2 649 7 7 289 3905 47.41% 7 18 750 157.23% 26 038 257.22%Total 43 792 68 201 748 71 254 62.7% 126 421 250 108.8% 622 996 208.8%

3131

Municipal Incentive Grant AllocationsNo. EPWP Phase II Minimum

Threshold for the

year

FTE Performance

Target for the year

DORA Allocation -

national financial yr

(Q1&2 payments)

DORA Allocation - municipal

financial year (Q1-3

payments)

Q3&4 payments

owing (national

financial yr)

Q4 payments

owing (municipal

financial yr)

Minimum Threshold

for the year

FTE Performance

Target for the year

DORA Allocation -

national financial yr

(Q1&2 payments)

DORA Allocation - municipal

financial year (Q1-3

payments)

Total DORA Allocation

(4 instalments) - national

financial year

Total DORA Allocation

(4 instalments) - municipal

financial year

Eastern Cape 1 927 11 242 53 559 80 339 53 559 26 780 2 763 9 444 44 247 66 380 97 806 93 1601 Nelson Mandela 936 994 334 500 334 167 1 342 2 761 8 158 12 237 8 492 12 4042 Buffalo City 991 1 049 333 500 333 167 1 421 1 612 1 100 1 660 1 433 1 8273 Amatole District Municipality 0 1 444 8 301 12 451 8 301 4 150 0 786 5 423 8 135 13 724 12 2854 Tsolwana 0 259 1 486 2 230 1 486 743 n/a n/a 0 0 1 486 7435 Lukhanji 0 58 333 500 333 167 0 84 580 870 913 1 0376 Intsika Yethu 0 72 414 621 414 207 0 84 580 870 994 1 0777 Emalahleni 0 128 738 1 107 738 369 0 84 580 870 1 318 1 2398 Sakhisizwe 0 115 662 994 662 331 n/a n/a 0 0 662 3319 Chris Hani District Municipality 0 1 382 7 949 11 923 7 949 3 974 0 1 604 11 064 16 596 19 013 20 571

10 Ukhahlamba District Municipality 0 674 3 878 5 817 3 878 1 939 0 317 2 184 3 276 6 062 5 21511 Qaukeni 0 58 333 500 333 167 n/a n/a 0 0 333 167

2009/10 2010/11 2010/11

32

Province Incentive allocation for the 09-10 financial year

(R’000)

Incentive payment after 3rd quarter 09-10

(R’000)

Incentive payment for 3rd quarter 09-10

( R’000)

Eastern Cape 29,992 21,099 19,023

Free State 23,008 0 0

Gauteng 500 0 0

KwaZulu-Natal 84,180 84,854 35,100

Limpopo 500 0 0

Mpumalanga 5,047 0 0

Northern Cape 500 0 0

North West 7,192 0 0

Western Cape 500 11,118 3,152

Total 151,419 120,223 57,275

Performance on the EPWP incentive grant by Provinces after 3rd Quarter 09/10 financial year

33

Province Incentive allocation for the 09-10 financial year

(R’000)

Incentive payment after 3rd quarter 09-10

(R’000)

Incentive payment for 3rd quarter 09-10

(R’000)

Eastern Cape 53,559 7,818 3,905

Free State 9,073 1,956 1,047

Gauteng 34,881 59,875 51,038

KwaZulu-Natal 39,974 26,102 15,038

Limpopo 18,328 6,140 2,626

Mpumalanga 13,454 2,453 1,468

Northern Cape 15,496 5,769 960

North West 9,694 2,787 1,493

Western Cape 7,289 1,271 708

Total 201,748 114,170 78,644

Performance on the EPWP incentive grant by municipalities after 3rd Quarter 09/10 financial year

34

Performance on the EPWP infrastructure Incentive as of 25th of Jan 2010

• 5 Provincial Departments will incentive payments totaling R 57,275

million considering 3rd quarter payment reports. Total payment to

Provincial departments considering

payments in previous quarters is R120.2 million out of an allocation of

R 151.4 million (79% of Provincial allocation).

• 47 of the 68 eligible municipalities will receive their incentive payment

of R 78.6 million considering the 3rd quarter report of the 09/10

financial year. Total incentive payment to municipalities after the 3rd

quarter is R 114.17 million out an allocation of R 201.7 million ( 57%

of Municipal allocation).

• Total incentive payment to Provincial Departments and Municipalities

for the 09/10 financial year will be R 234.4 million out of a total

allocation of R 352.1 million (67%) for the 09/10 financial year.

35

EPWP Grant to Social Sector for the 2010/11 financial

year

36

Social Sector Grant

• This is an innovation to be implemented in 2010/11

• Should assist greatly to ensure that HCBC volunteers are paid – not currently getting stipends

• Based on past performance in 2008/09• 2010/11 – R56.6m• Once-off payment by June 2010• To be paid upfront to depts published in DORA

37

Way Forward

• Public bodies ( Provincial Departments and Municipalities) to be briefied about the 2010/ 11 EPWP incentive framework requirements.

• Incentive agreements to be signed with Eligible Public bodies for the 10/11 financial year.

• Continued Technical Support to be given to Public bodies to report on EPWP in the 10/11 financial year so that more Public bodies can be eligible for the incentive.

38

We thank you