select committee on finance – 18 october 2005 department of social services and poverty...
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SELECT COMMITTEE ON FINANCE – 18 OCTOBER 2005
DEPARTMENT OF SOCIAL SERVICES AND POVERTY ALLEVIATION
WESTERN CAPE PROVINCE
PRESENTATION BY THE MEC & CFO
INTRODUCTION: MEC
•National priorities•Provincial priorities•Organisational re-alignment•Social Capital Formation
Strategy
OVERVIEW
Departmental growth between 2001/02 and 2004/05
• Total : 81,42%• Social Assistance : 89,94%• Social Welfare : 10,06%
Table 4.4• Unspent funds for 2004/05 = R64m
(R20m cost centre, R16m Food relief, handling fees)
BRANCH: SOCIAL ASSISTANCE
Factors which influenced growth between 2001/02 to 2005/06
• Introduction of CSG extension• Change in policies e.g disability grants• Mashishi court case• Population growth of 14%
(1996 – 2001)
BRANCH: SOCIAL ASSISTANCEBudget for 2004/05 amounted to R3 691358 000.
Budget for 2005/06 is a conditional grant due to the establishment of SASSA and amounts to R4 238 905 000.
Monthly amount of ± R336m (Oct 2005) is paid to beneficiaries in the Western Cape.
Transfer payments: R4 002 671 000
Administration: R236 234 000
586 594 beneficiaries (not including children) received their monthly payments for October 2005 through the following
pay methods:
• Banks (79 836)
• Post Office (Walvis Bay) (213)
• ALLPAY (515 094)
All expenditures are monitored on a monthly basis
BRANCH: SOCIAL ASSISTANCE
Grant Type Budget 2005/06Old Age Grants R1 526 845 000
War Veterans Grants R 7 104 000
Disability Grants R1 391 382 000
Foster Care Grants R175 840 000
Care Dependency Grants R70 955 000
Child Support Grant (0-6 yrs) R539 553 000
Child Support Grant (7-14 yrs)
R283 372 000
Social Relief of Distress R7 620 000
Ave 2001/02 Ave 2002/03 Ave 2003/04 Ave 2004/05
Old Age Grants 148 092 153 607 157 056 160 946 War Veteran Grants 1 462 1 260 1 089 923 Disability Grants 95 095 117 323 122 776 124 648 Foster Care Grants (children)
20 377 21 495 22 475 24 465
Care Dependency Grants 4 674 5 491 5 980 6 490 Combinations 819 369 338 341 Child Support Grants (children)
92 957 178 334 211 940 233 903
Child Support Extension (children)
27 594 79 846
AVERAGE GROWTH IN BENEFICIARY NUMBERS
PER FINANCIAL YEAR ( To be paid per month)
Number Present Amount
(R)/month
Total (R)/month
% Growth 2004/05 to
2005/06
Budget for 2005/06
(R) 165 345 780 126 890 382 2.48% 1 526 845 000
Old Age Grants
Growth from April 2004 to April 2005 O
lder P
erson
s157000
158000
159000
160000
161000
162000
163000
164000
Number Present Amount
(R)/month
Total (R)/month
% Growth 2004/05 to
2005/06
Budget for 2005/06
(R)
756 798 570 741 -13% 7 104 000
War Veteran Grants
Growth from April 2004 to April 2005 War V
eteran g
rants
0
200
400
600
800
1000
1200
Number Present Amount
(R)/month
Total (R)/month
% Growth 2004/05 to
2005/06
Budget for 2005/06
(R) 131 293 780 110 605 981 1.52% 1 391 382 000
Grants for the disabled
Growth from April 2004 to April 2005
Gran
ts for th
e disab
led
110000
115000
120000
125000
130000
135000
Apr-0
4
May
-04
Jun-
04
Jul-0
4
Aug-0
4
Sep-0
4
Oct-
04
Nov-0
4
Dec-0
4
Jan-
05
Feb-0
5
Mar
-05
Apr-0
5
Number Present Amount
(R)/month
Total (R)/month
% Growth 2004/05 to
2005/06
Budget for 2005/06
(R) 6 925 780 5 913 950 8.5% 70 955 000
Care Dependency GrantsC
are Dep
end
ency G
rants
Growth from April 2004 to April 2005
5800
5900
6000
6100
6200
6300
6400
6500
6600
6700
6800
Apr-0
4
May
-04
Jun-
04
Jul-0
4
Aug-0
4
Sep-0
4
Oct-
04
Nov-0
4
Dec-0
4
Jan-
05
Feb-0
5
Mar
-05
Apr-0
5
Number Present Amount
(R)/month
Total (R)/month
% Growth 2004/05 to
2005/06
Budget for 2005/06
(R) 26 932 560 16 186 132 8.85% 175 840 000
Foster Child Grants (children)
Growth from April 2004 to April 2005
Fo
ster Ch
ild G
rants
21500
22000
22500
23000
23500
24000
24500
25000
25500
26000
26500
Apr-0
4
May
-04
Jun-
04
Jul-0
4
Aug-0
4
Sep-0
4
Oct-
04
Nov-0
4
Dec-0
4
Jan-
05
Feb-0
5
Mar
-05
Apr-0
5
Child Support Grant (0-6)
Number Present Amount
(R)/month
Total (R)/month
% Growth 2004/05 to
2005/06
Budget for 2005/06
(R) 235 222 180 42 810 404 5.64% 539 553 000
Ch
ild S
up
po
rt Gran
t
Growth from April 2004 to April 2005
205000
210000
215000
220000
225000
230000
235000
Apr-0
4
May
-04
Jun-
04
Jul-0
4
Aug-0
4
Sep-0
4
Oct-
04
Nov-0
4
Dec-0
4
Jan-
05
Feb-0
5
Mar
-05
Apr-0
5
Child Support Grant (7-14)
Number Present Amount
(R)/month
Total (R)/month
(7-14)
% Growth 2004/05 to
2005/06
Budget for 2005/06
(R) 153 432 180 31 300 128 4.2% 238 372 000
Ch
ild S
up
po
rt Gran
t
Growth from April 2004 to April 2005
0
20000
40000
60000
80000
100000
120000
BRANCH: SOCIAL ASSISTANCE
Progress Report on the implementation of the Agency
•Development of a comprehensive business plan for the establishment of SASSA in the Western Cape
• Ring fencing of Social Security Personnel, Assets, Financial Management.
• Establish SASSA Western Cape Provincial Head Office.
• SASSA staff establishment structure submitted to the National Department for approval.
• Efforts underway to obtain office space for SASSA District Offices.
• Developing agreement for support services to be rendered by the Department of Social Services and Poverty Alleviation.
•Advertisement of posts for appointment.
BRANCH: SOCIAL DEVELOPMENT
Social service deliveryFactors limiting growth:
- Outcrowding due to social assistance- Inflationary increases
Results:- Limited increase in funding levels- Not meeting all critical priorities
Challenges:- child abuse – reported incidents increased to 62% since 2002.- substance abuse – 50% increase in TIK since 2003 in
youth under 20.- HIV / Aids prevalence rate current @ 13,1% (up from 12,5%)- youth – arrest rate averages 2300 per month.- Implementation of financial awards.- Management information- Greater demand for funding
BRANCH: SOCIAL DEVELOPMENT
Cost Pressures:• Affordability of costing model
(R180m p.a)• Redistribution of resources• Day care services for older persons• Youth programmes
BRANCH: SOCIAL DEVELOPMENT
Cost pressures (continue)• The bills:
- Children's, Older Persons, Child Justice.
- ECD infrastructure and capacity building (integrated approach)
BRANCH: SOCIAL DEVELOPMENT
Social Workers
- Number of Social Workers as at 30 September 2005: 337 (NGO sector = 600 all levels)
- National norm 1 : 5000
- Provincial gap approx. 56 (excl. management)
- Social Workers salary upgrade: 1 April ’04
- Increased funding to NGO sector for salary increases of social workers
DEVELOPMENT AND SUPPORT SERVICES
HIV / AIDS (04/05 = R5,8m / 05/06 = R10m)
Programmes:
• Home / Community based programmes
• Child headed households & orphans
DEVELOPMENT AND SUPPORT SERVICES
Poverty reduction:
• IPRS proposes deepened safety nets, participation, democracy and extensive investment in poverty programmes.
• Unemployment and unemployability
• School drop-outs and mismatched education
• Low and unskilled work force
• Social pathologies
DEVELOPMENT AND SUPPORT SERVICES
Poverty reduction:• Programmes
- Food security -sustainability
- SMME development
- ECD-long term investment
DEVELOPMENT AND SUPPORT SERVICES
Food ReliefTender not approved during
2004/05• Roll-over of funds to 2005/06 –
R16.2m.• Approval of 4 service providers –
September• Plans and systems in place for
distribution and support
PERSONNEL SPENDING AND NUMBERS
Establishment as @ 30 September 2005
• Approved establishment: 1 684
• Contract workers : 586
• Interns & learnerships : 116