HEARINGS ON ANNUAL REPORT

1
HEARINGS ON ANNUAL REPORT

• PRESENTATION TO PORTFOLIO COMMITTEE
• 19 October 2005

2
OUTLINE

• VISION MISSION
• INTRODUCTION
• STRATEGIC OVERVIEW KEY POLICY DEVELOPMENTS
• HIGHLIGHTS ON 2004/05 ACHIEVEMENTS
• BRANCH SOCIAL SECURITY
• BRANCH INTEGRATED DEVELOPMENT
• FINANCIAL PERFOMANCE
• OVERVIEW OF FINANCIAL RESULTS
• AUDIT OPINION
• CONCLUSION

3
VISION MISSION

• VISION
• A caring and integrated system of social
  development services that facilitates human
  development and improves the quality of life.
• MISSION
• To ensure the provision of comprehensive social
  protection services against vulnerability and
  poverty within the constitutional and legislative
  framework, and create an enabling environment for
  sustainable development. The department further
  aims to deliver integrated, sustainable and
  quality services in partnership with all those
  committed to building a caring society.

4
Introduction

• In the year under review we endeavoured to give
  effect to our vision and mission through
  addressing the complexities and the multiple
  dimensions of poverty by
• Extending social grants to the most needy
  including children, older persons, disabled
  persons and other vulnerable groups
• Focusing on finalising the legislative and policy
  frameworks that govern our operations through new
  policies and legislation which include the Older
  Persons and Childrens Bills
• Restructuring and re-strategising to gear the
  Department for a new role in expanding welfare
  and developmental services and
• Contributing to work of the Clusters of
  government, as a co-chair, to ensure the delivery
  of Cabinet priorities

5
Introduction

• The success of our endeavours are reflected in
  that we
• Expanded our capacity and delivered on our
  international obligations
• Provided the requisite leadership to the
  provincial departments
• Registered over 1,3 million beneficiaries
• Improved the effectiveness and efficiency of the
  grants system
• Effectively started to eliminate fraud,
  corruption and improved targeting
• Introduced critical pieces of legislation into
  Parliament
• Completed the financing model for welfare
  funding,
• Developed a new service delivery model for
  welfare and developmental services
• Expanded care support to people affected
  infected by HIV Aids
• Enhanced capacity of the Population Unit to
  provide research support and
• Coordinated development of comprehensive social
  security system
• The following slides provide the details of these
  initiatives

6
Strategic overview key policy developments

• Overview of service delivery environment
• Poverty unemployment continues to challenge the
  social development sector
• Consequently, social assistance continues to
  dominate our budgets and spending trends
• Crowd out effect on other social developmental
  services
• Fraud corruption on social grants continue to
  challenge the department despite efforts to
  eradicate it

7
Strategic overview key policy developments

• Overview of service delivery environment-cont
• Impact of HIV AIDS other social ills demand
  that focus shift from social grants to social
  welfare other developmental services
• Support given to NGOs is still fragmented
  unpredictable
• Exodus of social services professionals,
  specifically social workers, to other professions
  other countries continues unabated
• Disparity in conditions of employment of social
  workers in government and those in NGO sector is
  a major challenge

8
Strategic overview key policy developments

• Overview of organisational environment- cont
• The centralisation of the social assistance
  function presents an opportunity for the
  restructuring national provincial departments
  re-directing of focus to other social
  development services
• Both national provincial departments continue
  to have capacity challenges
• Current number of social workers is insufficient
  to deal with the social challenges resulting from
  poverty, unemployment and HIV and AIDS

9
Strategic overview key policy developments

• Response to challenges
• A new social development service delivery model
  has been developed
• A retention strategy for social services
  professionals has been crafted
• Salaries of social workers in public service have
  been reviewed plans are put together to deal
  with the NGO sector as well
• The new financial awards policy aims to address
  the funding of NGOs other service providers
• Fraud strategy for social grants is beginning to
  pay dividends in all provinces and an overall
  savings is projected by end of year.

10
Key policy developments

• Integrated development
• Service delivery model financial awards policy
• Childrens Older Persons Bills in pipeline
• Minimum standards for in-patient drug treatment
  centres approved
• Draft policy on substance abuse
• Comprehensive review of drug master plan underway
• The process of reviewing the prevention and
  treatment of Drug Dependency Act No 20 of 1992
  has commenced

11
Key policy developments-cont

• Integrated development-cont
• Draft policy on victim empowerment victims
  charter
• Draft policy framework for orphans vulnerable
  children
• Draft Policy Framework and Strategy on Child
  Abuse, Neglect and Exploitation completed
• ECD guidelines finalised

12

• Integrated development-cont
• The Child Protection Register (CPR) has been
  installed in seven provinces and the process of
  upgrading and installing database is ongoing.
• Draft policy for people with disabilities as well
  as draft integrated policy for the transformation
  of protective workshops have been developed

13
Key policy developments-cont

• Social Security
• A position formulated on responding to age
  equalisation of old age grant
• Research and proposals on deductions from social
  grants was completed
• The demographic and financial model for social
  security grants was updated in line with Census
  2001 data.
• Completed a detailed study on socio-economic
  impact of social grants
• We could not complete work on
• Research into needs of the disabled
• Relationship between grants and private
  insurance
• Spatial analysis of social grants impact,
  especially on females
• Spatial and individual panel survey of impact of
  social grants
• Limited staff capacity agency work detracted
  from some of these initiatives

14
Social Security Achievements

• Grants Administration
• Design application, verification and approval
  processes
• Norms standards blueprint implementation plans
  completed, but reduction of cycle times delayed
  due to limited human resources could not
  implement 1800 staff to beneficiary ratio.
• Reviews of disability grants progressed with over
  180 000 completed, savings in excess of R200
  million, however delays in KZN, Mpumalanga and
  Limpopo
• Child Support Grant reviews behind schedule as
  focus was on disability
• Some success in reviews of foster care as grants
  are now lapsed at end of financial year

15
Social Security Achievements

• Integrity improvement plans implementing data
  detection of fraud
• Extension of 9 and 10 yrs at 98 of success rate
• Coverage of eligible persons over 90 complete
  for all grants
• A total of 9,4 million beneficiaries were in
  receipt of grant as at March 2005. About 1,4
  million increase in coverage
• Compliance with conditional grant framework
  achieved
• R3,2 billion transferred to provinces as
  conditional grant for CSG
• eligibility criteria conditions for grant
  uniform in all provinces
• The main challenges were
• lack of dedicated capacity to implement project
  at National Provinces
• Lack of required birth certificates for
  registration of children

16
Social Security Achievements

• Grants Information and Payments Systems
• Process to replace system deferred pending
  finalisation of the transformation processes incl
  Agency establishment
• Maintenance of IT systems not sufficiently
  improved as limited capacity resides in the
  department
• Implementation of data clean-up initiated
• Socpen enhancements being carried out on an
  ongoing basis
• System accessibility and availability
  significantly increased through technology roll
  out

17
Social Security Achievements

• Service Delivery Infrastructure
• A spatial distribution model for pay points
  completed, implication is that the department now
  has a plan for the set up of pay points,
• Shift occurred in use of financial institutions
  from target of 20 exceeded by 1. The cost
  saving is significant as 2 million people now use
  banks and Post Office, saving millions of Rands
  per annum
• Over 30 of pay points meet all the norms and
  standards this could be more as the audit was a
  sample
• Next phase in the office distribution model

18
Social Security Achievements

• Disaster Relief
• Time taken to assess disasters within 48 hrs
• 70 of applications processed within 3 months and
  payments
• Blue prints developed for processing applications
  to reduce time taken
• Institutional reform necessary for disaster
  relief given the matters of accountability-
• Draft Bill has been developed - awaiting inputs
  and tabling
• In the meantime the Department has developed
  policies for distribution of emergency relief
  provision

19
Social Security Achievements

• Agency establishment
• Cabinet approved implementation plan and blue
  print of the shape and form of the institution
• Legislation in place and institution now a legal
  entity
• Staff employed in support functions national
  imple-mentation coordinating body set-up as
  Guiding coalition
• Enhanced strategic management capacity in the
  Department
• A Memorandum of Understanding was signed between
  the Minister and the MECs towards the end of
  financial year
• In terms of the targets, the Department is on
  course

20
Social Security Achievements

• Service Monitoring and Evaluation
• The Department has a fully fledged ME system
  with extensive measuring system covering over 10
  Key Performance Areas and 110 Key Performance
  Indicators
• A comprehensive report on the quality of service
  delivery at a national and provincial was
  compiled, as well as monthly and quarterly
  monitoring reports are produced.
• Value for money was assessed through assessing
  the impact of Social Security grants on the lives
  of the beneficiaries.
• Work was undertaken to establish evidence base
  for the development of pro-poor social policy in
  partnership with DFID with donor funding of over
  R40 million

21
Social Security Achievements

• Compliance Fraud Prevention and detection
• Capacity greatly enhanced in the Compliance Unit
• Data interrogation done in 9 provinces and
  detected fraud, including that of over 41 000
  civil servants.
• Fraud hotline was launched, reporting over 15 000
  cases.
• Indemnity offer made to the public with over 86
  000 responding, savings estimated at over R400
  million
• Department partnered with SIU to deploy over 200
  investigation experts over next two years
• Reviewed 150 000 cases of temporary disability
  saving R200 million

22
Overall Social Security Gains

• Setting up the Agency limited our efforts to
  ensure implementation of all commitments made
• Within social security policies, good work has
  been done despite some targets not achieved
• Within grants administration, delivery targets
  achieved, especially on registration of those
  eligible for grants
• On service assurance objectives significant gains
  were made in monitoring and evaluation, but more
  especially within the area of detection and
  reduction of fraud

23
Integrated Development Achievements

• The SA Council for Social Services Professions as
  well as the Professional Boards for Social Work
  and Child and Youth Care have been reconstituted
  and are now representative of the demographics of
  the country.
• The national conference for Social Services
  Professions was held in partnership with the
  Council.
• Ke Moja Project which is a drug abuse prevention
  programme targeting the youth was launched in the
  Western Cape

24
Integrated Development Achievements

• Service Providers in two provinces trained on
  management of substance abuse
• Youth best practice treatment model for substance
  abuse developed and consulted in the provinces
• Guidelines for transformation of services to
  older persons have been finalised and are being
  printed for distribution.
• Frail Care guidelines developed and consulted
  awaiting approval.
• A SA Plan of Action on Ageing is currently being
  developed.
• The department jointly with SAMDI has developed a
  capacity building programme on disability issues
  for managers

25
Integrated Development Achievements

• The Department participated in the development of
  a draft integrated ECD strategy in collaboration
  with the DOE and DOH.
• 124 Inter-country adoptions registered
• The department is implementing the Probation
  Services Act No 116 of 1991 as amended.
• 1000 children have benefited from the home-based
  supervision programs
• 750 Probation Officers received training in
  restorative justice and probation principles
• 76 Assistant Probation officers received
  in-service training

26
Integrated Development Achievements

• New Secure care facilities in GP, WC, EC and KZN
  completed to be operational during 2005/6
• Standard Generating Body has been gazetted and
  will begin its work in 2005/5
• A curriculum for the 2 year Assistant Probation
  Officers training course first of its kind in
  SA- completed in October 2004
• More than 30 000 children diverted from the
  criminal justice system.

27
Integrated Development Achievements

• Service Delivery Implementation
• The Departments participation in the Integrated
  Justice System Program resulted in the removal of
  300 children from DCS, SAPS and DOSD facilities
  into alternative care programmes
• Various youth development initiatives and
  outreach programmes implemented by the dept.
  These include Youth Month roundtable discussions,
  Youth Day Commemorations, National Volunteer
  Week, take a girl child to work campaign

28
Integrated Development Achievements

• Commemoration of the 10th anniversary of the
  international year of the family.
• Research on families in South Africa completed in
  Dec 2004
• VEP minimum standards for Integrated Service
  Delivery approved and distributed to stakeholders
• A National Resource Directory on Services for
  victims of violence has been distributed to
  provinces and other role players
• 16 Days of no violence against women launched in
  Bizana
• 150 Soc Dev Professionals trained on SA Charter
  for victims of violence
• 3rd draft of the integrated strategy on Victim
  Empowerment has been developed
• An impact assessment of Victim Empowerment was
  carried out and a tool to monitor the projects
  was also developed.

29
Integrated Development Achievements

• Draft community development contextual document
  promoting the understanding of the concept and
  facilitating the process of mainstreaming the
  community development approach has been
  completed.
• The Department with technical assistance from
  DFID and EU has developed the social sector plan
  for the institutionalization of EPWP.
• Curriculum for the National Certificate in
  development practice was developed in partnership
  with DPLG.

30

• The Department facilitated the collation of the
  country report on the Copenhagen report which
  served as guidelines for discussion in the 43rd
  Session of the Commission for Social Development
  in New York.
• The study on the assessment of the impact of the
  NPO Act on the sector was undertaken and
  completed.
• 6 830 NPOs registered and issued certificates
  during the year under review
• 11 169 new applications received and processed

31
Integrated Development Achievements

• Capacity building programme for NGOs an CBO
  responsible for HCBC and support has been
  established with support from DFID
• LoveLife Groundbreaker partnership programme has
  been expanded to include farms and the informal
  settlements and it has been linked to the EPWP in
  relation to HCBC and Support. 80 groundbreakers
  trained and placed in community based centres.
• HIV and AIDS training programme for govt policy
  makers and planners reviewed and implemented

32
Integrated Development Achievements

• 57 community based multipurpose centres have been
  established and funded
• 352 organizations have been funded during the
  year under review
• 6976 care givers have been trained
• 107 child care forums established
• Research on the monitoring of the HCBC projects,
  in collaboration with the DOH has been finalized

33
Integrated Development Challenges

• Delay in the finalization of the NFES tender
  process and the decision on the continuity of the
  programme impacted negatively on the
  implementation of the programme
• Backlog of the registration of the NPOs
• Capacity to do Monitoring and evaluation of
  programmes
• Lack of service standards/norms standards which
  results in lack of uniformity in the delivery of
  services.
• Limited human resource capacity

34
Financial Performance

• Department continues to put effective controls to
  improve financial management
• Implemented the new supply chain management (SCM)
  policy
• Restructured the finance unit in response to
  social assistance function shift SCM
• In-year monitoring instruments developed for
  conditional grants
• Audit Committee Internal Audit Unit continue to
  add value towards achievement of objectives
• Department spent 98 (R4, 513 billion of the
  total adjusted allocation of R4, 598 billion

35
Financial Performance

• Major underspending was on Programme 3 Grant
  Administration mainly due to
• Funds for social security improvement received
  only in November 2004 in the adjustment budget
  and limited period available for provinces to put
  up plans to implement Operation Isidima as it
  is called.
• The phasing out of the establishment of the
  Agency over 3 years as opposed to fully
  operational entity by 1 April 2005

36
Findings of the Auditor-General

• Once again department received an unqualified
  audit opinion
• Emphasis of matter on the following
• Non- compliance with DoRA
• Underspending on conditional grants
• Insufficient project management controls on
  Poverty Alleviation funds held at IDT
• Non-compliance with NPO Act, 1997
• Short-comings in the SOCPEN system

37
Management responses to AG

• Non- compliance with DoRA
• The capacity of the Department is being enhanced
  starting with finance unit
• Conditional grants put on the agenda of HSD and
  CFO meetings
• Agreed to give regular quarterly feedback to
  MINMEC
• Quarterly reports now submitted to Treasury
  Select Committee in NCOP
• Overall capacity in provinces remains a big
  challenge

38
Management responses to AG

• Underspending on conditional grants
• Major underspending was in EC Free State on CSG
• National targets set are being reviewed in line
  with 2001 census data
• Collaboration with Home Affairs Justice is
  beginning to show improvements
• Other underspending in Food Emergency Grant
• Tender processes finalised in 6 provinces before
  year-end and EC, KZN WC now finalised in new
  year
• Programme terminated due to non-sustainability
  complexity

39
Management responses to AG

• Insufficient project management controls on
  Poverty Alleviation funds held at IDT
• Discussions held with IDT and agreed on exit plan
  which will ensure, amongst others, the spending
  of remaining funds
• Financially economically viable projects will
  be migrated to SMME projects, in collaboration
  with DTI
• Impact assessment to be finalised before end of
  the year
• Non-compliance with NPO Act, 1997
• Research study done on impact of the Act
• Future strategy to manage NPOs will be
  recommended to Minister soon

40
Management responses to AG

• Short-comings in the SOCPEN system
• Department is already, as part of the SOCPEN
  enhancement strategy, working with SITA to deal
  with the shortcomings identified by the
  Auditor-General, including the development of a
  disaster recovery plan

41
CONCLUSION

• Poverty and HIV AIDS continue impose challenges
  for the sector
• Integrated approach with other departments
  other stakeholders, especially NGOs FBOs is
  critical
• Proactive and preventative steps are very
  critical in dealing with these challenges
• Capacity of the government to respond to social
  challenges need to be given priority attention
• Partnerships with private sector and NGOs are
  critical success factors

42
THANK YOU