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Presented: 22 May 2012 Parliament Cape Town

EXPANDED PUBLIC WORKS PROGRAMME SOCIAL SECTOR EPWP GRANT TO PROVINCES “ A PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS “. Presented: 22 May 2012 Parliament Cape Town. 1. Table of contents. 1. Social Sector EPWP Grant 2011/12 in Brief

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Presented: 22 May 2012 Parliament Cape Town

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  1. EXPANDED PUBLIC WORKS PROGRAMMESOCIAL SECTOR EPWP GRANT TO PROVINCES“ A PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS “ Presented: 22 May 2012 Parliament Cape Town 1

  2. Table of contents • 1. Social Sector EPWP Grant 2011/12 in Brief • 2. Provincial Grant Allocations in 2011/12 • 3. Performance of the Social Sector Grant • 3.1 Transfers to Provinces • 3.2 Compliance to DoRA • 3.3 Outputs Achievement • 4. Expenditure of the Grant • 5. Conclusion & Recommendations 2

  3. EPWP Social Sector Incentive Grant 2011/12 in Brief The Social Sector has entered its 3rd year of participating in the EPWP Incentive Grant since 2010/11 financial year. In 2011/12 financial year, the sector’s comprehensive incentive grant model known as “Social Sector EPWP Grant to Provinces” in the DoRA 2011, was allocated an amount of R200,358 by National Treasury to: Incentivise provincial Social Sector departments identified in the 2011 Social Sector EPWP Log-frame to increase job creation by focusing on the strengthening and expansion of social service programmes that have employment potential. Grant expected outputs are: Increased number of people employed and receiving income through the EPWP Increased duration of the work opportunities created Increased number of households or beneficiaries to which services are provided Increased income per EPWP beneficiary An allocation of R217,401 has been made for provinces to generate an additional 11 968.62 FTEs 2012/13.

  4. PROVINCIAL GRANT ALLOCATIONS IN 2011/12 4

  5. PROVINCIAL GRANT ALLOCATIONS IN 2011/12 Allocation by Department: Incentive Grant 2011/12 HEALTH: R 117.3m SOCIAL DEVELOPMENT: R 44.5m R200m EDUCATION: R 38m SAFETY & LIASON: R 0.2m

  6. PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT FOR PROVINCES (2011/12) 6 TRANSFER PAYMENTS TO PROVINCES • DPW successfully transferred 100% of the total allocation of R200,358m by the end of the financial year 2011/12, to compliant provincial public bodies. • Transfers were withheld in terms of section 16 (1) of the DoRA 2011 to non-compliant public bodies, however these were released once compliance was achieved. • Non-compliant public bodies included Western Cape Health, Kwa-Zulu Natal Department of Social Development and Free State Health. COMPLIANCE TO DoRA • DPW as the transferring department achieved good compliance to the DoRA except delayed provincial transfers due to: • Provinces delaying submission of Business Plans and Incentive Grant Agreements. Only Free State Department of Health and North West Social Development and Health departments submitted these required documents on time. • Non-compliance to the DoRA on stipend amounts and; • Delayed submission of reports across most provinces.

  7. PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT (2011/12) 7 OUTPUTS ACHIEVEMENT The table below shows disbursements of the grant as stipulated in the Conditional Grant Framework in DoRA 2011 according to level of achievement:

  8. PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT (2011/12) • Outputs Performance Analysis • FTE Target Achievement – A minimum of 80% of the grant allocation was to be utilised for payment of stipends • As shown in the table on previous slide, EC, FS and NW achieved set target at 294, 904 and 2448 respectively. • The rest of the provinces performed below target resulting in a overall achievement of 10683 FTEs vs. 11615 set FTE target • This behaviour is attributed to among other things: • Delayed beneficiary recruitment resulting in late project start. • Attrition in projects • Delayed provincial transfers to the projects • Stagnant compilation and late submission of performance and expenditure reports for IYM purposes 8

  9. PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT (2011/12) • 2. Household Target Achievement (beneficiaries) • It is one of the conditions of the grant that a certain number of beneficiaries are reached to prove value-add. • KZN exceeded target of 107 800 by servicing 115 632 instead. • NC matched target at 1548 • Gauteng target performance dropped by a big margin, servicing 91 873 of the planned 165 000 households • The rest of the provinces performed marginally below target. • To a certain extent, there is correlation between the challenges experienced by provinces as indicated on the discussion on achievement of FTEs. • Despite challenges experienced with KZN DSD, the province still managed to reach more households due to the strong HCBC programme management of the department of Health in the province. 9

  10. PERFORMANCE OF THE SOCIAL SECTOR EPWP GRANT (2011/12) • Performance Analysis • 3. NPO Support • A maximum of 20% of the grant allocation could be utilised for strengthening NPO delivery. Only 4 out of the 18 funded programmes did not utilise this aspect of the grant budget. • All sector provincial departments accessing this component of the grant achieved the target for NPOs to be supported utilising the grant. • Only Free State province did not achieve target due to over-targeting. • The province adjusted the targets in order to comply in the two areas mentioned above 10

  11. EXPENDITURE OF THE SOCIAL SECTOR EPWP GRANT FOR PROVINCES (2011/12) 11 According to the programme reports, as at end of April 2012, a total amount of R180,947mwas spent by provinces, which is 90.31% of what was transferred by NDPW to provinces. See the graphical representation below for expenditure details per province.

  12. EXPENDITURE OF THE SOCIAL SECTOR EPWP GRANT FOR PROVINCES (2011/12) 12 The graph below gives a clear comparative analysis performance from province to province.

  13. EXPENDITURE OF THE SOCIAL SECTOR EPWP GRANT FOR PROVINCES (2011/12) 13 • The following slide shows 4thquarter Social Sector Grant 2012/12 spending according to section 32 of the PFMA as submitted by provincial treasuries through IYM to National Treasury. • The report reflects 0% spending in respect of Eastern Cape and a low of 47.9% in respect of Western Cape. • These anomalies need to be addressed. • Additionally, DPW as the transferring department reflects under-spending. This is as a result of a withheld paymentlast quarter to KZN DSD due to failure to comply to submission of progress reports. On receipt of the outstanding progress reports, the sector resolved to visit projects and validate payment of Care Givers. • Last tranche was released after confirmation of existence and payment of CCGs in projects.

  14. EXPENDITURE OF THE SOCIAL SECTOR EPWP GRANT FOR PROVINCES (2011/12) 14

  15. CONCLUSION & RECOMMENDATIONS 15 Some of the Challenges experienced throughout the year that impacted the grant performance and expenditure persisted until the end of the 4th quarter 2011/12. These were: • Non/delayed payment of volunteers • NPOs in could not pay volunteers on time due to delayed project transfers by provinces or late finalisation of administration processes such as signing of Service Level Agreements. Kwa-Zulu Natal Social Development, Western Cape Health and Free State Health departments were affected in this respect. • Delays in submission of reports to provincial treasuries and thus DPW is still a problem. • Non-aligned reports between Treasury and NDPW. • Provincial programme under-funding resulting in departments seeking to do EPWP only through incentive grant.

  16. CONCLUSION & RECOMMENDATIONS CONT----- 16 Subsequent to the above the following measures are in place to deal with the above-mentioned challenges: • The Social Sector has developed a plan for IDT technical support to ensure compliant reporting in line with section 32 of the PFMA, to Provincial Treasuries. • IDT will deploy finance managers in sector departments periodically to assist eligible public bodies to reconcile and submit grant expenditures of their programmes to their respective CFOs, in line with IYM reporting requirements. • A clear grant management plan has been developed to ensure efficient monitoring of the grant performance • Capacity is available in the EPWP Monitoring & Evaluation Unit (Modelling & Incentives Directorate) to execute the plan in conjunction with the EPWP Social Sector Directorate and the Lead Social Sector Department’s Special Projects Office and other sector National Stakeholders. • Provincial EPWP Social Sector Coordinators have work plans with clear indicators for managing implementation of the grant performance in 2012/13.

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