Presentation on EPWP incentive grant performance to the Standing Committee on Appropriations 29th June 2011 Presente

1. 1 Presentation on EPWP incentive grant performance to the Standing Committee on Appropriations29th June 2011 Presented by Stanley Henderson,  Deputy Director General: EPWP

2. 2 1.0 Introduction The EPWP incentive grant was introduced in EPWP phase 2 to further enhance the creation of work opportunities through the payment of fiscal incentives. The EPWP incentive is paid on the basis of Full Time Equivalents (FTEs) created above a particular threshold. The EPWP incentive grant helps ensure that Public Bodies implement their projects labour-intensively. The EPWP incentive is paid on a quarterly basis dependent on reports on EPWP submitted by a Public Body.

3. 3 2.0 EPWP incentive processes The EPWP incentive business processes are as follows: a) The National Department of Public Works determines the eligibility, thresholds, Performance and Allocations for different Public bodies. Public bodies must have reported in the prior financial year before the 15th of October to be considered for the incentive in the subsequent financial year. b) EPWP incentive thresholds, targets and allocations are published in the Division of Revenue Act ( DORA) after going through the normal budget processes. c) Public bodies ( Provincial Departments and Municipalities) sign an incentive agreement with the National Department of Public Works valid for one financial year agreeing to abide by the conditions of the incentive grant. d) Public bodies register their projects on the National Department of Public Works reporting system and update their data on a monthly basis. EPWP information has to be on the system 20 days after the end of quarter to be considered for incentive payment for a particular quarter.

4. 4 2.0 EPWP incentive processes cont’d e) The National Department of Public Works verifies data on the system, 20 days after the quarter to determine the number of Full Time Equivalents ( FTEs) by each eligible Public body to determine the incentive payments to be made. f) Payments are made to eligible Public bodies after the verification of reported data, 45 days after the end of the quarter. g) The National Department of Public Works carries out audits on data reported through site visits and verification of Public body project details on a continuous basis. h) The National Department of Public Works may make adjustments in incentive payments on the basis of Performance and audit reports.

5. 5 3.0 Roles of Different Stakeholders in the EPWP  Infrastructure sector incentive Roles of the National Department of Public Works Development and review of policy framework for the incentive. Determination of the targets, thresholds, performance targets and incentive allocations for each Public body. Provide technical support to Public bodies to help them implement projects in their EPWP plans in order to meet the EPWP incentive targets. Verification of data reported on the EPWP system for incentive payments. Disbursement of the incentive payments once verification has been done. Auditing of Public bodies to ascertain compliance to incentive requirements.

6. 6 Roles of eligible Public bodies Preparation of EPWP project plan to meet or exceed targets. Implementation of planned EPWP projects. Registration of EPWP projects on which the incentive will be claimed on the EPWP reporting system. Updating of project information on the EPWP reporting system on a monthly basis. Ensuring that project and or payroll records are available for audit performances.

7. 7 Roles of Provincial Treasury Disburse incentive to Provincial Departments. Monitor incentive spending and compliance to the Division of Revenue Act (DORA).