10 October 2012

"Building a Caring Society. Together" 1

DSD Annual Performance Report

(01 March 2011 – 31 April 2012)

Portfolio Committee on Social

Development

10 October 2012

22

Presentation outline

PART A: Overview • Vision, Mission & Strategic Priorities

PART B: Programme performance• Purpose• Annual Achievements/performance

PART C: International Obligations• Challenges

PART D: Legislative Programme

PART E: Finance

"Building a Caring Society. Together"


Part AOverview


MissionTo ensure the provision of comprehensive social

services which protect the poor and vulnerable within the framework of the South African Constitution and

subsequent legislation; create an enabling environment for sustainable development; and deliver

integrated, sustainable, and quality services in partnership with all those committed to building a

caring society together.

Vision

A caring and integrated system of social development services that facilitates human development and improves the quality of life.


5

The Department has identified and committed itself to addressing the following key priorities:

• Expand Child and Youth Care services (Isibindi programme)

• Promote Early Childhood Development

• Combat Substance Abuse

• Provision of food to poor households (Food for all/Zero Hunger)

• The protection and promotion of the rights of older people and people with disabilities

Strategic Priorities



6

The Department also contributes to some of the following government outcomes:

1. Improved quality of basic education2. A long and healthy life for all South Africans3. All people in South Africa are and feel safe4. Decent employment through inclusive economic growth5. A skilled and capable workforce to support an inclusive growth path6. An efficient, competitive and responsive economic infrastructure network7. Vibrant, equitable and sustainable rural communities and food security

for all8. Sustainable human settlements and improved quality of household life9. A responsive, accountable, effective and efficient local government system10.Environmental assets and natural resources that are well protected and

continually enhanced11. Create a better South Africa and contribute to a better and safer Africa and

World12.An efficient, effective and development oriented public service and empowered,

fair and inclusive citizenship

Government outcomes



PROGRAMMES PURPOSE Programme 1: Administration

• To provide leadership, management and support services to the Department and the Social Development Sector.

Programme 2: Social Assistance

• To provide income support to vulnerable groups.

Programme 3: Social Security Policy and Administration

• To provide for social policy development and the fair administration of social assistance.

Programme 4: Welfare Services Policy Development and Implementation

• To create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices and the provision of support to the implementation agencies.

Programme 5: Social Policy and Integrated Service Delivery

• To support community development and promote evidence-based policy making in the Department and the Social Development Sector


8

Part B Programme Performance

9

PURPOSEPURPOSE

Purpose:Purpose: To inform the Portfolio Committee of : To inform the Portfolio Committee of :

– The Department’s performance against its pre-determined The Department’s performance against its pre-determined objectives for the 2011/12 financial year;objectives for the 2011/12 financial year;

– The State of Expenditure of the Department for the 2011/12 The State of Expenditure of the Department for the 2011/12 financial year as at 31 March 2012.financial year as at 31 March 2012.

9"Building a Caring Society. Together"

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CONTEXT/SITUATIONAL ANALYSISCONTEXT/SITUATIONAL ANALYSIS

• The Social Development Sector delivers its services in an environment The Social Development Sector delivers its services in an environment

marked by high levels of poverty, unemployment and inequality.marked by high levels of poverty, unemployment and inequality.

• Although the Department is largely responsible for policy formulation, it also Although the Department is largely responsible for policy formulation, it also

renders some of its services directly to the public, e.g. Registration on renders some of its services directly to the public, e.g. Registration on

NPOsNPOs

• The Department works with other institutions within and outside government The Department works with other institutions within and outside government

in the execution of its mandate: Critical partners include amongst other the in the execution of its mandate: Critical partners include amongst other the

Departments of Basic Education, Labour, Justice, Health and Rural Departments of Basic Education, Labour, Justice, Health and Rural

developmentdevelopment.


11

CONTEXT/SITUATIONAL ANALYSISCONTEXT/SITUATIONAL ANALYSIS

• Areas of collaboration include critical projects on issues affecting Children, Areas of collaboration include critical projects on issues affecting Children,

HIV & AIDS, Older Persons, Victim Empowerment, Youth, Social Security.HIV & AIDS, Older Persons, Victim Empowerment, Youth, Social Security.

• Given the collaborative and interdependent nature of some of the Given the collaborative and interdependent nature of some of the

department’s work, it can only meet some of its targets if the other department’s work, it can only meet some of its targets if the other

institutions deliver on their commitments as well.institutions deliver on their commitments as well.

• Reprioritization: In some instances, the Department often defers the Reprioritization: In some instances, the Department often defers the

implementation of some of its targets in light of new urgent priorities, these implementation of some of its targets in light of new urgent priorities, these

include for example the hosting of the ECD conference in March, which led include for example the hosting of the ECD conference in March, which led

to the dedication of funds to the event. to the dedication of funds to the event.



12

Annual Achievements/Performance

13

PROGRAMME 2: COMPREHENSIVE SOCIAL SECURITYSocial Assistance

Government outcome

A long and healthy life for all South African

Outcome DSD specific

Reduce income vulnerability by expanding social assistance safety net

Targets Annual Achievements/performance

Social assistance (increase in access to social assistance)

Increase access of the elderly to the Old Age Grant by raising the threshold of the Old Age Grant. Target = 2 729 359CSG

Social assistance remains the single largest contributor to poverty alleviation in South Africa.The number of social assistance beneficiaries increased by 5,5 percent to 15 595 705, -10,927 731 of these received the child support grant while-2 750 857 of these were receiving the Old Age Grant by the end of the financial year.


14

PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATIONSocial Security Policy Development

Government outcome

An efficient, effective and development orientated public service.Decent employment through inclusive growth


Social security policy coherence through a single department.Increased social insurance through a mandatory contribution for pension, death and disability benefits


Initiate ring-fencing towards proclamation of the Department of Social Security(include draft legislation and consultation)

•Proposal for establishment of new Department of Social Security were completed, and high level organisational structure was developed.•Bilateral meetings were held with the Department of Labour, Department of Public Service and Administration, the Unemployment insurance fund and the Compensation of Fund. The DSD MANCO approved the establishment of an Internal Task Team to ring–fence and implement the plan

Draft policy and Legislation for mandatory retirement ,death and disability benefits and consultations

•The consolidated policy proposal was approved by the Inter-Ministerial Committee and presented to the Social Protection and Community Development Cluster Cabinet Committee


15

PROGRAMME 3: SOCIAL SECURITY POLICY ADMINISTRATION

Appeals Adjudication

Government outcome

Decent employment through inclusive growth


Social Security policy coherence through a single department


Regulations promulgated and implemented giving effect to Social Assistance Act

•Regulations giving effect to Social Assistance Act,2004 were published and implemented


16“Building a Caring Society. Together"

PROGRAMME 4 : WELFARE SERVICESService Standards and Service Provider Management Support


30 % increase in scholarships awarded to social work students. (The baselines was 3908 scholarships awarded)

918 social work scholarships were awarded which represent 23.4%. (The number of scholarships awarded depends on the number of applicants and the number of students accepted by relevant tertiary institutions)

Nine provinces toimplement the SocialWelfare ServicesFramework

932 social service practitioners in eight provinces were capacitated on the social welfare services framework. A draftplan for implementing the framework was developed. Generic intervention processes were implemented in oneprovince.

Government Outcome

An efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship


Standardise Social Welfare Services to improve quality service delivery by 2015A skilled and capable workforce to support an inclusive growth pathImproved sector performance and the delivery of quality social welfare services


PROGRAMME 4 : WELFARE SERVICESService Standards and Service Provider Management Support


Develop and approve National Implementation Plan for the Policy on Financial Awards (PFA)

An implementation plan for PFA was developed, presented to the welfare Services Forum, HSDS and MINMEC, and approved

Consultative sessions on the Policy on Financial Awards to Service Providers

The policy was discussed with line function directorates, and submitted to national consultations. The policy and the approved implementation plan and the NPO Financing Guidelines were discussed with provincial officials and representatives of NPOs in seven provinces. Inputs and comments were consolidated and the policy document was refined.

Government Outcome



Standardise Social Welfare Services to improve quality service delivery by 2015A skilled and capable workforce to support an inclusive growth pathImproved sector performance and the delivery of quality social welfare services


PROGRAMME 4 : WELFARE SERVICES

Older Persons


100 new elder abuse cases reported to social workers’ offices

273 cases of elder abuse were reported and processed. Awareness campaigns were held in KwaZulu-Natal, Limpopo and the Western Cape

100 social services professionals trained onmanagement of elder abuse

210 social services professionals were trained on management of elder abuse.

412 Residential facilitiesprovisionally registeredin terms of the normsand standards

412 residential facilities were provisionally registered in terms of norms and standards.

Government Outcome

All people in South Africa are and feel safe

DSD specific Outcome

Create an environment that enables the protection and promotion of older persons’ rights.



Substance Abuse


Roll out Nationalcampaign on anti-drugsand substance abuse inall provinces

The national anti-drugs campaign was rolled out in all nine provinces.

Government Outcome



Reduce incidence of substance abuse in communities

2020

PROGRAMME 4: WELFARE SERVICES

Children

Target Annual Achievements /performance

10% increase in the number of children between 0-5 years old accessing ECDprogrammes per annum

The number of children accessing ECD services and programmes increased by 26,5% (209 376), bringing to over 900 000 the total number of children benefitting from ECD services.


Government Outcome

A Quality Basic Education

DSD-specific outcome

Improved access to Early Childhood Development ( ECD) programmes

2121


Children


Register 2 000 new Children Abused, Neglected and Exploited (CANE) cases on Child Protection Register (CPR) Part A

2 344 cases of abuse were processed on Child Protection Register (CPR) Part A

1 500 employees screened against CPR part B

11 191 employees were screened on part B of the CPR

Develop guidelines for Prevention and Early Intervention

The guidelines were developed


Government Outcome



Safe and friendly society for children

2222


Children


5 % increase in the number of children accessing Adoption Services

65% increase (1 620 adoptions registered)

20% increase in the number of children accessing CYCCs

49% increase (7 272 children accessing CYCCs)

15% increase in the number of children accessing Drop-in centres

641% increase ( 265 565 children accessing Drop-in centres)

Finalise the implementation plan to monitor the implementation of the Children’s Act

Finalise the implementation plan with indicators

All nine provinces submitted quarterly progress reports


Government Outcome



Safe and friendly society for children


PROGRAMME 4 : WELFARE SERVICESSocial Crime Prevention and Victim Empowerment


Extend training to 600 serviceproviders on:Diversion accreditation systemsNorms and standard for secure CareImplementation of social crimeprevention programmes

815 practitioners and service providers weretrained.

Monitor implementation ofthe policy framework for theaccreditation of diversionservices

• Accreditation was done in all provinces. 345 assessments were done. 55 service providers and 191 programmes received full accreditation.

•44 provincial coordinators were trained to conduct quality assurance in respect of providers and programmes in all three categories.

Government Outcome



Reduced incidence of social crime



Social Crime Prevention and Victim Empowerment


Train 9 provinces and 240 service providers on human trafficking

One national and nine provincial workshops were held, and 220 service providers were trained on human trafficking

Draft regulations on human trafficking

Regulations on Human Trafficking Bill andforms were drafted

Vetting of victim support services policy

The policy Guidelines for victim empowerment were vetted

Government Outcome



Reduced incidence of social crime

2525

PROGRAMME 4: WELFARE SERVICESFamilies

Targets Annual Achievements /performance

Consultation on GreenPaper for families

The Green Paper was discussed with MINMEC and various clusters, and gazetted in October 2011 for public comment. Consultative workshops were held in nine provinces in February and March 2012.

Approve Integrated Parenting Framework.

The framework was approved

Approve Manual on Mediation services

The Manual on Mediation services was approved

Conduct research on theeffectiveness of services tofamilies

Research was conducted in the Eastern Cape, Western Cape, Northern Cape, North West and Mpumalanga, and a preliminary research report was completed.


Government Outcome

Sustainable human settlement and improved quality of household life.


Restored family values and responsibilities in order to build cohesive communities.

2626

PROGRAMME 4: WELFARE SERVICESYouth

Targets Annual Achievements /performance

1300 youths participating in MYPP 1 325 youths participated in Limpopo, Eastern Cape, Mpumalanga and North West

Conduct 4 Outreach programmes 8 outreach programmes were conducted, namely a Youth Seminar in the Free State Northern Cape, a Youth Day Commemoration in Gauteng, International Youth Day commemoration in North West, a Youth Walk against Drug Abuse and Taking DSD to communities in KZN,Mpumalanga and Limpopo.

1800 participating in National Youth Service (NYS)

2 426 youths participated in the NYS


Government outcome

Vibrant, equitable, sustainable rural communities contributing towards food security for all


Youth participate in and influence social change.Skilled and capable youth



HIV AND AIDS


Reach 50 000 households through HIV/AIDS prevention programmes

475 456 vulnerable households were reached through HIV/AIDS prevention programmes

Reach 1 750 000 youths through HIV/AIDS prevention programmes

2 106 576 youths were reached through HIV/AIDS prevention programmes.

350 000 Orphans and Vulnerable Children served through psychosocial support services

631 612 Orphans and Vulnerable Children received psychosocial support service

7 Provinces implementing Community Conversations

Community conversations were conducted in seven provinces

Government Outcome

A long and healthy life for all South Africans


To reduce the psychosocial impact of HIV and AIDS and other chronic illnesses on the South African population



HIV AND AIDS


Train 207 social service professionals on HIV and Aids counselling

584 social service professionals were trained.

Develop 1st Draft ofthe framework for HIVsocial behaviour change(all target groups)

The draft was completed

Government Outcome



To reduce the psychosocial impact of HIV and AIDS and other chronic illnesses on the South African population

2929

PROGRAMME 5: SOCIAL POLICY AND INTEGRATED SERVICE DELIVERY

Social Policy Research and Development


Train 50 policy-makers • 50 policy-makers were trained in Social policy and social policy analysis.

Development of Research Coordination and Management Strategies

• The strategy was developed but it was not presented to the policy forum MANCO and HSD.

Develop and review one policy

• The Green Paper on Families was completed and gazetted.

Government outcome


DSD Outcome Deepening of social policy discourse and evidence-based policy making


3030


Special Projects and Innovation


Create 132 000 job opportunities through current and newly integrated social sector sub-programmes

• According to the EPWP web-based system, the social sector facilitated the creation of 152 109 job opportunities which is above the annual target of 132 000.

Government outcome

Decent employment through inclusive economic growth

DSD Outcome Increased decent work opportunities, skills and income levels in the community


3131


Population Policy Promotion


Follow-up research report on HIV and Aids and other key health concerns with demographic Consequences

• The report was completed in March 2012.

Conduct 4 training sessions (100 participants)

Review and evaluate Training course (for repeat roll-out in 2012/13)

• 32 training sessions were held, attended by 732 participants from all nine provinces, with an emphasis on rural nodes.

• The evaluation and review was completed

Government outcome


DSD Outcome HIV and AIDS and key health concerns with demographic consequences integrated into social sector development plans


3232


Population Policy Promotion


Learner workbook and teacher guide developed as tools for introducing population factors into school curricula

• The workbook and guide were completed, edited and reviewed in collaboration with experts from the Department of Basic Education, ensuring the integration of themes on various population concerns including adolescent sexual and reproductive health.

Conduct Capacity building and training workshops in provinces and urban nodes

• Technical support was provided on key issues to be considered when integrating gender into local IDPs.

• Six advocacy workshops were held, and promotional and educational material were exhibited. Workshop reports, evaluation forms and attendance registers were produced.

• A research dissemination and gender workshop for various stakeholders was held in Dundee in February 2012.

Government outcome


DSD Outcome HIV and AIDS and key health concerns with demographic consequences integrated into social sector development plans


3333


Registration and Monitoring of NPO’s


Capacitate 600 NPOs on NPO Act and governance

• 1 323 NPOs attended 32 workshops in the Free State and North West provinces.

Capacitate 120 provincial Officials onNPO Act and governance

• 144 officials were capacitated in the Eastern Cape (Umtata and Queenstown Districts) and the Free State (Motheo, Thabo Mofutsanyane, and Lejweleputswa Districts).

Consultation and finalization of revised Codes (standards) & practical guide on NPO governance.

• A two-day workshop was held to review and discuss the Codes.

Government outcome

An efficient, effective and development-oriented public service, and an empowered, fair and inclusive citizenship

DSD Outcome A conducive environment for civil society organisations and communities


3434


Registration and Monitoring of NPO’s


Process 80% of applications within two months (10% increase)

• 95% of applications were processed within two months (17 573 of 18 448).

Increase issuing of notices by 10% • 85% of NPOs whose reports were due were served with non-compliance notices.

Development and testing of online NPO registration system

• Programmers were appointed to develop the system.

Government outcome

An efficient, effective and development-oriented public service, and an empowered, fair and inclusive citizenship

DSD Outcome A conducive environment for civil society organisations and communities


3535


Community Development


Conduct 9 Communityoutreach programmes (TakingDSD to communities)

• 18 communities were reached (through the “Taking DSD to Communities” campaign and “October Month”)

Government outcome

Vibrant, equitable , sustainable rural communities contributing towards food security for all

DSD Outcome Communities participating actively in their own development


3636




Profile 1500 Communities • 2 520 communities were profiled.

Profile 200 000 Households • 224 145 households were profiled.

At least 50% of profiledclients referred for appropriateinterventions

• According to the NISIS, 596 316 clients referred to different departments for appropriate interventions.

Government outcome


DSD Outcome Improved delivery of community development services


3737




Guideline on elimination ofhunger document

• A DSD Strategy on Zero Hunger was developed.

1 million beneficiaries accessing DSD food security and production programmes

• 1 049 566 people benefited from food security programmes.

Government outcome


DSD Outcome Improved access to food


3838


Sustainable Livelihoods


Develop Community Mobilization Guidelines

• The guidelines were developed and approved.

Government outcome


DSD Outcome Improved access to livelihood opportunities by households


PART C

International Obligations for 2011/12


4040

International Obligations for period 2011/12

In support of South Africa’s foreign policy goals, the Department plays an active role in promoting the country’s social development agenda internationally.

The Department is an active member of the African Union (AU), Southern African Development Community (SADC) and United Nations structures, which includes among others, the UN Commission on the Status of Women and the UN Commission on Narcotics

During the reporting period, the Department continued its participation in International Social Security Association (ISSA) activities including strengthening ISSA in Africa

The Department also participated in Millennium Development Goals review meetings hosted by the AU and the UN Economic Commission for Africa.

The Department participated in the UN Commission for Social Development and the UN Commission on Gender, Population Development, Crime Prevention and Substance Abuse.

The Department continued with its cooperation with the UN on child trafficking and bilateral support to South Sudan

Government Outcome:

Create a better South Africa, a better Africa and a better world

Outcome: DSD specific

To promote and support participation in key identified bilateral and multilateral initiatives that make the most effective contribution to poverty reduction


4141

International Obligations for period 2011/12

The Department actively participated in the Organization of Economic Cooperation and Development (OECD) and the International Social Security Association (ISSA)

The Department facilitated technical exchanges with 17 countries including among others, Mauritius, Ghana, Lesotho, Zimbabwe, Kenya, Mexico, Brazil and the United States and Canada.

The Department hosted Partners in Population meeting in South Africa and served on its Budget Committee

All these initiatives serves as a platform for sharing social development experiences and provide us with an opportunity to help create a better South Africa, a better Africa and a better world.

Government Outcome:

Create a better South Africa, a better Africa and a better world

Outcome: DSD specific

To promote and support participation in key identified bilateral and multilateral initiatives that make the most effective contribution to poverty reduction



42

Challenges

4343

CHALLENGES

• The department achieved 54% of its planned targets while the remainder were either partially achieved (26%) or not achieved at all (20%).

• Reasons for non-achievement of the targets include for example reprioritisation of projects and dependence on other institutions such as Provinces and other government departments


4444

CHALLENGES: PROGRAMME 1

• In some instances, the Department had to defer the implementation of some of its targets in light of new urgent priorities, these include for example- Diverting of funds from hosting the donor conference to fund - Diverting of funds from hosting the donor conference to fund

Food For All campaigns, ECD conference, as well as Food For All campaigns, ECD conference, as well as

establishing a Social Workers Veterans Forumestablishing a Social Workers Veterans Forum

- The Minister recommended that the amendments to the SASSA - The Minister recommended that the amendments to the SASSA

Bill be deferred to the 2012/13 financial year for further Bill be deferred to the 2012/13 financial year for further

consultations with stakeholdersconsultations with stakeholders


4545

CHALLENGES: Programme 3

Some of the key reasons for non-achievement of targets which were beyond department’s control includes: •The department could only adjudicate 37% (instead of the planned 80%) within 90 days of receipt due to delays in receiving appropriate records from appellants and/or SASSA registry.•We only adjudicated 11 622 appeals backlog of the planned 20 000 due to the fact that some of the records (8 120) were either incomplete, some were duplicates of appeals that had already been finalised or grant application files were missing


4646

CHALLENGES: Programme 3• The department formed a unit tasked with establishing an

Inspectorate for Social Security. However, it was hampered by lack of human resources and the relatively late availability of funds

• An organisational structure for the inspectorate as well as the a human resources model to support the establishment of the inspectorate have been approved by the Minister.

• Additional resources have been allocated to gather the evidence and put all the necessary systems in place.


4747


• Lack of provincial capacity: The registration of partial care and ECD facilities could not be completed (due to lack of capacity in provinces), delays in reporting especially in the HIV/AIDS areas

• Reprioritization:

- In order to increase the coverage and quality of ECD services, the department had to host the ECD conference, which led to shifting of funds from other critical priorities.

- The budget for training of Caregivers on HIV/AIDS counseling was redirected to train social service professionals due to high demand. As a result we could only train 485 of the targeted

610.

• Interdepartmental collaboration: the provision of psychosocial support for the School Health Programme could not be implemented since the project is primarily driven by the Department of Health.


4848


• The Department could not compile National Household Profile Report due to provinces not being able to access the National Integrated Social Information System

• Although the Community Development framework was approved by the Social Protection and Community Development Cluster, it is still pending approval by MINMEC


PART D

Legislative Programme for 2011/12


5050

Legislative Programme for period 2011/12

No Bills were submitted to Parliament during the year under review



51

Part E Finance

Expenditure for the 2011/12 financial year

April 21, 2023 Portfolio Committee 52

SUMMARY – SOCIAL DEVELOPMENT

R’000


SUMMARY EXPENDITURE PER PROGRAMME

Spending progress

ProgrammeFinal

AppropriationAudited Actual

Expenditure % Spent Variance

R’ 000 R’000 R’000

P1: Administration 244 600 243 976 99.74% 624

P2: Social Assistance 97 103 213 95 972 987 98.84% 1 130 226

P3: Social Security Policy & Administration 6 237 049 6 228 295 99.86% 8 754

P4: Welfare Service Policy Development & Implementation Support 451 752 449 066 99.41% 2 686

P5: Social Policy & Integrated Service Delivery 247 273 244 858 99.02% 2 415

TOTAL 104 283 887 103 139 182 98.90% 1 144 705

REASONS FOR UNDER SPENDING

•Programme 2: Social Assistance

– The under-expenditure mainly relates to lower than expected beneficiary uptake rates.

•Programme 3: Social Security Policy and Administration

– The under-expenditure is mainly due to delays in the finalization of planned projects under Social Security Policy Development and the Appeals Tribunal Units.

•Programme 4: Welfare Service Policy Development and Implementation Support

– The under-expenditure is mainly relate to approved transfer payments that were not transferred before the end of March 2012 for SANCA, Victim Empowerment organisations and National Association of Burial Societies of South Africa (NABSSA).

•Programme 5: Social Policy and Integrated Service Delivery

– The under-expenditure is mainly due to funded vacancies and related operational costs.



SUMMARY EXPENDITURE PER ECONOMIC CLASSIFICATION

Economic ClassificationFinal



R’ 000 R’000 R’000

Compensation of Employees 276 657 273 567 98.88% 3 090

Goods and Services 257 742 249 530 96.81% 8 212

Interest and rent on land 24 -24

Transfers and Subsidies 103 730 928 102 587 932 98.90% 1 142 996

Payments of Capital Assets 18 560 17 911 96.50% 649

Payments for Financial assets - 10 218 -10 218

TOTAL 104 283 887 103 139 182 98.90% 1 144 705


SUMMARY PROG 1: ADMINISTRATION

140 000

160 000

180 000

200 000

220 000

240 000

260 000

Final Approp Audit Actual

244 600 243 976

R’000

99.74% Spent 99.74% Spent


SUMMARY PROG 1: ADMINISTRATION




R’ 000 R’000 R’000

Compensation of Employees 122 919 122 192 99.41% 727

Goods and Services 109 544 109 445 99.91% 99

Interest and rent on land 24 -24

Transfers and Subsidies 194 191 98.45% 3


Payments for Financial assets - 313 -313

TOTAL 244 600 243 976 99.74% 624


SUMMARY PROG 2: SOCIAL ASSISTANCE

R’000

140 000

10 140 000

20 140 000

30 140 000

40 140 000

50 140 000

60 140 000

70 140 000

80 140 000

90 140 000

100 140 000


97 103 213 95 972 987



SUMMARY PROG 2: SOCIAL ASSISTANCE




R’ 000 R’000 R’000

Compensation of Employees

Goods and Services

Interest and rent on land - -

Transfers and Subsidies 97,103,213 95,972,987 98.84% 1,130,226

Payments of Capital Assets

Payments for Financial assets

TOTAL 97,103,213 95,972,987 98.84% 1,130,226


SUMMARY PROG 3: SOCIAL SECURITY POLICY & ADMINISTRATION

R’000

140 000

1 140 000

2 140 000

3 140 000

4 140 000

5 140 000

6 140 000

7 140 000


6 237 049 6 228 295



SUMMARY PROG 3: SOCIAL SECURITY POLICY & ADMINISTRATION




R’ 000 R’000 R’000

Compensation of Employees 36 340 34 868 95.95% 1 472

Goods and Services 54 691 47 453 86.77% 7 238

Interest and rent on land - -

Transfers and Subsidies 6 145 306 6 145 300 100.00% 6

Payments of Capital Assets 712 652 91.57% 60


TOTAL 6 237 049 6 228 295 99.86% 8 754


SUMMARY PROG 4: WELFARE SERVICE POLICY DEV & IMPLEMENTATION SUPPORT

R’000

140 000

190 000

240 000

290 000

340 000

390 000

440 000

490 000


451 752 449 066



SUMMARY PROG 4: WELFARE SERVICE POLICY & IMPLEMENTATION SUPPORT




R’ 000 R’000 R’000



Interest and rent on land - 0

Transfers and Subsidies 308 448 306 812 99.47% 1 636



TOTAL 451 752 449 066 99.41% 2 686


SUMMARY PROG 5: SOCIAL POLICY & INTEGRATED SERVICE DELIVERY

R’000

29 000

79 000

129 000

179 000

229 000

279 000


247 273 244 858



SUMMARY PROG 5: SOCIAL POLICY & INTEGRATED SERVICE DELIVERY




R’ 000 R’000 R’000



Interest and rent on land - 0

Transfers and Subsidies 173 767 172 487 99.26% 1 280

Payments of Capital Assets 882 642 72.79% 240


TOTAL 247 273 244 858 99.02% 2 415

"Building a caring Society. Together" 66

AUDITOR GENERAL’S REPORT


67

2011/12: AUDITOR-GENERAL: REPORT

Opinion

• This financial year the Department received an unqualified opinion for the first time in two years.

• This is a result of the improvement in record management by the South African Social Security Agency. Although there are still challenges the amount is under the materiality level.

• Both the Entities under the control of the Department received unqualified audit opinions.



Report on other legal and regulatory requirements:

• Predetermined objectivesAlthough no findings were identified in the report on the usefulness and reliability of the performance information reported in the report on the predetermined objectives two other matters were raised:

– Achievement of planned targetsOf the 217 total number of planned activities 99 were not achieved. This represents 46% planned activities not achieved.

The reasons for non-achievement were already indicated under programme performance and are largely due to capacity challenges and in other instances reprioritization of budgets



Report on other legal and regulatory requirements:

• Predetermined objectives

– Material adjustments to the report on predetermined objectives

There were material adjustments on Programme 4 of the report. This was due to the fact that sufficient validated information ,especially from the provinces, was not available at the time of auditing of the report

"Building a caring society. together" 70

2011/12 AUDITOR-GENERAL: REPORT Compliance with laws and regulations:• Procurement and contract management

Two matters were raised: No sufficient evidence could be obtained for proof that awards

were only made to suppliers who submitted a declaration of past supply chain practises such as fraud, abuse of supply chain management system

No sufficient evidence could be obtained that contract and quotations were awarded only to bidders who submitted a declaration whether they are employed by the state or connected to any person employed by the state.


2011/12 AUDITOR-GENERAL: REPORT

Compliance with laws and regulations continue:• Procurement and contract management

ACTIONS TO BE IMPLEMENTED• Bid adjudication and bid evaluation committee members will be

inducted on the checklists scheduled to take place before end of September 2012.

• To transfer the risk of requesting tax clearance certificate and submission of SBD forms to the line functions for goods or services required in other provinces.

• Create awareness on the SCM processes for SCM officials and thereafter be rolled out to DSD officials.

• To hold SCM officials responsible and accountable as per the checklist requirements• A checklist has been developed to take into account the compliance

aspects


2011/12 AUDITOR-GENERAL: REPORT

Compliance with laws and regulations (continue):• Procurement and contract management

• The Chief Financial Officer also issued instruction that no order or letter of award will be issued before these forms are completed by suppliers

• The department manages to collect 60 % of the outstanding documents• SBD4 forms out of the 36 identified suppliers 22 have submitted

forms• SBD8 forms out of the 6 identified suppliers 3 have submitted

forms• All tax clearance certificates were obtained


2011/12 AUDITOR-GENERAL: REPORT Compliance with laws and regulations (Continued):• Expenditure management

– Effective and appropriate disciplinary steps were not taken against officials who made and/or permitted irregular expenditure and fruitless and wasteful expenditure

– The Directorate: Internal Control conducted workshop with Programmes

– Verify if expenditure is irregular by interrogation payment prior to register it as irregular expenditure

– Fast track recommendations of the Loss Control Committee– During the 2012/13 financial year the department – Loss Control

Committee - did attend to the financial cases reported and the status are as follows:

• Fifty nine (59) cases were presented at the loss control committee from April 2012 – September 2012 and recommended for action

• Six (6) written warning letters were issued to the officials• In three (3) cases the amounts were recommended to be recovered from the

officials. Amount to be recovered is R 356 000• Three (3) cases were submitted to the Directorate: Labour Relations for

disciplinary action to be taken


2011/12 AUDITOR-GENERAL: REPORT Leadership

• Insufficient oversight responsibility was exercised regarding performance reporting and compliance and related internal controls.

• Actions to be implemented to address the findings:

– The department has developed different checklists to monitor compliance within the department and for the entities

– Workshops are also being conducted with business units on Guidelines for Performance reporting, which focuses on, amongst other things, roles and responsibilities of managers and other officials with respect to performance reporting. This serves as an intervention mechanism which will assist in improving the reporting requirements and clear any inconsistencies. Workshop plan has already being rolled out for the entire department which has kicked off on the 04 September 2012.


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WAY FORWARD ON 2011/12 AUDIT OUTCOME

• A detailed action plan has been developed and implemented to address the concerns raised by the Auditor-General in his Management letter with regard to aspects related to compliance and internal control.

THANK YOUTHANK YOU


10 October 2012

Documents

caring society

social policy development

social development sector

quality services

support services

sustainable development

social security policy

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