INTRODUCTION:

The aim of the Eastern Cape Social Development Department is to contribute to the empowerment of the quality of life of the poor, the vulnerable, the needy and the marginalized citizens of the province through a comprehensive, integrated and developmental social service delivery system.

The following are the target groups:

· Poor
· Children
· Women
· Youth
· People with disability
· The aged
HIV/Aids infected and affected

DEPARTMENTAL PRIORITIES

The departmental priorities are based on and linked to the national and provincial priorities as well as the 10 point plan announced by the minister of 5ocial development in 2000.

PROVINCIAL PRIORITIES 2003/04

· Infrastructural development (social and economic)
· Accelerated Public Service delivery (especially social cluster)
· Eradication of Poverty
· Public Service Transformation

These are the key focus areas for the next three years of medium term expenditure framework.

DEPARTMENTAL PRIORITIES

1. Poverty Eradication
2. HIV/Aids
3. Improvement of Social Security Administration
4. Transformation of Social Welfare Services
5. Improvement of Management Systems
6. District Development

POVERTY ERADICATION

Poverty eradication is a sub programme of Programme 4- known as Community Development

AIM - To assist and support poor households to participate in their own development and to deal with the challenges of HIV/AIDS through comprehensive and integrated strategies.


Funded through a special grant from National Department.

The Poverty eradication programme is divided into two sub-programmes
· Poverty alleviation strategies which seeks to implement sustainable income generation, food security and skills development programmes over a longer term
· Emergency Food distribution programme -which is to provide most vulnerable with food for three months whilst also graduating or diverting them to sustainable programme through the provision of agricultural starter packs


POVERTY ERADICATION PROGRAMME KEY PROGRAMMES IMPLEMENTED

1. 20 Women co-operatives (targets 25)
2. 20 Dual purpose programmes (craft and child care)
3. 18 Food security programmes (100 each)
4. 3 Youth Skills development (Urban Renewal)
5. 10 HIV/AIDS Programmes

There has been a marked improvement over last two years in financial management and spending of the programme as reflected above.

Method: The grant is transferred from national in three tranches. The province identifies through appropriate procurent processes NGO's, CIBO's, and FIBO's operating in selected sites and transfer funds to province required services.


HIGHLIGHTS FOR 2002/03

· About 12 240 orphans have been identified through home community abused care programmes. Six national integrate a plan sites were implemented in Motherwell, Mdantsane Flagstaff, Bathust, Mdantsane and Tsolo.
· 62 support group for people living with AIbS were established with 10 member of infected individuals participatory in each of the programes. The infected individual are beneficials from the cross section of departmental programmes.

CHALLENGES FOR 2003/2004

1.Extension of sites to all 24 districts not just areas of high risk or model points. According to statistics released recently there is an increase in number of affected communities and need for services is increasing and so is the number of HIV/AIDS orphans.
2.Extension has implications for more funds especially for human resources, material assistance and capacity building
3Strengthning of the HIV/AIbS subdirectorate at provincial and district level. Creation of contact points for a three year period.
4.Its been estimated to most R322 000 to finance on CHBC programe X 12. The budget limitation of the province are compromises the challenges, implementation of the HCIBC within the budget framework of the Program as such some of our HCBC programmes have budget allocation of R50 000 which is an expression of the need to expand the programme.

IMPROVEMENT OP SOCIAL SECURITY ADMINISTRATION.

Social Security poses a serious challenge to the department in terms of efficient administration. Central to this challenge is the need to ensure that beneficiaries receive their grants in right amounts at the right time, under circumstances that promote their dignity. This essentially means improving the turn around time for application approvals, promoting access to all potential beneficiaries, preventing and dealing with fraud and implementing the norms and standards and Batho Pele.

The following critical projects are for implementation in 2003/04

· Improve turn around time for applications (35 days).
· Develop and maintain an electronic filling system
· Implementation of help desks at all pay points
· Improvement of pay points into one stop service delivery sites Implementation of disability assessment panels

TRANSFORMATION OF WELFARE SERVICES

The transformation of the department as a whole in terms of structure, systems, human resources and organizational culture to improve service delivery is our focus. Of critical importance is the transformation of social welfare services to reflect a paradigm shift from a welfarist approach towards social development. This is reflected in the increase in the number primary preventive and promotive services, the shift from residential care towards community based care across programmes, the increase in implementation of poverty alleviation programmes and the implementation of a "services on wheels" model of delivery which promotes access into deep rural communities.

IMPROVEMENT OF MANAGEMENT SYSTEMS

· Implementation of Internal Audit unit
· Implementation of Management Information System MIS.

DISTRICT DEVELOPMENT

· Accelerate implementation of services in deep rural areas
· Decentralization of decision making for quick delivery
· Enhance community participation in services delivery
Implementation of technological physical infrastructure for enhanced service delivery.

EXPENDITURE TRENDS AND PROVINCIAL ALLOCATION FOR 2003 104

The 2003/04 budget allocation is based on the new standardized programme structure for all Social Development Departments. This has resulted in the reduction of the previous eight programmes to five programmes. The figures for prior as well as current years have however been restated to reflect this change - this makes comparability and analysis is of trends possible.

The departments budget supports the poor and vulnerable individuals and groups through direct income of social grants as well as provision of social welfare services. The extreme poverty experienced in the Eastern Cape has meant that at least 91% of budget goes towards income transfer while the rest is allocated to personnel (3%) and other non personnel (6%). This skewed distribution or allocation of the budget whilst mandatory (as social grants are a statutory provision) presents the department with a major constraint in terms of its trust and commitment to move towards a paradigm shift to a developmental approach. Implementing a social development approach in the short term might mean that an initial injection of funds is allocated to welfare services component or at least funds gradually allocated as a result of the cleaning up of the social security system are retained and redirected to beef up social welfare services allocation.

I
EASTERN CAPE PROVINCE
DEPARTMENT OF SOCIAL DEVELOPMENT
COMPARITIVE FIGURES: 2000101 TO 2003104 (Per Budget Statement)

The Regulation 11 amount remained unspent in the amount of R 215,245,000. National have requested departments to request roll-overs for the current financial year as the back payments have not yet been completed.

The budget for social grant administration failed to take into account the amount required for outsourced payments to beneficiaries by service providers. The amount projected
was R 278,000,000. This amount had to be taken from the budget for social security transfers as no provision had been made for this in the final allocation. Further, it is
apparent that the department will face severe pressure in the form of socia security transfers, should the CSG take-up be as planned. This is due to the fact that though the
budget allocated for this was R 272,000,000, it is nullified by the fact that the outsourcing budget had to be sourced for the budget for social security transfers.

The picture is worsened, when one considers that the original allocation for outsourcing was based on the projected beneficiary numbers excluding the effects of the change
in beneficiary cut-off ages for CSG.

The position is further worsened by the fact that the original request for budget was based on an increase across the board of R 10.00 per grant type per month. However, the
actual increase anounced was up to R 70 per grant. For this, an additional amount of R 80,000,000 was made available. When one considers that the


figures for transfers
increased by R 489,000,000 when the new rates were applied to the same projected numbers of beneficiaries, it is clear that the additional funds allocated are insufficient.


COST PRESSURES ON 2003/04 BUDGET ALLOCATION SOCIAL ASSISTANCE

1. REGISTRY AND ARCHIVING OF SOCIAL SECURITY FILES

Establishing centralized social security documents center to enhance controls around: processing applicants within 90 days prescription period.
- Containment of litigations linked to the approval of applications within prescribed period.
- Ensuring availability and auditability of social security files to avoid disclaimers in audit findings.

CATEGORIES OF COSTS REGARDED AS UNFUNDED MANDATES THIS CURRENT YEAR AND YEARS FORWARD

OUTSOURCED PAYMENT TO BENEFICIARIES

Service fees on the basis of 4.5 % of the grant value per beneficiary paid. Increased rates from time to time to beneficiaries directly impact on service fees. E.g the latest pension increase to R700 on old age grantversus rate applicable in the budget workings of R 6,541,005 which included R 10.00 increase. The increase in rates of R 70 as opposed to the R 10 applied in the workings, results in an increase in projected payments should the growth projections hold true, of R 489,000,000 for which an additional R 80,000,000 was allocated. Not only does this mean that the department faces certain cost pressure in the transfer amount but also that the outsourcing budget is now under pressure as the service fees are based on a percentage of the benefit paid.


3. ADMINISTRATION EXPENDITURE BASELINE

High vacancy rate on social workers and few administration personnel has a direct impact on all administration related expenditure items when request for funding critical vacant positions is approved by Interim Management Team and Provincial Treasury. This trend will be replicated in all five programmes. Re-prioritised vacant posts for 2004 amount to R 36 994 000. Total approved posts per the 2002 organogramme as approved total 3801.


4. DECENTRALISED FUNCTIONS FROM PROVINCIAL TREASURY

Procurement delegations/tender board administration

Pre-audit function

Rebates section

Fleet management function from provincial transport department

Up graded internal control unit to deal with fraud investigations

Proposed establishment Internal Audit division in big departments by Interim Management Team and Provincial Treasury.

The majority of decentralized functions carry unfunded mandates in respect of personnel and administration related costs of R7 143 000.

Decentralisation of functions to districts remains the biggest cost pressure as the department completes service delivery plans and projects.

5. PERSONNEL

The completed EC 5.1 document for the department indicates a budget required for personnel currently employed on in the amount of R 217,000,000. The difference of R 9,000,000 between the budget and this amount remains unfounded. This does not include any provision for vacant or critical posts.
Please refer to annexure


SOCIAL SECURITY A MEANS OF PUSHING BACK THE FRONTIERS OF POVERTY

Eradicating poverty is the biggest challenge faced by the democratic government of South Africa. As outlined in recent reports the province is the second poorest in the country
In the Eastern Cape 72% of children live in extreme poverty and it is estimated that one in four South African children is stunted due to malnourishment. South Africa has the highest Infant mortality rate (49%) and this is projected to increase as a result of HIV/Aids. The two poorest district municipalities in the Province - ALFRED Nzo and OR Tambo also have the highest growth of HIV/Aids infection.

The Province has approved a strategic focus for the poverty eradication programme which prioritises children as a target. Interventions to address child poverty focus on child nutrition, accelerated delivery of Child Support Grant, increased coverage of immunization programme and improved support to Aids orphans through foster care grants.

The Department has implemented a multi- pronged strategy to deal with poverty, which incorporates social grants (safety nets) poverty eradication programmes and a short term food distribution programme. Amongst these social grants remains the most well targeted and most effective poverty alleviation instrument to address income poverty. It is also been established that social grants have a direct contribution to household's access to health services to education, housing and to other government services thus making a major investment to improving peoples quality of life.


GRANTS CONTRIBUTION TO POVERTY ERADICATION IN EASTERN CAPE.

At the end of March 2003, 998 973 individuals benefited from social grants in the Eastern Cape. This statistics can be disaggregated by grant type as follows:

The number of grant beneficiaries has increased over the last three years by 296 308 beneficiaries
The increase is attributable primarily to the CSG which has increased by 352 366 children from March 2001 to
March 2003. This has been a planned programme in the province through a structured and focused integrated campaign
which is yielding very positive results. Simultaneously there has been a rapid increase in disability grants and Foster
Care grants as reflected above.

It is also projected that all three grant types are poised to make further increases in the coming years given the vigorous campaigns by the department in rural communities and also increasing number of children affected by HIV/aids in need of foster placement. The extension of the Child Support grant to children aged 8 during this financial year will also make a significant contribution in the alleviation of child poverty.

SUMMARY

Further areas which require improvement over the medium term framework include:

· Improving back office support
· Developing accurate data bases for all programmes and for Social grant recipients.
· Implementing and strengthening research skills for impact assessments of programmes and developing reliable data for planning and making projections especially for social security beneficiaries.

· Improving internal and external communication
Training, capacity building and career development for managers and staff.
Implementation of performance management linked to operational plans.
Developing a culture of Service delivery and implementation of Batho Pele amongst staff of the department.