department of social development annual report … · department of social development annual...

Report for 2013/14 Vote 12: Department of Social Development

Limpopo Province

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6. CONDITIONAL GRANTS ............................................................................................................. 70

6.1. Conditional grants and earmarked funds paid ................................................................. 70

6.2. Conditional grants and earmarked funds received .......................................................... 70

7. DONOR FUNDS ......................................................................................................................... 71

7.1. Donor Funds Received ...................................................................................................... 71

8. CAPITAL INVESTMENT .............................................................................................................. 71

8.1. Capital investment, maintenance and asset management plan ...................................... 72

PART C: GOVERNANCE ................................................................................................. 754 1. INTRODUCTION ........................................................................................................................ 75

2. RISK MANAGEMENT ................................................................................................................. 75

3. FRAUD AND CORRUPTION ........................................................................................................ 75

4. MINIMISING CONFLICT OF INTEREST ....................................................................................... 76

5. CODE OF CONDUCT .................................................................................................................. 76

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ...................................................................... 77

7. PORTFOLIO COMMITTEES ........................................................................................................ 78

8. SCOPA RESOLUTIONS: 2011/12 Financial Year ........................................................................ 79

9. PRIOR MODIFICATIONS TO AUDIT REPORTS ............................................................................ 87

10. INTERNAL CONTROL UNIT ........................................................................................................ 87

11. INTERNAL AUDIT AND AUDIT COMMITTEES ............................................................................ 87

PART D: HUMAN RESOURCE MANAGEMENT ................................................................ 94 1. INTRODUCTION ........................................................................................................................ 95

2. OVERVIEW OF HUMAN RESOURCES ........................................................................................ 95

3. HUMAN RESOURCES OVERSIGHT STATISTICS .......................................................................... 97

PART E: FINANCIAL INFORMATION .............................................................................. 136

1. REPORT OF THE AUDITOR GENERAL ...................................................................................... 137

2. ANNUAL FINANCIAL STATEMENTS ......................................................................................... 143

PART A: GENERAL INFORMATION

12013/14 Annual Report 1

DEPARTMENT OF SOCIAL DEVELOPMENT

ANNUAL REPORT

2013 /2014

2 2013/14 Annual Report


Limpopo Province

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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76














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Contents PART A: GENERAL INFORMATION .................................................................................. 3 1. DEPARTMENT GENERAL INFORMATION .................................................................................... 5

2. LIST OF ABBREVIATIONS/ACRONYMS ........................................................................................ 6

3. FOREWORD BY THE MEC ............................................................................................................ 8

4. REPORT OF THE ACCOUNTING OFFICER ................................................................................... 11

5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT .................................................................................................................................... 19

6. STRATEGIC OVERVIEW.............................................................................................................. 20

6.1 Vision ................................................................................................................................ 20

6.2 Mission ............................................................................................................................. 20

6.3 Values ............................................................................................................................... 20

7. LEGISLATIVE AND OTHER MANDATES ...................................................................................... 21

7.1 Key policy developments and legislative changes ............................................................ 21

8. ORGANISATIONAL STRUCTURE ................................................................................................ 24

9. ENTITIES REPORTING TO THE MEC ........................................................................................... 24

PART B: PERFORMANCE INFORMATION ..................................................................... 265 1. AUDITOR GENERALS REPORT: PREDETERMINED OBJECTIVES ................................................ 26

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ..................................................................... 26

2.1 Service Delivery Environment .......................................................................................... 26

2.2 Service Delivery Improvement Plan ................................................................................. 28

2.3 Organisational environment ............................................................................................. 31

2.4 Key policy developments and legislative changes ............................................................ 31

3. STRATEGIC OUTCOME ORIENTED GOALS ................................................................................. 32

4. PERFORMANCE INFORMATION BY PROGRAMME ................................................................... 33

4.1 Programme 1: ADMINISTRATION ..................................................................................... 33

4.2 Programme 2: SOCIAL WELFARE SERVICES.40

4.3 Programme 3: DEVELOPMENT AND RESEARCH..55

5. TRANSFER PAYMENTS ................................................................................................................. 665

5.1. Transfer payments to public entities ................................................................................ 65

5.2. Transfer payments to all organisations other than public entities .................................. 66

65

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32013/14 Annual Report


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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76














74



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76














PART A:GENERAL INFORMATION



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















Limpopo Province

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1. DEPARTMENTS GENERAL INFORMATION

PHYSICAL ADDRESS: 18 College Street

Polokwane

0700

POSTAL ADDRESS: Private Bag x 9710

Polokwane

0700

TELEPHONE NUMBER/S: 027 15 293 6000

FAX NUMBER: 027 15 297 8047

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS : www.dhsd.limpopo.gov.za



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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2. LIST OF ABBREVIATIONS/ACRONYMS

AC AUDIT COMMITTEE

AGSA AUDITOR GENERAL OF SOUTH AFRICA

ANC AFRICAN NATIONAL CONGRESS

AO ACCOUNTING OFFICER

BBBEE BROAD BASED BLACK ECONOMIC EMPOWERMENT

CBO COMMUNITY BASED ORGANIZATION

CDP COMMUNITY DEVELOPMENT PRACTITIONER

CFO CHIEF FINANCE OFFICER

CRO CHIEF RISK OFFICER

CYCC CHILD AND YOUTH CARE CENTRE

CYCW CHILD YOUTH AND CARE WORKERS

DORA DIVISION OF REVENUE ACT

DSD DEPARTMENT OF SOCIAL DEVELOPMENT

ECD EARLY CHILDHOOD DEVELOPMENT

EHW EMPLOYEE HEALTH AND WELLNESS PROGRAMME

EPWP EXTENDED PUBLIC WORKS PROGRAMME

EU EUROPEAN UNION

EXCO EXECUTIVE COMMITTEE

FET FURTHER EDUCATION AND TRAINING

GOVT GOVERNMENT

HCBC HOME COMMUNITY BASED CARE

HIV AND AIDS HUMAN IMMUNE VIRUS AND AQUARED IMMUNE DEFFICIENCY SYNDROME

HOD HEAD OF DEPARTMENT

HR HUMAN RESOURCE

HWSETA HEALTH AND WELFARE SECTOR EDUCATION TRAINING AUTHORITY

IDT INDEPENDENT DEVELOPMENT TRUST

IEC INFORMATION, EDUCATION AND COMMUNICATION

ICT INFORMATION COMMUNICATION TECHNOLOGY

IT INFORMATION TECHNOLOGY

MDDA MEDIA DEVELOPMENT DIVERSITY AGENCY

MEC MEMBER OF EXECUTIVE COUNCIL

MTEF MEDIUM TERM EXPENDITURE FRAMEWORK

MTSF MEDIUM TERM STRATEGIC FRAMEWORK

NDA NATIONAL DEVELOPMENT AGENCY

NDP NATIONAL DEVELOPMENT PLAN



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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NGO NON GOVERNMENTAL ORGANIZATION

NPO NON PROFIT ORGANIZATION

OHS OCCUPATIONAL HEALTH AND SAFETY

OTP OFFICE OF THE PREMIER

OVC ORPHANS AND VULNERABLE CHILDREN

PERSAL PERSONNEL AND SALARIES

PFMA PUBLIC FINANCE MANAGEMENT ACT

PSC PUBLIC SERVICE COMMISSION

SAPS SOUTH AFRICAN POLICE SERVICES

SAQA SOUTH AFRICAN QUALIFICATION AUTHORITY

SCM SUPPLY CHAIN MANAGEMENT

SCOPA STANDING COMMITTEE ON PUBLIC ACCOUNTS

SDIP SERVICE DELIVERY IMPROVEMENT PLAN

SHERQ SAFETY HEALTH ENVIRONMENT RISK AND QUALITY MANAGEMENT

SITA STATE INFORMATION TECHNOLOGY AGENCY

SMC SENIOR MANAGEMENT COMMITTEE

SMS SENIOR MANAGEMENT SERVICES

Sms SHORT MESSAGE SERVICES

SMME SMALL MEDIUM AND MICRO ENTERPRISES

STATSSA STATISTICAL SOUTH AFRICA

TR TREASURY REGULATIONS

VEP VICTIM EMPOWERMENT PROGRAMME

PMU PROJECT MANAGEMENT UNIT

NOA NGONYAMA OKPANUM AND ASSOCIATES



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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3. FOREWORD BY THE MEC

Name: Mme Happy Joyce Mashamba Title: MEC of the Department of Social Development

The year under review (2013/14) coincides with the celebration of 20 years of freedom and democracy wherein we witnessed remarkable progress in terms of addressing the triple challenges of poverty, unemployment and inequality. It was during this year that we have proven to be hard at work to ensure the realization of the goals and objectives of transforming our communities as espoused in the freedom charter. Major strides have been made in ensuring the provision of social development services to the people of Limpopo.

Guided by the manifesto of the ruling party, as well as the National Development Plan, remarkable progress and achievements have been made in different areas, inter alia;

Contributions towards reducing substance abuse



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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Improvement in the conditions of Early Childhood Development centres Strengthened communities through community mobilization and development Provision of a comprehensive social security, including income support, and a

safety net for the destitute Strengthened capacity for non-governmental organizations to deliver quality

services Improved social welfare services

In the year under review, the department has registered satisfying progress in terms of achieving the mandate and key strategic objectives. We shall continue to implement policies and programmes that are aimed at bettering the lives of the people of Limpopo Province. Measurable progress has been made in addressing challenges related to transfers to NGOs and CBOs, although some challenges still persist in this area. As we strive towards addressing some of the priorities of government, as contained in the government Programme of Action, we have registered a sizable number of crches as part of the Early Childhood Development programme.

Our poverty alleviation programme that focuses mainly on addressing the plight of women and vulnerable groups is beginning to yield good results. It is common knowledge that, due to poverty and the historical background of our Province, the majority of women and children are still silently suffering from various forms of abuse in their households. However, in the previous year members of different communities were able to report such incidences and necessary interventions were made. It is incumbent upon members of the community, including relatives, neighbours or friends, to report and expose these social ills at all times.

As the Member of Executive Council responsible for the Department of Social Development in Limpopo, I am confident that our work during the said period has made an indelible mark in improving the socio-economic conditions of the people of Limpopo. It is my conviction that the forthcoming year will witness the intensification of the programmes and projects that seek to respond to the immediate needs of poor people.

As we continue to carry out our mandate we shall continue to draw inspiration from the support we have received from our stakeholders. We are determined to ensure that the Department lives up to the expectations of our people.



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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I also want to acknowledge a high level of commitment, hard work and professionalism displayed by our employees. It is against this background that I present the 2013/14 annual report.

Together moving Limpopo forward!



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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4. REPORT OF THE ACCOUNTING OFFICER

Mme D Mafubelu

Title: Head of Department

4.1 Overview of the operations of the department:

4.1.1 The Department of Social Development feels honoured to present this Annual Report 2013/14 at a time when South Africa is celebrating 20 years of democracy. During the year under review, the Department was able to implement its vision by ensuring the provision of comprehensive, integrated, sustainable and social development services to the vulnerable individuals, households and communities in partnership with various stakeholders.

4.1.2 The Department implemented its strategies and plans as a way of responding to the immediate social needs of our communities. The Department strove to ensure that our administrative capacity, systems, policies and processes were improved and aligned with the policy mandate of the ANC-led government.

4.1.3 The Department was able to transform the lives of many poor and vulnerable

members of the society, in spite of encountering challenges such as: o Early Childhood Development (ECD) centres not complying with

norms and standards. o Limited financial resources to fund VEP centres. o Lack of rehabilitation practitioners in the facilities for people with disabilities. o High cost of accredited training for youth. o Insufficient capacity to conduct households profiling.



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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4.1.4 During the year under review, the department focused mainly on responding to the following priorities to further improve social services in the province: o An efficient, effective and development oriented social services.

The Department provided and promoted participatory integrated planning and monitoring as well as ensuring fair resource allocation for social development services.

o A long and healthy life for all South Africans.

Access to community based services was increased for the protection, care and support to people infected with HIV/AIDS and other diseases, children in need of care and older persons.

o All people in Limpopo are and feel safe.

Prevention, treatment and rehabilitation services were provided to vulnerable individuals.

o Decent employment through inclusive economic growth. The Department contributed to creation of work opportunities through employment of EPWP care givers for HIV/AIDS as well as Isibindi Child and Youth Care Project.

o Vibrant, equitable and sustainable rural communities and food security for all. Community participation in sustainable development was promoted through community mobilisation.

4.1.5 The Department continued to pay special attention to vulnerable groups such

as women, youth, children and people with disabilities in an endeavour to build a caring nation. To that end, access to Early Childhood Development services by children under 5 years was increased. The department also continued to intensify the provision of psycho-social support services to people infected and affected by HIV/AIDS particularly orphans and vulnerable children.

4.2 Overview of the financial results of the department:

4.2.1 The department was allocated an adjusted budget of R1 381 billion for the year under review, of which R1 315 billion was spent representing 95.2%. During the year under review, the department continued to maintain a sound system of internal control in order to comply with prescribed policies and procedures.

4.2.2 The department under spent by an amount of R66 million, of which an amount of R62 million is for infrastructure projects which are still under construction, the funds will be rolled over to complete the projects in 2014/15 financial year.



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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The contract of the Project Management Unit (PMU) which came to an end in December 2012. The Department appointed Independent Development Trust (IDT) as the new PMU in May 2013. There were significant delays in the handing over process between previous PMU and IDT. As the projects were already at advanced stages, IDT appointed previous PMU as principal agents. This appointment which was made in the 3rd quarter of financial year impacted negatively on the spending for the running projects. In future appointment of implementing agents will be done on time to ensure smooth transition which will not negatively affect construction progress on running projects

4.3 Departmental receipts

Departmental receipts

2012/2013 2013/2014 Estimate

Actual Amount Collected

(Over)/Under Collection

Estimate

Actual Amount Collected

(Over)/Under Collection

R000 R000 R000 R000 R000 R000 Tax Receipts Commission on insurance

498 611 (113) 463 698 (235)

Rentals 153 291 (138) 270 258 12 Parking fees 20 147 (127) 124 170 (46) Other sales 84 113 (29) 57 60 (3) Sale of capital assets

285 253 32 299 680 (381)

Financial transactions in assets and liabilities

1 236

1 856

(620)

1 298

2 013

(715)

Total

2 391

3 271 (880)

2 511

3 879

(1368)

4.3.1 The department has collected R3, 879 million which is 54% above the budget, in overall the department has over collected by R1 368 million due to the following: Commission on insurance over collected by R235 due to more employees

joining the insurance

Other sales has over collected by R3

Sale of Capital assets has over collected by R381 due to high number of vehicles auctioned.

Parking fees has over collected by R46 due to more employees utilising departmental parking.



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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Financial transaction in assets and liabilities has over collected by R715 due to refund of shared services from SASSA.

4.4 Programme Expenditure

Programme Name

2013/2014 2012/2013 Final Appropriation

Actual Expenditure

(Over)/ Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

R000 R000 R000 R000 R000 R000 Administration

297 525

233 443

64 082

272 094

270 866

109

Social Welfare Services

924 949

923 563

1386

785 086

786 109

1 481

Development and Support Services

158 305

157 995

310

136 003

134 527

91

Total

1 380 779

1 315 001

65 778

1 193 183

1 191502

1 681

4.5 Programme 1 Administration

The programme spent R233 443 million against an adjusted budget of R297 025 million, which is 78.5% of the adjusted budget. The R64 600million under spending is mainly due to R62 000 million for infrastructure projects which are still under construction, the funds will be rolled over to complete the projects in 2014/15 financial year. There were significant delays in the IDT handing over process and this impacted on the spending for the running projects. The department had appointed PMU in 2008 and the contract was for 36 months starting from 01/06/2008 to 31/05/2011 and extended to the 31st December 2012. The department appointed Independent Development Trust as the new PMU in May 2013. There were significant delays in the handing over process between previous PMU and IDT. As the projects were already at advanced stages, IDT then decided to appoint previous PMU as principal agents as they were familiar with the projects. The appointment of principal agents by IDT was made in the 3rd quarter of the 2013/14 financial year and this impacted on the spending for the running projects. In future appointment of implementing agents will be done on time to ensure smooth transition which will not negatively affect construction progress on running projects



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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4.6 Programme 2: Social Welfare Services

The programme spent R923 563 million against an adjusted budget of R924 949 billion, which is 99.9% of the adjusted budget. The Department spent an amount of R168 million on early childhood development and transferred an amount of R11 million to Non-profit organization for residential facilities for persons with disabilities. The Department procured 200 laptops for Social Workers and were procured from this programmes budget.

4.7 Programme 3: Development and Research

The programme spent R157 995 million against an adjusted budget of R158 305 million, which is 99.8% of the adjusted budget. Transfers to Sustainable Livelihoods projects were made amounting to R11 275 million, included in this amount is transfers to Mega projects in the Province. The Department signed memorandum of agreement with National Development Agency for a period of five years signed in June 2013 for capacity building of Non-Profit Organizations on good governance, financial management and conflict management as well as mentoring and coaching. An amount of R3 million was transferred to the NDA for this purpose.

4.7.1 Virements/roll overs

Programme 1 Administration R11, 050 million

Funds were shifted from compensation of employees programme 1 to programme 2 and 3 to cover the shortfall for payment of outstanding performance bonuses and pay progression. Payments made were for 1106 of 2625 total staff which makes 42%.

Programme 2 Social Welfare Services R10 650 million Funds were shifted from programme 1compensation of employees to Programme 2 to cover the shortfall for payment of outstanding performance bonuses and pay progression.

Programme 3 Development and Support Services R400 000

Funds were shifted from Compensation and Goods and Services to Programme 3 to cover the shortfall for payment of outstanding performance bonuses and pay progression.



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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4.8 A description of the reasons for unauthorised, fruitless and wasteful expenditure and the amounts involved as well as steps taken to address and prevent a recurrence.

4.8.1 The department incurred fruitless and wasteful expenditure during the course of

the financial year amounting to R412 745 including R325 000 interest on late payment of certificates for Seshego Treatment centre and Vukuzenzele Community Rehabilitation Centre. Infrastructure projects will be linked with the budget to avoid non-payment of certificates which ultimately attract interests and R87 745 relates to interest on ESKOM invoices for late payment. The billing for high power accounts starts charging interest when invoices are not paid within 14 days whilst Treasury Regulations prescribes that invoices should be settled within 30 days after receipt and interest will accrue if invoices are paid after 30 days.

4.8.1.2 4.8.1.1 Future plans of the department

None. 4.8.1.3 Public Private Partnerships

None.

4.8.1.4 Discontinued activities / activities to be discontinued None.

4.8.1.5 New or proposed activities None

4.8.1.6 Supply chain management The department has developed internal control tool to monitor

compliance on internal control measures. Supply Chain Management Procedure Manual was finalised.

Supply Chain practitioners, Programme Managers, District Executive Managers including members of Bid Committees were capacitated to ensure successful implementation of the manual.

Supply Chain Management Policy was approved. All Directors and Shareholders of companies as well as members

of close corporations of the recommended companies are being vetted through PERSAL prior to award of competitive bids and quotations to ensure that bids or quotations are not awarded to restricted companies and officials in public service with business interests without approval.



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7. DONOR FUNDS ......................................................................................................................... 71





2. RISK MANAGEMENT ................................................................................................................. 75



5. CODE OF CONDUCT .................................................................................................................. 76















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The members of Bid Adjudication Committees attended capacity building workshop and SCM training programmes. The department is in regular contact with the Provincial Treasury to include officials in the training programme.

4.8.1.7 Challenges experienced in SCM and how they were resolved

Shortage of staff has been the main challenge especially in SCM both at head office and at the district level, were filling of posts in this area has been prioritized in 2014/15 financial year. 4.8.1.8 Gifts and Donations received in kind from non-related parties Domestic furniture

R 12 000

Motor vehicle R312 000 Office equipment R 55 000 Computer hardware R 22 000 Office furniture R387 000 TOTAL R788 000

4.8.1.9 Exemptions and deviations received from the National Treas

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