Page 14 - Department of Social Development Annual Report 2021

PART A: GENERAL INFORMATION

REPORT OF THE ACCOUNTING OFFICER

Overview of the financial results of the Department:
Departmental receipts
• The Compensation baseline of the Department, Unauthorised, fruitless and wasteful expenditure
SASSA and the National Development Agency
2020/2021 2019/2020
(NDA) were reduced by R270,483 million during Reasons for Irregular Expenditure and Unauthorised Expendi-
Departmental receipts Actual Amount (Over)/Under Estimate Actual Amount (Over)/Under this process. Of this amount, R32,54 million was ture.
Estimate Collected Collection Collected Collection from the DSD, R229,639 million from SASSA and • Non-compliance with the Public Finance
R’000 R’000 R’000 R’000 R’000 R’000 R8,304 million from the NDA. Management Act, 1999 (Act No. 1 of 1999) and
Sale of goods and services other than National Treasury Practice Notes. Supply Chain
capital assets 20 - (20) 18 1 17 This revised the budget allocation of the Department Management processes were not followed.
Interest, dividends and rent on land 6 000 2 491 (3 509) 12 816 2 601 10 215 there increased to R230.807 billion for the 2020/21
Sale of capital assets - - - - - financial year. Reasons for Fruitless and Wasteful Expenditure
Financial transactions in assets and 25 000 21 485 (3 515) - 270 432 (270 432) • Damages to hired vehicles
liabilities Virements • Hotel no-show
Total 31 020 23 976 (7 044) 12 834 273 034 (260 200)
The Department did not apply virements at the end of the
The Department does not generate income except from interest on debtors (grant and departmental) commission on deduc- 2020/21 financial year since all main programmes have
tions in respect of third parties as well as parking fees paid by officials at the place of work. spent within budget allocations for the 2020/21 financial
year.
The amount for interest received mainly consist of interest received by SASSA in respect of interest received from credit
balance in the FNB accounts. The amount for financial transactions in asset and liabilities represent amounts received from
social grant debtors, however no reference numbers were provided to trace the amount to the relevant social grant debtors.
According to the debt policy for grant debtors, these amounts should be kept in the books for three years. After that, they can
be transferred to the revenue as unallocated receipts.

Programme Expenditure
2020/2021 2019/2020
Final Actual (Over)/ Under Final Actual (Over)/Under
Programme Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
P1: Administration 426 560 391 451 35 109 421 874 421 388 486
P2: Social Assistance 220 606 557 218 945 760 1 660 797 175 155 593 190 289 375 (15 133 782)
P3: Social Security Policy and 7 585 831 7 548 537 37 294 7 659 416 7 634 289 25 127
Administration
P4: Welfare Services Policy 1 842 277 1 718 632 123 645 1 071 807 979 201 92 606
Development and
Implementation Support
P5: Social Policy and Integrated 346 073 318 322 27 751 413 282 406 123 7 159
Service Delivery
Total 230 807 298 228 922 702 1 884 596 184 721 972 199 730 376 (15 008 404)

The Budget

The initial budget allocation for the National Department of Social Development for the 2020/21 financial year amounted to
R197,718 billion. During both the Special Adjustments and Normal Adjusted Estimates of National Expenditure process, the
following additional allocations were voted to the Department:

• An amount of R25 473 882 000 was additionally allocated to fund the top-up grants and to provide funding for the
special Covid-19 social relief grant of R350 for a period of six months;
• An amount of R6,797 billion was allocated for the further extension of the special Covid 19 social relief of distress
grant for three months until 31 January 2021 in terms of section 6(1)(a) of the Appropriation Act (2020);
• An additional R500 million was allocated for food relief as part of the social relief of distress grant in terms of
section 30 of the Public Finance Management Act (1999);
• An additional R588,728 million was allocated to support early childhood development (ECD) programmes as a result
of the disruption of ECD services during the Covid 19 lockdown, and for the short term employment of social
workers. Of this amount, R496,25 million was for the early childhood development conditional grant to provide
unemployment support to 83 333 ECD related workers for up to six months and top up payments to 25 500
employed ECD workers for compliance support duties, and R92,478 million to sustain 1 809 temporary social
workers and 500 registration support officers for ECD centres;

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 14