Page 15 - Department of Social Development Annual Report 2021

PART A: GENERAL INFORMATION

REPORT OF THE ACCOUNTING OFFICER

• The Compensation baseline of the Department, Unauthorised, fruitless and wasteful expenditure
SASSA and the National Development Agency
(NDA) were reduced by R270,483 million during Reasons for Irregular Expenditure and Unauthorised Expendi-
this process. Of this amount, R32,54 million was ture.
from the DSD, R229,639 million from SASSA and • Non-compliance with the Public Finance
R8,304 million from the NDA. Management Act, 1999 (Act No. 1 of 1999) and
National Treasury Practice Notes. Supply Chain
This revised the budget allocation of the Department Management processes were not followed.
there increased to R230.807 billion for the 2020/21
financial year. Reasons for Fruitless and Wasteful Expenditure
• Damages to hired vehicles
Virements • Hotel no-show

The Department did not apply virements at the end of the
2020/21 financial year since all main programmes have
spent within budget allocations for the 2020/21 financial
year.

Irregular, fruitless and wasteful expenditure
Expenditure R’000

Irregular Expenditure 3 047
Fruitless and Wasteful Expenditure 1 603

Steps taken to address and prevent recurrence

• Issued a Financial Misconduct Policy in line
with the National Treasury’s Framework for
Irregular, Fruitless and Wasteful Expenditure.
• Preventative Control Guides developed by the
Auditor-General South Africa (AGSA) were
issued to all Senior Managers directing them
to implement the Preventative Guides.
• Facilitated, coordinated and provided
guidance and advisory services in terms of
audit queries through the implementation
and monitoring of audit action plans.
Developed an Audit Strategy to address the
The Budget audit findings from the AGSA.
• Instituted disciplinary action against officials
The initial budget allocation for the National Department of Social Development for the 2020/21 financial year amounted to found liable for irregular, fruitless and
R197,718 billion. During both the Special Adjustments and Normal Adjusted Estimates of National Expenditure process, the wasteful expenditure.
following additional allocations were voted to the Department: • Cases were referred to Finance to recover
expenditure from officials who were found
• An amount of R25 473 882 000 was additionally allocated to fund the top-up grants and to provide funding for the liable for financial misconduct through the
special Covid-19 social relief grant of R350 for a period of six months; recommendations of the Loss Control
• An amount of R6,797 billion was allocated for the further extension of the special Covid 19 social relief of distress Committee.
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;

15 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21