Page 15 - DSD ANNUAL REPORT 2022-2

REPORT OF THE ACCOUNTING OFFICER PART A: GENERAL INFORMATION

The Budget

The initial budget allocation for the National Department of Social • Programme 4: Welfare Service Policy Development and
Development for the 2021/22 financial year amounted to R205,227 Implementation Support
billion. During the Special Adjustments and Normal Adjusted An amount of R32,318 million was approved to be shifted from
Estimates of National Expenditure process, the following additional Programme 4 to Programme 1: Administration for increased
allocations were voted to the Department: spending programmes during the 2021/22 financial year.
• An amount of R2.825 billion has been additionally allocated
in the Special Appropriation Bill in April 2021 for the • Programme 5: Social Policy and Integrated Service Delivery
extension of the SRD R350 Special Covid-19 grant. An amount of R19,508 million was approved to be shifted from
Programme 5 to Programme 1: Administration for increased
During the 2021 Adjusted Estimates of National Expenditure, spending programmes during the 2021/22 financial year.
the following additional funds were allocated to the National
Department of Social Development for the 2021/22 financial year: Unauthorised, Fruitless and Wasteful Expenditure
• R26,2 billion was allocated to continue with the special
COVID-19 Social Relief of Distress Grant until 31 March 2022. Reasons for Irregular Expenditure and Unauthorised Expenditure.
• R500 million was allocated for system enhancementsto • Non-compliance with the Public Finance Management Act,
improve the application, eligibility assessment and payment 1999 (Act No. 1 of 1999).
processes for the special COVID-19 Social Relief of Distress • Supply Chain Management processes were not followed.
Grant.
• R178 million was allocated, as part of the “Presidential Reasons for Fruitless and Wasteful Expenditure
Employment Stimulus” intervention, to provinces through the • Damages to hired vehicles
Early Childhood Development Conditional Grant. • Hotel no-show
• R30 million was allocated to extend the National
Development Agency’s volunteer programme until 31 March Irregular, fruitless and wasteful expenditure
2022, and
• R11.395 million was allocated for “cost of living” increases to Expenditure R’000
the compensation bill for the Department. Irregular Expenditure 14 667
Fruitless and Wasteful Expenditure 430
These allocations increased the budget of the Department to
R234,972 billion for the 2021/22 financial year.
Steps were taken to address and prevent a recurrence
Virements • Cases of Irregular, Fruitless and Wasteful Expenditure were
investigated and presented to the Loss Control Committee.
The Department applied the following virements at the end of the • The Department continues to enforce the recently revised
2021/22 financial year: Subsistence and Travel Policy as well as the Financial
• Programme 1: Administration Misconduct Policy.
An amount of R56,885 million was approved to be shifted from • Facilitated, coordinated and provided guidance and advice
Programme 3,4 and 5 to Programme 1 to fund the increased in terms of audit queries through the implementation and
expenditure related to the increased payments of the Telkom monitoring of the audit action plan. Developed an Audit
Toll-Free line as a result of the extension of the SRD R350 Strategy to address the audit findings from the Auditor-General
Grant for the 2021/22 financial year as well as centralized South Africa.
payment of the information technology (IT) refresh in the • Cases were referred to the Labour Relations unit to institute
procurement of two hundred and seventy-six (276) laptops for disciplinary processes against officials found liable for
social development employees. irregular, fruitless and wasteful expenditure.
• Cases were referred to Finance to recover expenditure from
• Programme 3: Social Security Policy and Administration officials who were found liable for financial misconduct
An amount of R5,059 million was approved to be shifted from through the recommendations of the Loss Control Committee.
Programme 3 to Programme 1: Administration for increased
spending programmes during the 2021/22 financial year.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22 15