1 / 22

EPWP Incentive Grant 4th Quarter 2009/10 performance 18 th May 2010

EPWP Incentive Grant 4th Quarter 2009/10 performance 18 th May 2010. 1. 1.0 EPWP incentive background.

euphemia-cathy
Download Presentation

EPWP Incentive Grant 4th Quarter 2009/10 performance 18 th May 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. EPWP Incentive Grant 4th Quarter 2009/10 performance 18th May 2010 1

  2. 1.0 EPWP incentive background • EPWP incentive was introduced as part of Phase 2 to further enhance the creation of EPWP Full Time Equivalent work opportunities by Public Bodies ( 1 Full Time Equivalent = 230 Person days ). This was after the realization that NDPW had limited authority in Phase 1 to make Public Bodies meet their targets. • R4.2 billion was allocated to NDPW over the MTEF ( 9/10 to 11/12) to pay out the incentive to public bodies and this is expected to grow to at least R 5 billion in the 13/14 financial year. R 5.4 Billion has been allocated over the 10/11 MTEF for the EPWP incentive. • The fiscal incentive was applicable to infrastructure sector and non-state in the 09/10 financial year and has been rolled out to the social and environmental sectors from the 10/11 financial year. 2

  3. EPWP Fiscal incentive allocation over 09/10 MTEF 3

  4. 2.0 EPWP Fiscal incentive principles The EPWP incentive is based on paying all public bodies that create work above a minimum threshold for the EPWP target group an incentive of R50 person day of work created. ( Rural Municipalities have no minimum threshold). For the 10/11 financial year, R 60 will be paid for rural municipalities. Eligible public bodies that want to participate in the incentive will enter into an agreement with DPW While indicative performance targets and incentive amounts are set for each eligible public body, they will only be able to claim the incentive upon proving that work has been created Basis for measuring EPWP performance Number of FTE’s per million Rand of infrastructure budget, taking into account the different portfolios of infrastructure and the rate at which each can contribute to employment creation Each public body ( apart from rural municipalities) must meet a minimum eligibility threshold before they can start accessing the incentive The incentive is not paid out for work created below the eligibility threshold, but is paid for all work created above this threshold 4

  5. 2.0 EPWP Fiscal Incentive cont’d • Eligibility: In order for provinces and municipalities to become eligible for the incentive they must: • Report to DPW on the EPWP ( 07/08 report used to calculate incentive amounts for the 09/10 financial year). • Meet minimum employment creation targets based on their available budgets • Agreements: Eligible public bodies will enter into agreements with DPW which will specify: • Targets to be met by the public body • Amounts that can be claimed by the public body for reported EPWP work created • Reporting and verification and audit requirements through the EPWP Management Information System • EPWP workers may not be paid less than R50 per day • Appropriation of funds • Eligible public bodies should incorporate the incentive allocation into their budgeting and planning process but take into account that payment by DPW will occur quarterly, after employment has been created 5

  6. 3.0 Fiscal incentive for Provinces • The average Full Time Equivalent for the different infrastructure portfolios ( e.g. Roads, Public Works, Education, Health) was considered in calculating the incentive amounts. • Full incentive amount = ( FTE Target – FTE minimum threshold) X 230 X 50. • DORA amount = 75% X Full incentive amount. • 4 Provinces, Western Cape, Gauteng, Limpopo and Northern Cape did not meet the FTE minimum threshold and were allocated a nominal incentive amount of R 500,000. • Total Incentive allocation to Provinces is R 151 Million. 6

  7. 7

  8. 4.0 Fiscal incentive to Municipalities • In order to cater for rural Municipalities in line with comments from the Select Committee on Finance, the following considerations have been considered: • - The FTE target for Metros per million rand of expenditure is 6, • different from 3 considered for other Municipalities. • - The FTE minimum threshold for Rural Municipalities = 0. • - Full incentive = ( FTE Target – FTE minimum threshold) X 230 X 50. • DORA amount = 50% x Full incentive amount. 8

  9. 4.0 Fiscal incentive to Municipalities cont’d • 68 Municipalities including 6 metros were allocated the incentive for the 09/10 financial year. Total incentive allocation to Municipalities for the 09/10 financial year was R 201.7 Million, of which R 147.2 Million was allocated to rural Municipalities and R 54.5 Million to Metros. • 126 Municipalities are eligible for the incentive in the 10/11 financial year. Work being done to ensure more municipalities report so that they become eligible for incentive. 9

  10. 5.0 EPWP 3rd Quarter 09/10 performance • 482,742 work opportunities were reported in all sectors of the Expanded Public Works by the 3rd quarter of the 09/10 financial year. This represented 97% of the 500,000 work opportunity target that had been set by the President in the June 2009 State of the Nation Address. • The target of 550,000 work opportunities that were expected for the 09/10 financial year have been achieved. 10

  11. Q3: Work opportunities per sector and province (Overall) (1 April – 31st December 2009) 11

  12. Q4: Work opportunities per sector and province (Overall) (1 April 2009 – 31st March 2010)

  13. 5.1 Performance on the EPWP infrastructure Incentive after the 3rd quarter of the 09/10 financial year • 5 out of the 16 Provincial Departments have been paid incentive payments totaling R 53,633 million considering 3rd quarter payment reports. Total payment to Provincial departments considering payments in previous quarters is R116.6 million out of an allocation of R 151.4 million (77% of Provincial allocation). • 47 of the 68 eligible municipalities have been paid their incentive payment of R 78.6 million considering the 3rd quarter report of the 09/10 financial year. Total incentive payment to municipalities after the 3rd quarter is R 114.17 million out an allocation of R 201.7 million ( 57% of Municipal allocation). • Total incentive payment to Provincial Departments and Municipalities made for the 09/10 financial year totals R 230.8 million, out of the total allocation of • R 352.1 million, representing expenditure of 66% of the allocation for the 09/10 financial year. 12

  14. Performance on the EPWP incentive grant by Provinces after 3rd Quarter 09/10 financial year 13

  15. Performance on the EPWP incentive grant by municipalities after 3rd Quarter 09/10 financial year 14

  16. 5.2 Performance on the EPWP infrastructure Incentive after the 4th quarter of the 09/10 financial year • 8 out of the 16 Provincial Departments will be paid incentive payments totaling R 54.551 million considering EPWP 4th quarter report for the 09/10 financial year . Total payment to Provincial departments considering payments in previous quarters is R171.132 million out of the full incentive allocation of R 201.892 million for 09/10 reporting ( 85% of the full allocation). This payment includes 4th quarter payment paid in the 10/11 financial year. • 36 out of the 68 of the eligible municipalities will receive a total incentive payment of R93.463 million considering the 4th quarter report for the 09/10 financial year. • Considering the 4th quarter report ( 3rd quarter for municipalities) 56 of the eligible 68 municipalities will have accessed R 207.61 million out of the available R 302.383 million available in the 09/10 municipal financial year ( 69% of the allocation for the municipal financial year). This is comparable to the 75% of allocation expected to be paid after 3 of the 4 quarters in the municipal financial year. 15

  17. The EPWP incentive grant is beginning to have the intended performance of encouraging Public bodies to exceed their Full Time Equivalent ( FTE) work opportunity targets. Provincial Departments in KZN, GP, WC and EC have exceeded their targets and have paid extra incentive amounts. • 11 of the 68 eligible municipalities in GP, KZN, LP, NW and WC have already exceeded their FTE targets by the 4th quarter of reporting ( 3rd quarter of municipalities) for 09/10. • The number of Municipalities that will access the incentive will increase to 126 municipalities in the 10/11 financial year from the 68 municipalities in the 09/10 financial year. 16

  18. Performance on the EPWP incentive grant by Provinces after 4th quarter 09/10 reporting 17

  19. Performance on the EPWP incentive grant by Municipalities after 4th quarter 09/10 reporting ( 3rd quarter 09/10 for municipalities) 18

  20. 6.0 Measures put in place to improve performance on EPWP incentive draw down • Public bodies ( Provincial Departments and Municipalities) are being provided with support to report on EPWP • A partnership with DBSA through the Siyenza Manje programme has been put in place to support municipalities jointly. • Training of officials in Municipalities in Labour-intensive methods of construction is being planned with LG-SETA. • 90 data capturers have been employed in this regard • Training on reporting is also being done to Public body officials to enable them to report better on EPWP. 19

  21. NEW MTEF Conditional Grants & Specifically & Exclusive Appropriation 31

  22. I thank you 20

More Related