Western Cape Social Development commits to clean governance of NPOs

An article by the Cape Argus today makes the misleading claim that the NGO sector in the province is in distress after the pulling of funding by the department of social development. The article failed to clarify that significant funding is available to all NPO’s R1.19 billion annually who ensure that they are compliant with DSD’s qualifying criteria.

Furthermore, there has been consistent engagement with non-compliant organisations by the relevant DSD programme officials to ensure they become compliant. The article created a misleading and untrue impression that DSD in the Western Cape has acted unilaterally. The department will continue to engage with these organisations to resolve issues and resume funding; as the department addresses the concerns of each NPO on its merit and specificity.

It should be noted that NPOs which are non-compliant with the department’s qualifying criteria will not receive funding. This ensures that public money is fairly distributed and used to support effective NPOS.

For an NPO to be compliant and receive funding, it must meet the following qualifying criteria:

Registration as an NPO in accordance with the NPO Act;

Legislative compliance with the relevant legislation including the Children’s Act;

Compliance with the Public Finance Management Act, including proof of financial governance and effective financial systems;

Financial statements audited by an auditor or registered bookkeeper; and

Performance compliance if funded before by the department.

MEC Fritz said, The department ensures that the funding is spent in line with targets, funding allocations and outcomes which are agreed to in the Transfer Payments Agreements (TPA) between the Department and NPO. This is monitored on a quarterly basis by submitting progress reports and non-financial data, the analysis of audit financial statements, random verification by internal control, the Auditor General (AG) and monitoring of NPOs on site by Monitoring and Evaluation (M&E) officials and social workers.

MEC Fritz further added, Each programme has a yearly monitoring plan to do onsite visits to NPOs. Larger programmes have a 3-year M&E plan to ensure monitoring takes place at all NPOs. Desktop monitoring is done with all 2100 NPOs on a quarterly basis with regards to funding, non-financial data verification and compliance assessment. All 2100 NPOs are also monitored yearly with regards to their audit financial statements.

The Department of Social Development in the Western Cape, under the leadership of MEC Albert Fritz, remains committed to ensuring that our NPOs remain compliant and are governed in a clean and accountable manner.

Source: Government of South Africa