Gauteng Department of Social Development finalizes NPO Adjudication Process for 2024/25 Financial Year

The Gauteng Department of Social Development has completed a comprehensive adjudication process for Non-Profit Organisations (NPOs), setting the stage for the review and signing of Service Level Agreements (SLAs) for the 2024/25 Financial Year.

A staggering 1,732 applications were received, requesting over R11.4 billion in financial support. This amount significantly surpasses the Department’s allocated budget of R5.5 billion for the same period. As a result, panelists faced the daunting challenge of allocating funds judiciously to meet the needs of NPOs while adhering to the budgetary constraints.

The invitation process for eligible NPOs to sign the SLAs has now been centralized at the DSD Headquarters, overseen by the Accounting Officer. Previously, this responsibility was decentralized to regional offices, a practice found to be in violation of Treasury Guidelines on delegation of powers. This violation led to officials exceeding their financial delegations, compromising internal control systems.

In response, the Department has reviewed and realigned its delegation of powers to align with Treasury Guidelines. Financial delegations have been revised to prevent future contraventions, ensuring that accountability and proper oversight are maintained based on the funding amounts requested and awarded.

Numerous considerations informed the panelists’ decisions on funding allocations. These included physical verification of NPOs at registered addresses, on-site observations of services provided, and verification of compliance with the National DSD database. NPOs flagged as non-compliant or with restricted access during site visits were also taken into account.

Citing Section 38(1)(j) of the Public Finance Management Act (PFMA), the Department emphasized the necessity of written assurances from NPOs regarding effective, efficient, and transparent financial management and internal control systems. Without such assurances, the Department is prohibited from entering into funding arrangements with NPOs.

As part of its commitment, the Department has begun contacting successful NPOs for SLA signings, starting from the first week of April 2024. To streamline the process, NPOs will be contacted in organized groupings to ensure efficiency.

The Department expressed gratitude to all NPOs for their patience during the adjudication period, which unfolded amidst challenging circumstances marked by investigations and misinformation campaigns aimed at undermining clean governance.

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