Funding of ECD Services

Step 1 –Application for funding (31 July every 3 years)

1. The Uniform Funding Cycle (UFC) unit will via print media notify the public every 3 years before the commencement of the following financial year, of possible funding, by calling for proposals. The due date for applications will be the last day of July, in the year before the funding cycle commences.
2. The notifications shall clearly state the criteria and specifications governing the allocation of funds.
3. At least 6 weeks (after the notification) will be allowed for proposals to be submitted.
4. All applications must meet the following requirements:

• Business Plan (outline the services, target groups and areas, institutional capacity, financial stability and controls and governance of the organisation).
• Constitution (serve as a tool to determine whether the focus of the organisation is in line with the specifications of the organisation and the services the organisation is requesting funds for. The constitution will further serve as a tool to assess governance.
• Valid Partial Care Registration Certificate (where applicable).
• Valid NPO Certificate.
• Proven track record of rendering of services.
• Audited or certified financial statements of the applicant organisation in respect of the previous financial year.
• Indication of organisation’s internal monitoring and evaluation mechanisms.
• A written assurance, confirming sound financial statements.
• Declaration of interest, declaring that all persons involved in the handling of funds and decisions, will not use their discretion, power or position for personal interest, but in the interest of the organisation.
• BAS form (New applications or in instances where banking details have changed).

5. ECD Partial Care Facilities applying for the first time can apply bi-annually and will be considered for funding from the National Conditional Grant.
6. Based on the availability of funds, applications will be assessed during February for approval in the beginning of the financial year and August for mid-way through the financial year.

Step 2 – Assessment and costing of applications (3 months)

1. Social work policy developers (SWPDs) will assess the application within their respective regions of responsibility. Only applications submitted in terms of Clause 7 in the Funding Policy and who meet the funding criteria will be considered for allocation of funding.
2. A prescribed Schedule A form must be submitted to the department and will be used as means test for the calculation of funds for Partial Care Facilities. All children qualify for funding where the income of the parents is R 7 600.00 and less. Children in ECD facilities must be between the ages 0-5 years and Afterschool Care Services between the ages 5-18 years.

Step 3 – Approval of funds (2 months)/ Decline

1. Applicants must be informed of the outcome of the application. A letter of approval/decline must be issued to applicants within 1 week after approval of the submission.

Step 4 - Transfer Payment Agreement (TPA) signing process (3 months)

1. SWPDs will arrange engagements with the approved organisations in the respective regions immediately after funds have been approved. Contracts must be deliberated and signed within 2 months after funds have been approved.
2. The funded organisation must be provided with a copy of the signed TPA within 1 month after the contract has been duly signed.

Step 5 - Reporting

All funded organisations are obliged to report on the services rendered and funds received. The organisation must report on targets as per agreement in the signed TPA and due diligence must be applied to ensure correct indicators and targets.

Reporting to the department will occur in the following ways:

1. Quarterly Progress Reports:

• Funded organisations must provide the department with a quarterly progress report on the prescribed template.
• Partial Care facilities need to attach a schedule B to the progress reports. The schedule B is a list of the children who attended the facility for the reporting period.
• Service organisations that receives funds for services, need to attach attendance registers of beneficiaries.

2. Annual Financial Statements (AFS):

• All funded organisations are required to submit AFS 6 months after the end of the financial year. Organisations who receives R 600 000 and more per year are required to submit audited financial statements. Financial statements signed by a registered accountant will be accepted from organisations who receives less than R 450 000 per year.
• AFS are due for submission by 30 September every year. Extension by the chief director may be granted if requested by the organisation’s auditor. The funding unit will inform the SWPDs accordingly with specific extension period granted and manages all follow ups.
• AFS are submitted to Mr G van Rensburg and Ms S Stroud in the funding unit for analysis thereof. The funding unit will provide the ECD & Partial Care unit with an analysis report by no later than 31 January the following year. This report will be utilised by the directorate as part of the performance assessment process.