Girls and Boys Town Integrated Biennial Report April 2018 – March 2020

Girls & Boys Town South Africa Integrated Biennial Report 2018/2020 49 FINANCIAL OVERVIEW Financial report Developments related to income Extensive information on income generated by fundraising activities has been provided in the fundraising section of the report (page 40). It is important to highlight the significant decline in debit orders as long-standing donors have passed away or reach a stage where they are no longer able to contribute. This, combined with the devastating impact of the COVID-19 epidemic on the business sector and individuals, could present a serious threat to GBTSA going forward. However, the epidemic has sensitised many middle-class people to the grave inequalities in our country and there is an opportunity for GBTSA to position itself as an organisation that helps build a more equal society. Campuses apply every three years to the Department of Social Development (DSD) for re-registration and annually for renewed funding of their activities. The DSD completes a full inspection of our buildings and our services. Our business plan, the DSD inspection report and a report from Department of Health inform the decision whether to register and fund us for a further three-year period. In the period under review, funding from the DSD for our Kagiso facility changed significantly. The per-capita funding was reduced from 70 to 40 youths because the campus had to cut numbers while the residence was being renovated. Campus management has worked with DSD to gradually increase the number of subsidised residents. Registration of the Kagiso campus has been a challenge and admissions will increase once the new registration certificate is issued. Magaliesburg campus was on course to complete its re-application for registration in April 2020. This campus has remained fully funded by the DSD. The KwaZulu-Natal campus received subsidy for 45 youth and two social workers. In October 2019, the provincial DSD increased its subsidies along with its service expectations and reporting requirements. These now include: ❂ The provision of integrated assessments by psychologists, psychiatrists, occupational therapists, doctors and nurses. ❂ Compliance with nutritional requirements set out in DSD regulations. These address specific needs of youth with chronic illnesses and disruptive behaviour disorder. ❂ Adherence to occupational health and safety standards. The KwaZulu-Natal region’s new business plan has been submitted and we have since received conditional registration. Western Cape received a subsidy for 60 youth and two social worker posts. The full subsidy is only paid if there is 90% occupancy on campus, otherwise pro rata subsidies are paid. This creates some difficulties because, in terms of the Children’s Act, we are expected to keep beds available for up to six months when youth are on leave of absence with their families, a step that is critical to our goal of reunifying youth with their families in a well-planned disengagement process. Managing operational expenditure Residential service is an expensive model of care and the cost of having a child in care increases along with inflation in the cost of fuel, electricity, food and education. Campuses have made a concerted effort to reduce costs by monitoring and managing the use of resources. This is difficult as some resources — for instance, vehicles — age and become more costly to run and repair. Stricter controls have been introduced to reduce unnecessary trips and driving. Co-operation between the campuses is encouraged to assist each other with drop-offs and pick-ups of youth, and trips to head office. Bulk buying of groceries to reduce costs is undertaken and orders are checked and approved by the Support Services Manager and Youth Development Manager to ensure that only essentials are purchased. School fee exemptions are applied for annually to reduce the strain on our education budget. Conclusion Financial operations will retain a keen focus on minimising reliance on non-sustainable funding while maximising fundraising in areas that can continue to provide funding. Prudent financial management is continuously being enhanced through the implementation of relevant cost-saving strategies, dynamic management across our operations to align use of resources with the number of youth in care, and efforts to increase overall productivity.