a) The Department has implemented new funding model with effect from October 2023. The new funding model entails paying NPOs in tranches on a quarterly basis. The tranche will be paid in April, July, September and January each financial year. This will ensure timeous payment of subsidies to NPOs
b)
c) There were delays in payment of subsidies due to cash blocking resulting from budget cuts. The funds are allocated by Provincial Treasury on monthly basis. The department does not have enough cash to pay for its contractual obligations and operational costs.
The department has requested funds for NPO subsidies to be allocated quarterly in order to pay NPOs in tranches to avoid late payments. The tranche payment to NPOs will be paid in April, July, September and January each year. The first tranche for 2023/24 has been effected in October 2023 and the next one will be in January 2024.