KEY STRATEGIC PROGRAMMES

Presentation to Portfolio Committee

24 APRIL 2013

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Purpose

• The purpose of the presentation is to:

– Provide the Portfolio Committee with a broad overview of the strategic plan 2013/14 – 2016/17 ;

– Highlight priority areas for the Agency for 2013/14; and

– Give an overview of the budget allocation.

Vision and Mission

Vision

•A leader in the delivery of social security services.

Mission

•To administer quality customer centric social security services to eligible and potential beneficiaries.

Values

•Transparency

•Equity

•Integrity

•Confidentiality

•Customer Care Centered approach

• Payment Tender• Payment Model• Automation• Service Delivery

Improvements– Improvement of

Local offices– Capacity building

@ level 5 and 7– EPWPs– Standardisation –

4 step process– Staff uniform– Customer care

officials at receptions – client interface

• Unqualified Audit

• Re-registration• Migration to new

payment system• Payment Model• Local offices

improvement• Fraud management• Staff Uniform• EPWPs• Biometrics for staff• Unqualified Audit• BPR• Capacity building:

– Executive posts filled (95% achievement)

• Re-registration Back office clean-up

• Reviews Backlog eradication• Payment Model• Linking of grant recipients to

opportunities - School uniform project

• Local offices improvement• Fraud management• Staff Uniform• Biometrics for staff• Recruitment Of People With

Disabilities and unemployed CSG recipients with basic qualifications

• Clean Audit• Grant Debtor Management• File Destruction• Strategic Partnerships• Organisational Review• EPWP• Major Community outreach

programmes (9 X 15)

May 2011 – March 2012 April 2013-March 2014April 2012-March 2013

Background

• The Agency entered its seventh year of operation.

• In spite of intermittent periods of turbulence, it has made huge strides in ensuring that it fulfils its mandate, namely, to manage, administer, and pay social security transfers.

• The Agency's footprint straddles the length and breadth of South Africa, bringing much-needed social assistance relief to the most vulnerable in our society.

Key priorities for 2012/13 - 2016/17

• To deliver quality social security services by focusing on the following:

– Excellent customer care;

– The automation of systems;

– Improving organisational capacity; and

– Promoting good governance.

Key Focus areas

• SASSA will embark on a reform agenda aimed at

– improving service delivery - make people’s dealings with government easier through better delivery and coordination of services

– Improving organisational efficiency -modernising the Agency’s business processes

– Developing a new payment system

– Diversification: Positioning SASSA as payment provider for social security benefits

Key Priority Projects for 2013

Implementation of theSocial Assistance Programme

Objective • Improve the reach to qualifying/eligible social assistance beneficiaries

Current Status

• Over 16 069 007 people are in benefiting from social grants.• The take –up rates for new grants is on average 1 200 000

per annum• There is an attrition rate of at least 500 000 beneficiaries per

annum due to death, reviews and voluntary cancellations.

Planned Activities

• Target is to reach at least 1.2m new beneficiaries• Increase the number of grants in payment from 16 069 007

to 16 513 702 CSG - 11 698 536 CDG - 135 347 DG - 1 179 852 FCG - 569 314 GIA - 71 879 OAG - 2 930 177 WV - 477

Implementation of the Social Assistance Programme

Objective • Improve the management of Social Relief of Distress by ensuring qualifying beneficiaries are not disadvantaged.

Planned Activities

• Training and workshops will be held to ensure there is common understanding and interpretation of undue hardship.

• 25 000 SRD applications will be processed per annum over the next three years

• Priority will be given largely to: children suffering with mal-nutrition; assisting families where the breadwinner died; assisting in disaster situations; and individuals awaiting grants.

Re - Registration

Objective Establishing a credible National payment database through re-registration programme.

Current Status

• Over 19 million people have been re-registered.

Planned Activities

• Completion of the Re-registration Re-register outstanding 2 million by April 2013 April – May 2013: conduct a sweep (“mopping”) across the

country to ensure no one is left out and conduct any home visits that may be outstanding.

PAJA processes will commence in May 2013

• Cleaning of data Re-registration Data Clean-up will involve data matching with

critical institutions and elimination of duplications Fraud patterns assessed and investigated

• Records Management Filling of loose correspondence relating to documents

collected during the re-registration process

GRANT Reviews

Objective Eliminate backlog of grant reviews (largely Medical and Financial)

Current Status Backlog of 2.5 million grants due for review eliminated in 1 year six months

Planned Activities

Eliminate backlogs •Notification to each beneficiary, registered mail, to comply with legislative requirements. •Plan is to have dedicated review venues (similar to re-registration venues) to manage overcrowding in local offices.•Home visits will be conducted targeting older persons above the age of 75; care dependency and grant in aid beneficiaries.•There will be carry over into the 2014/15 financial year, because of the cycle time for reviews (3 month notice of review, 3 months notice to suspend and 3 months for application for restoration)

Current Reviews•While backlog reviews are being attended to, current reviews must be dealt with, to prevent further development of backlog

Local Office & Service Points Improvements

Objective Improve the conditions under which we serve the beneficiaries and to ensure that all customers experiences the same business processes.

Current Status

The project started in July 2011, following CEOs appointment. •92 Offices were upgraded in 2011/12. •Additional 72 will be completed by end of March 2013•All Service offices have adopted a 4-step application process.

Planned Activities

Physical infrastructure improvement

•Upgrade of Local offices will be completed in 2015.

•The target for 2013 is to have 119 facilities upgraded to suit the new standardised application process

•Full capacitation of service offices (HR, ICT and vehicles)

•Improve accessibility of our services and offices

Example of the Set-up in the New SASSA office

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Thabanchu Local Office Bloemfontein Local Office

Organisational Review

Objective The goals of this review project is to make SASSA more effective through increased operational efficiency and the creation of a more  streamlined and effective organisational structure.

Current Status • SASSA’s organisational structure is temporary. Functions are duplicated between HO, Regional Offices and District Offices

• Each branch conducted a preliminary diagnosis and micro-audit of their functional areas and have made proposals on the possible areas for possible change.

Planned Activities

• Quick win changes are being implemented

• Independent consultant will be appointed to work with the AGENCY focusing on the review the proposals and ensure that proposals are aligned to the vision of the Agency and ensures optimum utilisation of staff

• Labour will be consulted throughout the process.

Future Payment System

Objective The objective is for SASSA to implement its full mandate of administering, managing and paying social grants.

Current Status

• Establishment of National Payment Database is being finalised.

• Current SASSA card has transformed the industry by ensuring more people who were previously unbanked are integrated in mainstream economy.

Planned Activities

• Exploring Alternative options in case the Court outcome is against SASSA

• Advisory Committee is being established to support SASSA investigate future payment options for SASSA

• SASSA will host an International round table workshop on Payment in the 3rd quarter.

Organizational efficiency

HCM

• Optimum utilisation of staff

• Update of Personal files

– conduct file audits; and

– Implementation of i-module programme

• Absentee Management process – Pillar

Governance

• Strive towards Clean Audit by 2015;

• Ensure that all Governance structures are functional; and

• Develop organization-wide Risk Register.

Organizational efficiency

Automation

• Biometrics for access to SASSA core business systems

• Investigate the single platform

• Strengthen SASSA internal capacity to drive ICT operations that are required for day to day operations of the Agency

Financial Management

• Improve turn around for payment providers;

• Grant Debtors Management ; and

• Eliminate austerity measures in so far as it impacts on service delivery.

Other initiatives to be addressed by SASSA

• Tackling intergenerational poverty – linking social assistance recipients of working age to development al and/or economic opportunities

• Intensify outreach programme to communities with the objective to reach those beneficiaries who are unable to reach our office and ensure that potential and current beneficiaries are fully informed of the programmes and initiative.

• Exploring measures to build ASSA’s Future Workforce by:

– establishing partnerships with institutions of High Learning to develop degrees/diplomas that incorporate social security in their curriculum (NFSAS)

– Giving bursaries to get people into work through training and education in the field of social security.

• Conduct research to ensure that the Missing children are located (take up rates for children between 0-1 is at 36% and 45% for children between 16 and 17).

Other Activities for 2013

Strengthening partnership for SASSA:

•International structures

– ISSA

– SA-EU dialogue facility

•National integration and partnerships

– Dept of Education: - analysis and matching of children in Education system vs CSG and FCG

– ECD – Province: - analysis and matching of children in registered ECD centres vs CSG and FCG

– Health – co-location for early registration of children, SRD - mulnutrition & Disability

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SASSA Financial Plan

2013/14 - 2015/16

SASSA Administration Budget Allocation over the MTEF

SASSA Allocation 

2013/14 2014/15 2015/16 R’000 R’000 R’000

SASSA Initial Allocation

6 442 964 6 650 385 7 067 054

Approved Budget

6 311 048 6 577 589 6 840 486

SASSA Administration Budget Allocation over the MTEF

SASSA Allocation 

2013/14 2014/15 2015/16 R’000 R’000 R’000

Compensation of employees

2 365 448 2 501 792 2 641 892

Goods and services 3 803 175 3 859 449 3 880 438

Transfers and subsidies

23 654 25 018 26 419

Other 250 687 264 126 279 225SASSA Allocation 6 442 964 6 650 385 7 067 054Approved Budget 6 311 048 6 577 589 6 840 486

2013 MTEF Appropriation

• The budget appropriation grows by 3%, 4% and 4% respectively over the MTEF period

• The National Treasury has reduced the 2013/14 baseline by an amount of R215,324 million, from R6,5311,88 billion to R6,315,864 billion

• This reduced appropriation will have a negative impact on our budget and will necessitate trade-offs and reprioritisation

2013 MTEF Appropriation

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2010/11 2011/12 2012/13 2013/14 2014/15 2015/16R'000 R'000 R'000 R'000 R'000 R'000

Initial ENE Allocation 5 631 387 6 143 657 6 200 270 6 531 188 6 875 069 7 191 343 Adjustment to baseline (savings) - - -80 500 -65 324 -137 528 -215 782 Reduction for reprioritisation towards absorption of Social Work Graduates - - - -100 000 -104 900 -109 770 Further reduction - - - -50 000 -50 000 -20 000 Reduction for the Fraud Hotline to PSC -4 816 -5 052 -5 305 Total 5 631 387 6 143 657 6 119 770 6 311 048 6 577 589 6 840 486

• Revised appropriation incorporating adjustments• The table shows the baseline allocation and reductions over the MTEF

period

Summary of allocations per key cost drivers

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2013/14

-

2014/15

2014/15

-

2015/16Rand thousand Approved

budget

Expenditure

to end

January

2013

Approved

Budget

Revised

Budget

Sassa Administration Fees 2 172 078 (80 500) 2 091 578 1 458 002 2 040 619 (56 370) 1 984 249 1 994 112 2 062 628 -9% -5% 0% 3%Compensation Of Employees 2 140 004 (34 971) 2 105 033 1 490 065 2 268 401 97 046 2 365 448 2 501 792 2 641 892 11% 12% 6% 6%Leases 365 382 (11 477) 353 905 266 477 388 514 99 103 487 617 523 569 591 234 33% 38% 7% 13% - Office Buildings 277 422 (22 864) 254 558 183 536 297 123 50 164 347 287 376 508 406 596 25% 36% 8% 8% - Motor Vehicles 71 485 7 957 79 442 71 843 75 059 47 287 122 346 128 307 135 143 71% 54% 5% 5% - Office equipment 16 024 (5 283) 10 741 7 642 15 858 1 652 17 510 18 257 19 072 9% 63% 4% 4% - Other 451 8 712 9 163 3 456 474 - 474 497 522 5% -95% 5% 5%External Computer Services 98 838 67 155 165 993 84 877 107 655 (27 147) 80 508 84 564 84 187 -19% -51% 5% 0%Softwrae licences 43 718 (15 511) 28 207 - 44 626 (4 508) 40 118 42 119 44 056 -8% 42% 5% 5%Property Expenses 229 124 (21 814) 207 310 158 568 249 853 (2 885) 246 968 225 674 240 269 8% 19% -9% 6% - Cleaning 70 234 (11 531) 58 703 42 999 77 399 0 77 399 77 973 85 771 10% 32% 1% 10% - Security 122 684 (9 656) 113 028 87 037 132 414 (2 716) 129 698 108 922 113 933 6% 15% -16% 5% - Municipal services 36 206 (627) 35 579 28 533 40 040 (170) 39 870 38 778 40 565 10% 12% -3% 5%SITA Services 135 570 53 789 189 359 94 859 146 893 23 531 170 423 175 935 184 757 26% -10% 3% 5%Outsourced Services 164 247 5 073 169 320 80 845 170 348 (21 629) 148 720 150 901 163 159 -9% -12% 1% 8% - Medial Assessment Fees 98 142 (15 793) 82 349 64 972 101 048 (650) 100 399 100 164 109 938 2% 22% 0% 10% - Other 66 105 20 866 86 971 15 873 69 300 (20 979) 48 321 50 737 53 221 -27% -44% 5% 5%Communication 158 088 7 211 165 299 56 700 165 614 (38 069) 127 546 135 264 141 796 -19% -23% 6% 5%Maintenance & Repairs 83 086 42 277 125 363 69 541 84 014 (9 245) 74 769 61 783 86 961 -10% -40% -17% 41% - Offices Buildings 28 802 21 403 50 205 38 232 30 253 3 399 33 652 18 563 20 054 17% -33% -45% 8% - Motor Vehicles 53 811 (11 920) 41 891 27 610 53 264 (13 967) 39 297 41 329 43 324 -27% -6% 5% 5% - Other 473 32 793 33 266 3 699 497 1 322 1 819 1 891 1 957 285% -95% 4% 4%Travel & subsistence 62 643 18 430 81 074 64 600 65 124 18 302 83 426 86 678 78 337 33% 3% 4% -10%Consultants 59 090 (1 473) 57 617 7 633 46 368 (19 416) 26 952 28 284 29 587 -54% -53% 5% 5%Advertising 5 652 11 038 16 691 28 319 11 667 2 439 14 106 14 501 13 241 150% -15% 3% -9%Capital Expenditure 48 615 36 935 85 550 18 293 220 860 29 827 250 687 264 126 279 225 416% 193% 5% 6%Stationery 37 981 8 990 46 972 33 237 43 525 (325) 43 200 44 693 46 132 14% -8% 3% 3%Training & staff Dev. 21 208 1 935 23 143 13 010 22 684 970 23 654 25 027 26 414 12% 2% 6% 6%Other operational expenses 340 610 (181 657) 158 954 149 727 357 534 (82 959) 274 574 291 364 297 922 -19% 73% 6% 2%

Total 6 165 935 (94 569) 6 071 366 4 074 754 6 434 300 8 665 6 442 964 6 650 385 6 165 935 4% 6% 3% 6%

2012/13' 2013/14 2014/15 2015/16 2012/13 -2013/14

%

Growth

Change to

Baseline

Adjusted

Budget

Change

to

Baseline

Revised

Budget

Revised

Budget

Revised

Budget

vs

Approved

Budget

Revised

Budget

vs

Adjusted

Budget

%

Growth

Summary of allocations per key cost drivers

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Budgeted key priorities/cost drivers

• Compensation of Employees (37% of the total allocation)

– The budget allocation for CoE caters for current posts, and critical additional posts (In particular level 5-8 posts at the regions to ensure the recruitment of sufficient and appropriately skilled human capital for improved and more efficient service delivery.

• Cash Payment Contractors’ fees (31%)

– Awarding of the new 5 year contract to service provider Cash Paymaster Services, which caps the cost per grant at R16.50 assisted in realising savings on this expenditure item.

• Various contracts necessary for the running of the Agency

- The budget allocation in this regard caters for the leasing of office accommodation including all the other related costs such as security services, cleaning service charges and maintenance and repairs. The allocation also includes the leasing of motor vehicles from the government garage, which forms part of the Agency’s fleet strategy. Furthermore, there are Information Technology related contracts such as contracts for the VPN connectivity, SITA contracts (for the SOCPEN) etc.

Budgeted key priorities/cost drivers• Other key cost drivers include

– Grant Review - Backlogs (R200m)– Improvement of local offices and pay point

infrastructure including ICT infrastructure deployment in newly acquired offices

– Grant Fraud Investigations– Bulk Notification– Communication and Media Campaigns

Key Strategic Challenges

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Key challenges

• Policy Implementation:– Foster Care challenges– Role of SASSA in Disaster Management– SRD – interpretations of undue hardships– Targeting – 2 million children qualifying for CSG are reported to be missing

• Ongoing Payment Tender Court Case - time consuming

• Infrastructure:– Conditions of some of our offices and pay-points, especially in rural areas

are still unacceptable

• Processes and operational efficiencies: – Partial standardisation of business processes– Resources: inequitable distribution of resources particularly at points of

service delivery – Social grant fraud – Labour relation cases still high

Recommendations

• It is recommended that Portfolio Committee note and support SASSA’s key strategic programme and budget for 2013/14 – 2016/17