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PRESENTATION TO PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT

Quarterly Financial & Performance Reports

10 September 2014

Presentation Outline

• Background

• Performance Report – Q1

• Financial Report – Q1

• Challenges

• Recommendations

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Purpose

• The purpose of the presentation is to:

– Brief the Portfolio Committee on SASSA first quarter performance and financial report

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BACKGROUND

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VISION

“A leader in the delivery of social security services”

MISSION

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

SASSA’s Slogan

Paying the right social grant, to the right person, at the right time and place. NJALO!

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STRATEGIC OUTCOME ORIENTED GOAL OF SASSA

STRATEGIC OUTCOME ORIENTED GOAL

Expand access to social assistance and creating a platform for future payment of social security benefits.

GOAL STATEMENT

To render social assistance to eligible beneficiaries

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Key priorities for 2014/15 - 2018/19

• The primary focus of SASSA will be on:

– Reducing income poverty by providing social assistance to eligible individuals

– Improving service delivery

– Improving internal efficiency

– Institutionalising social grants payment system within SASSA

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Programme Performance Report

April – June 2014

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Implementation of theSocial Assistance Programme

Objective • To provide social assistance to qualifying/eligible beneficiaries

Planned Targets (annual)

• Target is to reach at least 1.1m new beneficiaries p.a

• Increase the number of grants in payment from 15 932 473 to 16 052 000 by end of 2014/15

Achieved • A total of 327 552 new applications were processed

• Attrition numbers: 302 460 came out of the system mainly due to children who have come of age and death

• At the end of the first quarter there were 16,191,729 social grants in payment, an increase of 259,256 social grants or 1.6% from the preceding quarter. Grant-in-Aid had the highest percentage increase at 6.8%,

followed by Foster Child Grant at 4.9%.

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Table of the Take Up of Social Grants

Table 2: Total Number and Percentage Growth of Social Grants by Grant Type

Grant type Beginning of April

End of April End of May End of June Difference/

Change Growth in percentage

CDG 120,632 121,236 122,813 122,492 1,860 1.5

CSG 11,125,946 11,185,361 11,302,312 11,317,684 191,738 1.7

FCG 512,055 521,865 530,357 537,150 25,095 4.9

DG 1,120,419 1,116,743 1,122,334 1,122,204 1,785 0.2

GIA 83,059 84,877 86,970 88,666 5,607 6.8

OAG 2,969,933 2,977,183 2,991,791 3,003,142 33,209 1.1

WVG 429 420 407 391 (38) -8.9

Total 15,932,473 16,007,685 16,156,984 16,191,729 259,256 1.6 Source: OZDOW.SOCNAT.P.DAILY_GRANT_CSG18_STATS.P.TXT

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Growth of Social Grants Per Region(cont…)

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ProvinceBeginning

of AprilEnd of April

End of May

End of June

Difference/ Change

Growth in %

EC 2,620,284 2,631,377 2,655,420 2,660,471 40,187 1.5

FS 934,766 937,153 943,923 944,171 9,405 1.0

GP 2,184,193 2,196,709 2,219,842 2,226,608 42,415 1.9

KZN 3,761,662 3,778,369 3,812,820 3,817,404 55,742 1.5

LP 2,222,730 2,232,315 2,253,114 2,256,781 34,051 1.5

MP 1,325,217 1,331,651 1,343,612 1,347,360 22,143 1.7

NW 1,120,034 1,124,784 1,135,208 1,138,452 18,418 1.6

NC 424,815 426,977 430,350 431,469 6,654 1.6

WC 1,338,772 1,348,350 1,362,695 1,369,013 30,241 2.3

Total 15,932,473 16,007,685 16,156,984 16,191,729 259,256 1.6

Number and Percentage of Social Grants per Region and Grant Type (cont…)

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Region OAGWVG DG GIA CDG FCG CSG Total

% of total

EC 520,751 56 180,738 13,075 18,458 120,448 1,806,945 2,660,471 16.43%

FS 178,347 6 78,442 1,595 6,201 41,692 637,888 944,171 5.83%

GP 458,199 98 112,445 2,356 15,682 58,108 1,579,720 2,226,608 13.75%

KZN 618,050 50 295,221 32,106 35,759 131,892 2,704,326 3,817,404 23.58%

LP 424,327 27 92,171 14,007 12,713 61,870 1,651,666 2,256,781 13.94%

MP 219,558 18 77,877 3,934 9,014 35,809 1,001,150 1,347,360 8.32%

NW 227,187 13 85,845 5,621 8,669 42,535 768,582 1,138,452 7.03%

NC 77,582 11 48,835 5,465 4,689 14,868 280,019 431,469 2.66%

WC 279,141 112 150,630 10,507 11,307 29,928 887,388 1,369,013 8.46%

Total 3,003,142 391 1,122,204 88,666 122,492 537,150 11,317,68416,191,72

9100.00

%

% total 18.55% 0.% 6.93% 0.55% 0.76% 3.32% 69.90% 100.00%

Implementation of the Social Assistance ProgrammeObjective • Improve the management of Social Relief of

Distress by ensuring qualifying beneficiaries are not disadvantaged.

Planned Targets (annual)

• 150 000 SRD applications will be processed per annum over the next three year

Achieved • 141 402 applications processed Cash – 5753 food parcels – 62 310 Vouchers – 73 339

• Total Expenditure R130 256 461

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Implementation of the Social Assistance Programme

Objective Reduction of inclusion and exclusion errors in the social assistance programme

Current Status

• CSG Take-up rates for infants remained stagnant between 2008-11, at less than 50%.

Planned Activities

• Increase CSG take up rates to 70% over the MTEF through active mobilisation

Achieved • Total number of children (0-1) in payment stands at 489 680. This represents an increase of 30 853 (0.6% growth) from April to June 2014.

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Service Delivery Improvement

Objective Improving conditions under which beneficiaries are served

Planned Targets (annual)

• 420 ICROP/ Mikondzo interventions • Progressively reduce the turn around time for processing of

grants to an average of 10 days by 2016• Complete the upgrading of remaining local offices and acquisition

of new offices in areas of high need.

Achieved • ICROP strategy was approved for implementation. Out of 104 wards targeted 170 wards had access to social assistance through ICROP

• Turn around time for processing of grant applications is on average 21 days. 91 % of applications were processed within 21 days , most regions achieved between 90% and 97 %

• Most offices commenced with the process for improvement of targeted offices and they will be completed in the coming quarters. 15

No. of ICROP interventions per provinceRegion WardsE.C. 15F.S. 18G.P 6KZN 25LIMP 4MPU 8N.C. 31N.W. 9W.C. 54TOTAL 170   

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Improved Administration: Automation

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

Planned Targets (annual)

• Improvement of ICT Infrastructure

• Biometric Authentication of users

• Cleaning of re-registration data

Achieved • Connectivity to business systems in all SASSA Local offices has improved

• CSIR has been appointed to facilitate phase 2 of re-registration data clean-up

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Improved Administration: HCM

Objective Effective and efficient administration (Human Resource)

Achieved • 100 % of identified critical posts were filled (94 permanent posts and 34 contract posts were filled during this quarter)

• 1 HCM policy was reviewed (Bereavement policy)

• 107 of labour relations cases were reported and are all in the process of investigation

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Future Payment System

Objective Improvement in the Payment of Social Grants

Planned Targets (annual)

Implementation of the Payment Tender

Planning for SASSA is to take total responsibility for the payment of social grants in 2017/19.

Achieved • Mandate for implementation of the tender process has been approved. Advertisement will take place in the second quarter.

• The Ministerial Advisory Committee drafted preliminary mid-year report which is starting to reflect on the direction the Agency should take for the future

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Improved Governance

Objective To promote good governance and accountability

Planned Targets (annual)

Reduction of audit findings - Unqualified Audit

Reduction of Fraud, theft and corruption

Reduction in litigations

Achieved • Unqualified audit report for 2013/14 financial year

• Fraud Management: A total of 242 cases were reported in this quarter and all were investigated.

• IA: 3 Internal audit reviews were done on high risk areas

• Legal: 240 letters of demand were received and responded to

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Summary of Performance of the First Quarter of 2014/15 compared to First Quarter Last FY

Figure 1: First Quarter Targets Achieved / Not Achieved

Total Reported Targets Total APP Reported Targets Total M&E Assessed Targets

Source: Branches’ 1st quarter performance reports 2014/15 Reported Targets for the 1st quarter APP Reported Targets for the 1st quarter M&E Assessed Targets for the 1st quarter

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• SASSA had a total number of 19 APP targets planned for the first quarter.

• 65 % of the quarterly targets were fully achieved and 3% were partially achieved

Financial Performance Report

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Overall expenditure per economic classification

Annualised Budget (R'000)

Expected exp for Q1 Actual Expenditure % Spent on total budget

CoE 2 592 314 648 078 589 241 23%G&S 3 893 904 973 476 741 689 19%Transfers 26 162 6 541 5 280 20%CAPEX 55 209 13 802 16 125 29%Total 6 567 589 1 641 897 1 352 335 21%

Overall expenditure per economic classification (cont…)

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Overall per key cost drivers

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Narrative on spending trendsCompensation of employees

•Expenditure is 2% below the projected expenditure due to the funded posts that were not filled yet at the regions and head office.

•The funded vacant posts are at various stages of being filled and it is projected that as the financial year progresses the majority of the posts would have been filled and this will increase expenditure.

Goods and Services

•Communication:

– The majority of the budget is on postage for notifications for reviews and communication to beneficiaries.

– Expenditure on these two big ticket items within communication is expected to increase as the financial year progresses. The bulk of the money will be on community based interventions

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Narrative on spending trend (cont..)

Goods and Services:

•Computer Services

– The majority of the budget is for the payments to SITA in respect of mainframe-time and the maintenance of the SOCPEN system.

– Expenditure is incurred once services have been rendered.

•Medical Assessments Fees

– Expenditure is influenced by the number of medical assessments performed and thus the number of assessments performed were lower during the first quarter.

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Narrative on spending trend cont..

Goods and Services:

•Maintenance and Repairs

– The majority of the budget is for local office and pay point improvement projects. There were orders to the value of R4,944 million placed as at end of June 2014.

•Travel and Subsistence

– Expenditure will be influenced by the National Treasury’s austerity measures which aims to minimise the level of expenditure on travel and other items.

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Challenges• The delays in the finalisation of MOU with CSIR impacted on

achievement of 2 objectives:

– Biometric data clean-up; and

– management of re-registration exceptions

• The finalisation of the tender for authentication of Biometric users has been delayed

• Improvement of local offices has been delayed and this impacted on other related activities such as branding and purchase of equipment

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Recommendations

• It is recommended that the Portfolio Committee

note and support SASSA’s the quarterly financial and programme performance reports for the period of April – June 2014

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Thank you

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