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Presentation to the Portfolio Committee on Social Development 30 March 2011.
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Transcript of Presentation to the Portfolio Committee on Social Development 30 March 2011.
Presentation to the Portfolio Committee on Social Development
30 March 2011
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Outline of the presentationPurpose;Strategic overview:
Mandate;Vision;Mission;Strategic objective; andValues.
Reform Agenda;2010/11-2013/14 MTEF Plan;Recommendation
3
Purpose
To speak briefly to the Agency’s Performance Environment with special reference to its challenges;
To indicate projects that will be embarked upon to
improve Service Delivery; and
To provide the Portfolio Committee on Social Development,a broad overview of the strategic plan 2010/11-2013/14.
Background • Over the first five years of its establishment the Agency had to strike
a balance between putting an effort in establishing itself while ensuring the provision of quality service;
• The Agency has maintained consistent provision of monthly income support to a significant number of South Africans while instituting measures to reduce the turnaround times for the processing of applications;
• The Agency increased its reach to over 10 million beneficiaries, while the turn around time was reduced from six months to nine days (and 1 day in some areas); and
• Agency also increase reach to rural communities through mobile units.
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Strategic OverviewMandate The mandate of the SASSA is to ensure the provision of
comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework.
Vision A comprehensive social security service that assists people to be
self-sufficient and supporting those in need.
Mission To manage quality social security services, effectively and efficiently
to eligible and potential beneficiaries effectively and efficiently.
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Strategic Objective
To build a high performance institution which manifests itself by compliance to good governance principles and striving towards operational excellence through continued service delivery improvements to the beneficiaries.
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Values Social cohesion Transparency Equity Integrity Confidentiality Customer Care- centered Approach
Situational Analysis SIGNIFICANT GROWTH AND IMPACT ON SERVICE DELIVERY• Over 8 million South Africans receive over 15 million social grants
benefits depicted as follows:• 10 million are child benefits; • 2.5m are older persons; and • 1.3m are people with disabilities.• The number of grant benefits increased from 13m in 2008/09 to
over 15m in 2010/1; and• The average number of transactions that the Agency deals with
per annum is 4,680,675 excluding payments.
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Situational Analysis cont.…AGSA’s FINDINGSSignificant growth in number had a negative impact on administration resulting in a qualified audit opinion. The following were the reasons for the qualification:• There were more than 545 508 missing files;•There were 159 302 items of loose correspondence which still has to be placed on the files and captured on the Management Information System;•There were 209 302 files which are missing the critical documents;•There were 62 153 files which need to be transferred between regions; and•There were more than 2 million files that should be destroyed.•The nature of the Agency’s business renders it vulnerable to fraud and corruption.
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Situational Analysis cont.…SHARING OF OFFICES WITH DSD
Some regions are still sharing offices with DSD and this has implications for:
• Suitable office space - staff is generally speaking, crammed in offices with negative impact on job satisfaction and quality of service delivery;
• Equal sharing of running costs even though the Agency’s use of services is lesser than that of DSD; and
• Investment in ICT infrastructure is affected by the uncertainty over tenure agreements.
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Situational Analysis cont.…PAY POINT CONDITIONS• A large number of the pay points where the beneficiaries
receive their cash payments do not meet the norms and standards with regard to providing humane basic facilities;
• In some cases beneficiaries are exposed to security and health risks;
• Most rural pay points require urgent infrastructural attention; and
• Exploitation of beneficiaries by merchants and money lenders.
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Situational Analysis cont.…THE STRATEGIC PLAN 2011/12 - 2013/14 SEEKS TO ADDRESS THE FOLLOWING KEY CHALLENGES:
•Improvement in the grant administration and management system;
•Automation of the grant application process;
•Reduction of fraud and corruption; and
•Improvement in financial management.
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Strategic Projects
Given these key challenges the Agency has identifiedthe following as key projects to improve service delivery:
• Automation and modernisation of Grant Management and Administration;
• New Payment Model;• Implementation of Integrity Model (Fraud
Prevention);• Implementation of Service Delivery Model ; and• Business Process Re-engineering.
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Agency’s Reform Agenda
The Reform Agenda is underpinned by the following threekey priorities:
• Customer care - Centred Benefits Administration andManagement System;
• Improved Organisational Capacity; and• Increased access to Social Security Services.
Priority 1: Customer care - Centred Benefits Administration and Management System
Some of the key projects identified under this priorityarea are:
• Continued implementation of policies on social assistance;
• Implementation of the Service delivery Model;• A Payment System;• Automated Core Business System; and• Improvement of pay point conditions.
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Service Delivery ModelIn response to service delivery challenges the Agency has developed aService Delivery Model designed to achieve the following:
• enable the Agency to deliver improved, standardised and coordinated services, by multi-skilled staff, to its customers;
• provide a baseline of operational standards on which the Agency could improve continuously, while adapting to an ever-changing environment;
• provide an opportunity, as well as solutions, to achieve the strategic objectives aimed at exceeding stakeholder expectations;
• ensure a more customer-focused organisation; and• bridge the gap between the current reality and the envisaged end-
state.
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Priority 2: Improved Organisational Capacity
Some of the key projects identified under this priority area are:• Optimisation of the Agency’s business processes;
• Implementing the integrity model;
• Finalising a BPR intervention; and
• Ensuring the integrity of the Agency’s Systems.
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Priority 3: Increased Access to Social Security Services
In line with government’s key priority of ruraldevelopment,the Agency has to ensure that its servicesare also easily accessible to its rural population. The keyproject under this priority is Integrated CommunityRegistration Outreach Programme (ICROP).
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Risk IdentificationThe following risks were taken into consideration in the Strategic Planning exercise:•Increased pressure on financial resources because of increased demand for social assistance;•Ineffective monitoring and evaluation;•Inappropriate organisational culture;•Poor strategic planning;•Inappropriate organisational design; •Lack of appropriate systems; and•Fraud and corruption.
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The Agency’s strategic intent
Government Strategic Priority
The Agency’s Priorities The Agency’s Strategic Imperatives
Outputs
Building cohesive, caring and sustainablecommunities
Customer-care-centredBenefits Administrationand Management System
Integrated Social Assistance Business System
•Policy and legislation on Social Assistance implemented •Improvement of grant application process•Effective and efficient management of beneficiaries•Effective and efficient management of Grant Payments•Improved management of Disability Grant Services•Automated Core business system implemented
The Agency’s strategic intent cont…
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Government Strategic Priority
The Agency’s Priorities
The Agency’s Strategic Imperatives
Outputs
Ensuring effective and efficient public administration
Building cohesive, caring and sustainablecommunities
Improved Systems Integrity
Transform the Agency’s culture and enhanced people capabilities
• Integrity Model implemented• Legal services model
implemented• Effective and efficient
management and development of human capital
• Knowledge Management Strategy implemented
• Grant Payment System developed and implemented
• The Agency’s business processes optimised
• Effective and efficient management of facilities and auxiliary support services
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The Agency’s strategic intent cont…Government Strategic Priority
The Agency’s Priorities
The Agency’s Strategic Imperatives
Outputs
Ensuring effective and efficient public administration
Building cohesive, caring and sustainablecommunities
Improved Systems Integrity
Transform the Agency’s culture and enhanced people capabilities
•Sound Financial Management across the Agency•Integrated Risk Management Framework implemented•Buildings Infrastructure Strategy implemented•Transport Management Strategy implemented•Records Management (Paper-based) System implemented•Integrated Communication and Marketing Strategy implemented•Integrated Monitoring and Evaluation Framework implemented
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The Agency’s strategic intent cont…Government Strategic Priority
The Agency’s Priorities
The Agency’s Strategic Imperatives
Outputs
Ensuring effective and efficient public administration
Building cohesive, caring
and sustainablecommunities
Improved Systems Integrity
Transform the Agency’s culture and enhanced people capabilities
•Service Delivery Model implemented• Framework on Strategic Planning, Operational Planning and Reporting implemented•Integrated Research and Development Strategy implemented•Micro Simulations and Macro economic Model implemented•Strategic Partnerships Strategy implemented•ICT Business Application Systems availability maintained and accessible•ERP implemented
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The Agency’s strategic intent cont…
Government Strategic Priority
The Agency’s Priorities
The Agency’s Strategic Imperatives
Outputs
Building cohesive, caring and sustainablecommunities
Increased access toSocial SecurityServices
Increased access to Social Security Services in the rural and semi-rural areas
•Customer Relations Management Strategy implemented•ICROP Strategy implemented•Stakeholder Management strategy implemented
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2011/12 – 2013/14 MTEF PLAN BRANCH: GRANTS ADMINISTRATION
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Policy and Legislation on Social Assistanceimplemented
Projected total numberof grants in payment including normal growth and the impact of policy changes
15 774 162 projectedtotal number of grants inpayment
16 721 657projectedtotal number of grants inPayment
16 777 649 projected totalnumber of grants in payment
2 729 359 projected totalnumber of Older Person’sGrants in payment
2 786 026 projectedtotal number of OlderPersons’ Grants inpayment
2 844 243 projected total numberof Older Persons’ Grants in payment
1 265 271 projected totalNumber of Disability Grantsin payment
1 289 518 projectedtotal number of DisabilityGrants in payment
1 314 517 projected total number Disability Grants in payment
128 133 projected total numberof Care Dependency Grants inpayment
134 604 projected totalnumber of CareDependency Grants inpayment
141 358 total number of CareDependency Grants in payment
813 Projected total number ofWar Veterans Grants in
Payment
703 Projected totalnumber of War VeteransGrants in payment
608 Projected total number ofWar Veterans Grants in payment
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION …
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Policy and Legislation on Social Assistanceimplemented
Projected total numberof grants in payment including normal growth and the impact of policy changes
10 976 510 projected totalnumber of Child Support Grants in payment
11 303 073 projectedtotal number of ChildSupport Grants inpayment
11 588 704 projected totalnumber of Child Support Grantsin payment
612 651 projected total numberof Foster Child Grants in payment
708 592 projected totalnumber of Foster ChildGrants in payment
819 853 projected total number of Foster Child Grants in payment
61 425 projected total number
of Grant-in-Aid in payment 65 110 projected totalnumber of Grant-in-Aidin payment
68 366 projected total number of Grant-in-Aid in payment
Projected number ofbeneficiaries receivinggrants impacted on bypolicy changes
CSG extension: 510 069 ofeligible children aged 16-17years
CSG extension:434 031 of eligiblechildren aged 17-18years
% of SocialRelief Distress (SRD)funds disbursed inaccordance withapproved guidelines
95% of Social Relief Distress(SRD) funds disbursed inaccordance with approvedguidelines
95% of Social ReliefDistress (SRD) fundsdisbursedin accordance withapproved guidelines
95% of Social Relief Distress(SRD) funds disbursed inaccordance with approvedguidelines
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION …
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Policy and Legislation on Social Assistanceimplemented
Internal ReconsiderationMechanism
developedand implemented.
The Internal ReconsiderationMechanism guidelinedeveloped
60% of InternalReconsideration requestsadjudicated within 90 days
80% of InternalReconsiderationrequestsadjudicated within 90days
100% of InternalReconsiderationrequestsadjudicated within 90days
Improvement ofgrant applicationprocess
% reduction ofturnaround time from90 days to 21 days inall regions
80% of new applicationsprocessed within 21 days in allregions
90% of new applicationsprocessed within 21days in allregions
100% of new applicationsprocessed within 21 days in allregions
Effective andEfficientmanagement ofbeneficiaries
Number ofbeneficiaries notifiedof administrativedecisions andreviewed
900 000 beneficiaries notifiedof administrative decisions andreviewed
1m beneficiaries notifiedof administrativedecisions andreviewed
1.2m beneficiaries notifiedof administrativedecisions andreviewed
Number ofbeneficiaries notifiedof administrativedecisions andlife certified
700 000 beneficiaries notifiedof administrative decisions andlife certified
2.3m beneficiariesNotified of administrativedecisions andlife certified
2.4m beneficiaries notifiedof administrative decisions andlife certified
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION …
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Effective andEfficientmanagement ofbeneficiaries
% of beneficiarieswhose grants are tobe lapsed are lapsedand notified
100% of beneficiarieswhose grants are tobe lapsed are lapsedand notified
100% of beneficiarieswhose grants are tobe lapsed are lapsedand notified
100% of beneficiarieswhose grants are tobe lapsed are lapsedand notified
% of beneficiaryrecords with backlogsin the registry withrespect to thefollowing that must becompleted:• File transfer• File destruction• Missing files• Loose
correspondence
25% of beneficiary recordswith backlogs in registrycompleted
50% of beneficiaryrecords with backlogs inregistry completed
75% of beneficiaryrecords with backlogs inregistry completed
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION …
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Effective andEfficientmanagement ofbeneficiaries
Number ofbeneficiaries recordswith exceptionsidentified andresolved:• Incorrect identity numbers• Incorrect grant
types• Incorrect
addresses• Incorrect
banking• details• Unrecorded
deaths• Undeclared
means
20 000 beneficiaries recordswith exceptions identified andresolved
40 000 beneficiariesrecords with exceptionsidentified andresolved
80 000 beneficiaries recordswith exceptions identifiedand resolved
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION …
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Effective andEfficientmanagement ofGrant Payments
Amounts of moneyrecovered fromdormant accounts
R50 m recovered fromdormant accounts
R100 m recovered fromdormant accounts
R150 m recovered fromdormant accounts
Number of pay pointsimproved
300 pay points improved 400 pay points improved 528 pay points improved
Services provided bypayment contractorsmonitored
Quarterly compliance reportson payment contractorservices
Quarterly compliance reportson payment contractorservices
Quarterly compliance reportson payment contractorservices
Improved management ofDisability Grantservices
% of new disabilitygrant assessmentsquality assured
20% of new disability grantassessments quality assured
20% of new disability grantAssessments quality assured
20% of new disability grantassessments quality assured
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION .
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
ICROP Strategyimplemented
Number of identifiedrural wards havingaccess to SocialAssistance throughICROP
44 identified rural wardshaving access to SocialAssistance through ICROP
40 identified rural wardshaving access to SocialAssistance through ICROP
40 identified rural wardshaving access to SocialAssistance through ICROP
Number ofbeneficiaries in ruralwards having accessto Social Assistancethrough ICROP
65 000 of beneficiaries in ruralwards having access to SocialAssistance through ICROP
50 000 of beneficiaries inrural wards having access toSocial Assistance throughICROP
60 000 of beneficiaries inrural wards having access toSocial Assistance throughICROP
CustomerRelationsManagementStrategy implemented
% of enquiriesattended to
100% of enquiries attendedto
100% of enquiries attendedto
100% of enquiries attendedto
% of complaintsattended within fivedays
100% of complaints attendedwithin five days
100% of complaints attendedwithin five days
100% of complaints attendedwithin five days
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: INTERNAL AUDIT AND RISK MANAGEMENT
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Integrity ModelImplemented
Integrity policyapproved andimplemented
Integrity Policyapproved
Audit report on compliance with Integrity Policy produced For Head Office and 3regions
Audit report on compliancewith Integrity Policy produced for 6 regions
Number of socialgrants verified forvalidity
40,000 social grants verifiedfor validity
50,000 social grants verifiedfor validity
60,000 social grants verifiedfor validity
Number of Corporatecomplianceinspections conducted
60 Corporate complianceinspections conducted
60 Corporate complianceinspections conducted
60 Corporate complianceinspections conducted
Number of regionsimplementing Ethicsprogramme
Ethics programme developedand implemented at HeadOffice
Ethics programme developedand implemented in fourregions
Ethics programme developedand implemented in fiveregions
% of fraudcases identified andreferred to lawenforcement agencies
100% identified fraud casesreferred to lawenforcement agencies
100% identified fraud casesreferred for investigationto law enforcement agencies
100% identified fraud casesreferred for investigationto law enforcement agencies
Number of Internal audit reviewsconducted
30 internal audit reviewsconducted
30 internal audit reviewsconducted
30 internal audit reviewsconducted
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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: INTERNAL AUDIT AND RISK MANAGEMENT…
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Integrity ModelImplemented
Integrated fraudprevention strategydeveloped
Integrated fraudprevention strategydeveloped
% implementation ofIntegrated fraudprevention plan
100% implementation ofintegrated fraud preventionplan
100% implementation ofintegrated fraud preventionplan
Integrated RiskManagementFrameworkImplemented
Risk-mitigatingaction plans developed for allstrategic projects
Risk-mitigating action plansdeveloped for all strategicprojects
Risk-mitigating action plansdeveloped for all strategicprojects
Risk-mitigating action plansdeveloped for all strategicprojects
Integrated BusinessContinuity Strategydeveloped andapproved
Integrated BusinessContinuity Strategydeveloped andapproved
Integrated BusinessContinuity Strategy reviewed
Integrated BusinessContinuity Strategy reviewed
Integrated BusinessContinuity Strategy reviewed
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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: FINANCE
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Sound FinancialManagementacross theAgency
% Reduction of thebudget deficit of R884m
50% Reduction in thebudget deficit of R884m
75% Reduction in thebudget deficit of R884m
100% Reduction in thebudget deficit of R884m
% reduction ofoverdraft
50% reduction ofoverdraft
100% reduction ofoverdraft
100% reduction ofoverdraft
% of all eligiblesuppliers paid within30 days
100% of all eligible supplierspaid within 30 days
100% of all eligible supplierspaid within 30 days
100% of all eligible supplierspaid within 30 days
% staff debts andsocial assistancedebts recovered asper the terms of AoDs
50% staff debts and socialassistance debts recoveredas per the terms of AoDs
75% staff debts and socialassistance debts recoveredas per the terms of AoDs
100% staff debts and socialassistance debts recoveredas per the terms of AoDs
% accountsreconciliation andmonth end closure ofaccounts payable,receivable,purchasing, inventory,assets, cash &banking, and payroll
100% accountsreconciliation andmonth end closure ofaccounts payable,receivable,purchasing, inventory,assets, cash &banking, and payroll
100% accountsreconciliation andmonth end closure ofaccounts payable,receivable,purchasing, inventory,assets, cash &banking, and payroll
100% accountsreconciliation andmonth end closure ofaccounts payable,receivable,purchasing, inventory,assets, cash &banking, and payroll
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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: FINANCE…
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Sound FinancialManagementacross theAgency
% reduction inirregular expenditure
90% reduction in irregularexpenditure in terms of valueand number of 2010/11
95% reduction in irregularexpenditure in terms of valueand number of 2011/12
99% reduction in irregularexpenditure in terms of valueand number of 2012/13
% compliance toInventorymanagement
50% of 51 sub inventoriesstores to be centralised
70% of 51 sub inventoriesstores to be centralised
100% centralisation ofinventory stores
Availability of ProjectPlan to migrate from First in First Out(FIFO) to weightedaverage
Available Project plan toconvert the inventory valuationmethod from First in First Out(FIFO) to weighted average
100% Implementation ofweighted average
100% accurate stock values
% compliance with asset
management
100% compliance with the asset
clearing account
100% compliance with theasset clearing account
100% compliance with theasset clearing account
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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: ICT
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
ICT businessapplicationsystemsavailabilitymaintained and accessible
% of systemsavailable and accessible
97% systems available andaccessible
97% systems available andaccessible
97% systems available andaccessible
Automated Corebusiness systemimplemented
Technology roadmap developed andImplemented
Enterprise Architectureencompassing Business,Information, Data Application,Technology, and InfrastructureArchitectures covering theAgency’s core business valuechain developed andimplemented
Business, Information, DataApplication, Technology, andInfrastructure Architecturesimplemented in the ITsystems
Business, Information, DataApplication, Technology, andInfrastructure Architecturesimplemented in the ITsystems
% implementation ofautomated corebusiness systems
Biometric identificationsolutions implemented in allregions to improve fraudprevention. MIS Registrymodules integrated in allregions. Scanning on demandfor backlog files implemented
50% of automated corebusiness systemsimplemented (application toapproval automation)
100% of automated corebusiness systemsimplemented (including payment card issuanceservices)
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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: CORPORATE SERVICES
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Effective andEfficientmanagement anddevelopment ofhuman capital
Optimal utilisation ofstaff
Skills audit in Finance and InternalAudit conducted against new jobprofiles, report developed and phasedimplementation of recommendations
Skills audit in the remainingprograms of the agencyconducted against new jobprofiles, report developedand phased implementationof recommendations
Matching and placement ofstaff
Revised organisationalstructure in line with theBPR operationalised
Filling of all targeted,Funded vacancies
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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: CORPORATE SERVICES...
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Effective andEfficientmanagement offacilities andauxiliary support services
Audit report on thestatus of the buildingInfrastructure developed
Audit report on thestatus of the buildingInfrastructure developed
Effective and efficientmanagement of facilities andauxiliary support services
The Agency’s building infrastructureimprovement plan developed
IntegratedCommunicationand MarketingStrategy implemented
StakeholderManagementStrategy developedand implemented
Stakeholder Management Strategy developed
Stakeholder ManagementStrategy implemented
StakeholderManagementStrategy implemented
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Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
Grant PaymentSystem developed and implemented
Grant Payment system standardised
Grants payment contract/sissued
Centralised paymentdatabase (Enrolment andissuance of the AgencyPayment Card)
Transaction facility for control of grant payments developed
Service Delivery
Model implemented Comprehensiveintegrated ServiceDelivery Modelbusiness plandeveloped and approved
SDM Governance structureestablished
SDM Toolkits developed SDM Implemented
Comprehensive integratedSDM business plan developedand approved
2011/12 – 2013/14 MTEF PLAN cont…BRANCH: STRATEGY AND BUSINESS DEVELOPMENT
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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: STRATEGY AND BUSINESS DEVELOPMENT…
Output Performance Indicator
Target2011/12
Target2012/13
Target2013/14
IntegratedMonitoring andEvaluationFrameworkImplemented
Service deliveryMonitoring reports on
pay points and servicepoints produced
Service delivery monitoringreports on pay points andservice points produced
Service delivery monitoringreports on pay points andservice points produced
Service delivery monitoringreports on pay points andservice points produced
Number ofevaluation surveys conducted
2 evaluation surveys conducted (Impact of CSG, trends analysis of service delivery constraints)
2 Diagnostic surveys conducted (SRD trendsanalysis and implementationof Disability Grant Model)
5-Year Agency performance review report developed
1 Diagnostic survey conducted (Foster Child Management)
The Agency’sbusiness processesoptimised
Key businessprocesses reviewed and documented
Macro audit of currentbusiness processes reviewed and documented
Phased implementation of the recommendation• Organisational
structure• Systems and
processes• Matching and Placing
2011 MTEF Strategic Financial Plan
Agency’s ENE aligned financial plan
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Agency’s ENE aligned financial plan• SASSA’s budgetary constraints manifested in the accumulated budget
deficit of R884 million • The budgeted surplus as shown in the table is aimed at reducing this
accumulated deficit over the MTEF period• Coupled with reducing the deficit SASSA have to deal with the
expanding scope of work that necessitates implementation of new projects which requires funding
• The Agency’s spending over the MTEF period will have a particular focus on improving the grant application process, and implementing a new social grants payment model that will contribute towards savings in the administration budget
• Baseline prioritisation was done to sufficiently fund new critical projects and align the budget with planned outputs.
– Funds have been redeployed from the cash payment contractors’ fees which will see expenditure on this item declining
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Cost containment measures• Considering the accumulated deficit and the fact that SASA has to ensure efficient
and smooth service delivery to our beneficiaries, a turnaround strategy was initiated• Part of the strategy included the introduction of austerity measures which are
targeted at expenditure that could be curbed without any serious repercussions or disruption of service delivery
• To this end we have seen a positive decline in expenditure on items such as travel, catering etc. The allocation of budgets to these items even took into account these cost containment measures as a guiding principle and thus ensured that the budget on these items is kept to the minimum
• These cost containment measures will continue as part of the strategy to achieve financial stability. We do, however, acknowledge that these cost containment measures might not be sustainable in the long run and might affect service delivery and will call for serious trade-offs when deciding on projects and the budget allocations going forward
• Focus will be a combination of service delivery and on achieving and maintaining financial stability
• The following slide provides an overview of the funded priorities44
Budgeted Key Priorities
Priority 2011/12 2012/13 2013/14R’000 R’000 R’000
Cash Payment Contractors’ fees 2,474,619 1,642,819 1,771,219 Compensation of employees 1,826,941 1,927,418 2,023,818 Various contracts for facilities i.e. offices, security, cleaning, fleet, maint. & repairs 606,703 657,251 716,954 Automation of the Grant Business Process 113,000 195,000 206,000SITA services (SOCPEN maint. & Mainframe time) 100,393 109,638 119,315 Medical assessment fees 93,504 98,142 103,049 Bulk Notification (Beneficiary notifications) 63,140 66,297 69,612 Virtual Network Connectivity (VPN) 52,589 57,848 63,633 ICT infrastructure deployment 27,560 28,938 30,385 Local Office upgrade project 15,000 15,750 16,538 Fraud investigations (SIU) 23,000 5,250 5,513 Management Information System (MIS) 20,000 20,000 20,000 New payment model 7,000 55,000 289,138 Internal Review Mechanism 18,144 19,051 20,099 Projects addressing exceptions raised by the AG on grants files management
36,000 22,100 7,205
Business Process Re-engineering 5,000 15,000 - 45
Budgeted key priorities/cost drivers• Cash Payment Contractors’ fees
– reduced disbursement transaction fees negotiated with CPC’s results in a decrease costs for 2011/12
– the implementation of the new payment tender results in projections of further reductions for the years 2012/12
• Automation of the Grant Business– Improving the grant application process, tackling fraud and improving the
application process turn-around time• Payment tender and model
– The allocation for 2011/12 for planning and logistics related to the tender and in 2013/14 for planning and roll-out of model
• Grant Administration– Address AG concerns in the area of grants administration and record keeping. – Caters for projects such as:
• reviews support• registry management• transportation of the files
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Budgeted key priorities/cost drivers• ICT infrastructure deployment in new offices and existing offices
where required• Skills Audit and result implementation
– Project will be initialized and implemented in 2011/12• Business Process Re-Engineering
– Project will be initialized in 2011/12 with full implementation in 2012/13 • Compensation of Employees
– Critical, additional and current posts have been funded to ensure the acquiring of sufficient and correctly skilled human capital for improved and more efficient service delivery
– Results of Business Process Engineering will be borne as part of CoE in 2013/14
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Recommendations
It is recommended:•That the Portfolio Committee notes the presentation; and•Support the Agency in implementing the Strategic Plan
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