KEY STRATEGIC PROGRAMMES Presentation to Portfolio Committee on Social Development 02 July 2014

KEY STRATEGIC PROGRAMMES

Presentation to Portfolio Committee on Social Development

02 July 20141

Presentation Outline

• Background

• Strategic Plan

• Key Projects

• Financial Plan

• Risks and Challenges

• Recommendations 2

Purpose

• The purpose of the presentation is to:

– Provide the Portfolio Committee with a broad overview of the strategic plan 2014/15 – 2018/19 ;

– Highlight priority areas of the Agency for 2014/15; and

– Give an overview of the budget allocation.

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BACKGROUND

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Introduction

• SASSA is a Schedule 3A Public Entity that was established in April 2006.

• The objectives of SASSA are:

– to act, as the sole agent that will ensure the efficient and effective management, administration and payment of social assistance; and

– to eventually serve as institution to manage broader social security benefits

• The social assistance programme and the operations of SASSA are fully funded by government.

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Rationale for establishment of SASSA

• The business case for establishment of SASSA, sought to address the following:– Address the fragmented institutional arrangements and a lack of

uniformity;– Address gaps and inconsistencies in the application of rules– The reduction of the turn around time for grant applications – Improvement in customer services and dignified treatment of citizens– Improvement in the integrity of the data and systems with a

concomitant reduction in opportunities for fraud– Reduction of litigation with regard to social assistance matters– Reduce high administrative costs; and– Address the poor quality of service delivery.

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Human Resource capacity

• The organizational structure of SASSA provides for 18,000 staff members at different levels.

• Number of funded posts 10 888 (including EPWPs)

• Filled posts stands at 9 699 (including EPWPs)

• The majority of these staff (70%) perform the grant administration function (application to approval), excluding the actual payment of grants.

• The full structure will be gradually implemented as the Agency takes over the payment of social grants from the current service provider.

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SASSA’s FOOTPRINTS

• SASSA has the responsibility to ensure access to social assistance, in line with the Constitution. This is done through the extensive footprint the Agency enjoys in the country.

Head Office (1)Regions KZN NW EC WC GP MP LIMP NC FS National

Regional Offices

1 1 1 1 1 1 1 1 1 9

District Offices

4 4 7 5 5 4 5 5 5 44

Local Offices

75 26 62 16 38 33 45 26 14 335

Service Points

4 23 217 242 40 81 73 112 110 902

Pay-points 2781 734 3020 297 123 296 2120 363 203 99378

Summary of Achievements

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• Payment Tender

• Payment Model

• Automation

• Service Delivery Improvements

– Improvement of Local offices

– Capacity building @ level 5 and 7

– EPWPs

– Standardisation – 4 step process

• Unqualified Audit

• Re-registration -20.7m• Migration to new

payment system• Local offices

improvement• Fraud management• Unqualified Audit• Capacity building:

– level 5 and 7– EPWPs– Executive posts

filled (95% achievement)

• Staff Uniform• Payment Model• Biometrics for staff

• Re-registration Back office clean-up

– R2 billion saving – CSG voluntary

cancellations• Payment Model –

Ministerial Advisory Committee appointed

• Local Office improvement

• Linking of grant - cooperatives

• Fraud management

• ICROP – Mikondzo

• Staff Uniform

• Reviews Backlog (suspended)

• Biometrics for staff

• Unqualified audit

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

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Social Grants beneficiaries

Number of social grants beneficiaries against the total populationProvince Census 2011 Social Grants as

at March 2014Grants as a % of the total population

Eastern Cape 6,562,053 2,620,284 39.9 Free State 2,745,590 934,766 34.0 Gauteng 12,272,263 2,184,193 17.79 KwaZulu-Natal 10,267,300 3,761,662 36.64 Limpopo 5,404,868 2,222,730 41.12 Mpumalanga 4,039,939 1,325,217 32.80 North West 3,509,953 1,120,034 31.9 Northern Cape 1,145,861 424,815 37.0 Western Cape 5,822,734 1,338,772 23.0 Total 51,770,561 15,932,473 30.8%

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Number of grant benefits and growth rates (2012/13 vs. 2013/14)

Grant type/Period

2012/13 2013/14Difference/Change

% Growth

Old Age 2,873,197 2,969,933 96,736 3.37%

War Veteran 587 429 -158 -26.92%

Disability 1,164,192 1,120,419 -43,773 -3.76%

Grant in Aid 73,719 83,059 9,340 12.67%

Care Dependency

120,268 120,632 364 0.30%

Foster Child 532,159 512,055 -20,104 -3.78%

Child Support 11,341,988 11,125,946 -216,042 -1.90%

Total 16,106,110 15,932,473 -173,637 -1.08%

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Strategic Plan

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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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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

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Key Priorities for the MTEF

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Income support to eligible beneficiaries

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OUTCOME OBJECTIVE ENVISAGED INTERVENTIONSReduce income poverty by providing social assistance to eligible individuals

To provide social assistance to eligible beneficiaries

Enrolment and payment of social assistance to eligible older persons, people with disabilities and children.

Reduction of exclusion errors in the social assistance programme

Improved take-up rates of 0-1 year old and 16 – 18 years old CSG beneficiaries

Improve take up rates of foster care grants through a collaborative approach with DSD

Reduction in inclusion errors in the social assistance programme

Administrative reviews for specific grants (excluding Old age Grants)

Life certification Biometric verification of grant recipients

Implementation of theSocial Assistance Programme

Objective • To provide social assistance to qualifying/eligible beneficiaries

Current Status

• Over 15 932 473 people are in benefiting from social grants.

• The take –up rates for new grants was1 311 469 in 2013/14

• Attrition rate of more than 700 000 in 2013/15 largely due to voluntary cancellations, re-registration clean-up, and death.

Planned Activities

• 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 2014/1520

Implementation of the Social Assistance Programme

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

Planned Activities

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

• Priority will be given largely to: children suffering from mal-nutrition; assisting families where the breadwinner died

or is unemployed; assisting in disaster situations; and individuals awaiting grants.

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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%.

• Backlog reviews of Foster Care Grants (more than 300 000)

Planned Activities

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

• Conduct reviews for the foster care grants in collaboration with DSD targeting 300 000 children

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Service Delivery Improvement

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OUTCOME OBJECTIVE ENVISAGED INTERVENTIONSImproved service delivery to beneficiaries

To improve the conditions under which beneficiaries are served

Acquisition and maintenance of suitable infrastructure in areas that are strategically located to serve the beneficiaries better

To raise awareness of beneficiaries on their rights and obligations relating to social assistance

Creating awareness amongst existing and eligible beneficiaries of the benefits they are entitled to

Community Outreach programmes - Mikondzo Responsive to client enquiries (through

effective call centre, helpdesk, etc.)To improve business processes 

Improved turn-around time and quality in the grant application process.

Improved queue management process Introducing new application and payment

access channels

Service Delivery Improvement

Objective Improve the conditions under which beneficiaries are served

Current Status

• More than 259 local offices have been improved

• Turn around time for processing of grant applications is on average 21 days

• Community Outreach programme (Mikondzo project) implemented throughout the country

Planned Activities

• 420 ICROP/ Mikondzo interventions • Complete the upgrading of remaining local offices and

acquisition of new local offices and service points in areas of high need.

• Progressively reduce the turn around time for processing of grants to an average of 10 days by 2016

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Automation

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

Current Status

• Over 20.7 million people have been re-registered.

Planned Activities

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

data matching with critical institutions and elimination of duplications (commenced in 2013)

Fraud patterns assessed and investigated

• Ongoing enrolment take over by SASSA

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Automation

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OUTCOME

OBJECTIVE ENVISAGED INTERVENTIONS

Automated business systems

Development of Biometric access and Identification system 

Implementing biometric physical access system for authenticating staff and beneficiaries

Develop In-house system for management of beneficiaries biometrics information

Payment systems

Development of SASSA data factory (Build in-house payment control and reconciliation capability)

Digitised document storage system

Develop a system for scanning and storage of documents

Future Payment System

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

Current Status

• Constitutional Court declared the Payment Tender awarded to CPS invalid; the order has been set aside pending award of new tender

• Ministerial Advisory Committee has been established to advise the Minister on the future payment options for SASSA

• SASSA hosted an expert round table workshop on Payment systems

Planned Activities

The plan was for SASSA is to take total responsibility for the payment of social grants in 2017. However, the ConCourt instructs a tender for 5 years – which we are in the process of implementing

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Future Payment System (cont…)

• The preparatory work would be done in phases, as follows:

– Phase 1 (2012 -2014): Centralisation and Improvement of integrity of the data which included collection of biometric data. This has been achieved through the re-registration process. In addition, SASSA introduced beneficiaries to a electronic banking environment

– Phase 2 (2014 – 2015): Taking over on-going enrolment process (that is the biometric enrolment of all new grant beneficiaries) (In process)

– Phase 3 (2014 - 2015): DATA Factory - Developing SASSA’s in-house capability to manage enrolments, payments and reconciliations (in process) .

– The phases above will run parallel to the new tender process.

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Other initiatives to be addressed by SASSA

• 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.

• Intensive effort to recruit people with disabilities

• Exploring measures to build SASSA’s Future Workforce by establishing partnerships with universities and technikons and giving bursaries for training and education in the field of social security.

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Key Projects 2014

• The 2014 projects prioritised for the coming year include:

– Payment Tender (R10 million)

– Automation

• Biometric Access for staff (ICT and Building)

• Scanning of documents

– CSG exclusions and Foster Care Reviews

– Organisational Review

– Grant debtors

– Data Factory

– Mikondzo – 420 ICROP

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SASSA Financial Plan

2013/14 - 2015/16

Overview of the SASSA budget

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

R'000 R'000 R'000 R'000 R'000 R'000ENE Baseline 6 143 657 6 200 270 6 531 188 6 577 589 6 840 486 Revised Baseline 6 143 657 6 119 770 6 311 048 6 567 589 6 830 486 ####R' Change from Initial baseline- -80 500 -220 140 -10 000 -10 000 - % Change from initial baseline0% -1% -3% 0% 0% 100%% Year-on-year increase 0% 3% 4% 4% 5%

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Overview of the budget cont.

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Overview of the budget

• The strategic and spending focus of SASSA is on the administration and payment of social grants.

• The baseline budget grows below the projected headline CPI of 5, 4% and declines by an amount of R10 million 2014/15 and 2015/16 respectively.

• Following success of the financial turnaround strategy unaudited AFS for 2013/14 shows a net accumulated surplus of R1, 089, 000 billion. The funds will strategically be used on flagship once-off projects.

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Overview of the budget

• The majority of the budget (39%) is on compensation of employees, followed by the cash handling fees (30%), while the balance caters for operational expenses such as office accommodation, cleaning, security, travel, communication, etc.

• 54 % of the budget is located at Head Office while 46% is shared among the nine regions. The majority of the 54% of head office’s share includes the cash handling fees which makes Head Office’s share bigger.

• Internal allocation process is guided by the principle of affording first priority to key cost drivers and striving for an achievement of balance between competing needs

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Overview of the budget (cont…)

• The award of a cash disbursement contract to a single contractor has resulted in positive spin-offs as the cost of business in this area has declined

• However, efforts to address service delivery challenges at local offices and service points necessitated the acquisition of requisite human capacity, leading to an increase in compensation of employees.

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2014/15 Allocations per key cost driver

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RthousandVoted Funds 6 567 589 Allocation per Cost driver

CoE 2 581 701 Audit Costs 19 404 Busaries 5 906 Cash Handling Fees 1 994 112 Leases 366 655 Ext. Compt Serv 266 263 Software licences 36 153 Property Expenses 292 345 Outsourced Services 138 200 Communication 133 508 Maint. & Repairs 68 424 Travel 142 530 Consultants 30 488 Advertising 58 068 Stationery 56 551 Training & staff dev. 25 723 Transfers 25 757 Capex 26 324 Special projects 160 785 Other Opex 138 693

Total 6 567 589

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Special projects

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Project Name Allocation (R'000)Improvement of conditions at Local Offices 33,992 ICT Infrastructure Deployment 49,193 Biometrics system 5,000 New Payment Model 25,351 Integrated Community Outreach Programme 18,034 Transportation of files 8,821 Paypoint Development 19,421

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Overview of the budget cont.

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Key Strategic Challenges

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Risks and Challenges

• Payment Tender - implementation of the ConCourt order

• Declining resources against SASSA’s future growth plans

• Fraud, theft and corruption

• Disaster Management – systems, registries and facilities

• SASSA Reputational Damage needs to managed

• Unintended consequences of the payment process - deductions

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Opportunities

• Preparations for Universalisation of Old Age Pension and CSG

• Other Social Security institutions are starting to engage with SASSA to assess the possibilities for SASSA to administer their payment

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Recommendations

• It is recommended that Portfolio Committee note and support SASSA’s key strategic programme and budget for 2014/15 – 2018/19

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Thank you

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