www.statssa.gov.za [email protected]T +27 12 310 8911 F +27 12 310 8500 Private Bag X44, Pretoria, 0001, South Africa ISIbalo House, Koch Street, Salvokop, Pretoria, 0002 STATISTICAL RELEASE P9110 Quarterly financial statistics of municipalities March 2018 Embargoed until: 28 June 2018 10:00 ENQUIRIES: FORTHCOMING ISSUE: EXPECTED RELEASE DATE User Information Services June 2018 September 2018 +27 (012) 310 8600
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Quarterly financial statistics of municipalities · Quarterly financial statistics of municipalities, March 2018 Table 2 – Consolidated statement of financial performance of municipalities
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Table 4 – Consolidated statement of financial performance of municipalities for rates and general services for
the quarters ended September 2017, December 2017 and March 2018: Income – South Africa ............ 6
Table 5 – Consolidated statement of financial performance of municipalities for housing and trading services
for the quarters ended September 2017, December 2017 and March 2018: Expenditure – South
Africa ......................................................................................................................................................... 7
Table 6 – Consolidated statement of financial performance of municipalities for housing and trading services
for the quarters ended September 2017, December 2017 and March 2018: Income – South Africa ....... 8
Table 7 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of
municipalities for rates and general services: Expenditure ....................................................................... 9
Table 8 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of
municipalities for rates and general services: Income .............................................................................. 10
Table 9 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of
municipalities for housing and trading services: Expenditure ................................................................... 11
Table 10 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of
municipalities for housing and trading services: Income ........................................................................... 12
Annexure A – Purchases and sales of water ............................................................................................................. 13
Annexure B – Purchases and sales of electricity ...................................................................................................... 14
General information ................................................................................................................................................... 20
STATISTICS SOUTH AFRICA 1 P9110
Quarterly financial statistics of municipalities, March 2018
Key findings
Table A – Purchases and sales of water and electricity, unadjusted*
Quarter ended:
Item Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18
Year-on-year % change, unadjusted
Purchases of water -4,1 -4,8 13,6 -5,9 8,3 8,4
Sales of water 2,9 -0,6 14,9 6,6 14,4 19,4
Purchases of electricity 7,6 14,3 1,2 -7,0 -6,7 -5,2
Sales of electricity 7,6 0,3 6,9 -4,5 1,0 2,8
* Some figures have been revised.
Table A shows annual growth rates in the purchases and sales of water and electricity, based on rand values. From the March 2017 quarter to the March 2018 quarter, purchases of water increased by 8,4% and sales of water increased by 19,4%, while purchases of electricity decreased by 5,2% and sales of electricity increased by 2,8%.
Table B – Purchases and sales of water and electricity, seasonally adjusted*
Quarter ended:
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18
Quarter-on-quarter % change, seasonally adjusted
Purchases of water -10,8 -0,2 11,4 -5,1 2,5 0,3
Sales of water -3,7 0,3 12,9 -2,2 3,4 4,8
Purchases of electricity 1,8 -1,7 -3,4 -3,2 0,8 0,1
Sales of electricity -4,5 2,0 -0,2 -1,5 2,1 1,1
* Some figures have been revised
Table B shows quarterly growth rates in the purchases and sales of water and electricity, seasonally adjusted. From the
December 2017 quarter to the March 2018 quarter, purchases of water increased by 0,3% and sales of water increased
by 4,8%, while purchases of electricity increased by 0,1% and sales of electricity increased by 1,1%.
Seasonally adjusted purchases and sales of water are shown in Figure 1. Seasonally adjusted purchases and sales of
electricity are shown in Figure 2.
Annexures A and B provide more detail and longer time series for water and electricity purchases and sales.
Quarterly financial statistics of municipalities, March 2018
Table 1 – Consolidated statement of financial performance of municipalities for the quarters ended September 2017, December 2017 and March 2018: Expenditure – South Africa
Accommodation, travelling and subsistence 179 259 262 3
Advertising, promotions and marketing 73 121 145 24
Audit fees 122 416 216 -200
Bank charges 99 93 117 24
Cleaning services 73 92 79 -13
Consultancy and professional fees 496 703 602 -101
Entertainment costs 13 19 20 1
Fuel and oil 274 362 457 95
Hiring of plant and equipment 193 335 270 -65
Insurance costs 376 325 150 -175
Pharmaceutical 41 49 51 2
Postal and courier services 54 65 52 -13
Printing and stationery 83 143 103 -40
Rebates for property rates 1 283 1 173 1 082 -91
Rebates for service charges 132 62 93 31
Rental of land, buildings and other structures 149 201 151 -50
Rental of office equipment 75 133 784 651
Security services 450 778 689 -89
Subscriptions and membership fees 139 102 49 -53
Telecommunication services 191 222 192 -30
Training and education 127 168 156 -12
Transport costs 152 248 216 -32
Other expenditure 6 673 8 222 6 138 -2 084
Surplus 41 794 26 400 27 006 606
Total expenditure 116 866 109 338 101 785 -7 553
* Some figures have been revised.
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Quarterly financial statistics of municipalities, March 2018
Table 2 – Consolidated statement of financial performance of municipalities for the quarters ended September 2017, December 2017 and March 2018: Income – South Africa
Other service charges (e.g. fresh produce market etc.) 11 80 55 -25
Interest earned from:
External investments 1 397 1 575 1 425 -150
Outstanding debtors 1 458 1 475 1 284 -191
Dividends received 1 0 1 1
Fines 662 987 834 -153
Licences and permits 278 275 272 -3
Income for agency services 239 278 251 -27
Rental of facilities and equipment 449 544 553 9
Bad debts recovered 18 35 59 24
Public contributions and donations (including PPE) 90 115 208 93
Gains on the disposal of property, plant and equipment 24 30 55 25
Grants and subsidies from:
National government 24 853 22 951 20 357 -2 594
Provincial government 445 647 707 60
Local government 7 14 6 -8
Other 160 208 387 179
Spent conditional grant 3 147 4 701 4 095 -606
Other income 5 224 4 003 2 913 -1 090
Deficit 16 811 16 705 13 593 -3 112
Total income 116 866 109 338 101 785 -7 553
* Some figures have been revised.
STATISTICS SOUTH AFRICA 5 P9110
Quarterly financial statistics of municipalities, March 2018
Table 3 – Consolidated statement of financial performance of municipalities for rates and general services for the quarters ended September 2017, December 2017 and March 2018: Expenditure – South Africa
Accommodation, travelling and subsistence 157 219 172 -47
Advertising, promotions and marketing 60 107 127 20
Audit fees 122 375 196 -179
Bank charges 88 87 111 24
Cleaning services 31 48 38 -10
Consultancy and professional fees 383 473 485 12
Entertainment costs 12 19 19 0
Fuel and oil 145 206 282 76
Hiring of plant and equipment 107 179 183 4
Insurance costs 309 270 102 -168
Pharmaceutical 38 44 49 5
Postal and courier services 52 63 51 -12
Printing and stationery 63 125 84 -41
Rebates for property rates 1 283 1 173 1 082 -91
Rental of land, buildings and other structures 121 166 131 -35
Rental of office equipment 49 89 146 57
Security services 281 530 420 -110
Subscriptions and membership fees 135 97 46 -51
Telecommunication services 155 190 156 -34
Training and education 104 140 129 -11
Transport costs 35 80 76 -4
Other expenditure 3 060 4 213 3 391 -822
Surplus 28 479 16 655 14 887 -1 768
Total expenditure 57 030 52 134 45 451 -6 683
* Some figures have been revised.
STATISTICS SOUTH AFRICA 6 P9110
Quarterly financial statistics of municipalities, March 2018
Table 4 – Consolidated statement of financial performance of municipalities for rates and general services for the quarters ended September 2017, December 2017 and March 2018: Income – South Africa
Property rates – penalties imposed and collection charges
33 43 15 -28
Interest earned from:
External investments 1 340 1 504 1 379 -125
Outstanding debtors 941 811 611 -200
Dividends received 1 0 1 1
Fines 620 865 762 -103
Licences and permits 99 119 88 -31
Income for agency services 137 166 130 -36
Rental of facilities and equipment 257 291 302 11
Bad debts recovered 16 35 58 23
Public contributions and donations (including property, plant and equipment)
7 29 31 2
Gains on the disposal of property, plant and equipment
17 26 48 22
Grants and subsidies from:
National government 20 131 16 756 13 193 -3 563
Provincial government 330 342 492 150
Local government 2 5 1 -4
Other 88 37 335 298
Spent conditional grants 1 802 2 243 2 007 -236
Other income 3 765 2 790 1 203 -1 587
Deficit 9 235 10 785 8 931 -1 854
Total income 57 030 52 134 45 451 -6 683
* Some figures have been revised.
STATISTICS SOUTH AFRICA 7 P9110
Quarterly financial statistics of municipalities, March 2018
Table 5 – Consolidated statement of financial performance of municipalities for housing and trading services for the quarters ended September 2017, December 2017 and March 2018: Expenditure – South Africa
Expenditure
September 2017
December 2017*
March 2018
Difference between quarters
ended Dec. 2017 and Mar.
2018
R million
Employee-related costs 8 062 8 816 8 201 -615
Interest paid 444 891 625 -266
Loss on disposal of property, plant and equipment 16 -14 2 16
Accommodation, travelling and subsistence 22 40 90 50
Advertising, promotions and marketing 13 14 18 4
Audit fees 0 41 20 -21
Bank charges 11 6 6 0
Cleaning services 42 44 41 -3
Consultancy and professional fees 113 230 117 -113
Entertainment costs 1 0 1 1
Fuel and oil 129 156 175 19
Hiring of plant and equipment 86 156 87 -69
Insurance costs 67 55 48 -7
Pharmaceutical 3 5 2 -3
Postal and courier services 2 2 1 -1
Printing and stationery 20 18 19 1
Rebates for service charges 132 62 93 31
Rental of land, buildings and other structures 28 35 20 -15
Rental of office equipment 26 44 638 594
Security services 169 248 269 21
Subscriptions and membership fees 4 5 3 -2
Telecommunication services 36 32 36 4
Training and education 23 28 27 -1
Transport costs 117 168 140 -28
Other expenditure 3 613 4 009 2 747 -1 262
Surplus 13 315 9 745 12 119 2 374
Total expenditure 59 836 57 204 56 334 -870
* Some figures have been revised.
STATISTICS SOUTH AFRICA 8 P9110
Quarterly financial statistics of municipalities, March 2018
Table 6 – Consolidated statement of financial performance of municipalities for housing and trading services for the quarters ended September 2017, December 2017 and March 2018: Income – South Africa
Income
September 2017
December 2017*
March 2018
Difference between quarters
ended Dec. 2017 and Mar.
2018
R million
Interest earned from:
External investments 57 71 46 -25
Outstanding debtors 517 664 673 9
Dividends received 0 0 0 0
Fines 42 122 72 -50
Licences and permits 179 156 184 28
Income for agency services 102 112 121 9
Rental of facilities and equipment 192 253 251 -2
Bad debts recovered 2 0 1 1
Public contributions and donations (including property, plant and equipment)
83 86 177 91
Gains on the disposal of property, plant and equipment
Other service charges (e.g. fresh produce market) 11 80 55 -25
Grants and subsidies from:
National government 4 722 6 195 7 164 969
Provincial government 115 305 215 -90
Local government 5 9 5 -4
Other 72 171 52 -119
Spent conditional grants 1 345 2 458 2 088 -370
Other income 1 459 1 213 1 710 497
Deficit 7 576 5 920 4 662 -1 258
Total income 59 836 57 204 56 334 -870
* Some figures have been revised.
STATISTICS SOUTH AFRICA 9 P9110
Quarterly financial statistics of municipalities, March 2018
Table 7 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of municipalities for rates and general services: Expenditure
1 The total of September 2016, December 2016, March 2017 and June 2017 quarters (refer to Publication P9114).
STATISTICS SOUTH AFRICA 10 P9110
Quarterly financial statistics of municipalities, March 2018
Table 8 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of municipalities for rates and general services: Income
Income
September 2016
December 2016
March 2017
June 2017
Total 20171
R million
Taxes on property
Property rates from:
Residential 8 011 6 568 6 764 7 109 28 452
Commercial or business 4 079 3 701 4 202 3 722 15 704
State 949 436 518 479 2 382
Other (includes agricultural, municipal etc.) 3 310 2 211 2 163 1 518 9 202
Property rates - penalties imposed and collection charges
1 The total of September 2016, December 2016, March 2017 and June 2017 quarters (refer to Publication P9114).
STATISTICS SOUTH AFRICA 11 P9110
Quarterly financial statistics of municipalities, March 2018
Table 9 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of municipalities for housing and trading services: Expenditure
1 The total of September 2016, December 2016, March 2017 and June 2017 quarters (refer to Publication P9114).
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Quarterly financial statistics of municipalities, March 2018
Table 10 - Rebased tables for the financial year ended 30 June 2017: Statement of financial performance of municipalities for housing and trading services: Income
Income
September 2016
December 2016
March 2017
June 2017
Total 20171
R million
Interest earned from:
External investments 9 17 70 11 107
Outstanding debtors 377 300 359 434 1 470
Dividends received 0 0 1 1 2
Fines 23 24 25 24 96
Licences and permits 93 94 114 86 387
Income for agency services 134 185 196 268 783
Rental of facilities and equipment 230 228 333 274 1 065
Bad debts recovered 0 0 0 0 0
Public contributions, donations (including property, plant and equipment)
64 91 191 414 760
Gains on the disposal of property, plant and equipment 4 9 73 77 163
Quarterly financial statistics of municipalities, March 2018
Notes
Forthcoming issue Issue Expected release date June 2018 September 2018 Purpose of survey The Quarterly financial statistics of municipalities (QFSM) is a quarterly survey that covers
local, district and metropolitan municipalities in South Africa. The results are used as inputs into the gross domestic product (GDP) calculation as well as to assist the public sector with policy formulation and the financial analysis of municipalities.
Response rates September 2017: 84% (of 257)
December 2017: 88% (of 257) March 2018: 81% (of 257)
Rebasing Data for the QFSM for the year ended 30 June 2017 are aligned to the annual financial census of municipalities for the respective year (which is verified by using the annual financial statements from municipalities).
Refer to Financial census of municipalities (P9114).
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Quarterly financial statistics of municipalities, March 2018
Explanatory notes
Introduction
1 The purpose of the quarterly financial statistics survey of municipalities is to provide stakeholders with information for allowing analysis and assessment of the state of local government finances. This publication contains estimates for the quarters ended September 2017, December 2017 and March 2018. The survey is designed to obtain financial information of local government institutions relating to:
the consolidated statement of financial performance of municipalities
the consolidated statement of financial performance of municipalities – rates and general services; and
the consolidated statement of financial performance of municipalities – housing and trading services.
Scope of the survey
2 This survey covers quarterly financial information of all 257 municipalities. Unadjusted data for all municipalities are available with effect from September 2007. Only water (sales and purchases) and electricity (sales and purchases) have seasonally adjusted estimates, and these are available at the national level only (not at provincial or municipal level).
Classification and accounting standards
3 For the purposes of classification of local government institutions according to activities, Statistics South Africa (Stats SA) used the Standard Industrial Classification of All Economic Activities, Fifth Edition, and Report No.09-90-02 of January 1993. Activities of local government institutions also adhere to the accounting standards and requirements in terms of the Generally Recognised Accounting Practice (GRAP). The Municipal Standard Chart of Accounts (mSCOA) was initially rolled out (piloted–tested) in 2016 in some municipalities. mSCOA has since been implemented in all municipalities from the beginning of the 2017 municipal financial year. This is a multi-dimensional classification framework providing the method and format for recording and classifying financial transaction information in the general ledger forming part of the books of account containing a standard list of all available accounts.
Survey methodology and design
4 The statistical unit for the collection of information is the municipality.
Imputation
5
The historical method is used to impute for non-response. According to this method previous information is used to arrive at current figures, after being appraised for its suitability.
Revised figures
6
Estimates for the current quarter are preliminary. Figures will be revised if respondents report revisions or corrections to their figures and also if the data were received late by Stats SA (after the cut-off date for submitting their questionnaires).
Rounding off figures
7
The figures in the tables have been rounded off to the nearest digit shown, and as a result there may be slight discrepancies between the sums of the constituent items and the totals shown.
Related publications
8 Users may wish to refer to the following Stats SA publications:
P9101
P9114
P9119.4
P0441
P0277
Capital expenditure of the public sector; Financial census of municipalities; Financial statistics of consolidated general government; Gross domestic product; and Quarterly employment statistics
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Quarterly financial statistics of municipalities, March 2018
Symbols and abbreviations used
9 GRAP Generally Recognised Accounting Practice mSCOA Municipal Standard Chart of Accounts QES Quarterly Employment Statistics SIC Standard Industrial Classification of All Economic Activities Stats SA Statistics South Africa 0 Nil or not applicable
Seasonal adjustment
10 Seasonally adjusted estimates are generated each quarter using the X-12 Seasonal Adjustment Program developed by the US Bureau of the Census. Seasonal adjustment is a means of removing the estimated effects of normal seasonal variation from the series so that the effects of other influences on the series can be recognised more clearly. Seasonal adjustment does not aim to remove irregular or non-seasonal influences which may be present in any particular quarter. Influences that are volatile or unsystematic can still make it difficult to interpret the movement of the series, even after adjustment for seasonal variations. Therefore, the quarter-to-quarter movements of seasonally adjusted estimates may not be reliable indicators of trend behaviour. The X-12-ARIMA procedure for purchases and sales of water and electricity is described in more detail on the Stats SA website.
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Quarterly financial statistics of municipalities, March 2018
Glossary of selected variables used in this publication
Consolidated statement of financial performance
The aggregate or consolidated statement of financial performance (previously referred to as income statement) reports the institution's financial performance during a specific period in time. This statement covers all the revenue and expenditure of an entity over a specific period in time.
Current expenditure Current expenditure refers to transactions that decrease the net worth of the institution, including interest paid, compensation of employees, grants and subsidies paid, and depreciation, but excluding the acquisition of fixed capital. It consists of the total expenditure of rates and general services (excluding the surplus), and the total expenditure of housing and trading services (excluding the surplus).
District municipality
District municipality refers to a municipality that has a municipal executive and legislative authority in an area that includes more than one municipality, and which is described in section 155(1) of the Constitution as a category C municipality. Refer to the Local Government: Municipal Structures Act, 1998 (Act No.117 of 1998).
Employee-related costs
Employee-related costs include payment to full-time and part-time employees irrespective of whether the remuneration is paid out of revenue, capital or any other account. Employee-related costs also include:
basic compensation;
allowances;
contribution to other benefit funds of employees such as medical aid, pension fund contributions, group life, etc. (excluding unemployment insurance and workmen’s compensation, etc., which may be looked upon as a form of insurance and would appear under general expenditure) and other benefits such as housing subsidy, etc.; and
uniform and clothing allowances (clothing, boots, overalls, etc. supplied to uniformed employees).
also refer to the Quarterly Employment Statistics (QES, P0277) which measure employment and gross earnings of all employees on a given municipal payroll.
General expenditure The following are included in general expenditure: accommodation, travelling and subsistence; advertising; audit fees; bank charges; cleaning services; consultancy fees; fuel and oil; hiring of plant and equipment; insurance costs; membership fees; pharmaceutical expenses; postage and stamps; printing and stationery; security fees; rental of land, buildings and other structures; rental of office equipment; telecommunication services; training and education; and transport costs.
Housing and trading services
Housing includes all activities associated with the municipal provision of housing. Trading services are services for which the tariffs are determined in such a way that the provision of the service should yield a trading profit (market-related goods and services). Trading services include waste management (refuse removal, solid waste disposal (landfill sites), street cleaning, recycling etc.), waste water management (sewerage, storm water management and public toilets), road transport (roads, public buses, parking garages, vehicle licensing and testing), water (water distribution, water storage), electricity (electricity distribution, electricity generation, street lighting) and other trading services which include environmental protection (such as pollution control, biodiversity & landscape and coastal protection etc.), air transport, abattoirs, tourism, forestry, markets and licensing & regulation (such as licensing of food and liquor sales to the public and licensing of street traders (hawkers control) and business).
Local municipality Local municipality refers to municipalities that share municipal executive and legislative authority in its area with a district municipality within whose area it falls, that is described in section 155(1) of the Constitution as a category B municipality. Refer to the Local Government: Municipal Structures Act, 1998 (Act No.117 of 1998).
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Quarterly financial statistics of municipalities, March 2018
Metropolitan municipality
Metropolitan municipality refers to an institution that has municipal executive and legislative authority in an area that includes more than one municipality, and which is described in section 155(1) of the Constitution as a category A municipality. Refer to the Local Government: Municipal Structures Act, 1998 (Act No.117 of 1998).
Municipality
Municipality is a generic term describing the ‘unit’ of government in the local spheres responsible for local government in a geographically demarcated area and includes district, local and metropolitan municipalities. A municipality is an institution consisting of a municipal council (elected political representatives) and the municipal administration (appointed officials). Refer to the Local Government: Municipal Structures Act, 1998 (Act No.117 of 1998).
Other expenditure The following are included in other expenditure:
departmental charges/fees;
books and magazines;
consumables;
licences and trade licences;
workshops;
refreshments; and
sundries.
Rates and general services
Rates and general services refer to municipal services that are not economically self-supporting and are financed by imposing assessment and other rates, the receipt of subsidies and other contributions. This includes ambulance services, fire control (or fire-fighting), health services (clinics, old-age homes), roads and storm water drainage, parks and recreation (libraries, cultural activities, museums, sport administration, community halls, swimming pools, sports grounds, nature reserves, etc.), sewerage and cleansing, traffic (licensing offices) and other services (city engineers, administration, personnel, legal services, city treasurer, etc.).
Repairs and maintenance
Repairs and maintenance include all expenditure on repairs and maintenance of the various assets of the municipality. Where considered necessary, the cost of repairs in respect of the various types of assets, e.g. buildings, plant, may be subdivided. Where repairs and maintenance have been charged to a ‘provision for repairs account’, the actual expenditure incurred during the current year has been reflected under this sub-division and the amount chargeable to the ‘provision for repairs’ is reflected as a deduction from the actual cost. Any balance of expenditure still remaining is treated as a charge against the current year.
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Quarterly financial statistics of municipalities, March 2018
General information
Stats SA publishes approximately 300 different statistical releases each year. It is not economically viable to produce them in more than one of South Africa's eleven official languages. Since the releases are used extensively, not only locally but also by international economic and social-scientific communities, Stats SA releases are published in English only. Stats SA has copyright on this publication. Users may apply the information as they wish, provided that they acknowledge Stats SA as the source of the basic data whenever they process, apply, utilise, publish or distribute the data, and also that they specify that the relevant application and analysis (where applicable) result from their own processing of the data. Stats SA products A complete set of Stats SA publications is available at the Stats SA Library and the following libraries: National Library of South Africa, Pretoria Division National Library of South Africa, Cape Town Division Natal Society Library, Pietermaritzburg Library of Parliament, Cape Town Bloemfontein Public Library Johannesburg Public Library Eastern Cape Library Services, King William’s Town Central Regional Library, Polokwane Central Reference Library, Mbombela Central Reference Collection, Kimberley Central Reference Library, Mmabatho Stats SA also provides a subscription service. Electronic services A large range of data is available via online services. For more details about our electronic services, contact Stats SA’s user information service at (012) 310 8600. You can also visit us on the Internet at: www.statssa.gov.za Technical enquiries