SASSA STRATEGIC PLAN 2013/14 Presentation to the Select Committee on Social

Services

07 May 2013

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Purpose

• The purpose of the presentation is to:

– Provide the Select Committee on Social Services with a broad overview of the strategic plan 2013/14 – 2016/17 ;

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

– Give an overview of the budget allocation.

Vision and Mission

Vision

•A leader in the delivery of social security services.

Mission

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

Values

•Transparency

•Equity

•Integrity

•Confidentiality

•Customer Care Centered approach

Background

• The Agency entered its seventh year of operation.

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

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

• Payment Tender• Payment Model• Automation• Service Delivery

Improvements– Improvement of

Local offices– Capacity building

@ level 5 and 7– EPWPs– Standardisation –

4 step process– Staff uniform– Customer care

officials at receptions – client interface

• Unqualified Audit

• Re-registration

• Migration to new payment system

• Payment Model

• Local offices improvement

• Fraud management

• Staff Uniform

• EPWPs

• Biometrics for staff

• Unqualified Audit

• BPR

• Capacity building:

– Executive posts filled (95% achievement)

• Re-registration Back office clean-up

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

opportunities - School uniform project

• Finalisation of the improvement Local offices

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

Disabilities and unemployed CSG recipients with basic qualifications

• Grant Debtor Management• Strategic Partnerships• EPWP• Major Community outreach

programmes (250)• Clean Audit

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

Green – Achieved; Amber – In processRed – Not Achieved; and White – Ongoing work

Key priorities for 2012/13 - 2016/17

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

– Excellent customer care;

– The automation of systems;

– Improving organisational capacity; and

– Promoting good governance.

Key Focus areas

• SASSA will embark on a reform agenda aimed at

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

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

– Developing a new payment system

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

Key Priority Projects for 2013

Implementation of theSocial Assistance Programme

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

Current Status

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

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

annum due to death, reviews and voluntary cancellations.

Planned Activities

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

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

Implementation of the Social Assistance Programme

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

Planned Activities

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

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

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

Re - Registration

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

Current Status

• Over 20.5 million people have been re-registered.

Planned Activities

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

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

PAJA processes will commence in May 2013

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

critical institutions and elimination of duplications Fraud patterns assessed and investigated

• Records Management Filling of loose correspondence relating to documents collected

during the re-registration process

GRANT Reviews

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

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

Planned Activities

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

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

Local Office & Service Points Improvements

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

Current Status

The project started in July 2011, following CEOs appointment. •Overall more than 211 local offices have been upgraded; 116 offices in 2011/12 and 95 in 2012/13•All Service offices have adopted a 4-step application process.

Planned Activities

Physical infrastructure improvement

•Upgrade of Local offices will be completed in 2015.

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

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

•Improve accessibility of our services and offices

Example of the Set-up in the New SASSA office

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SOWETO LOCAL OFFICE ( AFTER IMPROVEMENT)

Bloemfontein and Thaba Nchu Local Office

Organisational Review

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

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

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

Planned Activities

• Quick win changes are being implemented

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

• Labour will be consulted throughout the process.

Future Payment System

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

Current Status

• Establishment of National Payment Database is being finalised.

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

Planned Activities

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

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

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

Organizational efficiency

HCM

• Optimum utilisation of staff

• Update of Personal files

– conduct file audits; and

– Implementation of i-module programme

• Absentee Management process – Pillar

Governance

• Strive towards Clean Audit by 2015;

• Ensure that all Governance structures are functional; and

• Develop organization-wide Risk Register.

Organizational efficiency

Automation

• Biometrics for access to SASSA core business systems

• Investigate the single platform

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

Financial Management

• Improve turn around for payment providers;

• Grant Debtors Management ; and

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

Other initiatives to be addressed by SASSA

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

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

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

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

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

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

Other Activities for 2013

Strengthening partnership for SASSA:

•International structures

– ISSA

– SA-EU dialogue facility

•National integration and partnerships

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

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

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

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SASSA Financial Plan

2013/14 - 2015/16

2013/14 MTEF Appropriation

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

Initial ENE Allocation 5,631,387 6,143,657 6,200,270 6,531,188 6,875,069 7,191,343

Adjustment to baseline (savings) - - -80,500 -65,324 -137,528 -215,782 Reduction for absorption of Social Work Graduates - - - -100,000 -104,900 -109,770 Further reduction - - - -50,000 -50,000 -20,000 Reduction for the Fraud Hotline to PSC -4,816 -5,052 -5,305 Total 5,631,387 6,143,657 6,119,770 6,311,048 6,577,589 6,840,486 % Growth 9% 0% 3% 4% 4%

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

period

2013/14 MTEF Appropriation

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

• The 2013/14 baseline allocation of R 6 531 188 (as per the 2012/13 ENE) was reduced by an amount of R 220,140 million.

– the reductions includes the mandatory cuts by National Treasury amounting to R 165 million;

– a further transfer to DSD for the absorption of social work graduates; and

– the transfer of the Fraud Hotline to the PSC

SASSA Administration Budget Allocation & Projected spending over the MTEF

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

Own Revenue 1,224 1,349 1,411 Approved Budget 6,311,048 6,577,589 6,840,486

Total Revenue 6,312,272 6,578,938 6,841,897

Projected Expenditure 6,576,337 6,855,942 7,049,236 Surplus/ (Deficit) (264,064) (277,004) (207,339)

Allocation per Economic Classification

2013/14 2014/15 2015/16

R’000 R’000 R’000

Compensation of employees 2,385,405 2,526,145 2,664,433

Goods and services of which: 4,104,190 4,238,721 4,299,415

Payment Contractors 2,040,000 2,074,000 2,156,960

Other 2,064,190 2,164,721 2,142,455

Transfers and subsidies 21,614 22,695 23,738

Payment for Capital Assets 65,128 68,381 61,650

Total 6,576,337 6,855,942 7,049,236

SASSA Allocation

Allocation per Economic Classification

SASSA administration Budget Allocation over the MTEF

•The 2013/14 allocation for SASSA is R 6,311 billion whilst the projected expenditure for the same period is R 6,576 billion. This reflects a deficit of R 264 million

•During the 2012/13 financial year, SASSA was granted approval to retain the surplus amounting to R 748 million. The surplus funds has been spread over the three years period and will be utilised to offset projected deficit of R 264 million in 2013/14; R 277 million in 2014/15 and R 207 million in 2015/16 respectively

•This explains the variance between total revenue ( budget) and the projected expenditure reflected in the previous slide

Summary of Allocation per key Cost Drivers

2013/14 2014/15 2015/16Budget Budget Budget

R'000 R'000 R'000 % % %Compensation of Employees 2,385,405 2,526,145 2,664,433 36% 37% 38%Contractors Fees 2,040,000 2,074,000 2,156,960 31% 30% 31%Leases 487,617 523,569 591,234 7% 8% 8%External Computer Services 257,057 298,377 120,891 4% 4% 2%Softwrae licences 40,118 42,119 44,056 1% 1% 1%Property Expenses 246,968 225,674 240,269 4% 3% 3%SITA Services 170,423 175,935 184,757 3% 3% 3%Outsourced Services 148,720 150,901 163,159 2% 2% 2%Communication 115,581 121,244 126,095 2% 2% 2%Maintenance & Repairs 74,769 61,783 86,961 1% 1% 1%Travel & subsistence 95,577 100,260 104,270 1% 1% 1%Consultants 71,826 89,275 97,056 1% 1% 1%Advertising 14,106 14,501 13,241 0% 0% 0%Stationery 43,200 44,693 46,132 1% 1% 1%Training & staff Dev. 23,654 25,027 26,414 0% 0% 0%Other operational expenses 274,574 291,364 297,922 4% 4% 4%Transfers 21,614 22,695 23,738 0% 0% 0%Payments for Capital assets 65,128 68,381 61,650 1% 1% 1%

Total 6,576,337 6,855,942 7,049,236 100% 100% 100%

% Share % Share% Share2013/14 2014/15 2015/16

Explanatory notes on Budgeted key Cost Drivers• About 37% of the total allocation goes towards

the payments of compensation of employees• The second major cost driver is contractors fees

which goes towards the handling fees for grants payments

• This is followed by lease payment and property expenses

• The allocation for external computer services caters for most of the SITA contracts which includes SOCPEN maintenance and mainframe time.

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

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

infrastructure including ICT infrastructure deployment in newly acquired offices

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

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

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

infrastructure including ICT infrastructure deployment in newly acquired offices

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

Key Strategic Challenges

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Key challenges

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

• Ongoing Payment Tender Court Case - time consuming

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

are still unacceptable

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

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

Recommendations

• It is recommended that Select Committee on Social Services note and support SASSA’s key strategic programme and budget for 2013/14 – 2016/17.