2018/19 – 2020/21 Annual Performance Plan & Budget Presentation to the Select Committee on Social Services 12 June 2018

Presentation Outline Purpose Introduction Strategic Priorities 2018/19 Programme Performance Plans Programme 1: Administration. Programme 2: Benefits Administration and Support Financial Outlook Recommendations.

Purpose The purpose of the presentation is To brief the Select Committee on Social Services on the SASSA 2018/19 Annual Performance Plan and Budget.

Vision Mission SASSA’s Slogan “A leader in the delivery of social security services” Mission To administer social security services to eligible children, older persons and people with disabilities. SASSA’s Slogan Paying the right social grant, to the right person, at the right time and place. NJALO!

SASSA’s Strategic Outcome Oriented Goal NDP OUTCOME RELEVANT TO SASSA Outcome 13: An inclusive and responsive social protection system SUB- OUTCOME (SO) SO4: Deepening social assistance and extending the scope for social security. SASSA STRATEGIC OUTCOME ORIENTED GOAL Expand access to social assistance and creating a platform for future payment of social security benefits. SASSA GOAL STATEMENT To render social assistance to eligible beneficiaries

Introduction and context The SASSA 2018/19 Annual Performance Plan is informed by a number of significant developments impacting on the Agency performance. Key among those are: Agreement with the SAPO to facilitate payment of social grants The Constitutional Court judgement of 23 March 2018 on the SASSA application to utilize current payment service provider for six months period (1 April – 30 September 2018); Review of the cash payment method including the migration of cash beneficiaries to electronic channels; Internal review and re-prioritization of some projects

SASSA 2014-2019 MTSF Priorities The primary focus of SASSA in the medium term is: Reducing income poverty by providing social assistance to eligible individuals; Improving service delivery; Improving organisational efficiency; Institutionalising social grants payment system within SASSA.

Programmes Programme 1: Administration Sub-programme 1.1: Executive Management Sub-programme 1.2: Corporate Services Sub-programme 1.3: Information and Communication Technology Sub-programme 1.4: Financial Management Programme 2: Benefits Administration and Support Sub-programme 2.1: Benefits Administration Sub-programme 2.2: Payment Administration

2018/19 Targets per Programme

Programme 1: Administration

Improved Organizational Efficiency Objectives Planned 2018/19 Targets To uphold good governance Investigate reported fraud, theft and corruption cases; 70% of reported cases investigated. Maintain updated Risk Register(s). Conduct 30 internal audit reviews on high risk areas. Achieve an unqualified audit outcome.

Improved Organizational Efficiency Objectives Planned 2018/19 Targets To provide efficient human capital management Review the organisational structure to incorporate new payment administration functions Review the HR Plan and capacity model Ensuring that 95% of funded posts are filled. Finalisation of labour relations cases within prescribed timeframes To ensure beneficiary records are safely kept and managed Co-sourcing of beneficiary records management centre for the Eastern Cape Region concluded. To ensure long term infrastructure planning Draft SASSA Ten-Year infrastructure plan finalized.

Improved Organizational Efficiency Objectives Planned 2018/19 Targets ICT Good Governance to Improve Fraud and Risk Management capabilities Biometric identity access management system implemented for SOCPEN users in order to reduce fraud, theft and corruption associated with passwords; Deploy the biometric solution for beneficiary enrolment nationally. Effective ICT Operations SASSA Network connectivity infrastructure upgraded at 116 offices. Information Management SASSA Data Governance framework developed; Business Intelligence solution implemented for grant payments.

Improved Organizational Efficiency Objectives Planned 2018/19 Targets Improved Financial Management Social assistance payment accounts reconciled. Eligible suppliers paid within 30 days. Social assistance debts recovered and/or submitted for a write off. Financial misconduct cases finalized within 90 days (current and backlog).

Benefits Administration and Support Programme 2: Benefits Administration and Support

Implementation of the Social Assistance Programme Objectives Planned 2018/19 Targets Improved grant application process New social grant applications processed; Plan to reach 1.6 million new applicants. No. of new applications per Region EC 208 000 FS 96 000 GP 256 000 KZN 352 000 LP 192 000 MP 128 000 NC 64 000 NW WC 176 000 Total 1 600 000

Implementation of the Social Assistance Programme Objectives Planned 2018/19 Targets Improved grant application process Reduce the grant application turnaround time from 15 days to 10 days; 95% of social grant applications processed within 10 days.

Implementation of the Social Assistance Programme Objectives Planned 2018/19 Targets Provide social assistance to eligible beneficiaries Increase the number of grants in payment from 17.4 million to 17.7 (17 733 651) by end of 2018/19 financial year at an estimated cost of R163 billion; Older persons; Children; and Persons with disabilities. Grants in payment per Region EC 2 795 667 FS 1 022 831 GP 2 670 865 KZN 3 917 509 LP 2 501 441 MP 1 489 899 NC 1 244 403 NW 487 295 WC 1 603 741 TOTAL 17 733 65

Implementation of the Social Assistance Programme Objectives Planned 2018/19 Targets Provide social assistance to eligible beneficiaries Increase the number of children aged 0 to 1 years in receipt of Children’s grants; 560 000 applications for children aged 0-1 processed. Children aged 0 – 1 applications per Region EC 83 740 FS 29 787 GP 82 963 KZN 120 454 LP 98 549 MP 52 238 NC 14 424 NW 37 926 WC 39 919 TOTAL 560 000

Implementation of the Social Assistance Programme Objective Planned 2018/19 Targets Provide social relief of distress to eligible families 252 833 SRD applications will be awarded to families under distress at a cost of R410 million. 30 % (R123 million) of total SRD rand value awarded through cooperatives. No. SRD applications per Region EC 40 453 FS 15 170 GP 37 925 KZN 55 623 LP 35 397 MP 20 227 NC 7 585 NW 17 698 WC 22 755 TOTAL 252 833

Implementation of the Social Assistance Programme Objectives Planned 2018/19 Targets Reduction in inclusion and exclusion errors Process foster care grants reviews in collaboration with DSD; 130 976 FCG reviews are targeted. FCG Reviews per Region EC 37 992 FS 10 414 GP 15 245 KZN 27 976 LP 8 681 MP 6 075 NC 3 897 NW 8 599 WC 12 097 TOTAL 130 976

Implementation of the Social Assistance Programme Objectives Planned 2018/19 Targets To raise awareness of beneficiaries on their rights and obligations relating to social assistance 309 identified wards having access to social assistance through ICROP. Communicate the benefits of receiving social grants through electronic channels to beneficiaries using print and electronic media (commercial and community media). ICROPs per Region EC 43 FS 27 GP 28 KZN 73 LP 25 MP NC NW 22 WC 37 Total 309

Payment Administration Objectives Planned 2018/19 Targets Management and administration of payment services Current payment service provider phased out by 30 September 2018; New payment service provider/s phased in by 30 September 2018; SAPO phased in from April – September 2018 Migration of existing beneficiaries to SAPO Management of new service provider/s for social grant payments. Insourcing of other payment services Regulation 26A deductions implemented by SASSA through management of: Collection of mandates and facilitation of payments; Exceptions management; Maintaining databases of beneficiaries and insurers. New beneficiaries biometrically enrolled by SASSA.

Payment Administration Objectives Planned 2018/19 Targets Review and management of cash payment strategy Cash pay points reduced by 20%. Progressive movement of cash beneficiaries to electronic channels – cash beneficiaries reduced by 20%. Appointment of 45 2nd tier merchants (small locally owned businesses), and Corporate Financial Institutions (CFI) as alternative pay points for the payment of social grants. Monitoring of large cash pay points (Paying more than 300 beneficiaries a day) – 100% (2 401).

SASSA 2018/19 Financial Plan

The 2018/19 MTEF Budget Allocation

Salient features of the SASSA budget

The 2018/19 MTEF final allocation

Budget Allocation breakdown

Funding from the retained cash surplus

Salient features of the SASSA budget The bulk of the Agency's budget (about 92%) goes towards contractual obligations i.e. Cash handling fees; Compensation of employees; Leases and property payments; Computer services, Medical assessments etc. These obligations account for 92% of the budget The cost of the contractual obligations increase in tandem with factors such as the CPI and any expansion aimed at improving service delivery. The increase by 1% to 15% of the Value Added Tax will have a particular impact.

RECOMMENDATIONS It is recommended that the Select Committee on Social Services note and support SASSA’s Annual Performance Plan and Budget for the 2018/19 financial year.

Thank you