1. South African Social Security Agency Strategic Plan 2007/8-2009/10
Presentation to the NCOP’s Select Committee on Social Services
08 May 2007

2. Outline of the Presentation
The presentation covers the following:
Brief Overview of the Agency in terms of:
- Strategic Perspective;
- Macro Social context;
- Achievements for 2006/07;
- Strategic Plan for 2007/ /10; and
- Concluding Remarks.
Questions.

3. Mandate To ensure the provision of a comprehensive
social security services against vulnerability
and poverty within the constitutional and
legislative framework

4. Vision
To provide world-class social security
services.

5. Mission
To administer quality social security services, cost effectively and timeously using appropriate best practices by:
Developing and implementing policies, programmes and procedures for an effective and efficient social grants administration system;
Promotion and protection of human dignity; and
Delivering innovative, cost-effective and efficient services to individuals, their families and community groups via easy multi-access channels using modern technology.

6. Values Confidentiality; Integrity; Fairness; Transparency; and
Equitability.

7. Theme Paying the right social grant, to the right
person, at the right time and place,NJALO!

8. Legislations governing SASSA
The Constitution of the RSA, 1996 (Act No.108 of 1996);
South African Social Security Agency Act, 2004 (Act no.9 of 2004); and
Social Assistance Act, 2004 (Act No.13 of 2004)

9. Key Strategic Objectives
Ensure a High Performance Institution;
Service Delivery Improvement;
Improvement of Operational Excellence; and
Good Governance.

10. Key Strategy 1: Ensure a High Performance Institution
Strategic Objective
Output
Maintain a High Performance Institution
Develop and operationalise a high performing efficient & effective institution
Continuous review of the institution’s performance. Ensure the Agency’s compliance with legislative mandates
Ensure the Agency’s compliance with legislative mandates

11. Key Strategy 2: Service Delivery Improvement
Strategic Objective
Output
Improve the administration and delivery of social security services
Payments of grants are managed effectively, efficiently and economically

12. Key Strategy 3: Improvement of Operational Excellence
Strategic Objective
Output
Operations meet world class standards
Benchmarking performance against best practices.

13. Key Strategy 4: Good Governance
Strategic Objective
Output
Ensure accountability and transparency
Full compliance with all legislative mandates

14. Organogram
The Agency consists of 7 Branches at Head Office and 9 Regional Offices as per the approved organogram;
Each Branch/Region is headed by an Executive Manager.

15. Macro Social Security Policy Reform and Context:
Social Security Reform should be informed
by the following:
Equity—fair and equitable uniform rates of contribution and benefits for all beneficiaries;
Pooling of risks- collecting funding arrangements and non-contributory rules;
Mandatory participation-compulsory participation of employees and inclusion of self-employed individuals;
Administrative efficiency-streamlined use of payroll-based contributions, modern info systems; and
Solidarity-minimum benefits assured through fiscal contribution.

16. Macro Social Security Policy Reform and Context: Social Grants Expenditure to GDP
According to the 2007 Budget Review,
social grants expenditure is expected to
decline to 3.2% in relation to GDP
for 2007/08 and 2008/09, with a further 0.1%
decline to 3.1% in 2009/10.

17. Macro Social Security Policy Reform and Context: Targeted Measures of Social Assistance
Child Support Grant will continue to support the current growth trajectory;
Old Age Grants - The number of elderly is growing significantly fast.
Disability, Foster Care and Care Dependency Grants will expand- impact of HIV/Aids.

18. Organisational Environment & Context: Integration of the Social Assistance Competencies into SASSA
SASSA -in operation since April 2005.
Transfer of the social assistance administration and payment service functions began in April 2006.
On 1 April 2006, the Social Security Agency was formally established in terms of the South African Social Security Agency Act, 2004.

19. Organisational Environment & Context: Integration of the Social Assistance Competencies into SASSA
During 2006/07 80% of resource effort was spent on:
-Establishment;
-Operationalisation; and
-Integration of the social assistance administration and payment services.

20. Organisational Environment & Context: Integration of the Social Assistance Competencies into SASSA
The financial and operational separation, ring-fencing of social assistance administration, and payment services.
The hire of office accommodation.
The continuation of social assistance transfers (social grants) delivery to the eligible beneficiaries within all provinces

21. Organisational Environment & Context: Integration of the Social Assistance Competencies into SASSA
The finalisation of the service delivery administration and payment services model.
The establishment and consolidation of SASSA over the 2007/08 financial year.

22. Organisational Environment & Context: Service Delivery Improvements
A turn-around strategy which intends to streamline the business processes.
A new payment service management system for social assistance;
An optimal service delivery infrastructure network; and
Improved access to services in rural and peri-urban areas.

23. Organisational Environment & Context: 2007 MTEF Priorities
Improving the quality of service delivery;
Improving organisational capacity;
Improving payment services;
Enhancing the integrity of the grant process;
Improving financial management; and
Minimising fraud.

24. Organisational Environment & Context: Cooperative Governance of the Social Assistance Function
Minister of Social Development is the Executive Authority- accountable as the political principal for the entire social assistance function.
DoSD is responsible for Policy Formulation and SASSA is responsible for Grant Administration and Payment Services;
CEO is accountable to the Minister; and
A Shareholders Compact and a Performance Agreement are signed by both parties.

25. Achievements
for
2006/07
Financial Year

26. Key Highlights: Office of the CEO
During 2006/07, 80% of resource effort was spent on:
-Establishment;
-Operationalisation; and
-Integration of the social assistance administration and payment services.

27. Key Highlights: Internal Audit & Risk Management
fraudulent public servants identified;
2 258 public servants convicted of grant fraud;
Acknowledgement of debts signed and money is being recovered;
2 317 fraud hotline cases received to date ;
Over indemnity applications processed; and
applicants granted indemnity while were denied and being investigated

28. Key Highlights: Corporate Services
Transferred more than grant administration staff from the National and the nine Provincial Departments of Social Development to SASSA;
300 staff have been recruited and appointed, principally to capacitate support functions;
Filling of Most Executive Management positions at Head office;
Most senior managers positions have been filled;
Implemented HR policies and procedures; and
Skills Audit has begun.

29. Key Highlights: Information and Communication Technology
Transversal ICT Systems including SOCPEN, BAS, LOGIS, PERSAL and Home Based Electronic Document Management systems are being implemented;
ICT infrastructure has been provided in all 9 regional offices and some districts; and
First phase of the MIS project has been completed with about 100% of all beneficiary files processed;

30. Key Highlights: Communication and Marketing
Developed and implemented a Communication Strategy;
Participated in Government Izimbizo; and
Produced promotional materials.

31. Key Highlights: Finance
Budgets from various Provincial DSDs have been transferred to the Agency;
A Bid Committee has been formed and is fully functional;
Supply Chain Management policies and procedures have been approved; and
All financial policies and delegations have been developed and approved;

32. Key Highlights: Customer Services
Standardised Structural Plans and Interior Layout for service offices completed;
Spatial Optimisation and local planning for service offices have been completed.
Project for 2-day Turnaround time has been successfully implemented in the Eastern Cape;
Guidelines for unclaimed benefits, reviews and complaints were drafted; and
Grant Application Forms have been standardised throughout the Agency.

33. Key Highlights: Strategy & Business Development
Head office has been established and 9 regions have established offices;
Strategic plans for 2006/ /09 developed for the Agency;
Separation criteria that relates to the Regional, District and Local Office Levels has been developed;
Regular monitoring and reporting of the consolidation process; and
Regions are on the SASSA Head Office financial BAS system;

34. Service Delivery Trends
Number of grants increased strongly between January 2006 and January 2007;
Overall 10.7% growth across all grants;
Old Aged grants grew by 2.5%;
Permanent Disability Grants by 4.1%;
Temporary Disability Grants by 30.2%;
Foster care by 27.1%;
Care dependency by 10%; and
Child Support grew by 13.5%, which is currently more than 8.2 million.
NB: (0-1 yr is , 1-2 yrs is and
2-3 yrs is )

35. Grants Expenditure Patterns
The overall growth rate for all grants across all provinces was an average of 0.5% per month during the period April 2006 to January 2007;
Old Aged grants expenditure grew by 0.1% per month;
Permanent DG expenditure grew by 0.2%
Temporary DG by 2.3%;
Foster care by 1.7%;
Care dependency by 0.7%; and
Child Support grew by 0.7%

36. 2007/ /10
Strategic Priorities

37. Programme 1: Office of the CEO
Objective
This programme is responsible for
providing strategic leadership and overall
management regarding the administration
and payment of social grants in South
Africa.

38. Programme 1: Office of the CEO
Priorities
Improve and strengthen the management of the Agency;
Providing capacity building for the institution for the purpose of ensuring effective and efficient service delivery;
Development and implementation of institutional policies;
Ensuring an effective, efficient and economical management of the Agency’s resources; and
Effective interaction and partnership with key stakeholders.

39. Programme 2: Internal Audit & Risk Management
Objective
This programme seeks to enhance good corporate governance within
the South African Social Security Agency (SASSA) especially in
reducing fraud and corruption in the grants administration process
through effective and efficient risk management and internal audit.
Priorities
Provide quality internal audit services to improve efficiency within SASSA;
Develop and implement national fraud prevention strategy;
Increase rate of investigations – increase in-house investigative capacity; and
Finalize and implement the risk management strategy.

40. Programme 3: Corporate Services
Objective
This programme is responsible, firstly for the effective and
efficient management and development human capital.
Secondly, it provides auxiliary support and legal and
contract management services.
Priorities
Ongoing implementation of HR strategy and policies for the Agency;
Review / benchmark existing HR Policies;

41. Programme 3: Corporate Services cont…
Priorities
Finalise the Skills Audit and implement recommendations;
Develop and co-ordinate change management programmes and campaigns;
Develop and implement auxiliary support services strategy and policies; and
Implement litigation and contract management framework.

42. Programme 4: Communications and Marketing
Objective
This programme is responsible for providing strategic
communication and marketing services for the Agency.
Priorities
Strengthen Internal Communications;
Develop and promote Brand and publications; and
Maintain good media relations.

43. Programme 5: Finance Objective Priorities
This programme is responsible for providing financial
management and accounting services to the Agency.
Priorities
Review and optimise Financial and Supply Chain Management policies, procedures and delegations.
Implement the ERP system;
Create and implement a centralised Beneficiary Transfers Department.

44. Programme 6: Information & Communication Technology
Objective
This programme is responsible for Providing information
and communication technology services to the Agency.

45. Programme 6: Information & Communication Technology
Priorities: Business Imperatives
Category A – Internal corporate processes improvement and automation:
Increase in benefit’s awareness and take up rate;
Improvement of management and administration; and
Consolidation and standardization of fragmented Social Security system and technology infrastructure (from previously autonomously-run provincial governments)
Category B – Core process improvements and automation:
Reduction of application processing time;
Lowering of administration costs ;
Reduction of Litigations (Application processing aligned with the legislative framework);
Enhanced Fraud prevention strategies.
Category C – External Stakeholder process improvement and automation:
Collaboration and cooperation with other government departments in
terms of information, processes and technology sharing
In mustard are examples of ICT solution initiatives geared towards resolution and/or addressing that relevant business imperative

46. Programme 6: Information & Communication Technology
Priorities: ICT Solutions
Category A – Internal corporate processes improvement and automation:
Implementation of integrated CRM and Contact Centres;
Implementation of integrated ERP system; and
Provision of ICT Infrastructure, Connectivity and business aligned support.
Category B – Core process improvements and automation:
Implementation of the MIS project countrywide and reduction of litigation;
Enhancement and Retirement of SOCPEN system;
Redesign of the Payment Model and related services; and
Implementation of Fraud Prevention & Risk Management systems, solutions, and processes.
Category C – External Stakeholder process improvement and automation:
Design and implementation of real-time interface engine for beneficiary verification with Dept of Home Affairs, SAPS, Dept. of Labour, etc; and
Implementation of Client Relationship Management systems.

47. Programme 7: Customer Services
Objective
The programme is responsible for providing a
coordinated and integrated grant administration and
payment service by providing strategic guidance to Head
Office and Regions

48. Programme 7: Customer Services
Priorities
Customer Centric Services:
Implement a Customer Charter;
Roll -out standardised business processes.
Implement improved turnaround time for grants processing; and
Improved conditions at pay points and access points.

49. Programme 7: Customer Services
Priorities
Improved Service Delivery Infrastructure:
Incremental acquisition and customisation of suitable infrastructure; and
Increased coverage and accessibility through deployment of 40 mobile units in all regions;
Contract/Vendor:
Develop tool to monitor compliance by service providers; and
Roll -out infrastructure.
Customer care:
Finalise establishment of centralised contact centre; and
Review, implement and assess Customer Charter.

50. Programme 7: Customer Services
Priorities
Beneficiary Maintenance:
Implement remaining modules for MIS;
Implement Fraud Detection Mechanisms;
Implement Data Quality Management project; and
Strengthen the verification process within the value chain.

51. Programme 8: Strategy and Business Development
Objective
The programme is responsible for the
development of innovative strategies and
mechanisms to improve service delivery

52. Programme 8: Strategy and Business Development
Priorities
Establish an integrated social assistance function at Regional, District and Local levels;
Establish an effective and efficient knowledge management function;
Develop and implement a Business Partnerships Framework;
Design, update and implement financial/economic modelling and micro simulation models with regard to budget planning on social security benefits;

53. Programme 8: Strategy and Business Development
Priorities
National and regional strategic plans developed and implemented;
Approved codes and procedures on cooperative governance issues; and
Approved comprehensive Monitoring and Evaluation

54. Estimate of National Expenditure (ENE)
ALLOCATION
VOTED FUNDS
MEDIUM TERM ESTIMATE
2006/07
2007/08
2008/09
2009/10
R'000
Establishment and operationalisation
Grant Administration Integrity
96 086
Social Assistance administration
Management Information System -
70 000
20 000
Revenue transfers

55. Comments Adjustment budget: Reconciling expenditure with DSD
Implementation of MIS R
Social Security Legal costs R
Litigation costs R
Financial management system R
Relocation of people R
Reconciling expenditure with DSD

56. Economic classification
ALLOCATION
VOTED FUNDS
MEDIUM TERM ESTIMATE
2006/07
2007/08
2008/09
2009/10
R'000
Compensation of employees
Payment contractors
Other goods and services
Transfers and subsidies
1 459 -
Payments for capital assets
Revenue transfers

57. Thank You!