1. PRESENTATION TO PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT
Quarterly Financial & Performance Reports
25 February 2014

2. Presentation Outline Background Performance Report – Q2
Financial Report – Q2
Challenges
Recommendations

3. Purpose The purpose of the presentation is to:
Brief the Portfolio Committee on SASSA second quarter performance and financial report

4. BACKGROUND

5. VISION MISSION SASSA’s Slogan
“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!

6. STRATEGIC OUTCOME ORIENTED GOAL OF SASSA
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

7. Key priorities for 2014/ /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

8. Programme Performance Report
July – September 2014

9. Implementation of the Social Assistance Programme
Objective
To provide social assistance to qualifying/eligible beneficiaries
Annual Target
Target is to reach at least 1.1m new beneficiaries p.a
Achieved
A total of new applications were processed in Q2. This brings a total number of applications processed from April to September to (66% of the annual target).

10. Implementation of the Social Assistance Programme
Objective
To provide social assistance to qualifying/eligible beneficiaries
Planned Annual Targets
Increase the number of grants in payment from to by end of 2014/15
Achieved+
At the end of the second quarter there were 16,405,853 social grants in payment, an increase of 214,124 social grants or 1.3% from the preceding quarter.
The Agency exceeded its annual target of due to unprecedented higher take up rates for CSG and Grant in Aid (Home visits targeting children between 0 &1 and aggressive marketing of the two grants).
Lapsed Grants: The total number of lapsed grants between April to September is social grants lapsed in Q2.

11. Table of the Take Up of Social Grants
Total Number and Percentage Growth of Social Grants by Grant Type
Grant type
Beginning of July
End of July
End of August
End of September
Difference/ Change
% Growth
CDG
122,492
123,001
123,632
124,225
1,733
1.4%
CSG
11,317,684
11,380,226
11,457,733
11,480,576
162,892
FCG
537,150
543,073
548,421
553,223
16,073
3.0% DG
1,122,204
1,126,116
1,127,285
1,124,770
2,566
0.2%
GIA
88,666
91,308
93,832
96,433
7,767
8.8%
OAG
3,003,142
3,009,522
3,017,127
3,026,260
23,118
0.8%
WVG
391
379
373
366
(25)
-6.4%
Total
16,191,729
16,273,625
16,368,403
16,405,853
214,124
1.3%

12. Growth of Social Grants Per Region (cont…)
Province
Beginning of July
End of July
End of August
End of September
Difference/ Change
% Growth EC
2,660,471
2,670,119
2,686,610
2,690,278
29,807
1.1% FS
944,171
948,214
952,019
953,116
8,945
0.9% GP
2,226,608
2,240,609
2,256,628
2,267,347
40,739
1.8%
KZN
3,817,404
3,831,301
3,850,423
3,853,324
35,920 LP
2,256,781
2,268,080
2,279,028
2,282,300
25,519 MP
1,347,360
1,355,594
1,363,505
1,367,147
19,787
1.5% NW
1,138,452
1,144,032
1,150,539
1,154,256
15,804
1.4% NC
431,469
433,216
436,425
438,522
7,053
1.6% WC
1,369,013
1,382,460
1,393,226
1,399,563
30,550
2.2%
Total
16,191,729
16,273,625
16,368,403
16,405,853
214,124
1.3%

13. Number and Percentage of Social Grants per Region and Grant Type (cont…)
OAG
WVG DG
GIA
CDG
FCG
CSG
Total
% of total EC
523,028 52
181,186
14,329
18,706
123,155
1,829,822
2,690,278
16.4% FS
179,201 6
77,424
1,717
6,277
43,141
645,350
953,116
5.8% GP
464,977 91
113,401
2,524
15,890
59,984
1,610,480
2,267,347
13.8%
KZN
621,898 46
290,828
34,172
36,024
136,552
2,733,804
3,853,324
23.5% LP
425,555 26
92,904
16,016
12,916
63,725
1,671,158
2,282,300
13.9% MP
221,516 16
79,082
4,382
9,266
37,092
1,015,793
1,367,147
8.3% NW
228,641 12
86,085
6,299
8,774
43,273
781,172
1,154,256
7.0% NC
77,957 10
49,779
6,002
4,726
15,376
284,672
438,522
2.7% WC
283,487
107
154,081
10,992
11,646
30,925
908,325
1,399,563
8.5%
3,026,260
366
1,124,770
96,433
124,225
553,223
11,480,576
16,405,853
100.0%
% total
18.45%
0.%
6.86%
0.59%
0.76%
3.37%
69.98%
100.00%

14. Implementation of the Social Assistance Programme
Objective
Reduction of inclusion and exclusion errors in the social assistance programme
Planned Activities
To reach 70% of children between ages 0-1 who are eligible for CSG
Achieved
The total of children’s grants in payments as at September stands at This represents 43% of the children population in this age group.
The numbers increased by (0.5% growth) from the previous quarter.
Breakdown of grants in payment for children (0-1) are: CSG in 515,596; CDG 337, FCG 197.

15. Implementation of the Social Assistance Programme
Objective
Improve the management of Social Relief of Distress by ensuring qualifying beneficiaries are not disadvantaged.
Annual Targets
SRD applications will be processed per annum over the next three year
Achieved
SRD applications were processed in Q2 bringing the total to since the beginning of the financial year
Total Expenditure on SRD for the six month period stands at R of which R was spent in Q2.
Cash – (Q1: 5753; Q2: 1 631)
Food parcels – (Q1: ; Q2: )
Vouchers – (Q1: 73339; Q2: )
Other – 1213

16. Service Delivery Improvement
Objective
Improving conditions under which beneficiaries are served
Annual Targets
Progressively reduce the turn around time for processing of grants to an average of 10 days by 2016
Upgrading of local offices and acquisition of new offices in areas of high need.
Achieved
Turn around time for processing of grant applications is on average 21 days.
96.23% of applications were processed within 21 days (this represents a 4.11% increase from the first quarter).
3.7% of applications were processed after 21 days (mainly disability grants
15 local offices and 17 pay-points were improved in quarter 2.

17. ICROP interventions per province
Target: Taking services to communities thus broadening SASSA footprints (420 wards).
763 wards were reached through community outreach initiative (ICROP, Mikondzo and door to door campaigns) .
Region
No. Wards visited Q1
No. Wards visited Q2 EC 15 39 FS 18 GP 6 21
KZN 25
247 LP 4 33 MP 8 23 NC 31
106 NW 9 14 WC 54 92
TOTAL
170
593

18. Payment System Objective Improvement in the Payment of Social Grants
Targets
Implementation of the Payment Tender
Achieved
Payment tender was advertised in October 2014
Compulsory briefing session was held on the 28 October 2014
CPS challenged the RFP in the CONCOURT
As directed by the ConCourt, SASSA extended bid deadline in order to amend tender documents.

19. Improved Administration: Automation
Annual Targets
Improvement of ICT Infrastructure and automation
Achieved
Availability of business systems
Connectivity to business systems in all SASSA Local offices is sitting at 93%. The biggest challenge relating to connectivity is the power failure and copper theft.
Interface to the HANIS (DHA)
The interface to the HANIS system was developed. Implementation is dependent on the procurement of fingerprint scanners currently being procured as part of the 3 factor solution

20. Improved Administration: Automation (cont…)
Annual Targets
Automation of business systems
Achieved
Internal reconsideration mechanism (IRM)
The IRM workflow to facilitate the process / operation for IRM application is fully automated and an interface to ITSAA was provided to support the appeal process.
Interim Customer Care Solution
An interim customer care solution was implemented to track and manage the enquiries, complaints, request from beneficiaries
Fraud Management System
The Fraud Management System was developed and further enhanced to enable the tracking and progress / status's of investigations.

21. Improved Administration: HCM
Objective
Effective and efficient administration (Human Resource)
Achieved
Identified critical posts were filled in Q2
Appointments: 611 (95 Permanent)
Terminations = 642 (mainly end of term for EPWPs & Interns)
promotions: 74
2 HCM policy was reviewed in Q2 (Study Aid and Resettlement policies). The total number reviewed for the six month period is 3
Trained 106 officials in Q2 in various fields including supervisory and management training, customer care financial management.
274 labour relations cases were reported between April and September of these cases were reported in the 2nd Q and 107 cases were carried over from the Q1. All cases are in the process of being investigated".

22. Litigation
The total number of litigation matters as at the end of the September 2014 is (Q1: 41 & Q2 66).
The total amount of litigation costs (liability) as at the end of the September R3.41million (Q1: R & Q2: R ). This amount includes the amount for the legal costs incurred in respect of the matters which were dealt with in the previous financial years (due to the late submission of invoices by the legal representatives); commencing from 2006.
Types of cases in Q2:
52 - Social Grants (reconsiderations, cancellations, and appeals);
11 - Labour disputes;
1 – IEC related, 1 – Delictual claim, and 1 - Contractual
Distribution Q2: The cases were mainly from the following offices – HO 5 (1 IEC; 1 delict; 1 contract; 2 labour); EC 13 (7 labour; 6 social grants), KZN 47 (46 social grants and 1 labour), WC 1 (1 labour).

23. Litigation management
SASSA
2014/15 (Quarter 1)
2014/15 (Quarter 2)
No.
Cost (R ) HO 2 5 EC 27 13 FS -
790.98 GP
KZN 12 47
0.00 LP MP NC NW WC
281.58 1
Total 41 66
NB: There is no correlation between the number of cases and the amount. The legal costs incurred is in respect of the matters which were dealt with in the previous financial years (due to the late submission of invoices by the legal representatives); commencing from 2006.

24. Fraud Management
The target for the financial year 2014/15 remains 60% of identified fraud and corruption cases to be investigated.
From 1 April to September 2014, a total of 745 cases were received, 484 of which were in Q2.
A total of 1,352 were investigated (this includes those that were outstanding from previous year.
The investigation average for Q2 is 160%, representing an overachievement of 100%. This overachievement was largely due to improved capacity in the fraud and management unit.

25. Fraud management: Performance Targets
1. 60% of identified fraud, theft and corruption cases investigated
Region
Quarter 1 (1 Apr to 30 Jun 2014)
Quarter 2 (Jul to Sep. 2014)
Nr Rec
Nr inv %
Head Office 5 22
440% 1
100%
Gauteng 50
111
222%
100
113
113%
North West 6 7
117% 3
43%
Free State 20 37
185%
102
276%
Northern Cape 9
180% 27
450%
Western Cape 46
128
284% 52
202
388%
Eastern Cape 25
28% 43 64
149%
KwaZulu Natal 49 28
57%
178
173
97%
Mpumalanga 31 76
245% 19
68%
Limpopo 24
153
637% 32 71
Total
261
578
221%
484
775
160%
The overall achievement for 2014/15 is Q1 = 221%, Q2 = 160%

26. Summary of Performance of the Second Quarter compared to First Quarter
Reported targets
APP targets
M&E assessed targets
SASSA had a total number of 29 APP targets planned for the second quarter.
66 % of the quarterly targets were fully achieved and 3% were partially achieved
Source: Branches’ 2nd quarter performance report 2014/15
Reported targets
APP targets
M&E assessed targets
Source: Branches’ 1st quarter performance report 2014/15

27. Financial Performance Report

28. Overall expenditure for the period April – September 2014

30. Overall expenditure on key cost drivers (April – September 2014)

31. Notes to the level of spending
Compensation of employees:
Some of the vacant funded posts were not yet filled during the period under review thus the underspending on this item.
The total number of posts budgeted for at various levels is 10,375. As at end September 2014 there was a total of 9,699 personnel in the system.
Goods and services: The underspending is mainly on:
Cash handling fees due to efficiency gains resulting from the reduction in the cost of disbursing grant monies
Leases due to offices that are in the process of being occupied
Travel and subsistence due to spin-offs from cost containment measures
Capex – SASSA procured new fleet in 2013/14 and took delivery of some of the motor vehicles in 2014/15 thus the overspending. The fleet is funded from the retained surplus.

32. Recommendations It is recommended that the Portfolio Committee
Consider SASSA’s financial and programme performance reports for the period of July – September 2014

33. Thank you