1. Presentation to the Portfolio Committee on the Social Security Agency
February 2005

2. Purpose of the presentation
The proposed process map towards the Agency establishment;
An overview on progress;
The funding mechanism for 2005
The short-term improvement plan

3. Background
The Social Assistance Act, 2004 shifts the responsibility for social grants to the national sphere of government.
The South African Social Security Agency Act, 2004 establishes the Agency for the management & administration of social grants
South African Social Security Agency Act is operational.
The Constitutional Court’s recent decision requires that the function shift is effected by 6 March 2005.
An Inspectorate will be responsible for ensuring that the integrity of the social grants system is not compromised
All efforts are made to ensure that the Agency is functional and operational by April 2005

4. Establishment of the Agency - Phases
Phase 1 – by 1 April ’05 - Agency is established as a legal entity with Head Office and management structure
Ring-fence of social grants function and separation;
Development and roll out of systems, policies and procedures
Implementation of short term improvement plans
Phase 2 – April 2005 to March 2006 Continued delivery of grants by provinces
Conditional grant agreement and MOU with provinces
Capability building of the Agency as well as a role in the integrity enhancement of the system
Phase 3 – from April Optimisation of the Agency during

5. Process Map to Agency Establishment

6. Process Map to Agency Establishment

7. Process Map to Agency Establishment

8. Process Map to Agency Establishment

9. Process Map to Agency Establishment

10. Progress Continues.…
The Service Delivery Stream developed draft versions of:
A Strategic Plan, with the Agency vision, mission and programs;
The envisaged Business and Delivery Model;
Implementation plans for delivery improvement being finalised; and
A building procured and being refurbished.
The Human Resources Management Stream developed the:
Guidelines for transfer of staff;
Organisational structures for the Head Office and provinces developed;
Initiated ringfencing of personnel;
Advertisement of the CEO and Executive management posts; and
Draft Policies, procedures and enablers for Human Resources.

11. Progress Continues.… The Finance Stream is:
Budget for the Agency was submitted; and
Benchmarking financial and procurement policies for the Agency.
Financial ringfencing is making good progress
The Information Technology Stream developed:
An Information Technology strategy;
An IT migration plan for the (SocPen);
Is procuring an IT workflow system to grants process
Request for proposals for an Enterprise Resource planning system will soon be published

12. Progress Continues.… The Legal Stream is:
Looking at the proposed governance agreements;
Reviewed contractual agreements with service providers;
Draft Regulations are available for comment; and
Proclamation of the Agency Act should be done soon.
The Communications and Change Management Streams have:
Developed a Communication Strategy and plan;
A stakeholder management strategy and plan;
An interim Public Relations and Branding Strategy; and
A Change Management plan to address staff and other related issues.

13. The Funding Mechanism
Given that the Agency will be building capabilities throughout 2005, provinces will need to manage and administer grants
Funding of the function will be through through conditional grants via the national Department
The Conditional grant will have two components
Administration (incl. Personnel and payment contractors)
Social Grants transfers – subdivided into different grants
Funding of Agency and Inspectorate thru transfer payment between DoSD and the Agency

14. Implementation of the Conditional Grants
The Budget Council, MinComBud and Cabinet approved a conditional grant for 2005/06
Finalisation of grant framework, conditions and monitoring mechanism completed
Recommendation of the size of administration component requires ringfencing to be complete soon
Inline with the Social Assistance Act, a Memorandum of Understanding will be signed between national and Provinces at the next MinMec 28 February 2005

15. Improvement Plan
Since provinces will continue to deliver social grants services, it is important that visible improvements are implemented in line with Agency establishment date.
The Improvement plan has two elements:
Integrity improvement
Service Delivery Improvement.