1. Annual Performance Plan & Budget 2018/19 -2019/20
Presentation to the Portfolio Committee on Social Development
2 May 2018

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

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

4. 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!

5. 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

6. 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 );
Review of the cash payment method including the migration of cash beneficiaries to electronic channels;
Internal review and re-prioritization of some projects

7. 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.

8. 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

9. 2018/19 Targets per Programme

10. Programme 1: Administration

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

12. 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.
Draft SASSA Ten-Year infrastructure plan finalized.

13. 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.
Biometric enrolment of beneficiaries insourced and deployed nationally
Effective ICT Operations
Upgrade SASSA Network connectivity infrastructure at 116 offices.
Information Management
Develop SASSA Data Governance framework.
Implement Business Intelligence solution for key programmes in SASSA including grant applications and payments.

14. 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).

15. Benefits Administration and Support
Programme 2:
Benefits Administration and Support

16. 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.
Reduce the grant application turnaround times reduced from 15 days to 10 days
95% of social grant applications processed within 10 days.

17. 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 million to 17.7 (17  ) by end of 2018/19 financial year at an estimated cost of R163 billion.
Older persons;
Children; and
Persons with disabilities.
Increase the number of children aged 0 to 1 years in receipt of Children’s grants
applications for children aged processed.

18. Implementation of the Social Assistance Programme
Objective
Planned 2018/19 Targets
Provide social relief of distress to eligible families
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.
Region
No. SRD applications 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

19. 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.
FCG reviews are targeted.
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).

20. 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.

21. 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 (i.e. Paying more than 300 beneficiaries a day) – 100% (2 401)

22. SASSA 2018/19 Financial Plan

23. The 2018/19 MTEF Budget Allocation

24. Salient features of the SASSA budget

25. The 2018/19 MTEF final allocation

26. Budget Allocation breakdown

27. 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.

28. Funding from the retained cash surplus

29. RECOMMENDATIONS
It is recommended that the Portfolio Committee note and approve SASSA’s Annual Performance Plan and Budget for the 2018/19 financial year.

30. Thank you